By Mohammed Al-Subhi and Abdulrahman Al-Misbahi

Okaz/Saudi Gazette

JEDDAH – The foundation stone for the SR18 billion Jeddah Downtown project will be laid in the first quarter of 2019 as part of a major scheme to develop the Red Sea port city as one of the top 100 cities in the world. The first phase of Jeddah Downtown will be opened in 2022.

Apart from the downtown project, the launch of Haramain Train linking Makkah and Madinah via Jeddah as well as the opening of the new King Abdulaziz International Airport would bring about a major facelift for Jeddah, the main gateway for Haj and Umrah pilgrims.

Economists said more than SR18 billion would be invested in the downtown project over the next 10 years with daily investment reaching SR5 million. The project will have a positive impact on contracting, construction, transport and cement sectors.

“The project will enhance Jeddah’s capability to attract more investments. It will also contribute to development of many recreational, entertainment and shopping centers, thus making the city a major attraction for domestic and foreign tourists and visitors,” said one economist.

The project will also create more than 36,000 jobs for Saudis as announced by the state-owned Public Investment Fund, the lead investor in the project.

Ahmed Al-Owaifi, former chairman of Baha Chamber of Commerce and Industry, highlighted the significance of Jeddah Tower project, adding that it would draw the attention of all tourists and visitors. “It goes in line with the Kingdom’s Vision 2030,” he added.

He said 42 percent of the downtown project would be allocated to housing, 12 percent for business offices, 35 percent for retail trade and recreational activities and 11 percent for hospitality.

He said the downtown project as well as the Jeddah Tower project would boost the Kingdom’s economy and promote business and tourism. “The ongoing project to develop the seafront in the central Corniche of Jeddah has a big developmental significance,” Al-Owaifi said.

The downtown project would be implemented as per international standards to attract global investors. “It will also promote marine tourism, shopping and entertainment. It will strengthen Jeddah’s position on the global tourism map and make it one of the best 100 cities in the world,” he explained.

Abdullah Al-Gharwi, an investor in tourism, emphasized Jeddah’s tourism potentials and its ability to attract tourists from within the Kingdom and abroad. He said the seafront project as well as downtown project would accelerate growth of tourism and entertainment sectors and the national economy and create more jobs for Saudis.

He said there is a plan to establish 12,000 housing units on the Corniche as part of the project, adding that it would be completed by 2022. “The new projects will make Jeddah one of the most important seafront tourism centers in the Middle East and the world.”

The project includes construction of museums, cultural and community centers, business and creativity centers, trading and shopping complexes, sports facilities, five-star hotels and furnished apartments, tourist resorts, marine sports, and a harbor for boats and yachts.

Industrialist Mohammed Shimakh said the downtown project would have tremendous positive impact on many economic sectors in the country. “The contracting, construction, transport and cement sectors will register considerable growth as a result of huge demand,” he said.

The project covers 5 million sq. meters and includes building of 12,000 homes to accommodate 58,000 people, Shimakh said. “Prices of cement and building materials have declined as a result of poor demand. The project will increase the revenue of the two sectors,” he added.