Crown Prince Mohammed bin Salman’s dream project.
RIYADH: The Saudi government’s highly ambitious project, the King Abdullah Economic Megacity (KAEC), is struggling to make progress despite billions of dollars in investment.
It lags behind newer, more profitable projects like The Line and Oxagon. The promises made regarding this project have not been fulfilled. In this situation, the question arises whether the KAEC project failed to achieve its objectives. This is also a setback to Saudi Arabia’s Crown Prince Mohammed bin Salman’s Vision 2030.
KAEC, which stretches over 180 square kilometers on the Red Sea coast 100 kilometers north of the Saudi city of Jeddah, has yet to reach its full potential, according to a report by Interestring Engineering. The $100 billion city was supposed to be home to 2 million people and create 1 million jobs, but by 2024, it had a population of just 10,000. The city has also failed in terms of providing jobs, with only a few companies arriving so far.
MBS is committed to Vision 2030
Crown Prince Mohammed bin Salman (MBS) is currently working to transform Saudi Arabia from an oil-dependent economy into a global investment center under Vision 2030. In this context, new projects like KAEC are important in urban development.
Founded in 2005, KAEC is strategically located as a major logistics hub connecting Europe, Asia and Africa. A major feature is King Abdullah Port, which opened in 2019 and is the first private port in West Asia.
Despite big promises, Saudi Arabia’s KAEC faces challenges attracting people. By 2024, only 10,000 people will live there, far short of the population goal of 2 million. The goal of creating one million jobs has not been achieved, and KAEC is home to only 100 Saudi and multinational companies. This paucity of housing and employment data raises concerns about the city’s viability and future. This indicates that KAEC faces further intense competition under Saudi Arabia’s Vision 2030.
Challenges from other projects
The KAEC project also faces significant challenges from other ambitious projects such as The Line, Oxagon and Trojena. These projects are attracting more young people looking for financial investments and sustainable livelihoods. However, despite these challenges, KAEC is expected to see continued urban growth in the coming years due to its proximity to Jeddah and facilities such as a port.
