meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi’s Jeddah Tower reaches for new heights

27 September 2023

 

A landmark moment came for Saudi Arabia’s construction sector in mid-September when Jeddah Economic Company (JEC) invited firms to bid for a contract to complete the world’s tallest tower project, the 1,000-metre-plus Jeddah Tower.

Work on the tower “is back in full [swing]”, a source close to the project told MEED.

When completed, Jeddah Tower will be the first structure in history to exceed 1 kilometre in height. It will also be taller than the current world’s tallest building, Dubai’s Burj Khalifa, by more than 172 metres. 

When contacted by MEED, Talal Ibrahim Almaiman, CEO of Kingdom Holding Company, confirmed that the tender to complete the record-breaking tower had been officially issued.

The companies that have been invited to bid for the contract include:

  • 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)
  • Samsung C+T (South Korea)
  • Saudi Freyssinet (local)
  • Skanska (Sweden)
  • Strabag (Europe)

The contractors have been given three months to prepare their bids, and are expected to form joint ventures comprising local and international partners. It is understood that contractors have visited the site.

When completed, Jeddah Tower will be the first structure in history to exceed 1 kilometre in height

Restarting construction

One important question for the potential bidders is the condition of the tower’s existing structure. JEC commissioned an independent assessment of the structure before the tender was issued. Sources close to the project have told MEED that the report concluded that building work can restart.

The construction work for the superstructure of the tower, which began in the early 2010s with the local Saudi Binladin Group (SBG) as the contractor, is one-third complete.

SBG stopped working on the project in February 2018. In September this year, JEC called in the performance guarantees or bonds provided by SBG. A source close to the project said that the value of the bonds totals SR653m ($174m).

Almaiman confirmed that the developer has exercised its rights under the contract after having given SBG five years to re-engage.

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 engineering consultant is Lebanon’s Dar al-Handasah (Shair & Partners).

Project stakeholders 

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.

In 2015, JEC and Saudi Arabia’s Alinma Investment established a $2.24bn fund to finance the first phase of the Jeddah Economic City project and Jeddah Tower. The Alinma Jeddah Economic City Fund is a sharia-compliant fund that will operate under the Saudi Arabian Capital Market Authority. 

Alinma Bank agreed to finance the fund, which is managed by Alinma Investment. Prince Alwaleed bin Talal bin Abdulaziz al-Saud, chairman of Kingdom Holding Company, was appointed as chair of the fund’s board. 


The 170-storey Jeddah Tower will have a variety of revenue streams and will
feature the world’s highest observation deck. Credit: Jeddah Economic Company

Development plans

Jeddah Tower is the centrepiece of the Jeddah Economic City development in the Obhur district, north of Jeddah. The project’s first phase, which includes Jeddah Tower, covers an area of 1.5 square kilometres.

The mixed-use tower will have 170 storeys, seven of which will be allocated to a five-star, 200-room Four Seasons Hotel. There will also be 11 storeys housing 121 serviced apartments, and seven storeys of offices. 

A further 61 storeys of the tower will comprise 318 residential units, a gym, spa, cafes and restaurants. Plans also include several sky lobbies and the world’s highest observation deck, located on the top floors of the tower, 660 metres above the ground. 

Development work on the project began in 2006. Building the world’s tallest tower requires state-of-the-art technologies and construction methods. 

The piling and foundations work for the tower was completed in 2014. Germany’s Bauer was the piling contractor, and 270 piles were cast, reaching 105 metres below ground. The raft sitting on top of the piles is one of the world’s largest reinforced steel foundations, with a thickness of between 4.5 and 5 metres. 

Cranage is a major challenge when constructing megatall towers. In early 2015, JEC took delivery of custom-made cranes, supplied by Germany’s Liebherr & WolffKran.

For elevators, Finland’s Kone was appointed to supply the fastest and highest double- decker elevator system in the world. The planned system will travel at a speed of more than 10 metres a second, rising to 660 metres. 

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

> 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

https://image.digitalinsightresearch.in/uploads/NewsArticle/11177248/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Scatec and Egypt Aluminium seal $650m deal

    14 March 2025

    Oslo-headquartered renewable energy developer and investor Scatec has signed a 25-year US dollar-denominated corporate power-purchase agreement with Egypt Aluminium for a 1.1GW solar photovoltaic (PPV) plus 100MW/200MWh battery energy storage system (bess) plant project in Egypt.

    According to Scatec, the PPA is backed by a sovereign guarantee.

    The estimated total capital expenditure for the solar PV plus bess project is approximately $650m, which will be funded by approximately 80% non-recourse project debt,and the remainder, by equity from Scatec and partners.

    Scatec owns 100% of the project but is targeting to reduce its long-term economic interest by inviting additional equity partners, the firm said.

    Scatec will be the designated engineering, procurement and construction (EPC )service provider, with an EPC share of approximately 90% of total capex. It will also act as asset manager and operations and maintenance service provider for the project.

    It said the key next steps for the project are to work with the relevant authorities to allocate land, finalise grid connection and secure financing,

    Scatec said it aims to reach financial close and start construction within the next 12 months.

    Egypt Aluminium is the largest aluminium producer and industrial electricity consumer in Egypt and exports approximately 60% of its production to Europe.

    The solar PV plus bess project will be instrumental for Egypt Aluminium’s ambition to decarbonise its aluminium production and to meet the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements which will be introduced in 2026, Scatec added.

    The project was first announced in January last year, when Egypt's Public Business Sector Ministry and Scatec were reported to be exploring the development of a solar power plant to supply clean energy for the operation of the Nagaa Hammadi aluminium complex in Egypt.

    The "groundbreaking" project is the first utility-scale PPA with an industrial offtaker in Egypt, said Scatec CEO Terje Pilskog.

    Growing projects pipeline

    It is the latest project in Egypt for Scatec, which withdrew in 2023 from two solar photovoltaic projects in Iraq and a green hydrogen project in Oman to focus its resources on developing projects in the North African territory.

    Scatec is the lead developer for the Egypt Green hydrogen project, which was first announced in 2021. Scatec, Abu Dhabi's Fertiglobe and the local Orascom Construction are developing the project in partnership with The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company.

    In July 2023, Scatec signed an agreement with Egypt's New & Renewable Energy Authority (NREA) to secure land for a planned 5,000MW wind farm in western Sohag.

    In September last year,  Scatec signed a US-dollar-denominated 25-year PPA with the Egyptian Electricity Transmission Company for a 1,000MW solar and 100MW/200MWh battery storage hybrid project in Egypt.

    Photo credit: Scatec

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13491318/main.jpg
    Jennifer Aguinaldo
  • JLL wins Pure Data Centres contract

    14 March 2025

    London-headquartered Pure Data Centres Group (Pure DC) has appointed Jones Lang LaSalle (JLL) to provide integrated facilities management services at its new Yas Island data centre in Abu Dhabi.

    The initial phase of Pure DC's first facility in the UAE went live in late February. When fully complete, the data centre campus will provide 45MW of capability, JLL said in a statement.

    JLL’s scope of work includes ongoing maintenance and support for the Yas Island data centre’s low-voltage and high-voltage electrical systems, including its uninterruptible power supplies, switchgear and hydrotreated vegetable oil (HVO)-powered generators, as well as its hybrid air and liquid cooling systems.

    Related read: Region poised for huge investment in data centres

    JLL will also be responsible for network and ICT management, alongside delivering front-of-house facilities management services, such as cleaning and landscaping.

    The firm said the new project will "reinforce its reputation as a leading consultant and operator across existing and new hyperscale data centre locations within the Europe, the Middle East and Africa (Emea) region".

    JLL recently added three senior executives in its Emea team after identifying a 742MW hyperscale construction boom in the region, the firm added.

    Saudi joint venture

    In November last year, Pure DC and the local  announced a joint venture to develop hyperscale data centres in Saudi Arabia.

    They said the joint venture plans to develop multiple 100MW-capacity data centre campuses in th kingdom to meet growing local and international customer demand.

    Founded in 2021 in London, Pure DC is majority-owned by funds of US-based Oaktree Capital Management, which have committed significant equity to fund the firm's global development pipeline.

    According to Pure DC's website, it has over 200MW of IT capacity live or under development in markets across Europe, Asia and the GCC.

    Aspiring AI hubs

    The UAE has the highest concentration of data centres, while Saudi Arabia is the fastest-growing regional market, with both countries, along with Qatar, aiming to be digital hubs and key players in AI.

    Globally, total investment in data centres reached $70.6bn in 2024 and is projected to grow by 5% to $74.3bn in 2025, according to GlobalData.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13491266/main.jpg
    Jennifer Aguinaldo
  • Abu Dhabi extends battery storage bid deadline

    14 March 2025

    Prequalified bidders were given a three-week extension to submit their proposals for a contract to develop and operate a battery energy storage system (bess) plant project in Abu Dhabi.

    The project client, Abu Dhabi-based utility offtaker Emirates Water & Electricity Company (Ewec), expects to receive bids by 24 March, three weeks from the previous tender closing date, according to a source familiar with the project.

    Called Bess 1, the 400MW project will closely follow the model of Abu Dhabi’s independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

    The first plant will be in Al-Bihouth, about 45 kilometres (km) southwest of Abu Dhabi, and the second plant will be in Madinat Zayed, about 160km southwest of the city.

    Ewec issued the request for proposals to prequalified companies in July last year and initially set 30 November 2024 as the last day to submit proposals. 

    MEED previously reported that up to four consortiums comprising infrastructure investors, developers and contractors have been formed and are preparing to submit their proposals for the contract.

    Ewec prequalified 11 managing partners that can bid either individually or as part of a consortium with other prequalified bidders. These are:

    • Acwa Power (Saudi Arabia)
    • China Electrical Equipment International (China)
    • EDF (France)
    • International Power (Engie)
    • Jera (Japan)
    • Jinko Power (China)
    • Korea Electric Power Corporation (Kepco, South Korea)
    • Marubeni (Japan)
    • Sembcorp Utilities (Singapore)
    • SPIC Huanghe Hydropower Development Company (China) 
    • Sumitomo Corporation (Japan)

    Ewec prequalified 18 other companies that can bid as part of a consortium. These are:

    • Abrdn Investcorp Infrastructure Investments Manager (UK)
    • AGP Capital (US)
    • Al-Masaood (UAE)
    • Al-Fanar Company (Saudi Arabia)
    • Alghanim International (Kuwait)
    • Aljomaih Energy & Water Company (Jenwa, Saudi Arabia)
    • Amplex-Emirates (local)
    • ATGC Transport & General Trading (local)
    • Amea Power (local)
    • China Electric Power Equipment & Technology (China)
    • China Machinery Engineering Corporation (China)
    • GE Capital EFS Financing (US)
    • Itochu (Japan)
    • Korea Western Power Company (Kowepo, South Korea)
    • Pacific Green (US)
    • Samsung C&T (South Korea)
    • Swift Energy (Malaysia)
    • X-Noor Energy Equipment Trading  (UAE)

    The planned facility is expected to provide up to 800 megawatt-hours (MWh) of storage capacity.

    The ESA will be for 15 years, commencing on the project’s commercial operation date, which falls in the third quarter of 2026. 

    According to Ewec, the bess project will provide additional flexibility to the system and ancillary services such as frequency response and voltage regulation.

    Global bess market

    The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

    The report named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13484751/main.gif
    Jennifer Aguinaldo
  • Indian and Spanish team wins Ras Mohaisen EPC package

    13 March 2025

    A team of India's Larsen & Toubro (L&T) and Madrid-headquartered Lantania has won the engineering, procurement and construction (EPC) contract for the Ras Mohaisen independent water project (IWP) in Saudi Arabia.

    State utility offtaker Saudi Water Partnership Company (SWPC) signed the water-purchase agreement contract for the project with a consortium comprising Riyadh-headquartered utility developer Acwa Power, Hajj Abdullah Ali Reza & Partners and Al-Kifah Holding Company in February. 

    According to L&T,  its Water and Effluent Treatment business division will execute the EPC contract for the desalination facility.

    The state water offtaker received two bids for the contract in April last year. The other bidder was Spain’s Acciona.

    The Ras Mohaisen IWP will be able to treat 300,000 cubic metres of seawater a day (cm/d) using reverse osmosis technology.

    It will also include storage tanks with a capacity of 600,000 cubic metres, equivalent to two operating days, intake and outfall facilities, process units and pumping stations.

    The build, own and operate project will also include electrical, automation and instrumentation systems and a solar photovoltaic plant. 

    The project is expected to reach commercial operation by the second quarter of 2028.

    The plant will be located in Al-Qunfudhah Governorate, about 300 kilometres south of Mecca, on the Red Sea coast in Saudi Arabia’s Western Region.

    The project is expected to enhance water supply chains and is intended to serve the Mecca and Al-Baha regions.

    Netherlands-headquartered KPMG acted as SWPC’s financial adviser, with UK-based Eversheds Sutherland acting as the legal adviser for the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13485233/main.gif
    Jennifer Aguinaldo
  • Egypt faces complex economic reality

    13 March 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483136/main.gif
    MEED Editorial