KAEC seeks ‘foreign ownership’ for residential properties

Saudi Arabia's King Abdullah Economic City (KAEC) is working closely with the government to allow foreigners to own residential properties within the city, according to a senior company executive.

“Today there is no freehold option, but we are working closely with the government to initiate foreign ownership in the city and to be part of Lagoona District. When allowed it will create incredible exposure to the global markets and more specifically the GCC and other Islamic markets,” Mohammed S Ballout, senior director and head of Leisure and Retail Operations, KAEC, told Argaam in an interview on the sidelines of the recently-held "Theme parks and Entertainment Development Forum Middle East" in Dubai.

“It [foreign ownership] will for sure increase the value and demand for properties within KAEC given the strategic location and connection to Makkah and Madinah through Haramain High-Speed Railway,” he added.

Tadawul-listed Emaar, The Economic City is the master developer of the mega project. The KAEC covers an area of 181 square kilometers and is located close to Jeddah. 

The new leisure and entertainment, Lagoon District, which spans 8 million square meters, will have 18 attractions, including two theme parks, a motor park, 2,100 hotel rooms and a residential component with 4000 units, including vacation homes.

Read: KAEC eyes $5 bln investment in new entertainment district

Ballout said the Lagoona District was a "very key component and part of KAEC’s tourism strategy".

“Our tourism strategy is to become the number one tourism destination in Saudi Arabia. We are targeting leisure, business and religious tourists,” he said, calling the Lagoona District as a “mini Orlando of KAEC”.

“Our focus is to expand the tourism strategy and take it to the second level in terms of attracting 2.2 million visitors in the city by 2025,” he stated.

KAEC is seeking to attract the huge flow to pilgrims to the Kingdom, as it is located a few hundred metres from Haramain High-Speed Railway, which connects Makkah and Madinah.

“We are looking at people who are coming for Hajj and Umrah,” he said.

Write to Parag Deulgaonkar at parag.d@argaamplus.com