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Saudi Arabia industrial city to broaden tenant mix

The developer of one of Saudi Arabia's biggest industrial city projects says it will expedite construction of infrastructure and broaden the range of industries it accommodates as part of efforts to diversify the economy beyond oil.
King Abdullah Economic City (KAEC), a state-backed business zone near Jeddah, is being developed by Emaar the Economic City (EEC), a publicly listed firm.
Fahd Al Rasheed, group chief executive of both EEC and KAEC, said construction of infrastructure in the zone, including housing, commercial space, hotels and roads, would accelerate.
While 40 such projects have been developed since the government-backed zone was launched in 2005, 170 are planned for the next 10 years, he said.
Progress in some projects will depend on the rate at which the zone can attract new corporate tenants, as well as the strength of the Saudi economy.
But the emphasis on rapid expansion is typical of the mood among Saudi economic policy makers as a powerful new committee led by by the king's son, Prince Mohammed bin Salman, tries to restructure the economy.
"What used to take two years now takes two months. What took two weeks can take a day," Rasheed said.
The zone, which includes a port, had 120 industrial tenants at the end of last year after adding 23 in 2015. Tenants include French pharmaceutical maker Sanofi, a venture involving US battery maker Johnson Controls, and producers of building materials. - Reuters

• Saudi Arabia