Partner Content

A partner’s perspective on working with Sharakat

Saudi Arabia’s water scarcity is at the centre of a blossoming infrastructure market, with private partners at its core. Its prosperity is reflected in the success of a number of flagship projects

By SHARAKAT

The city is being developed by the Saudi Industrial Property Authority (Modon), and it is hoped that it will bring significant industrial development to a relatively remote area that lies 120 kilometres north of Riyadh.

Progress on the city has been extremely slow. Despite the fact that infrastructure work has been under execution since 2011, no major announcements have yet been made about any major industrial plants being constructed at the site.

In early 2010, Modon interviewed 71 potential investors in the city, who could bring projects worth up to SR2.5bn ($667m) between them into Sudair.

Work is not scheduled to be fully completed until 2029 and, when finished, the city will be 264 square kilometres in size, making it 70 per cent bigger in terms of area than the King Abdullah Economic City near Jeddah.

The budget estimates for the city have varied from between $16bn to as much as $40bn. This will depend on the number of new businesses that start operations at the site.

Sudair could be home to more than 1 million residents once it is complete, with residential and leisure areas being planned. The bulk of the massive site is expected to be split into sectors, with the majority falling into Riyadh’s plans for industrial diversification.

The city will be split into zones covering sectors including education, commercial, residential, industrial, leisure and entertainment. Industries that are favoured include telecoms and manufacturing of electronic components.

If successful, Sudair is expected to alleviate congestion in Riyadh as well as provide prosperity for the surrounding area.

Despite there being no major industry confirmed at present, Sudair will be expected to attract private sector investment. It is strategically positioned, with the North-South railway crossing the site and linking Buraidah and Riyadh. There is also an established road network linking Sudair to Qassim in the north.