King Abdullah Economic City

King Abdullah Economic City (KAEC) is a large-scale urban development on the Red Sea coast of Saudi Arabia, approximately 100 kilometers north of Jeddah.¹ Initiated in 2005, the project aims to serve as a strategic hub for business, logistics, industry, tourism, and urban living.²
KAEC’s vision is to become “a city of opportunity where lifestyle and business thrive together.” It seeks to support Saudi Arabia’s Vision 2030 by contributing to the country’s economic diversification, reducing reliance on oil revenues,^{3 4} and fostering knowledge-based, innovative industries, and global trade.^{5 6}

To implement the vision, the 173 square kilometers KAEC, the largest privately funded economic projects in the world,⁷ offers diverse development features and components that includes:
• Industrial Valley: A logistics and manufacturing cluster strategically located near major transportation networks, with a focus on pharmaceuticals, food processing, and consumer goods.⁸

• King Abdullah Port: One of the region’s most technologically advanced deep-water ports, capable of handling the world’s largest container and designed to elevate Saudi Arabia’s trade competitiveness.⁹
• Residential and Commercial Zones: Mixed-use developments offering modern housing, retail outlets, and office spaces, accommodating diverse urban population.¹⁰
• Tourism and Leisure Infrastructure: Luxury hotels, golf course, beaches, and recreational amenities for attracting both local and international visitors.¹¹
• Educational and Training Facilities: Institutions ranging from primary schools to vocational and higher education centers, including partnerships with international academic providers to cultivate a skilled workforce.¹²

Sustainability is integrated into KAEC’s planning and operations. The city emphasizes energy-efficient infrastructure, renewable energy solutions, and environmentally responsible construction practices. Public amenities are designed for universal accessibility, including features that support differently abled individuals.^{13 14} Green spaces and walkable districts are included to enhance environmental and social well-being.

KAEC is developed and managed by Emaar, The Economic City, a publicly listed company on the Saudi stock exchange. It receives strategic backing from the Saudi government and attracts private sector investors,¹⁵ involving collaboration with international companies, bringing global expertise to planning, engineering, and implementation.¹⁶
The implementation development of KAEC is carried out in phases:¹⁷

• Phase 1 (2005-2010): Development of core infrastructure, including roads, utilities, and the initial operations of King Abdullah Port.
• Phase 2 (2011-2020): Expansion of industrial and residential areas, along with significant progress in logistics and port handling capacity.
• Phase 3 (2021-Present): Construction of advanced business districts, educational institutions, and tourism and leisure amenities.

As of 2024, key components such as King Abdullah Port and large sections of the Industrial Valley are fully operational. Residential and commercial zones continue to expand, attracting growing interest from investors and multinational businesses. KAEC remains a flagship development aligned with Saudi Arabia’s Vision 2030, to position KSA as a global economic powerhouse.^{18 19}