Jeddah Development & Urban Regeneration Company (JDURC) is a wholly owned governmental delivery agency, given authority by Jeddah Municipality to enact its masterplans for the city of 3.4 million in Saudi Arabia’s Western Province. It seeks to improve the services provided to its inhabitants and visitors, as well as to diversify its projects portfolio to include urban regeneration, infrastructure, housing, megaprojects, environment and quality investment opportunities for the private sector. Jeddah is undergoing a number of redevelopment plans, with key transport links being upgraded to support the development of major projects.

Wide portfolio

There are three main objectives for JDURC: privatisating municipal assets and concessions; developing new projects that meet the aims of Jeddah’s masterplan; and furnishing public-private partnership (PPP) models to improve service standards. Given the scale of the infrastructure requirement in a city where standards have deteriorated due to neglect over many years, its portfolio of activities is wide.

JDURC has $42bn of projects under development, which makes it the kingdom’s largest active developer

A key need is to improve housing supply, with two new cities at Salman Bay and Murooj, and plans to build 67,000 new homes. The company must also relocate some 400,000 Jeddah residents living in unplanned areas.

Historic centre

JDURC has $42bn-worth of projects under development, which makes it the largest developer active in Saudi Arabia. It founded an affiliate in 2012 to operate and execute the redevelopment of the historic centre of the city, the so-called Heart of Jeddah (HOJ) project.

In June of this year, the Heart of Jeddah Development Company invited contractors to submit bids for enabling works on the HOJ. The 847,379-square-metre mixed-use development will be situated on the land of the old airport in Jeddah. The contract will involve enabling and infrastructure work.

Another subsidiary, Jeddah Metro Company, will undertake the $12bn integrated transport project, comprising a metro, bus feeder network, ferry system and waterfront tram.

Attracting investors

Key aims are to reduce the bureaucratic inertia that has traditionally held back urban renewal in Jeddah, and make it more appealing for private investors to invest in local developments. The plans would see any redevelopment asset become a JDURC subsidiary, which in turn would be open to investors.

It completed the first phase of the middle Corniche development in 2013, comprising some 58,000 sq m, and is now focusing on a 270,000- sq-m area that will include hotels, shopping, and leisure and conference facilities. It will oversee infrastructure developments focused on water and sewage management, with improvements to storm water and drainage facilities planned.

External assistance

There are clear limits on what JDURC can achieve, given that it is effectively a holding company with a limited staff (there are estimated to be fewer than 100 employees on its books). That means tapping outside expertise and bringing in external project managers.

Though it has been going for nine years, there are still question marks over JDURC’s chances of success in refashioning the kingdom’s second city. To an extent, JDURC chiefs will be relying on Jeddah Municipality to do a lot of the hard work. The council will continue to manage civil works, leaving JDURC subsidiaries to create joint-venture partnerships to develop areas.

Project overload remains a risk, as does mission creep, but its affiliates are getting on with the job and Jeddah’s long-suffering residents should start to see the fruits of the investment over the next few years.