Saudi Arabia Builds Cities in the Sand to Move Beyond Oil

[M II A II R II K]

Saudi Arabia Builds Cities in the Sand to Move Beyond Oil


August 6, 2017

By Sarah Algethami

Read More: https://www.bloomberg.com/news/artic...onomy-past-oil

After relying on oil to fuel its economy for more than half a century, Saudi Arabia is turning to its other abundant natural resource to take it beyond the oil age -- desert. The kingdom is converting thousands of square kilometers of sand into new cities as it seeks to diversify away from crude, create jobs and boost investment.

- The kingdom last week announced plans to turn 50 islands and 34,000 square kilometers (13,127 square miles) -- an area bigger than Belgium -- along its Red Sea coastline into a global tourism destination. Located between the cities of Umluj and Al Wahj, the project aims to attract luxury travelers from around the world and will be developed by the Public Investment Fund, the country’s sovereign wealth fund. Construction is expected to start in 2019 and the first phase completed by 2022. The development cost of the project wasn’t given.

- The kingdom announced detailed plans for the Al Faisaliyah project last month. Located to the west of Mecca, the city will have residential units, entertainment facilities, an airport and sea port. The project will cover 2,450 square kilometers -- almost the size of Moscow -- and is expected to be completed by 2050. The Makkah Region Development Authority is supervising the project and the PIF is also involved. An investment figure hasn’t been given.

- Saudi Arabia in April announced plans to develop the kingdom’s largest cultural, sports and entertainment city in Al Qidiya, southwest of Riyadh. The project will be developed on 334 square kilometers and will include a safari area and a Six Flags Entertainment Corp. theme park. The country’s sovereign fund is the main investor, along with local and international investors. Construction is due to start next year and the first phase should be completed by 2022. An investment figure was not given.

- King Abdullah Economic City, named after the former head of state, is the kingdom’s first freehold city and is being developed by Emaar Economic City, a company controlled by the Saudi government and Dubai’s biggest property developer Emaar Properties PJSC. Covering about the same area as Brussels, the project has attracted $7.9 billion of investment and secured enough cash and credit to fund its planned spending for the next decade, according to KAEC. The project includes a deep-sea port, a 55 square-kilometer logistics hub, a sports and recreation center and more than 6,500 residential properties.

- King Abdullah Financial District, as it’s known, was envisaged as Saudi Arabia’s answer to the Dubai International Financial Centre, bringing banks, financial-services firms, auditors and lawyers, as well as the kingdom’s stock exchange and capital-market authority into one area. The project, north of Riyadh, has been slowed by construction delays since work began in 2006 and is more than 70 percent complete. As of last April, not a single financial institution had agreed to take space in the 73 buildings the state is constructing, said Waleed Aleisa, chief executive officer and project manager of the district at developer Al Ra’idah.

- Knowledge Economic City, Saudi Arabia’s first so-called smart city development, the city in Medina will focus on intellectual property, knowledge-based industries, medical, hospitality, tourism and multi-media. It will also have serviced apartments, a hotel and conference facilities, according to the Economic Cities Authority website. Residents of the city, which will cover 4.8 square kilometers, will have access to Mecca and Jeddah via the Haramain High Speed Railway. KEC was listed on the Saudi stock exchange in 2010 after raising about $270 million.

- Prince Abdulaziz bin Mousaed Economic City - This is a mixed-use development located on 156 square kilometers of land in Hail in the north of the kingdom. As well as a residential area, the city will also have an international airport, hotels, shopping centers and entertainment venues.

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[tdawg]

They need a better marketing/ad team working on the names.

[McBane]

They must assume that the tourists will be coming from fellow Muslim countries. How many westerners are going to travel to the KSA, where crosses can't be visible, women have to cover up, and no alcohol? Not to mention the overall bad reputation that the KSA has in terms of human rights, terrorism, etc. No thanks.

[StethJeff]

Originally Posted by tdawg

They need a better marketing/ad team working on the names.

was thinking the exact the same

[MolsonExport]

Originally Posted by tdawg

They need a better marketing/ad team working on the names.

x10\\

[huggkruka]

All politics aside(and the slave labour that will build it), they will probably use Dubai as a basis for their planning, which means we can expect:

- Glassy towers in 45 degree heat
- Highways as the main mode of transportation, little-to-no public transport beyond monorails(everyone loves monorails, no matter if they make sense or not!)
- Zero walkability outside shopping malls
- Gated communities
- A lot of the flats empty as they are for investment only
- No attractions beyond over-engineered "entertainment" complexes and the occasional misplaced museum("can I get Jean Nouvel on the line, please?")
- No alternative scene, no live music, no local shops, basically nothing ever happening that is outside of the committee-approved, child-friendly, streamlined and inoffensive hypercommercial realm.

Based on these reasons alone, I wouldn't travel there if you paid me.

[ChargerCarl]

^^Theres a reason authoritarian states love this type of planning:

http://slatestarcodex.com/2017/03/16...-like-a-state/

[niwell]

I can't imagine why anyone would travel to Saudi for tourism. Even if you want that kind of experience there's Dubai or Qatar where you can at least have a beer at a hotel bar.

I spent 4 horrible hours at the Jeddah airport last year and that is hopefully the last time I'll set foot in that country.

[montréaliste]

Originally Posted by niwell

I can't imagine why anyone would travel to Saudi for tourism. Even if you want that kind of experience there's Dubai or Qatar where you can at least have a beer at a hotel bar.

I spent 4 horrible hours at the Jeddah airport last year and that is hopefully the last time I'll set foot in that country.

Awww. What's not to like about sitting at a terrace surrounded by guys, only guys and women covered from head to foot not allowed anywhere. Not your idea of a destination? Lol, me neither.

[ChargerCarl]

Originally Posted by niwell

I can't imagine why anyone would travel to Saudi for tourism. Even if you want that kind of experience there's Dubai or Qatar where you can at least have a beer at a hotel bar.

I spent 4 horrible hours at the Jeddah airport last year and that is hopefully the last time I'll set foot in that country.

Hajj

It's the spiritual capital of the faith as well.

[M II A II R II K]

So these cities will built up and consist of flashy gimmicky piss.

[ChargerCarl]

It's sad too. Old middle eastern cities are were built to maximize pedestrian shade with tall buildings on narrow streets.

[chris08876]

You'll wind up having ghost cities.

Pre-planned cities that aren't a byproduct of natural and historical based development tend to be devoid of any true urban experience. It's all a facade in the end, and sure they can make rates cheap to draw in companies, and jobs that come along with it, but it won't make for a fun experience.

Even then, the whole gamble relies on the assumption that they will come. Due to globalization, competition is everywhere, and success won't be linear.