Mohammed A. Al-Kharashi Governor of the Public Pension Agency

‘Putting Saudi Arabia on the world banking map’
King Abdullah Financial District

Saudi Arabia’s record in the financial sector is a good one. The Kingdom’s stock exchange, Tadawul, is one of the world’s most technologically advanced, and the largest in the Middle East in terms of value traded. The country has the biggest and most high-tech banking sector, and the largest asset-management industry in the region. In terms of foreign investor confidence, the Capital Market Authority (CMA), established in 2004, has introduced and implemented international standards of regulation and transparency.

So it is perhaps not surprising that Saudi Arabia will soon be home to the most advanced, self-contained financial district in the Middle East. With the approval of the Custodian of the Two Holy Mosques King Abdullah, the eponymous centre is the latest step in the Kingdom’s carefully implemented financial modernisation programme.

The chosen site, measuring 1.6 million square metres, is already a thriving business centre. Experts brought in by the Public Pension Agency, owner and developer of the project, have already begun the design and development work that will allow completion of the master plan by the end of the year, with initial construction scheduled immediately after.

“As well as housing Tadawul, the CMA, and major financial institutions, the city will accomodate related service providers. Foreign firms already established in Saudi Arabia have expressed their interest in relocating to what will be a hub of business activity,” explains PPA governor Mohammed A. Al-Kharashi. The importance of infrastructures has not been underplayed. Telecommunication services, data centres, additional roads to the airport and the city, housing, hotels, shops, a conference centre and a mosque have been included in the design, and a financial training academy will provide a steady flow of skilled workers. At a more immediate level, the actual construction will create thousands of jobs over a three-year period.

The Technology and Information City (TIC), a project also owned by the PPA, is a high-tech park on a par with similar business centres world-wide. Equipped with the latest IT infrastructure, the TIC will include research centres, production labs, and IT firms such as Microsoft Arabia, which has already signed up for office space. Also moving in are the Saudi Organization of IT and Communications, Intel and CISCO, with many more big – and small – IT corporations expected to follow suit.

“The Technology and Information City will play a strong role in the development of our local economy. It will help create high-tech industries, new jobs, attract foreign capital and increase local and national competitiveness,” states Mr Al-Kharashi.