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

Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
TT
TT

Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.