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More firms join race to build world’s tallest tower

11 October 2023

 

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More firms have approached Jeddah Economic Company (JEC) to take part in the tender for the contract to complete the world’s tallest tower, the 1,000-metre-plus-tall Jeddah Tower project in Saudi Arabia.

According to a source close to the project, a range of local and international firms have approached the developer about working on the project.

Two of the best-known international names that have come forward are South Korea’s Daewoo and Egypt’s Orascom Construction. Orascom is a 50 per cent shareholder in Belgium’s Besix Group, which was part of the three-way joint venture that built the 828-metre-tall Burj Khalifa in Dubai. 

Besix has shown appetite for working on other record-breaking tower projects in recent years. It completed the raft foundation for the tallest tower project at Dubai Creek Harbour and participated in the tender – which was ultimately cancelled – to build the tower’s superstructure as part of a joint venture with Tishman, which US-based Aecom owns.

The Burj Khalifa joint venture also comprised South Korea’s Samsung C&T. MEED exclusively reported in September that Samsung C&T was one of 14 companies that had been invited to complete Jeddah Tower. The other firms are:

  • Almabani (local)
  • Bawani (local)
  • China Harbour (China)
  • China State Construction Engineering Corporation (China)
  • Consolidated Contractors Company (CCC – Lebanon)
  • El-Seif Engineering Contracting (local)
  • Hyundai Engineering Construction (South Korea)
  • Mohammed Abdulmohsin al-Kharafi & Sons (Kuwait)
  • Nesma & Partners (local)
  • Powerchina (China)
  • Saudi Freyssinet (local)
  • Skanska (Sweden)
  • Strabag (Europe)

These firms are forming joint ventures, according to the source close to the project. The source expects the joint ventures to comprise international, regional and local partners. 

Vision 2030 drives tall tower plans

The construction work for the tower’s superstructure, which began in the early 2010s with the local Saudi Binladin Group (SBG) as the contractor, is one-third complete. The foundations and piling work for the record-breaking tower are finished. Germany’s Bauer completed the piling work for the building.

JEC commissioned an independent assessment of the structure before the tender was issued.

While SBG is no longer working as the contractor on the project, the consultancy team remains the same. The architect is US-based Adrian Smith & Gordon Gill, and the project manager is Lebanon’s Dar al-Handasah (Shair & Partners).

Jeddah Tower restart is a watershed moment

The shareholders in JEC are Kingdom Holding Company with a 40 per cent stake, Bakhsh Group with a 40 per cent stake, and Sharbatly Group with a 20 per cent share.

Jeddah Tower will be taller than Dubai’s Burj Khalifa by more than 172 metres. It is the centrepiece of the Jeddah Economic City development. The project’s first phase, which includes the main tower, covers an area of 1.5 square kilometres.

Read the October edition of MEED Business Review

Saudi growth dips while project activity soars

Oil production cuts trim public sector growth, but private sector thrives

*=Year-to-date | Sources: IMF, MEED Projects, MEED

MEED’s October 2023 special report on Saudi Arabia includes: 

> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORT: Saudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
> BANKS: Saudi banks track more modest growth path
> UPSTREAM: Aramco focuses on upstream capacity building
> DOWNSTREAM: Saudi chemical and downstream projects in motion
> POWER: Riyadh rides power projects surge
> WATER: Saudi water projects momentum holds steady
> GIGAPROJECTS: Gigaproject activity enters full swing
> TRANSPORT: Infrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWER: Jeddah developer restarts world’s tallest tower

 

 

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Colin Foreman

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    Must-read sections in the March 2025 issue of MEED Business Review include:

    > AGENDA: 
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    > CURRENT AFFAIRS:
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    > INTERVIEWS:
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    > Masdar meets renewable’s moonshot challenge
    > Diriyah CEO sets the record straight

    > SAUDI POWER: Saudi power projects hit record high

    > AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector

    > EGYPT MARKET REPORT: 
    > COMMENT: Egypt battles structural issues
    > GOVERNMENT: Egypt is in the eye of Trump’s Gaza storm
    > ECONOMY: Egypt’s economy gets its mojo back
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    > JANUARY 2025 CONTRACTS: High-value deals signed in power and industrial sectors

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: Trump’s foreign policy shakes global relations

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
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