Staff Report
Dubai, UAE
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has set up Al Balad Development Company (BDC) that will oversee the improvement of Jeddah’s historic Al Balad district, transforming the area into an economic hub, a global cultural and heritage spot, and a leading tourism destination. PIF’s latest initiative follows the launch of FMTECH, a facilities management company.
BDC will work on the restoration of historic buildings in Al Balad and improvement of the district’s infrastructure, which includes the building of recreational, residential, commercial, hotel and office spaces. Al Balad, which is a famous Red Sea port and features coral limestone architecture, covers a development area of approximately 2.5 million square meters, with a total built up area of 3.7 million square meters. The district will consist of 9,300 residential units, 1,800 hotel units and around 1.3 million square meters of commercial and office space.
The company will collaborate with the private sector and specialists to revamp the area’s infrastructure according to the best standards of urban planning for historic areas, taking into account environmental sustainability and preserving the unique heritage of Historic Jeddah: a UNESCO World Heritage site. This will boost tourism, which will contribute to Jeddah’s economic development. BDC also plans to offer investment opportunities and quality commercial options for the Jeddah community. The master-plan comes into fruition after the announcement made by HRH Crown Prince Mohammed bin Salman bin Abdulaziz in 2021 to “Revitalise Historic Jeddah” as part of “Historic Jeddah Development Project.”
The establishment of BDC aligns with PIF’s strategy to diversify the Saudi Arabia’s economy through developing and enabling strategic sectors, including real estate and tourism, contributing to achieving the aims of Vision 2030.
Ends
