The developer of Saudi Arabia’s King Abdullah Economic City (Kaec) plans to spend SR125bn ($33bn) on infrastructure in the coming years as the project gathers momentum following a review of its masterplan in 2012.

The new masterplan for the development, located at Rabigh on the kingdom’s Red Sea coast, is a simplified version of the original plans prepared for the city between 2006 and 2008, and includes a more conservative delivery schedule. “We have a more realistic time frame,” said Charles Biele, head of residential development, Kaec, at MEED’s Arabian World Construction Summit in Dubai on 12 May. “The project was launched at the top of the market and we now have a more thoughtful approach.”

The city will now be delivered in four five-year phases that allow the developer to phase the delivery of infrastructure for the city, which, when completed, will be home to more than 2 million people. “We do not want to build too far ahead without infrastructure,” said Biele.

Construction at Kaec began in 2008 and several key components of the city have already been completed. The main one is the city’s port, which opened in the first quarter of this year. Once fully built out, the port will cover 14 million square metres of land and will have the capacity to handle 20 million 20-foot equivalent units (TEUs) a year.

Real estate is also a key component of the city, and the first units in the Bay La Sun district were delivered in 2010. Once fully completed, the Bay La Sun district will have 12,000 properties.

Other residential districts will cater to all market segments. Al-Shurooq will be 5,000 units of affordable housing, Al-Waha will be 25,000 units of middle-income housing, Al-Talah Gardens will be housing for middle income Saudi buyers, and Al-Murooj will be a high end development next to a golf course managed by Troon Golf.

Real estate sales are growing, said Biele. This year, Kaec expects to sell SR4bn of property, double the SR2bn achieved in 2013. He added that he expects SR8bn of sales in 2015.

KAEC also plans to build 10 hotels with 2,000 rooms over the next six years, as part of a plan to boost tourism at the economic zone. The Bay La Sun Hotel and Marina is the first of the 10 hotels planned in the city.