The ambitious project to construct the world’s tallest tower in Jeddah, Saudi Arabia, has received a significant boost as a consortium of prominent Saudi companies has acquired the development fund responsible for the project. The consortium, comprising Kingdom Holding Company, Sumou Holding Company, and Jeddah Economic Company (JEC), has taken over the Alinma Jeddah Economic Fund. This acquisition is expected to revive the stalled construction of the Jeddah Economic City and its centerpiece, the Jeddah Tower, which is set to rise over 1,000 meters.
The Jeddah Tower project, initially launched in 2013, has faced numerous challenges and delays over the years. Construction was halted in 2017 after only a few dozen floors had been completed, primarily due to controversies involving contractors and financial difficulties. The recent acquisition of the Alinma Jeddah Economic Fund by the Saudi consortium marks a turning point for the project, providing the necessary financial backing and strategic direction to resume construction.
Kingdom Holding Company, led by Prince Alwaleed bin Talal, will hold a 40% stake in the newly established fund, valued at SAR 6.8 billion ($1.8 billion). The consortium’s commitment to the project is evident in their efforts to negotiate with existing contractors and shareholders to ensure a smooth resumption of construction. The estimated total cost of the Jeddah Economic City project is $20 billion, with the Jeddah Tower alone expected to cost $1.23 billion.
The Jeddah Tower, once completed, will surpass the Burj Khalifa in Dubai to become the tallest building in the world. The tower is designed to be a mixed-use development, featuring residential units, office spaces, a hotel, and an observation deck. The surrounding Jeddah Economic City will include commercial offices, luxury residential units, a shopping mall, and entertainment areas, transforming the Obhur district into a vibrant urban center.
Strategic Partnerships and Construction Plans
The consortium’s acquisition of the development fund is part of a broader strategy to attract international expertise and investment to the project. In April 2024, a Saudi-Chinese consortium of El Seif Engineering and China State Construction Engineering Corp emerged as the frontrunner for the contract to build the Jeddah Tower. This partnership is expected to bring advanced engineering and construction capabilities to the project, ensuring that the tower meets the highest standards of quality and safety.
The involvement of international contractors also highlights the project’s significance on the global stage. The Jeddah Tower is not just a symbol of architectural ambition but also a testament to Saudi Arabia’s commitment to economic diversification and modernization. By leveraging global expertise, the consortium aims to overcome past challenges and deliver a landmark development that will attract tourists, businesses, and investors from around the world.
The construction of the Jeddah Tower is expected to create thousands of jobs and stimulate economic activity in the region. The project will also serve as a catalyst for further development in the Obhur district, encouraging the growth of new industries and services. The consortium’s strategic vision includes the development of additional towers, residential and commercial complexes, and international hotels, further enhancing the area’s appeal as a premier destination.
Future Prospects and Global Impact
The successful completion of the Jeddah Tower will have far-reaching implications for Saudi Arabia and the global architectural community. As the tallest building in the world, the tower will become an iconic symbol of Saudi Arabia’s economic ambitions and architectural prowess. It will also serve as a major tourist attraction, drawing visitors from around the globe and boosting the local economy.
The Jeddah Tower project aligns with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenues. By investing in large-scale infrastructure projects, the Kingdom is positioning itself as a hub for innovation, tourism, and business. The Jeddah Tower, along with other developments in the Jeddah Economic City, will play a crucial role in achieving these goals.
Public awareness and support for the project are essential to its success. By engaging with local communities and stakeholders, the consortium can ensure that the development meets the needs and expectations of its residents. This collaborative approach will help build a sense of ownership and pride in the project, fostering a positive environment for its completion and long-term sustainability.
In conclusion, the acquisition of the Alinma Jeddah Economic Fund by the Saudi consortium marks a significant milestone in the journey to complete the world’s tallest tower. With renewed financial backing and strategic partnerships, the Jeddah Tower project is poised to resume construction and achieve its ambitious goals. As Saudi Arabia continues to pursue its Vision 2030 objectives, the Jeddah Tower will stand as a testament to the Kingdom’s commitment to progress and innovation.
