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. 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.
Al Madinah was the home of the Prophet (Peace Be Upon Him), the place where he is buried and the place where the Quran was compiled. 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 programme. So the positioning of the KEC on the outskirts of Madinah, just seven kilometres from the airport, fits well with existing industry.
This development has already attracted a powerful consortium of Saudi companies 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.
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 City 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 square metres.
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.
Quelle/Source: Property World Middle East, 13.05.2007
