Most of the residential and industrial agreements signed are with KSA-based companies
King Abdullah Economic City (KAEC), the world’s largest privately-funded new city, said it had awarded contracts worth $426 million for its residential and industrial development projects in 2016.
Located on the west coast of Saudi Arabia along the Red Sea 100 kms north of the commercial city of Jeddah, KAEC covers an area of 181 sqm. approximately the size of Washington DC. It comprises King Abdullah Port, the coastal communities, residential districts, the Haramain Railway district and the Industrial Valley.
KAEC is being developed by Emaar, The Economic City, a publicly listed Saudi joint-stock company established in 2006. 30% of the contracts awarded were for developments in the Industrial Valley and another 40% were for residential developments, said a statement from the Saudi company, posted on the website.
About 88% of the agreements have been signed with Saudi-based companies, said a top official. “KAEC is continuing to grow and our development plan remains firmly on track,” remarked Fahd Al Rasheed, the group chief executive and managing director of KAEC.
Al Rasheed pointed out that the value of projects under implementation in KAEC was worth over $1.6 billion and does not include the implementation of contracts in the King Abdullah Port and the industrial and commercial companies’ investments in the city.
According to Al Rasheed, KAEC has registered more than 2,700 vendors to work on the development of the city since 2007 and most of the vendors are national companies and organisations.