In late January, I visited Jeddah, Saudi Arabia and King Abdullah Economic City (KAEC), which is currently under development. As is well known, the major oil-producing countries of the Arabian Peninsula, such as Saudi Arabia, the United Arab Emirates, and Bahrain, which make up the Gulf Cooperation Council (GCC), have been trying to break away from their oil-dependent economies by establishing energy-intensive industries such as refineries and petrochemical plants that aim to produce products with higher added value than crude oil, and strengthening industries such as trade, services, and tourism. In particular, oil money investments due to the soaring oil prices led to developments known as the "Dubai model," which featured the construction of towers over 1,000 meters. However, the recent global financial crisis has made it clear that city development like Dubai cannot maintain real estate values in the long term. Now, the nation-building of the GCC is at a major crossroads.
Jeddah is the second largest city after the capital Riyadh with a population of 3.4 million. Originating as a small fishing village on the Red Sea, it has been a stopover point for Muslims on the pilgrimage to Mecca for over 1,000 years, and has welcomed pilgrims from not only the Middle East but also Africa, Asia, and Europe, making it a city where diverse ethnicities and cultures intersect. It is now an economic city with consulates and financial institutions from all over the world. KAEC is under construction as a comprehensive special economic zone located along the Red Sea about 100 km northwest of Jeddah, with a total area of 168 km2, a resident population of 2 million, and a working population of 1 million, and is expected to replace Jeddah, which has underdeveloped infrastructure.
However, development in the desert, where rainfall is low and temperatures are extreme, leads to an increase in domestic energy consumption. This will reduce oil exports, disrupting the balance of supply and demand for global energy resources, while at the same time creating the risk that reduced oil revenues will jeopardize sustainable growth. This risk is particularly high in traditional energy-intensive urban development. As an oil-producing country, it is essential to utilize natural energy sources such as sunlight, heat, and wind power, and to implement thorough energy conservation measures. During this visit, I saw and heard about a wide range of energy conservation measures, including the construction of a concentrated solar power plant with a generating capacity of over 100 megawatts, the development of public transportation, and the active adoption of green building technologies. The traditional national costumes seen on the streets, with men in white and women in black, give the impression of being conservative, reminiscent of the world of the "Tales of the Thousand and One Nights," but the GCC countries are more environmentally positive than we think, and have a high interest in environmental technology. I was reminded once again that global environmental issues are a common problem for all of humanity.
Furthermore, with the return of oil money to the GCC countries, internationalization is progressing, and traditional cityscapes are disappearing due to large-scale development. As a country that values its ethnic traditions, we hope to see urban development that allows people to feel the history of the desert country. It is my sincere hope that KAEC will carry on the history of Jeddah, become a place of ethnic and cultural exchange, and aim to become a sustainable, environmentally friendly city and a true oasis into the future.
Profile
Former Executive Vice President and Representative Director Mitsubishi Jisho Design Inc.
Mitsuo Iwai
Mitsuo Iwai
Update: 2009.03.01