The Knowledge Economic City ... drawing international interest.
Holy cities abuzz with activity
Makkah and Madinah continue to be hives of activity, which has been heightened by plans for the development of an economic city as well as a railway.
01 December 2007
Massive economic and residiential cities, mega commercial and residential projects, airports and railways usher in an era of intense activity in the holy cities of Makkah and Madinah, which have traditionally been abuzz with construction activity.
With land being at a premium around the Grand Mosque in Makkah and the Prophet’s Mosque in Madinah, plots in these areas command prices that are among the highest in the world and hence are witnessing the mushrooming of high-rises to accommodate the projected 30 million visitors to these cities by 2010.
To facilitate the surging numbers of pilgrims to the cities, the Custodian of the Two Holy Mosques King Abdullah – like his predecessors – has also shown special interest in the development of the two holy mosques. Recently, he allocated SR10 billion ($2.68 billion) for the comprehensive development of the Grand Mosque in Makkah and the holy sites of Mina, Arafat and Muzdalifah. He also ordered the air-conditioning of the entire Grand Mosque. Plans have also been made to increase the mosque’s capacity by 35 per cent. The expansion project is likely to be completed by 2020.
A new expansion project is also being carried out at the Prophet’s Mosque in Madinah at a cost of SR4 billion. It includes construction of sunshades around the mosque, expansion of the mosque’s eastern courtyard and establishment of a new transport station and parking areas. The project is aimed at creating additional prayer area for some 270,000 worshippers and improving facilities for pilgrims and other visitors.
Real estate
The two holy cities are the focus of the real estate boom in the country, with hotels, apartments and shopping malls rising rapidly, particularly around the Grand Mosque. Among the largest of these projects are Al Oula’s $9.3 billion Al Shamiya, which is designed to accommodate up to 250,000 people on completion by 2016, the $8 billion Abraj Al Beit project which is scheduled for completion in 2008 and the $2.7 billion Jebel Omar Development.
Among the latest projects to be announced for Makkah is the SR6 billion Rawabi Abraj Al Bait, a 21-tower residential and commercial development. The prestigious project, which overlooks the Masjid Al Haram, one of the holiest sites of Islam, is in fact larger in scale than the adjacent Abraj Al Bait project, covering a total area of 2.7 million sq m and boasting world-class amenities including wireless connectivity, 24/7 security, high-speed elevators, restaurants, ample parking, medical facilities, prayer rooms and shopping malls.
Another mega project announced this year was Ajyad, a modern residential city comprising shopping malls and hotel towers designed to service pilgrims as well as hospitals and schools. The project, being developed by Ajyad Company, is estimated to cover an area of 350,000 sq m. The project also aims to preserve the historical identity of the holy city through creating six museums that feature the history of Islam.
Economic city
Work on the infrastructure for the $7 billion Knowledge Economic City (KEC) in Madinah is expected to commence by January next year. The city will be developed in three phases with each phase expected to take about four years to complete.
The project has attracted considerable international interest, with the project's main developer Seera City Real Estate Development having already signed Memoranda of Understanding (MOUs) with Malaysian companies, such as Multimedia Development Corp (MDeC) and MSCTC. Siraj Capital Limited and Project Management and Development Company (PMDC) have signed a $100 million MOU to develop the project’s hospitality sector, including the construction of hotels, residential apartments and an exhibition/convention centre. A $133 million MOU was also signed between KEC and Savola Group Company to develop Phase One of the project’s unique retail complex with a gross lettable area of more than 100,000 sq m.
“We are expecting to finish Phase One – which represents 40 per cent of the project – in three to four years,” Mohammad Khoja, marketing director for the project tells Gulf Construction.
“Yet another $27 million MOU was inked with Malaz Group to set up an ICT fund. The exercise lays the groundwork for an investment capital for activities related to knowledge-based industries, such as software development, communications, and small business incubators,” says Khoja.
KEC has selected HOK Canada, a world-renowned architecture and planning firm, to conduct studies and a technical revision of the city’s conceptual masterplan in order to generate a detailed master plan, with design guidelines and related material, he adds.
The Saudi Arabian General Investment Authority (Sagia) is working with a consortium of Saudi companies to create the investment vehicle for the development of the King Abdullah Foundation property, covering a land area of 4.8 million sq m. Located to the east of Madinah, the city will include a total built-up area of 9 million sq m, including 250,000 sq m of office space, 30,000 residential units that include villas and apartment blocks and 1,200 shops. Its main components include a complex for technology and knowledge-based industries, an interactive museum, a complex for medical studies, biological sciences and health services as well as an Islamic civilisation studies centre, and the King Abdul Aziz Mosque.
The 10- to 15-year project is a central component of Madinah’s knowledge-economy initiative, and will include a central business district, theme parks, tourist attractions, world-class hotels and retail offerings. It is partly modelled after Malaysia’s Multimedia Super Corridor (MSC) and Cyberjaya and will be home to a population of 150,000, when completed.
In addition, Madinah airport will be upgraded to an international facility. The airport expansion project and new train links to these cities are expected to be completed in four years.
Railways
Six international groups are expected to submit proposals by January to build a high-speed link between Makkah and Madinah. The approved consortia are the Al-Rajhi Consortium, the Saudi Binladin Group, the Saudi Oger, the Saudi Japanese Consortium, Al Sholah Consortium and the OHL International. The Saudi Railway Organisation (SRO) is looking for a technically advanced transportation solution for the three million pilgrims that travel between the holy cities during the Haj season, apart from the Umrah pilgrims and visitors in other months. The system is expected to be economical to construct, easy to maintain and at the same time meet the requirements of passenger comfort, safety and environment.
Other projects
Another significant project is the expansion of the Jamrat Bridge in Mina, the second phase of which is now due for completion. Under the second phase, the second level has been built. This level is then linked to three new one-way roads, easing the movement of 150,000 to 200,000 pilgrims an hour and reducing pressure on the ground and first levels that formed the first phase of the project completed last December.
The entire four-phase reconstruction and expansion of the Jamrat Bridge is estimated to cost SR4.2 billion and will take five years. The complex will comprise four levels – each 12 m high and 9 m wide – above a ground level and basement. Incorporating state-of-the-art safety features, crowd and traffic control systems and two helipads designed for air ambulance services, the completed project will be able to accommodate five million pilgrims at the rate of 500,000 pilgrims an hour, a five-fold increase from before.
