Image credit: Getty Images and JEC.sa
Construction is resuming on what will be the world’s tallest tower in Jeddah, Saudi Arabia — and it could be completed in 2028, if everything goes to plan.
The Jeddah Economic Company (JEC) Tower, once completed, will rise over 1,000 metres and feature 157 floors, making it the tallest structure globally. To date, 63 floors have already been completed. Kingdom Holding Company (KHC), a key shareholder in JEC, announced last week that an agreement to resume construction has been signed with Saudi Binladin Group, valued at SAR 7.2 billion.
The agreement, signed on 2 October 2024, marks a step forward for the JEC Tower, which has faced delays for several years after construction first started in April 2014.
KHC, which holds a stake in JEC, highlighted the importance of the project in its market announcement on the Saudi stock exchange, Tadawul.
“Jeddah Economic Company, an associate company, has signed an agreement with Saudi Binladin Group Company to resume the construction of Jeddah Economic Company Tower project,” the company stated.
Jeddah Economic Company’s financing model
JEC will finance the remaining construction through internal funding and banking facilities. Of the SAR 7.2bn contract value, approximately SAR 1.1bn has already been paid for work previously completed on the tower. The agreement outlines a 42-month construction period to bring the project to completion.
The JEC Tower will be part of Jeddah Economic Company City, a larger development covering around 5.3 million square metres. The first phase of the project spans 1.3 million square metres, with infrastructure development already in place, including electricity, water, sewage systems, flood drainage, and high-speed internet connectivity.
Saudi Binladin Group, which initially began the construction several years ago, will continue its work under the new contract. Despite the setbacks faced, both KHC and Saudi Binladin Group are now committed to completing the tower within the stipulated timeline.
KHC underscored the significance of the project in its announcement, stating: “The Jeddah Economic Company Tower will play a major role in establishing Jeddah as a new business and tourism hub in the region.”
The project aligns with Saudi Vision 2030, which aims to diversify the economy and boost non-oil revenues. Once completed, the tower is expected to serve as a major landmark for Saudi Arabia, attracting international investors and boosting tourism.
Jeddah Economic Company City will feature the tower as its centrepiece, with additional mixed-use developments planned across the area, including residential, commercial, and entertainment spaces. The broader vision is to transform Jeddah into a hub for international business and tourism, supported by the ambitious development.
