News

SAGIA chief says global crisis had 'positive impact'

Source: Arabian Business
JEDDAH, 14 May 2009

The governor of the Saudi Arabian General Investment Authority (SAGIA) has claimed that the global economic crisis has had a "positive impact" on plans to build multi-billion dollar Economic Cities in the kingdom.

Amir Abdullah Al Dabbagh said the downturn had "created opportunities" and had reduced the cost of building the four economic cities, through falling prices of raw materials.

In an interview with CNN, he added: "We believe that the global economic slowdown is presenting lots of opportunities. Had you asked me six months back, what are the main challenges facing these economic cities and these mega-projects, I would have said skyrocketing prices of building materials, lack of capacities of construction contracting companies, lack of equipment, lack of human capital.

"All these opportunities have disappeared. Today, we are accelerating the construction of these cities to take advantage of the depressed prices of building materials."

Asked about the depressed oil price which has fallen dramatically from record highs of $147 in July 2008, the governor said: "Saudi Arabia does not make its economic policy and economic plans based on today’s prices of oil. "For instance, in 2009, despite the fact that oil prices lost over 50 percent of its peak value, still we increased our spending by 19 percent."
Saudi's King Abdullah announced at the G-20 summit in Washington that the kingdom would spend $400 billion on infrastructure development over the next five years.
"So, we aren’t linking our economic policies to the fluctuation or to today’s oil prices. Saudi Arabia, as you know, has significant international reserves, mostly invested in fixed income. And these reserves we tap into at the time of depressed oil prices," he added.

Knowledge Economic City finalizing preparations for IPO

Source: (MENAFN Press)
JEDDAH, 22 April 2009

Saudi Developer, Madinah Knowledge Economic City (KEC) has received its approval from the Ministry Commerce and Industry to sell 30% of its shares in an Initial Public Offering.

The Ministry approved setting up the firm with a total capital of 3.393 billion riyals ($904.8m), or 339.3 million shares. Sh. Ibrahim Bin Mohamed AlEissa, KEC Chairman, commented on behalf of himself and the Board of Directors, “We are delighted with the Ministry’s approval and we are currently on schedule in our preparations to finalize the CMA required documentation for the shares floatation before the end of this year as per the company’s plans.”

KEC is the lead developer of a knowledge-based city within the holy city of Madinah that aims at attracting investments worth up to 30 billion riyals and housing some 150,000 people, according to Sh. AlEissa. Knowledge Economic City is among four economic cities announced by SAGIA and planned by the Kingdom to diversify its oil-based economy and create jobs for a rapidly growing Saudi population. "KEC will act as a cultural landmark serving visitors, as well as becoming a national icon for knowledge-based industrial development," added Sh. AlEissa. The project hopes to spur the creation of knowledge-based industries which would include a hospitality segment, retail offering, commercial and business communities for the millions of pilgrims who visit Madinah each year. KEC will offer a completely master-planned and connected environment like no other providing the necessary capabilities for a sustainable business and residential environment which will be adaptable to the technology changes of the future. “The city of 30,000 residential units, 1,200 shops and accommodation for 30,000 visitors located in the heart of
Madinah Al-Munawwarah will be developed over an area of 4.8 Million square meters of a completely masterplanned community and is projected to create 20,000 jobs”, Sh. AlEissa added.

KEC, ActiveMania sign smart technology deal

Source: Saudi Gazette
JEDDAH, 23 December 2008

The Knowledge Economic City in Madinah (KEC ) and ActiveMania FZ LLC, a leading smart home, digital office and connected community solutions provider, forged a memorandum of understanding (MOU) here on Saturday for the development of smart technologies in KEC.

CEO of Madinah KEC, Tahir Bawazir, and by Patrick Abi-Aad, general manager of ActiveMania Saudi Arabia, signed the agreement. KEC and ActiveMania will collaborate on defining the standards, features and processes related to the design, implementation and operation of smart home and office solutions in Saudi Arabia's first knowledge-based industry (KBI) economic city."Madinah is creating an exceptional project to promote a distinctive lifestyle experience utilizing smart technology infrastructure.

This MOU translates this lifestyle into reality," Bawazir said. "The potential of the project has already evoked the interest of reputed investors, and it is in this respect, that this undertaking with ActiveMania is being worked out," he added.

ActiveMania will build technology-enabled solutions that involve the design, development, implementation and maintenance of smart home and office technologies. ActiveMania aims to maximize the growing popularity of smart homes. Abi-Aad said ActiveMania solutions "offer users the flexibility and convenience of accessing and controlling all the entertainment, automation, telecommunication, security and interactive content features remotely."
Emphasizing that the future is about "ubiquitous connectivity inside the home, and outside it via remote home access that is flexible, scalable and modular," Abi-Aad added that ActiveMania "is pleased to share with Madinah its knowledge and experience on viable and successful smart cities model aimed at maximizing customer's satisfaction and investor's revenue generation."

The MOU likewise requires ActiveMania to assist in setting the standards for smart homes and connected communities through conceptual value engineering design and consulting.

KEC, for its part, will share with ActiveMania all information deemed necessary for the progress of work, and facilitate coordination to ensure smooth implementation.

Knowledge Economic City appoints NCB Capital and Swicorp as Joint Financial Advisors to list 30% of its shares in upcoming IPO

Source: AME Info
JEDDAH, July 13 2008

Knowledge Economic City Development Co. Ltd. (KEC) signed an agreement with NCB Capital and Swicorp.

The signing ceremony that was held in the company's headquarters in Jeddah was attended by the newly appointed Chairman of the Board, Mr. Ibrahim Bin Mohamad Al Issa and KEC board members. Also present from NCB Capital were Mr. Ahmed Farid, NCBC CEO and Mr. Hassan Al Jabri, Head of Investment Banking, as well as Mr. Fahad Siraj Malaikah, Swicorp's Executive Director and Head of Capital Markets.

The ceremony started with a statement by Mr. Ibrahim Bin Mohamad Al Issa expressing his satisfaction at the acceleration of developments in Knowledge Economic City and that the IPO process was underway involving such prominent financial entities.

'KEC is an exceptional project that has unique attributes and will surely become a symbol of Saudi pride and an icon of successful diversification of our local economy with the development of Knowledge Based Industries. The apparent potential of the project has already attracted many reputed international partners.' Stated Mr. Ibrahim Bin Mohamad Al Issa. 'We are pleased that NCB Capital and Swicorp have joined us to list KEC on the Saudi Stock Market, thus enabling citizens to share in the success of the project.'

The agreement was signed by Mr. Ibrahim Bin Mohamad Al Issa on behalf of KEC; Mr. Ahmed Farid signed for NCB Capital, while Mr. Fahad Siraj Malaikah signed on behalf of Swicorp. It officializes NCB Capital's and Swicorp's roles as Joint Financial Advisors for KEC's upcoming IPO.

'I am extremely proud that Al Ahli Capital was appointed as the Financial Advisor for KEC's IPO project. The city is one of the 4 Economic Cities that are planned for the different provinces of the Kingdom. KEC differs from the others as it will concentrate on the development of Knowledge Based Industries, moreover it will become the center for Islamic research and knowledge as well as a medical hub. KEC will also provide a positive learning environment for a better future, more reason for it to be in the world's purest land; Madinah al Mounarawah.' stated Mr. Ahmad Farid. 'At Al Ahli Capital we will use all our expertise to guarantee the success of this unique project that is sure to dynamize the Kingdom's economy.' He added.

Swicorp Executive Director and Head of Capital Markets, Mr. Fahad Siraj Malaikah stated, 'Swicorp is deeply honored to have provided financial advisory for the project since inception and is proud to be associated as financial advisor for Knowledge Economic City. It is a privilege for Swicorp to participate in the development of the Holy City and Economic Cities and to bring such a business opportunity to investors. We have invested our international know-how attained across seven markets as well as our 20 year experience of the Saudi investment sector into preparing this IPO.' He concluded by thanking all those who participated in the project.

Launched in June 2006, Knowledge Economic City (KEC) is the third of four Economic Cities being developed in Saudi Arabia. Strategically located 5km east of Al Haram and 7km from Madinah Airport, the 4.8 million square meter project comprising residential areas, a theme park, business, retail, and educational hubs as well as the King Abdul Aziz Mosque should provide over 20,000 job opportunities and reach an accommodation capacity of 150,000 residents. KEC has a combined investment of over SR30bn.

The diversity of the city's main components as well as its focus on the development of Knowledge Based Industries promise to make the project a landmark for Muslims worldwide and provide investors with sound return on investment opportunities.

The project was established by the King Abdullah Foundation for His Parents, Savola Group, Quad International Real Estate Development Company, Project Management Development Company (PMDC), and Taiba Investment and Real Estate Development Company.

KEC signs strategic partnership with Technical & Vocational Training Corporation (TVTC)

Source: EMAP
JEDDAH, 1 April 2008

The Knowledge Economic City Al-Madinah (KEC) Tuesday, 1 April 2008 signed a Strategic partnership with Technical & Vocational Training Corporation (TVTC) to train Saudis by establishing specialized institutions in communication and information technology.

A memorandum of understanding (MoU) to this effect was signed between the two organizations at the Qasr Al-Sharq Hall of Jeddah Hilton. Eng. Tahir Bawazir, Chief Executive Officer (CEO) of KEC, signed on behalf of his company while Dr. Ali Bin Nasir Al-Geface, Governor of TVTC, signed for his company.

As per the MoU, KEC will work closely with TVTC to provide the best possible training to Saudis leading to placement in jobs in the field of Communication and Information Technology as well as knowledge-based industries. This will include vocational training for Saudi youth in the relevant fields. An intensive and integrated cooperation and coordination between the two parties are imperative to achieve this goal.

TVTC Governor Al-Geface expressed his pleasure on the signing of this MoU and announced that TVTC will participate in the construction of Communication and Information Technology Colleges, including lecture halls, auditoriums, labs, workshops and support services facilities such as cafeterias, playgrounds, and library in addition to information infrastructure and internet links. He also hoped that KEC - by way of this MOU - will create jobs and economic opportunities for Saudi youth.

The MoU will promote Saudi technical and scientific innovation, which in turn, will assist in the provision of welfare and increased production. It will also build and improve local human resources which is key to Saudi youth joining the economic knowledge matrix in the future, he added. Eng. Bawazir, CEO of KEC, said that this MOU will integrate and support knowledge- and training-based industries. 'The objective of this MoU is to establish specialized institutions in communication and information technology training - and knowledge industries in general within KEC. These educational complexes will help achieve objectives of knowledge industries sector in compliance with KEC's projected goals,' he said. He told reporters that KEC will allocate the land required to build the educational complexes that will accommodate up to 24,000 male and female students. 'Master plans and architectural drawings for these projects will be prepared soon in full coordination with TVTC in addition to provision of the required infrastructure,' he added.

KEC and TVTC will jointly manage these complexes in cooperation with local and international pioneer institutions and universities in each technical trade.
Sarry Shaaban, Public Relations Manger of KEC, explained that KEC aims at attracting students from all over the world to benefit from science and knowledge-based technologies. 'KEC will be a pioneer in advanced technical research centers and supporting research infrastructure including labs, affiliates of local and Islamic research centers in modern communications and its applications, IT industries and development of computer and multi-media applications with business administration colleges and institutions,' he said.

Knowledge Economic City Al Madinah and Wipro sign MoU

Source: Various
JEDDAH, 12 April 2008

Knowledge Economic City Al Madinah (KEC) today signed a Memorandum of Understanding (MoU) with global IT services provider Wipro.

KEC Chairman Sheikh Ibrahim Bin Mohammed Al-Issa signed for his company whereas Wipro Chairman Azim Premji signed for his company. Under the MOU, the two will work together in assessing viable opportunities for KEC to utilize Wipro based solutions and assess the possibility of developing an ICT related Research & Development centre within Knowledge Economic City. One of the key points to the MoU is that both parties will work together in establishing a Wipro Academy to provide IT related training in KEC.

KEC Chairman Sheikh Ibrahim Bin Mohammad Al-Issa said that this signing is the beginning of a collaboration that will utilize Wipro's innovative technology in KEC. 'Wipro are one of the largest IT service providers in the world,' he said. 'They bring with them decades of experience and a work force large enough to provide a full support system to KEC. We will be working together in areas of research and development, as well as establishing a joint education institute for the training of IT professionals.'

KEC CEO Tahir Bawazir added that 'under the MOU, Wipro will cooperate with KEC in Corporate Social Responsibility initiatives which enhance the local community's IT basic skills. Wipro employs around 85,000 people internationally and have over two decades experience training people; we'll use this expertise in the local market to up-skill the Saudi people.'

Yesterday's signing ceremony held in Jeddah was attended among others by Wipro Arabia Vice President Mr. A Nagarajan, Mr. Anurag Srivastav; Vice president consulting Divison, Mr. Durga Prasad; General Manager products Division and Mr. Muayad Al Kabbani; business development Manager. Prominent attendees from KEC side Sheikh Saleh Mohammed Bin Laden; deputy Chairman and Dr. Sami Baroum; board of directors member.

World Class IT certification at Al Madinah Knowledge Economic City (KEC)

Source: Zawya
RIYADH, 17 MAY 2007

KNOWLEDGE workers who train at Al Madinah can be assured that their qualifications will be recognised as world-class thanks to a Memorandum of Understanding just signed between and international IT certification organisation CompTIA (Computing Technology Industry Association).

The CompTIA MoU signing comes just days after announced a similar arrangement with the world-leading networking company, Cisco. CEO Tahir Bawazir says the international expertise that these organisations offer to Al Madinah is critical to the success of the
knowledge-based industries concept on which is based. "They bring international experience to our development and we are delighted that they share our vision to make Al Madinah a global reference center for ICT development."

The MoU with CompTIA is aimed at gaining fast track endorsement of IT certifications to be offered at Al Madinah which will provide a model for other economic cities and Saudi Arabia in general.

CompTIA has entered into agreements with the Saudi Arabian General Investment Authority (SAGIA) and Al Madinah to work collaboratively to develop IT skills among students and workers in the Kingdom of Saudi Arabia. The organizations will also work together to implement industry-accepted standards for IT professionals which will help to fill IT vacancies and skills gap in the region. "The Kingdom of Saudi Arabia is rapidly becoming the leading country in the Middle East where it comes to IT," said John Venator, President and Chief Executive Officer, CompTIA. "Many international companies are establishing major operations in the Kingdom and this requires a skilled national workforce. With the significant growth in population in the Kingdom the opportunity to fill these jobs is there."

CompTIA is an international not-for-profit association established 25 years ago with more than 22,000 member companies in more than 100 countries around the world. It serves as the voice of the $1 trillion-plus global IT industry in a variety of roles, including being the world's largest developer of vendor-neutral IT certification examinations. CompTIA works with experts and industry leaders from both the public and private sectors (including academia, governments and training companies) to develop broad-based foundational exams to validate an individual's IT skill set. Approximately one million IT professionals world-wide have received CompTIA certification to date. "With the translated version of CompTIA A+ into Arabic we have opened the doors for many Arabs to start an education in IT", said Rudolf Tegelaar CompTIA's Regional Director. The latest signing is only the beginning, according to Chief Technology Officer, Mohammed Shah. "We are negotiating with other multi-national ICT companies and more agreements will follow soon."

Meanwhile, Al Madinah delegates were among a high powered line-up of attendees taking part in a workshop in Riyadh organised by the Middle East Workforce Development Advisory Council (MEWAC) at the same time. They include representatives from SAGIA, Cisco, GOTEVOT, Intel, Human Resource Development Fund, ICS Corporation EMEA, Microsoft Saudi Arabia, Ministry of Information and Telecommunication and CompTIA. Marketing Manager Mohammed Khoja says the participation of such major players in the IT industry demonstrates how important the workshop is. "It provides a significant opportunity for information sharing and developing productive relationships for the future," he said.

Oracle invests in Saudi economic city

Source: Various
JEDDAH 25 November 25  2007

US software giant Oracle on Sunday signed a deal with Saudi Arabia’s Knowledge Economic City (KEC) in Medina to provide technology and expertise to help in the city’s development.

Under the Memorandum of Understanding (MoU), Oracle will help in developing a blueprint for KEC and establish an Oracle Training Academy to supply the city with skilled labour.

The city will focus on developing intellectual property and knowledge based industries, with emphasis given to four major areas: medical; hospitality; tourism and multimedia. KEC is one of four economic cities being developed in the kingdom.

Construction on the 25 billion Saudi riyal ($6.7 billion) project is expected to begin in January. The project is expected to be fully completed in 10 to 12 years, with the first phase ready in three years.

KEC CEO Tahir Bawazir told the press conference in Jeddah that academy graduates will satisfy the need for qualified IT staff and lead to a more skilled work force in Medina, which in turns creates further competitive advantage for local companies. “Indirectly, the community as a whole also benefits because there is a multiplier effect that occurs each time a new job is created,” he continued.

KEC is expected to create more than 20,000 jobs and accommodation for about 150,000 people.

The two parties have not agreed yet on how to develop their cooperation but as a start Oracle will provide its software and expertise to local educational institutions in KEC to supply the city with Oracle skilled-engineers. Oracle Vice President Abdulrahman Al-Thehaiban said both parties would achieve complementary goals through this partnership, but did not go into detail about how this will be achieved. Al-Thehaiban also did not reveal how much Oracle is planning to invest in KEC.

Oracle and KEC are planning to make the city an export platform for Oracle certified-technical staff to other regions. “We can learn a lot from their capability, efficiency and experience and we are looking forward to developing a whole new generation of Oracle-skilled engineers to fill the increasing number of vacancies across the Middle East,” said Bawazir. Al-Thehaiban added: “We need more qualified Oracle engineers trained to service our own growth plans so there is a strong business incentive for us to partner with KEC in this way.

Saudi Arabia is developing four economic cities to boost regional development and provide employment for the country’s growing population. Beside KEC, the other economic cities are King Abdullah Economic City (KAEC) in Rabigh, home to industrial activities, port, plastics and light manufacturing; Prince Abdul Aziz bin Musaed Economic City in Hail, which
will focus on agriculture, mining, transportation and logistics activities; and Jazan Economic City (JEC), which is to focus on heavy and energy industries.

Intel signs MOU with Madinah KEC

Source: Arab News
JEDDAH, 24 May 2007

Intel’s new generation of Ultra Mobile Personal Computers (UMPC) are expected to become a unifying factor for knowledge workers at Knowledge Economic City Madinah.

The global ITcorporation signed a memorandum of understanding yesterday to provide its best technology to Knowledge Economic City (KEC), which will include UMPCs — small personal computers the size of a mobile phone/PDA.Intel Corporation is the world’s largest semiconductor company, with a market capitalization of nearly $120 billion and annual revenues of more than $35 billion. Headquartered in Santa Clara, California, Intel was formed in 1968 and has 94,000 employees worldwide.

Signing on Intel Corporation’s behalf, General Manager for Saudi Arabia Ferhad Patel said Knowledge Economic City was rapidly developing as a center of excellence for ICT development in the Middle East and Intel was keen to be partof it. “We recognize the opportunities that the youthful demographics of MENA as a whole provide and the potential for Knowledge Economic City as a Smart City. ”KEC Chief Executive Officer Tahir Bawazir, signing on behalf of KEC, said the Intel MOU would result in accelerated access to technology for everyone, which was a key factor in keeping Knowledge Economic City out in front. “KEC’s collaboration with Intel, Cisco, CompTIA and other key international IT innovators with whom we are formalizing relationships will ensure that we achieve our objective of becoming a world leader in the ICT arena. ”Access to the latest in computing hardware is of major importance to KEC’s Chief Technology Officer Mohammed Shah who has the responsibility for developing the infrastructure needed to provide seamless connectivity for KEC’s workers and residents. “Our knowledge workers will be encouraged to use Intel’s UMPCs as a single source for all of their applications in our connected smart city, instead of having a pocket full of devices for different applications,” he said.

The Intel agreement was the first of two memoranda of understanding signed yesterday. The second was with The Competitiveness Institute (TCI), a global authority on competitive economics and cluster development.“ Dr Lars Eklund said TCI’s mission was to improve living standards and the local competitiveness of regions throughout the world by fostering cluster-based development initiatives. Knowledge Economic City was an excellent example of this type of initiative and the perfect place for the Institute to establish a regional headquarters,” he said. Knowledge Economic City Madinah is the one of six economic cities being developed in regional areas of the Kingdom of Saudi Arabia to create employment and drive economic development outside of the major cities of Riyadh and Jeddah. The SR25 billion ($7 billion) project is located at Madinah. KEC Marketing Director Mohammed Khoja said Knowledge Economic City is designed as a project that will position Saudi Arabia and young Saudi Arabian entrepreneurs as internationally respected leaders in knowledge-based industries and aims to attract and develop talent from around the world. “It will provide them with opportunities on a global scale while providing investors and entrepreneurs with infrastructure, opportunity, a unique pool of talent and the potential for a healthy return on investment,” he said.

More than 20,000 jobs and accommodation for about 150,000people will be created by the project which is expected to bring about SR10 billion a year into the region once it is completed by 2020.

Cisco to help make Madinah's Knowledge Economic City a beacon to the future

Source: Al Bawaba
Middle East 7 May, 2007

AL MADINAH'S Knowledge Economic City is to work with Cisco, one of the world's leading IT companies, to create a futuristic city.

The two organisations will work together to create a 'smart city' where KEC workers and residents are permanently connected to high-speed broadband networks, no matter where they are, in a world-class IT infrastructure.

Under a Memorandum of Understanding signed in Riyadh, KEC and Cisco also will work together to establish a networking academy at Knowledge Economic City to provide state of the art ICT training. The MoU was signed at a special ceremony attended by Cisco's Vice President of Global Projects, Rangu Salgame; Deputy Governor of the Saudi Arabian General Investment Authority (SAGIA) Fahd Al Rasheed; Dr Yousef AL Othaimeen from King Abdullah Foundation; Sheikh Ibrahim Al Eissa, President ofSeera City Real Estate, KEC's management company; KEC CEO Tahir Bawazir and other Cisco and KEC executives.

Mr Fahd Al Rasheed said the new economic cities announced by Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz last year would play an important role in the future of Saudi Arabia. "Developments such as Knowledge Economic City are bringing some of the world's best expertise to the Kingdom and that expertise will work to the benefit of the Saudi economy. "Partnerships such as this one between KEC and Cisco show that there is a tremendous amount of international interest in helping us develop our IT infrastructure," he said. "No other company in the world has as much experience as Cisco in creating smart cities," said Sheikh Ibrahim. "Cisco is a world leading networking company and not only will they be helping with the IT infrastructure but the plan is for them to help train thousands of young Saudis as knowledge workers for the IT industry. "Tahir Bawazeer, CEO of Knowledge Economic City in Madinah, said Cisco was keen to train young Saudis as Cisco-certified engineers. "That will benefit the entire country and make Knowledge Economic City a beacon for learning in the Islamic world." KEC's senior technology officer, Mohammed Shah, said Cisco's concept of a connected city was an exciting one. "Imagine a city that wherever you are you can connect to the Internet or your company's network. It doesn't matter whether you are in your office, sitting at home, enjoying a coffee in a cafe or driving in a car, you will be able to stay connected and productive."With the help of Cisco and other companies Knowledge Economic City workers and residents will stay connected using ultra mobile PCs (UMPCs), devices like smart phones that will cover all of your computing needs and keep you connected wherever you travel in the city. "People won't be tied to their desks any longer because everywhere you go you will have access to a very high speed broadband Internet connection,"Mohammed Khoja, Marketing Director of KEC, added.