The $7 billion hi tech project is designed to turn the Al Madinah region into a centre for knowledge based industry where young Saudi entrepreneurs can be trained and nurtured.
It also intends to attract the best Muslim Information Communications Technology talent from around the world to the second most holy city of Islam.
Unlike the United States and Europe, which suffer from ageing populations, many parts of the Middle East and the Kingdom of Saudi Arabia in particular, have the opposite problem. About half of the 20 million local population of KSA is under the age of 20 and by building the economic cities in regional areas the government is taking a positive step towards creating employment for its young people.
At the same time it is opening the way for foreign investors to participate in as joint venture partners, sub developers, venture capitalists or direct investors.
A recent survey of business leaders throughout the Middle East showed that Saudi Arabia was the country they most wanted to invest in but until now opportunities have been limited. Projects such as Knowledge Economic City are now providing the opportunities many have been waiting for. From a real estate perspective, KEC fulfils the three key tenets for a good investment - 'location, location, location'.
The Al Madinah Al Munawwarah region in the northwest of Saudi Arabia has particular significance for the country and the Muslim world in general and twice a year during the Hajj and Umrah 10 million pilgrims pass through the area on their way to Mekkah.
The modern Madinah also is home to some of KSA's leading educational institutions, has a growing ICT industry and piloted the country's new e-Government program. So the positioning of the Knowledge Economic City on the outskirts of Madinah, just 7 kilometres from the airport, fits well with existing industry.
Knowledge Economic City is expected to create 20,000 new jobs and at the same time provide a solid return for investors. Preliminary studies suggest they can expect a 15% return, however, that could prove to be a conservative estimate if other major projects in the Gulf region such as those in the neighbouring United Arab Emirates, are any indication.
Knowledge Economic City has already attracted a powerful consortium of Saudi companies, including the Savola Group, Taiba Investments and Real Estate Company, Project Management Development Company (PMDC) and Quad Intl' Real Estate Development Co, and since November has signed deals with several Canadian and Malaysian interests.
The Malaysians in particular see the potential for high tech industry in the region, and they have plenty of experience gained from the development of their own Multimedia Super Corridor (MSC) to be able to judge that potential. In February a trade delegation lead by Malaysia's Deputy Prime Minister His Excellency Najeeb Tun Razaq visited Al Madinah and signed several deals that will give KEC the benefit of their MSC expertise.
The project is the only one of the six economic cities that has the direct involvement of the King Abdullah Foundation, which is providing the land for the development, and to make it more attractive to foreign investors KEC has been declared a special economic zone under the regulatory jurisdiction of the Saudi Arabian General Investment Authority (SAGIA).
The consortium heading the project has created a management company, Seera City Real Estate, which has the job of attracting investment and liaising with participants. Over the coming months it will be taking the project to the world through a series of road shows, trade exhibitions and direct contact with potential partners.
Seera City chairman Sheikh Ibrahim Al Eissa says KEC will combine the concepts of Intel Corporation's 'digital city'; Cisco's 'smart city' and Microsoft's 'internet frontier'. It is expected to create 20,000 new job opportunities; attract an expected population of 150,000; accommodate up to 30,000 visitors in world class accommodation; provide a retail area including 1,200 shops; develop 30,000 residential units and cover a land area of 4.8 million sq. m with a total build area of 9 million sq. m.
The project will include a centre for medical sciences and bio-technology; a high-tech park for knowledge-based industries, research centres and scientific development; an educational/entertainment park themed around the heritage of the Prophet (PBUH); a centre for Islamic civilisation studies and research; a multi-modal transport centre; a new, world-class business district for Al-Madinah and a major retail hub themed after the old souks of Al-Madinah.
'We want to establish joint ventures with strategic partners to develop and operate key components in the project such as the high-tech park; the theme park; medical services; educational institutions; infrastructure services; incubators and the transportation centre. We want to get together with leading international Information and Communications Technology (ICT) firms, ICT focused venture capital funds and Infrastructure funds,' says Sheikh Ibrahim.
Seera City managing director Dr Sami Baroum is understandably enthusiastic about Knowledge Economic City. 'It's attracting some of the world's leading experts in smart cities and knowledge based industry because they not only recognise the value of the project in terms of education, training and the development of ICT skills and industries, but understand the significance of Al Madinah as a heartland of Islam.
"This is an ambitious, challenging, creative, exciting and essential project that reaches out to people of all cultures and backgrounds around the world. It will act as a cultural landmark serving residents and visitors to Al-Madinah and become a national icon for knowledge-based industrial development.
'We have made a good start and we still have a long way to go, but our location at Al Madinah is a blessing that I am confident will assure us of success,' he says.
Autor(en)/Author(s): Lara Lynn Golden
Quelle/Source: AME Info, 17.04.2007
