- Title: Saudi aims to salvage financial district project
- Date: 17th May 2016
- Summary: RIYADH, SAUDI ARABIA (MAY 11, 2016) (REUTERS) VARIOUS OF EXTERIOR OF KING ABDULLAH FINANCIAL DISTRICT (KAFD) (SOUNDBITE) (English) RESIDENT, OSAMA AL-BARIKAN, SAYING: "Especially after the project of Saudi vision for 2030, I think the new orientation for the government is toward financial development in the country and especially in the funding of the governmental projects and this huge project of King Abdullah, Financial City is one of the milestones of that strategy I think.' RIYADH, SAUDI ARABIA (MAY 12, 2016) (REUTERS) TOWERS IN KAFD SIGN READING (ARABIC AND ENGLISH): KAFD CONFERENCE CENTER PARKING VARIOUS OF WORKERS AT KAFD RIYADH, SAUDI ARABIA (MAY 11, 2016) (REUTERS) (SOUNDBITE) (English) RESIDENT, OSAMA AL-BARIKAN, SAYING: "I think it is a good idea to have customised visa, but I think they have to put some restriction criteria to those want come to here (KAFD). Yes this will make a big change, a critical change." RIYADH, SAUDI ARABIA (MAY 12, 2016) (REUTERS) VARIOUS OF TOWERS AND BUILDINGS IN COMPLETE AREA OF KAFD VARIOUS OF WORKER CLEANING ONE OF BUILDINGS IN COMPLETE AREA OF KAFD VARIOUS OF WORKERS WORKING IN INCOMPLETE AREA OF KAFD RIYADH, SAUDI ARABIA (MAY 11, 2016) (REUTERS) SUNSET OVER KAFD
- Embargoed: 1st June 2016 13:31
- Keywords: Saudi Arabia economy construction
- Location: RIYADH, SAUDI ARABIA
- City: RIYADH, SAUDI ARABIA
- Country: Saudi Arabia
- Topics: Economic Events
- Reuters ID: LVA0014I71P3P
- Aspect Ratio: 16:9
- Story Text:At Saudi Arabia's King Abdullah Financial District (KAFD), intended to be a haven for foreign financial services and investors but criticised as a poorly planned example of the Kingdom's profligacy, construction is still underway -- one year after it was supposed to be finished.
Construction of KAFD, on the edge of the capital Riyadh, began in 2006, with skyscrapers set to house banks and the financial regulator -- but it remains a construction site and no businesses have moved in.
The district, situated in the northern part of Riyadh, has been beset by problems, most recently involving the project's master developer, Saudi Binladin Group, with construction delays and workers protesting at the KAFD site over months of unpaid wages.
But reform-minded Deputy Crown Prince Mohammed bin Salman said last month he wants to salvage the $10 billion project. The Public Investment Fund, reimagined as the world's largest sovereign wealth fund, will be based there and sources have said it will also own the project.
According to the prince's "Vision 2030", KAFD will become a "special zone" with internationally competitive regulations, an easier visa regime and a direct connection to the airport, steps he hopes will increase the chance of success.
Another change is to increase the amount of residential use from the 1.7 million sq metres now designated for office space.
Riyadh resident Osama al Barikan said the KAFD was an integral part of the country's future economic plans.
"Especially after the project of Saudi vision for 2030, I think the new orientation for the government is toward financial development in the country and especially in the funding of the governmental projects and this huge project of King Abdullah, Financial City is one of the milestone of that strategy I think," he said.
"I think it is a good idea to have customised visa, but I think to put some restriction criteria to those want come to here (KAFD). Yes this will make a big change a critical change," he added.
The firm responsible for the KAFD masterplan, Danish firm Henning Larsen, said the original plans were flexible enough to transform space earmarked for offices into residences or retail space, and a direct link to the airport would be easy to install via Riyadh's new metro, which will have a station at KAFD.
Other changes, such as a different regulatory regime, visa exemptions and any blunting of Saudi Arabia's strict social restrictions, would be more complicated, however.
At the moment, visas can take many days to arrange and require a complex process of invitation by a sponsor and plenty of supplementary documentation. Setting up a business means getting permissions from many government departments.
According to rules dictated by Saudi Arabia's powerful conservative clerics, women must wear an ankle-length cloak in public and are forbidden from driving. Men and women who are not related may not mingle unchaperoned. Cinemas, music concerts and dancing are banned and alcohol and pork are illegal. Businesses must shut for half an hour during each of five daily prayers.
Saudi Arabia has found ways to accommodate foreigners, however. Expatriate compounds, hidden behind high walls, protected by army gun emplacements, to which Saudi nationals are usually forbidden entry, allow foreigners to dress and behave much as they do in the West. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None