Jeddah Tower To Snatch Title of ‘World’s Tallest Building’ From Burj Khalifa — Saudi Developer Manages To Find Financial Backers


Jeddah Tower, which will rise a kilometer (almost 3,300 feet) in the air, will be the tallest building, surpassing Burj Khalifa. The Saudi developer, who dreamed the undertaking, has secured financing to complete the project.

Dubai’s Burj Khalifa, which is currently the world’s tallest building, will have to hand over the title to the Jeddah Tower that will come up in Saudi Arabia. Standing at a kilometer tall, the Jeddah Tower is going to dwarf Burj Khalifa. There were considerable doubts whether Saudi Arabia would succeed in its plans to construct the Jeddah Tower, but Saudi Arabia’s billionaire prince, Alwaleed bin Talal, and his holding company, Kingdom Holding Co., have managed to secure $2 billion to complete the tower, said a statement from Kingdom Holding Co,:

“Alinma Bank will finance the fund, to be managed by Alinma Investment, while Jeddah Economic Company will be the master developer of projects that will draw on the fund’s credit lines.”

The prince managed to secure the funding through affiliate Jeddah Economic Company in a deal with Saudi Arabia’s Alinma Investment, reported International Business Times. The tower alone was previously estimated to cost 4.6 billion riyals ($1.2 billion). However, an entire township is expected to come around the Jeddah Tower, called the Jeddah Economic City. The entire project would cost double, to $2.24 billion. The $2.24 billion (8.4 billion riyal) fund is in complete compliance with Islamic Sharia law, reported the Express Tribune.

Now that the funding has been secured, the construction of the tower is expected to proceed in full swing. Saudi Arabia has set a tight deadline for its completion. Jeddah Tower may pierce the skies in 2018. Interestingly, the company behind the tower had already commenced building it. With the funding, the project could proceed even faster than before. The foundations of the Jeddah Tower, which are four stories high, were laid last year.

With the current technology and the sense of urgency typically observed in projects in the Middle East, Alwaleed had proudly proclaimed that his construction crew was adding a floor every four days. If such a pace was steadily maintained, the Jeddah Tower would have 90 floors now. However, the statement indicated the tower has just 26 floors. Mounib Hammoud, Chief Executive Officer of Jeddah Economic Company, assured that the project will be finished on time “now that the agreement has been signed and required funds [are] secured.”

The Jeddah Tower was dubbed the “Kingdom Tower,” owing to its majestic specifications. The building is expected to have 170 floors, as opposed to Burj Khalifa’s 163 floors. At 3,280 feet, the Jeddah Tower will be a lot taller than the Burj Khalifa, which stands at 2,716 feet, reported CNN. Speaking about the funds, and the project that will surely enter the Guinness World Records as the “World’s Tallest Building”, Hammoud said the following.

“With this deal, we will reach new, as yet unheard of highs in real estate development, and will fulfill the company’s objective of creating a world-class urban center that offers an advanced lifestyle, so that Jeddah may have a new iconic landmark that attracts people from all walks of society with comprehensive services and a multitude of uses.”

Similar to the Burj Khalifa, the Jeddah Tower will have a top-of-the-line hotel. Additionally, the tower will have ample apartments, offices, commercial, and retail spaces as well.

Prince Alwaleed, the visionary behind the Jeddah Tower, is the second largest shareholder in the social media giant, Twitter. Recently, he joined the increasing list of billionaires who have pledged majority of their wealth to charity. He is the grandson of King Abdul-Aziz Alsaud, the founder and first ruler of Saudi Arabia, and has a wealth exceeding $32 billion.

[Photo by YouTube Video Screen Grab]

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