KAEC phase 1 to be ready by 2011

Emaar is on track to completing 10 per cent of King Abdullah Economic City (KAEC) by 2011, although the firm is "running against time to finish" the 168 million square metres development, a senior executive from the company said.

KAEC is the largest private sector development in the region located on the Red Sea Coast and in easy proximity to the holy cities of Makkah and Madinah.

It has six key zones: the Sea Port, Industrial Zone, Central Business District, Educational Zone, Resort District and Residential Communities.

Usamah Al Senan, KAEC sales director, said the phase one or 10 per cent of the seaport will be ready by 2011. The port, which upon completion will be five times the size of Hong Kong's seaport will have a full capacity of 20 million containers a year.

"The first phase is fully booked and has a waiting list of five times the size of its capacity," Al Senan said, adding the second and the third phases will be finished in 2015 and 2020, respectively.

Ten per cent or 7 million sq m of the industrial zone has been entirely rented and handover will begin by the end of this month, he told Emirates Business.

In the residential zone, construction of the Esmeralda project has already started and half of the development, which features a massive golf course, will be ready by next year, Al Senan said.

Another residential development, the Bay La Sun project, an island project offering downtown residences and retail space, will be handed over in the first quarter of 2009, he added. The first building, Bay La Sun, launched in Saudi Arabia prior to City Scape, was sold out in two hours.

"The city is happening. The question is will we able to meet the target of completing 10 per cent of KAEC by 2011, the answer is yes," Al Senan added.

Overall, Emaar's Economic City, the Tadawul-listed company developing KEAC has recently achieved $266m from sales of residential units within the first phase of the mega project. "The achievements of the company put the spotlight on Saudi Arabian General Investment Authority's vision of 10x10 to make the kingdom one of the top 10 competitive nations in the world," Fahd Al Rasheed, CEO and board member, Emaar Economic City, said.

"The overwhelming sales response highlights the trust of our shareholders and that of the public in the project," he said.

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