Jeddah Economic Company (JEC) is finalizing a SAR 8 billion agreement with Saudi Binladin Group to resume construction on the Jeddah Tower. The tower, previously known as Kingdom Tower, will be the world’s tallest building. After facing multiple delays, work is expected to restart in October 2024. Originally designed to reach over 1,000 meters, the skyscraper was first halted in 2018 due to financial challenges.
Consortium Breathes New Life into the Project
A consortium of Saudi companies, including Kingdom Holding Company and Sumou Holding, has recently acquired the Alinma Jeddah Economic Fund. This fund is responsible for the development of Jeddah Economic City and its crown jewel, Jeddah Tower. Kingdom Holding now holds a 40% stake in the fund, valued at SAR 6.8 billion.
Construction Challenges and Delays
The Jeddah Tower project began in 2013 but faced significant challenges. The arrest of Bakr bin Laden, former chairman of Saudi Binladin Group, in 2017, along with labor issues, caused work to halt in 2018. At the time, only about one-third of the tower had been completed. Now, with renewed investment and a clear path forward, construction is set to restart.
Saudi-Chinese Consortium Leads the Way
JEC has brought in a consortium of Saudi and Chinese contractors, with El Seif Engineering and China State Construction Engineering Corp leading the way. This team will handle the resumption of work on the tower, ensuring that it reaches its planned height of 1,000 meters, surpassing Dubai’s Burj Khalifa.
Ambitious Vision for Jeddah Tower
Once completed, Jeddah Tower will feature 170 stories, with seven of them dedicated to the Four Seasons Hotel. The tower will also offer 121 luxury serviced apartments, office spaces, and 318 housing units. Visitors will enjoy amenities such as gyms, cafes, restaurants, and sky lobbies. One of its standout features will be the world’s highest observation deck, located at 644 meters, offering stunning views of Jeddah and the Red Sea.
Economic Boost for the Kingdom
The completion of Jeddah Tower aligns with Saudi Arabia’s broader vision to transform Jeddah into a global business hub. The tower’s construction will not only enhance the city’s skyline but also attract international investment and tourism, solidifying Saudi Arabia’s standing in the global construction industry.
