Saudi Arabia is in the process of developing a broadbased knowledge city in one of the holiest sites in Islam that will give young Saudi talent a smart edge while also boosting the business environment.

Knowledge Economic City (KEC) in Al Madinah, launched in 2006, is among six economic cities proposed by Riyadh of which four have already been named. Besides KEC, the cities launched are King Abdullah Economic City in Rabigh, Prince Abdul Aziz ibn Musaed Economic City in Hail and Jizan Economic City in Jizan.
To make KEC attractive to investors it has been declared a Special Economic Zone under the regulatory jurisdiction of the Saudi Arabian General Investment Authority (Sagia).
KEC Madinah’s focus will be on knowledge-based industries, intellectual property, medicine, hospitality, tourism and multi-media.
“We want to establish joint ventures with strategic partners to develop and operate key components in the project such as the high-tech park; the theme park; medical services; educational institutions; infrastructure services; incubators and the transportation centre,” said KEC’s chief executive officer Tahir Bawazir.
“We want to get together with leading international information and communications technology (ICT) firms, ICT-focused venture capital funds and infrastructure funds.”
The entire project is expected to be completed within a period of 12 years.
“We have made a good start and we still have a long way to go, but our location at Al Madinah is a blessing that I am confident will assure us of success,” Bawazir says.
Since its launch KEC has signed Memorandums of Understanding and contracts with several local companies and with government and private sector organisations from Malaysia, Canada and the US. The latest signings have been with Cisco for its networking expertise, Intel Corporation for its ultra-mobile computing devices and CompTIA for world-class IT training certification.
Already several major companies are involved and the development consortium members include the publicly listed companies Savola Group and Taiba Investments and Real Estate Development Company, Project Management Development Company and Quad International Real Estate Development Co.
Prior to the signing in February and March of MoUs with Malaysia’s Multimedia Development Corporation (MDeC) and Multimedia University, major MoUs had been signed with Saudi Arabia’s Siraj Capital Ltd and PMDC, Savola Group Co and Malaz Group. Key consultancy contracts have been awarded to HOK Canada, IBI Group of Toronto and Malaysia’s MSC Technology Centre.
The Malaysians in particular see the potential for a high-tech industry in the region, and they have plenty of experience gained from the development of their own Multimedia Super Corridor (MSC).
In February a trade delegation led by Malaysia’s Deputy Prime Minister Najeeb Tun Razaq visited Al Madinah and signed several deals that will give KEC the benefit of their MSC expertise.
In July, KEC were the gold sponsors at the Second International Symposium on Knowledge Cities, where the Al Madinah Municipality signed an MoU with Shah Alam, itself a high-tech city.
They and other partners will work with Seera City Real Estate Development to identify opportunities and develop each of the facets of the city.
KEC promoters cite many factors that make it different.
The Al Madinah Al Munawwarah region in the northwest of Saudi Arabia has particular significance. Al Madinah was the home of the Prophet (Peace Be Upon Him), the place where he was buried and the place where the Quran was compiled. Twice a year during the Hajj and Umrah, 10 million pilgrims and visitors pass through the city on their way to Makkah.
Modern Madinah is home to some of Saudi Arabia’s leading educational institutions. It has a growing ICT industry and piloted the country’s new e-Government programme.
“The smart city development is designed to turn the Al Madinah region into a centre for knowledge-based industry where young Saudi entrepreneurs can be trained and nurtured,” a KEC spokesman says.
“It also intends to attract the best information communications technology talent from around the world to the second-most holy city of Islam and position Saudi Arabia and young Saudi entrepreneurs as internationally respected leaders in knowledge-based industries and aims to attract and develop talent from around the world.”

KEC elements
• The Centre for Medical Sciences and Biotechnology will benefit from the smart infrastructure in the city such as the Centre for Medical Simulation and Telemedicine. It will provide medical services for the residents of and visitors to Al-Madinah and provide a rehabilitation complex for Muslims benefiting from the spiritual healing of Al-Madinah
• Taiba High-Tech Park for knowledge-based industries will contain smart buildings equipped with state-of-the-art IT and telecommunications infrastructure. It will focus on electronic government, distance learning, Arabic language improvement and technology, tourism technology and call centres.  Importantly it will provide incubators for young Saudi IT and small business entrepreneurs who are looking for a competitive environment to grow their businesses and utilise the skilled female talent pool in Al-Madinah and provide distance working opportunities
• The Seerah Land Theme Park will offer visitors of all ages, interests and cultural backgrounds a unique and unforgettable journey back into history. Using the latest multimedia, laser and digital technologies it will explore the history and heritage of the Prophet (PBUH) and Islamic civilisation including the lives of the prophets, the legacy of Prophet Mohammad (PBUH), the dynasties of Islamic civilisation and the contribution of Muslim civilisation to world knowledge.
• A new business hub coming up will be provided with the latest smart infrastructure and complementary business support services to create a more competitive environment. It will be able to accommodate up to 10,000 employees. A major retail hub themed after the old souks of Al-Madinah is to be developed and includes provision for 1,200 shops giving it great appeal to consumers from around the world.
• New residential developments will comprise thousands of residences accommodating up to 150,000 people and include two villa complexes, mid- to high-rise residential buildings, serviced apartments and green spaces
• World-class hospitality facilities will be provided for up to 30,000 visitors at a time.

Investors and partners
As the project develops, Knowledge Economic City will continue to seek investors, partners and sub-developers. It will try to establish joint ventures with strategic partners to develop and operate key components in the project including the High-Tech Park; joint ventures with leading ICT firms; the Theme Park; educational Institutions; medical services; a multi-modal transportation centre; private-public partnerships in infrastructure services; intelligent infrastructure services; hospitality establishments; incubator operators; ICT-focused venture capital funds and infrastructure funds
KEC has promoted its advantages at various venues including the IDB Board of Governors Annual General Meeting in Dakar and the Symposium on Knowledge Cities in Malaysia.
Road shows and trade exhibitions are planned for several other countries in the coming months as KEC seeks to attract investors and joint venture partners to Al Madinah.
Unlike Europe and the US, which suffer from ageing populations, Saudi Arabia and many parts of the Middle East have large populations of the young. About half the 20 million local population of Saudi Arabia is under age 20. By building economic cities in regional areas, it is believed the government is taking a positive step towards creating employment for its young people.
At the same time it is opening the way for foreign visitors to participate as joint venture partners, sub-developers, venture capitalists or direct investors.