عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Diverse Foreign Investments Drive Growth in Saudi Arabia’s King Abdullah Economic City

Emaar the Economic City, the main developer of KAEC, is moving in various directions with a focus on planning and developing the city. (Asharq Al-Awsat)
Emaar the Economic City, the main developer of KAEC, is moving in various directions with a focus on planning and developing the city. (Asharq Al-Awsat)
TT
TT

Diverse Foreign Investments Drive Growth in Saudi Arabia’s King Abdullah Economic City

Emaar the Economic City, the main developer of KAEC, is moving in various directions with a focus on planning and developing the city. (Asharq Al-Awsat)
Emaar the Economic City, the main developer of KAEC, is moving in various directions with a focus on planning and developing the city. (Asharq Al-Awsat)

The King Abdullah Economic City (KAEC), which was established more than 17 years ago, is witnessing remarkable growth, thanks to the influx of diverse foreign investments in different sectors.

The city enjoys unique features, mainly its location in the western part of the Kingdom, on the most beautiful coastline in the city of Rabigh, and with easy access to international markets.

In remarks to Asharq Al-Awsat, Managing Director of Emaar the Economic City Mansour Al Salem said the city was open to developers and investors, pointing to the launch of new projects, with the cooperation of government entities.

According to Al-Salem, while the majority of applications submitted for investment in KAEC previously came from the local sector, the vision and incentives provided by the government have recently attracted foreign and investments in diverse fields, including the automobile industry.

Asharq Al-Awsat toured the King Abdullah Economic City and saw the gradual changes on various paths, with the increasing number of companies - estimated at about 100 multinational and Saudi firms - which have established their headquarters in the city to follow up on their ongoing projects.

Despite the huge projects being implemented on the ground, the visitor is initially surprised when they cross the main gate, as the white spaces appear vast in their eyes. Then one realizes how smartly planned the city is, with factories located on one side, hotels on another, tourist and entertainment areas on the coast, and headquarters and residences in another area.

The visitor is impressed by the smooth design of parks and beaches on pristine coasts extending over a distance of 40 square kilometers and the extensive spread of green areas near the beaches. The city has also allocated entertainment areas suitable for families and children of all ages, with large terrains for golf.

Al-Salem said the King Abdullah Economic City boasts many features that are not found elsewhere, including its geographical location on the Red Sea coast and short distance north of the city of Jeddah, which is an important commercial hub. The city also includes King Abdullah Port and the Industrial Valley, in addition to recreational sites.

Emaar the Economic City, the main developer of KAEC, is moving in various directions with a focus on planning and developing the city. The Economic Cities Authority, the regulatory body for King Abdullah City, provides investors and residents with a comprehensive set of incentives and benefits, including 100 percent foreign ownership for companies and individuals, a sea port and a cargo area, as well as facilitations for obtaining permits and licenses related to residence, work, operational affairs, and ownership and management of real estate.

Most Viewed

 
 
Business

US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
TT
TT

US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.