Saudi Arabia’s Jeddah Tower, which is expected to become the tallest structure in the world, is set to be finished by 2020.

1. JEDDAH TOWER ON TRACK TO BE
THE WORLD’S TALLEST BUILDING
Dr. Ehsan Bayat

2. JEDDAHTOWER ONTRACKTO BETHE
WORLD’STALLEST BUILDING
 Despite some serious challenges, the Saudi Arabian
real estate market is set to experience growth before
the end of 2018. One indication of the growing
market is the continued work on JeddahTower,
which is a contender in the race to become the
world’s next tallest building.While that title currently
belongs to the Burj Khalifa in Dubai, Saudi Arabia’s
JeddahTower still is expected to be significantly
taller—at 1,000 meters—when it is completed in
2020. Altogether, construction of the new building,
which will be 72 meters taller than the Burj Khalifa,
will cost an estimated $1.4 billion. By the end of
2017, the tower had already grown to a height of 252
meters. In total, 63 floors have been completed. Image courtesyWikipedia

3. THE EXCITING PROMISE OFTHE JEDDAH
TOWER PROJECT
 JeddahTower will become the heart of Jeddah Economic City, a major real estate
project that will consist of more than 75 million square feet of commercial and
residential space.This project will include key tourist attractions, as well as luxury
homes and hotels, including a five-star Four Seasons Hotel. According to the
current plan, the tower will house 97 serviced apartments and seven duplexes, as
well as 325 apartments in four distinct residential tiers. Seven floors of the tower
will be designated for office space.
 Today, the site around the tower is largely desert, although this will change over
the next year as construction begins on a shopping mall and other projects.The
tower itself will feature 252 stories and an observation deck 2,178 feet off the
ground, which will make it the tallest building in the world.The tower will also
have the highest elevators in the world, including double-decker lifts that go
directly to the observation deck from the ground level.The elevator will
purportedly bring guests to the 157th floor in just over a minute.

4. SOME OFTHE SETBACKS EXPERIENCED
BY PROJECT DEVELOPERS
 The developer behind the project, Jeddah EconomicCompany, recently confirmed a new completion date of 2020
despite some doubts about the feasibility of the project. Admittedly, JeddahTower has faced some major setbacks since
it first launched in 2013. Many of the delays have resulted from technical challenges, especially as the tower continues to
grow.The construction team brings in representatives from a structural engineering firm in Chicago each month to
approve the concrete mix.The changing temperatures and winds in Jeddah demand constant vigilance to ensure that
the best mixture is being used. In addition, experts come in each week to verify that the tower is entirely vertical so that
no major hurdles arise down the road. Moving forward, utilities will begin to create problems. Already, developers are
negotiating a contract with Saudi Electricity Co. to build a 134-megawatt substation as part of the project.
 Two of the most significant challenges arose from the recent anti-corruption purge launched by the government.The
kingdom questioned hundreds of people who have been accused of corruption, and two major backers of the tower
were implicated: Prince Al-Waleed binTalal, who is a prominent businessman in the kingdom, and Bakr Bin Laden, who
is the chairman of the construction company behind the tower. While these men were detained because of the
accusations, the government has also demonstrated a commitment to avoiding disruption of key economic
development opportunities. Thus, while billions of dollars of assets from the detainees are being seized, it appears that
this will not become a hurdle in the construction of the tower.
 As of early 2018, both of the men detained were released. While binTalal continues to deny any wrongdoing, he is
reported to have agreed to an undisclosed settlement as part of the proceedings. On the other hand, Bin Laden may end
up transferring part of his shareholdings in Jeddah EconomicCompany to the state as part of the settlement. So far, no
changes in the ownership of the Jeddah Economic Company have been announced. However, the project does continue
to face some degree of difficulty as the construction company backing it has faced a number of financial hurdles as a
result of the recent slump in the construction sector. As real estate in the kingdom begins to pick up in pace, perhaps this
challenge will disappear.

5. THE FUTURE OFTHE PROJECT AND ITS
IMPACT ONTHE KINGDOM
 The tower itself is set to drastically change the kingdom’s real estate landscape,
which is why the project has become so central to economic development.
Currently, Jeddah is largely viewed as a gateway city for easy access to Mecca and
Medina. Most people do not seriously consider living in Jeddah, yet the tower will
make the city a major destination for business and tourism.The people behind the
tower believe that it will put Jeddah on the international map and raise it to the
same level as Dubai.
 By the end of 2018, the construction team plans to have all shelling and cladding
completed for the entire project. Al FouzanTrading and General Construction
Company has been awarded a $165 million bid to complete the infrastructure.