e-Cities in Saudi Arabia

Introduction

The e-Cities or 'smart cities' are the ultimate manifestation of a ‘smart places’; other examples include science parks, multi function polis, industry cluster, etc.

Smart cities bring together all e-strategies into a synergistic environment that epitomizes the information society in general and the knowledge economy in particular.

A common strategic direction focuses on reaching a tipping point where knowledge intensive occupations reach the level where they have a significant impact on the city’s economy or on the surrounding area.

Typically, an e-City framework seeks to establish a sustainable environment where the knowledge intensity and traffic is facilitated by the cities communications infrastructure, facilities and services. Therefore, knowledge based industries can benefit from the outflow of innovation, R&D, funding and highly skilled knowledge workers from universities and research establishments in the area.

Furthermore, smart cities often focus on the establishment of industry clusters that are developed around a new industry with inherent natural advantages, e.g. a sea port based on geographical advantages; a pre-existing industry, e.g. film production or petro-chemicals; or given an economic advantage such as favorable tax environment, e.g. economic free zone.

The greatest challenge facing Saudi Arabia is ensuring that there is sound planning and coordination across the various economic interfaces within the Kingdom - city to city, city to surrounding areas, innovative industries to the city, jurisdiction to jurisdiction and external to the country as part of the globalization of trade.

Strategy

The Kingdom is at the forefront of a worldwide movement to develop the ‘smart or intelligent or economic city’, e-city; with ambitious plans for both existing, e.g. Riyadh, and new cities, e.g. King Abdullah Economic City KAEC (at Rabigh north of Jeddah).

The prime drivers for Saudi Arabia’s e-city development are the Saudi General Investment Authority (SAGIA), which heavily promoting its “10 by 10 strategy” for four major e-city developments, and the Saudi Industrial Property Authority (SAPIA), which invested USD 40 billion in the Sudair development north of Riyadh.

Six economic cities have either been proposed or are under development within the Kingdom.

SAGIA Vision

‘To enact reforms and targeted investments to position Saudi Arabia among the world’s Top-10 most competitive economies by 2010.’

The smart city concept fits this overall strategy in that it will create urban conurbations that have the most advanced infrastructure (ubiquitous 100-1000 Mbps internet connections), a high tech life style, advanced e-enabled city services with a common look and feel, sophisticated urban management systems with embedded and harmonized industry and business to drive the city’s economic output.

In the latest ‘all inclusive’ economic cities, such as KAEC, the city will combine high tech real estate (KAEC plans include 260,000 apartments and 56,000 villas), an economic hub (KAEC will utilize its location to develop a mega-port freight hub with associated industries), advanced education, healthcare and research facilities.

These cities are initially funded by public private partnerships PPP and international investment (Total estimated investment for KAEC is USD 26 billion).

Jizan Economic City’s economic hub will focus on heavy industries such as petrochemicals, aluminum, steel and copper smelting to the fore.

The Knowledge Economic City near Madinah proposes to develop an IT institute and leverage the significance of its religious location by focusing on Islamic studies. SAGIA’s 10 by 10 strategy seeks to leverage the Kingdom’s existing competitive strengths by focusing on some 10 downstream energy based developments.

For example, the new e-city economies will take advantage of a 10 fold energy related cost advantage in mineral development, e.g. bauxite to aluminum and oil to plastics and pharmaceuticals, etc.

The country’s location is also a competitive advantage for the further development of its seaports and the co-location of associated freight hubs and manufacturing or assembly plants.

Coupled with advanced information infrastructure, these e-cities will also focus on the development of knowledge workers in energy, science and technology as well as environmental and life sciences.

The six cities proposed by SAGIA, SAPIA, et al., are expected to attract USD 80 billion of inward investment via various means including stock market investment and public private partnerships (PPP). Together they are expected to contribute USD 150 billion to GDP and create 1.3 million jobs. There are also many new smart enclaves and related infrastructure projects being planned, e.g. the Princess Noura bint AbdulRahman University for Women in Riyadh, the 2400km North-South Railway, Haramain High Speed Rail Line between Makkah, Jeddah and Madina, and the Jeddah Gate development – all of which will serve to integrate these major economic cities into the Kingdom economy as a whole.

Foundation

The e-city’s ICT infrastructure and urban support services can be planned from the ground up and these are likely to be far superior to more piecemeal developments in established urban environments.

There are several major technology suppliers willing to participate in these prestigious and potential showcase projects. KAEC has been working closely with Cisco, Motorola, Ericsson and Microsoft to build the essential infrastructure and even undertake R&D to ensure that the ICT platform exceeds world class standards.

These companies are establishing mechanisms for knowledge transfer and building Saudi’s internal knowledge pool. Both Cisco and Microsoft among others have committed to establishing education and training centers.

These cities’ foundation will also ensure that high speed data communications are maintained even when moving through the use of Wimax or Wibro technology. Interoperability locally and within the region will remain an issue of importance.

E-City Solutions

The major E-City are King Abdullah Economic City in Rabigh, Prince Abdulaziz bin Musaid Economic City in Hail, Knowledge Economic City in Madinah, and the Jizan Economic City.

Their solutions are planned with a total expected investment value of more than USD 60 billion. Additional E-City solutions are planned for Tabik, Ras Az Zour, and Sudair. These cities will have a combined future estimated population approaching 6 million people.

Change and Adoption

There is a major difference in the change and adoption strategies required for new smart cities when compared to older cities made smart.

In the former case, there is tacit acceptance of the new approach by such cities’ citizens.

However, the population will not be entirely homogeneous as it includes individuals (like parents and grandparents) who will need to make considerable adjustment. In the case of the older city, the change and adoption strategies must be comprehensive and will therefore be expensive.

Technology based service infrastructure, large multi-national corporations, universities and other significant organizations within e-cities should be established.

There is also a need to foster the incubation and long term growth and sustainability of industry clusters and SMEs through inclusive policies, regulations and funding mechanisms that go well beyond the confines of the e-city itself.

Findings Analysis

Challenges

The strategies for these green field developments provide the opportunity to ‘get-it-right’ within city boundaries; e-cities can either be a net contributor or consumer of services in the country as a whole. Often, these cities are established in prescribed economic free zones in which the country rules do not apply or are more favorable to the city.

The resultant development of a two tier system and the impact this can have on the national strategies in e-government, e-health, e-business and e-education, etc., across the country requires careful management.

As a result, there is a critical need to integrate the smart city into the overall national economy and national e-strategies. Whilst older cities can add large scale technologies that support better urban management and enhanced citizen facilities that can greatly improve the citizens’ quality of life and the city’s economics; the green-field site offers the most potential in the longer term.

Independent from the existing infrastructure, these cities can adopt entirely different economic models; integrate industry, primary production, transport and townships such that they do not impose on one another.

The cities ‘information highway’ that supports its information based society and knowledge economy should extend its reach into its older urban and rural surrounds.

Like their ‘new town’, predecessors built round major conurbations in the 50’s, e.g. London and Paris; they can also be used to act as a counterpoint to each other and avoid the continuous flow of people into a single conurbation with the inevitable ‘grid lock’ and strain on infrastructure that results.In conclusion, the main challenges can be summarized as the following:

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