Construction to Resume on Jeddah Economic Company Tower: World’s Tallest Building
Resumption of Construction
Construction is set to resume on the world’s tallest tower, the Jeddah Economic Company Tower, located in Jeddah, Saudi Arabia. Once completed, the tower will stand over one kilometer high.
Agreement with Saudi Binladin Group
The Jeddah Economic Company (JEC), an associate of Kingdom Holding Company (KHC), chaired by Prince Alwaleed Bin Talal, has reached an agreement with Saudi Binladin Group to continue the construction of the tower. KHC confirmed the development in a statement to the Saudi stock exchange on Wednesday.
Progress on Construction
Currently, 63 of the planned 157 floors have been built, and the remaining construction is expected to take 42 months to complete. The total contract value for the project is SAR7.2 billion (US$2 billion), with SAR1.1 billion already spent on earlier construction. JEC plans to fund the rest of the project through internal resources and banking facilities.
Part of a Larger Development
The Jeddah Economic Company Tower is part of a larger project—Phase 1 of the Jeddah Economic Company City—spanning 1.3 million square meters out of a total 5.3 million square meters. Infrastructure for the first phase, including electricity, water, sewage systems, flood drainage, and high-speed internet, has already been completed.
Ownership Agreement
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 fully owned by JEC.
Challenges and Delays
Construction of the tower originally began in 2013, but progress has been inconsistent due to issues with contractors. Work stalled in 2017 after Prince Alwaleed and the Saudi Binladin Group encountered difficulties during Saudi Arabia’s anti-corruption campaign. Despite the controversy, Prince Alwaleed has always denied any involvement in wrongdoing.
Joint Venture Composition
JEC was established in 2009 as a joint venture of various real estate and development companies, including Kingdom Holding Company, Abrar Holding Company, Qila’a Jeddah Company, and Saudi Binladin Group.
The Future of the Tower
At present, the Burj Khalifa in Dubai holds the title of the world’s tallest building at 828 meters. However, upon completion, the Jeddah Economic Company Tower will surpass it as the tallest structure in the world.
