To be called Rawabi Rumah, the project is valued at SR27bn ($7bn) and will cover 31 square kilometres.
The project is currently at the masterplanning stage with the design yet to be finalised. It is proposed that 60 per cent of the final design will be allocated to residential developments.
According to the company, it is hoped that up to 25,000 jobs will be created across various sectors.
It is the latest in a series of projects that Emaar is developing in the kingdom. As well as King Abdullah Economic City (KAEC), it is developing Al-Khobar Lakes and Jeddah Gate.