The local Al-Oula Development Company is planning to build the largest tower in Al-Khobar on the kingdom's east coast. The estimated SR 1,000 million ($272 million) project is one of several schemes proposed in the city as investors look to tap into the relatively undeveloped area.

Located on Prince Turki bin Abdul-Aziz road, overlooking the corniche, the mixed-use development will have 50 storeys and include residential, commercial and entertainment facilities. It will cover an area of about 40,000 square metres.

Al-Oula is preparing to invite international consultants to submit proposals for the tower's design. the first construction tenders are due to be issued by the second half of 2007. The project will take about 38 months to complete. The US' Turner Arabia is the project manager.

Work is also pressing ahead on the construction of the Al-Khobar Lakes development. Emaar Middle East, a 60:40 joint venture between Dubai-based Emaar Properties and Al-Oula, is developing more than 1 million square metres at the crossing point between the three main roads of Al-Khobar-Abipaq, Abu Hadriya-Dammam and Abipaq- Dammam-Al Khobar.

The scheme centres on the construction of 2,300 villas surrounding an artificial lake, municipal buildings, schools and retail outlets. The villas will be built in phases, depending on demand. Saudi Binladin Group is building six show villas and associated infrastructure.

Tendering activity is expected to gather pace once new municipal urban zoning regulations are ratified. 'We are expecting the Planning Ministry to approve updated regulations within the next two months at which stage we will have a clearer idea of demand and how the project will be tendered,' says an official at Al-Oula. EDAWof the US is the consultant (MEED 21:4:06).