Construction is set to resume on the Jeddah Economic Company Tower, which will become the tallest building in the world upon completion, rising over one kilometer high in Jeddah, Saudi Arabia.
The Jeddah Economic Company (JEC), affiliated with Kingdom Holding Company (KHC) and chaired by Prince Alwaleed Bin Talal, announced an agreement with the Saudi Binladin Group to restart development of this iconic structure. KHC disclosed this significant update in a statement released to the Saudi stock exchange on Wednesday.
So far, 63 out of the planned 157 floors have been completed, and the construction timeline has been set at 42 months for finalization. The total contract value for the project is estimated at SAR 7.2 billion (approximately $2 billion), with SAR 1.1 billion already paid for earlier construction efforts.
To fund the remaining construction, JEC plans to utilize internal resources along with banking facilities.
The tower is part of the initial phase of the Jeddah Economic Company City, which spans 5.3 million square meters, with the first phase alone covering 1.3 million square meters. Infrastructure development for this initial phase—including electricity, water, sewage systems, flood drainage, and high-speed internet—has already been completed.
In a significant move earlier in July, Kingdom Holding, along with Sumuo Holding Company and JEC, entered an agreement to assume ownership of the Al Inma Jeddah Economic Fund, which was previously fully owned by JEC.
Originally launched in 2013, the construction of the Jeddah Economic Company Tower has faced challenges and delays, primarily due to controversies surrounding contractors. Work was halted in 2017 after only a few floors had been constructed, following a fallout between Prince Alwaleed and the Saudi Binladin Group during an anti-corruption crackdown. Throughout the ordeal, Prince Alwaleed has consistently asserted his innocence regarding any wrongdoing.
Founded in 2009, JEC is a collaborative venture among several real estate and development firms, including Kingdom Holding Company, Abrar Holding Company, Qila’a Jeddah Company, and Saudi Binladin Group.
Currently, the tallest building in the world is the Burj Khalifa in Dubai, standing at 828 meters.
