Saudi Arabia’s Knowledge Economic City wants investors

Saudi Arabia’s Knowledge Economic City wants investors



By CHAN CHING THUT

THE developer of Saudi Arabia's Knowledge Economic City (KEC) Al Madinah hopes to attract not only foreign direct investments, but also experience and expertise from prospective investors.

The 4.8 million sq m KEC will have a gross investment value of US$7bil when fully developed.

Project manager Seera City Real Estate Development Co business development vice-president Hisham Zahid said the company was open to discussions with any parties to participate in KEC.

“There are a lot of investment opportunities in infrastructure, hospitality, retail, real estate, information technology, education and so forth.

“However, we do not want investors to just put in money, but smart money.

“We require investors who have a good track record and are able to provide the know-how and experience to successfully develop KEC,” he said.

Hisham told StarBiz Malaysia had a very good and impressive knowledge-based industry and could play a role in assisting in the development of KEC.

“We can learn from what has happened here and adapt it to KEC. We also want to learn from Malaysian companies and hope to establish more partnerships,” he said.

So far, the company has signed memoranda of understanding and contracts with several local companies (in Saudi Arabia) and with government and private sector organisations from Malaysia and the US.

Marketing and public relations director Mohammed Khoja said the company has organised roadshows to the Gulf region, Thailand and Malaysia and have been approached by companies from France, Singapore and Australia.

KEC, the latest of the six economic cities planned by the Saudi Arabian General Investment Authority, will boost the economic development in knowledge-based industries such as intellectual property, medical, hospitality, tourism and multimedia.

The other economic cities already announced include King Abdullah Economic City, Prince Abdulaziz bin Mousaed Economic City and Jazan Economic City.

Mohammed said Saudi Arabia was headed for another boom with the easing of rules and regulations to attract investments.

“Foreign direct investments have been increasing 20% year-on-year,” he added.

Construction of KEC – divided into three phases – will begin in the middle of next year and go on for 12 years.

Hisham said the first phase would begin with the infrastructure, which would continue for four years.

An initial public offering by the consortium (comprising four participating companies) which is developing KEC is also scheduled latest by the third quarter next year.