Construction Resumes on the World’s Tallest Tower in Jeddah, Saudi Arabia
Construction Resumes on Jeddah Economic Company Tower
Work is set to resume on the Jeddah Economic Company Tower in Saudi Arabia, which will become the tallest tower in the world at over one kilometer high when completed. The Jeddah Economic Company (JEC), affiliated with Kingdom Holding Company (KHC) and chaired by Prince Alwaleed Bin Talal, has partnered with Saudi Binladin Group to move forward with construction.
Expected Completion in 42 Months
Construction on the tower, which currently has 63 of its planned 157 floors completed, is scheduled to finish in 42 months. This milestone marks a significant development for the project, which had experienced delays in the past.
Project Valued at $2 Billion
The total value of the construction contract is estimated at SAR7.2 billion (US$2 billion), with SAR1.1 billion already paid for work previously completed. JEC will finance the remaining construction costs through internal funding and banking facilities.
Part of a Larger Development: Jeddah Economic Company City
The Jeddah Economic Company Tower is part of the larger Jeddah Economic Company City project. Phase 1 of the development spans 1.3 million square meters, while the entire city covers 5.3 million square meters. Infrastructure for Phase 1, including utilities such as electricity, water, sewage systems, flood drainage, and high-speed internet, has already been completed.
Ownership and Financial Agreements
In July, Kingdom Holding, Sumuo Holding Company, and JEC finalized an agreement to take ownership of the Al Inma Jeddah Economic Fund, which was previously wholly owned by JEC. This agreement further strengthens the financial backing for the tower’s completion.
History of Construction Delays
The Jeddah Economic Company Tower initially began construction in 2013. However, the project faced several delays due to controversies surrounding contractors. Work was paused in 2017 when Prince Alwaleed and Saudi Binladin Group fell out of favor during Saudi Arabia’s anti-corruption campaign. Despite these challenges, Prince Alwaleed has consistently maintained his innocence.
JEC’s Joint Venture Partners
Jeddah Economic Company was founded in 2009 as a joint venture involving several real estate and development companies, including Kingdom Holding Company, Abrar Holding Company, Qila’a Jeddah Company, and Saudi Binladin Group.
The Tower to Surpass Burj Khalifa
Upon completion, the Jeddah Economic Company Tower will surpass Dubai’s Burj Khalifa, which currently holds the record as the world’s tallest building at 828 meters. This project will cement Saudi Arabia’s place in architectural history with the construction of the world’s tallest tower.