Since launching King Abdullah Economic City near Jeddah in December 2005, Riyadh has revealed the mammoth scale of its ambitions by unveiling a series of mega-city projects that include five other economic cities and several huge industrial clusters such as the $40bn Sudair Industrial City north of Riyadh.
Each of the cities is to be paid for by the private sector - albeit with the state providing cheap land and energy as inducements.
Riyadh is prioritising development at King Abdullah Economic City to prove the viability of the new city model - a move that it hopes will encourage and strengthen investor interest in the other cities.
Even so, a host of agreements have already been signed with private partners for the cities in Jizan, Medina and Hail, demonstrating that even without aggressive promotions, the potential of the cities is speaking for itself.
Despite this, Saudi Arabia has been criticised for making slow progress on some of these schemes. But it is right to proceed with caution.
In contrast to some of its more brash Gulf neighbours, Riyadh instinctively prefers to put in place its road, power and water infrastructure before pushing ahead with industrial and commercial developments.
It prefers demand to be proven and not speculative.
Google map: Saudi Arabia’s Economic Cities
Special Report: Saudi Arabia - Riyadh’s new economic cities - Index of all stories
Developing the city model: Economic cities
Riyadh is building six more mega cities, but it is taking a very different approachAttracting the private sector: Investment
The kingdom is relying on the private sector to fund the development of its new economic citiesKing Abdullah Economic City: Time to deliver on promises
The project faces the key challenges of delivering growth and creating jobsMedina Knowledge City: Where technology meets faith
The holy city is set to become a centre for information technology as well as religious scholarshipPrince Abdulaziz bin Mosaed Economic City: A spur to development
Little progress has been made at Hail but that could change following a recent agreementJizan Economic City: Building industry from scratch
Riyadh faces a massive challenge creating a city in one of the most deprived and underdeveloped areas in the countrySudair: The $40bn mega city
The planned industrial mega city will dwarf all the other schemes in the kingdomCommentary: Riyadh must ease investment risks
Investors would be reassured if Riyadh reduces the risks by offering subsidies and guarantees of demand
You might also like...
Oman receives Madha industrial city tender prices
19 April 2024
Neom seeks to raise funds in $1.3bn sukuk sale
19 April 2024
Saudi firm advances Neutral Zone real estate plans
19 April 2024
Algeria signs oil deal with Swedish company
19 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.