Saudi Arabia’s Public Investment Fund (PIF) will lead the SR18bn ($4.8bn) redevelopment of Jeddah’s waterfront corniche.

Known as New Jeddah Downtown, the 10-year redevelopment scheme aims to create a tourist, residential and commercial destination on the Red Sea coast that will create 36,000 new jobs.

The 5 square kilometre site will be divided into six main sections that include housing; museums, and cultural and social centres; areas for business and innovation; gardens, amusement parks and sports facilities; hotels and hospitality facilities; retail spaces; as well as coastal areas for seaside activities, and walking routes along the private boat and yacht pier.

The residential area will comprise 42 percent of the new development, with 35 percent dedicated to entertainment and retail areas, 12 per cent to office space, and 11 percent to new hotel and hospitality facilities.

For housing, the project aims to deliver over 12,000 housing units that will accommodate 58,000 new residents.

Initial preparation works are currently underway, with construction due to start in 2019. The first phase of the project is expected to be completed by the end of 2022.

The PIF is also leading the development of the Red Sea Project that involves the development of 200 kilometres of coastline between the cities of Amlaj and Al-Jawh on the western coast of the kingdom.

Although the latest Red Sea scheme is still in the early stages and no budgets have been revealed, it has the potential to be the largest project announced since the drop in oil prices in 2014, and could offer billions of dollars of opportunities for contractors in the kingdom.