A US$26.7bn (SR100bn, £15.1bn, 22.2bn euro) ‘economic city’ is being planned on the Red Sea in Saudi Arabia.

Part of a series of mega-projects within the Gulf, the city will be located north of Jeddah on an area of greenfield land measuring 592million sq ft (55million sq m).

The King Abdullah economic city will include a 280million sq ft (2.6million sq m) new seaport, financial and industrial districts plus a waterside resort complete with hotels, boutique residences, a marina, an equestrian club and an 18-hole golf course.

Saudi investment authority SAGIA is hoping that the economic city, which will mostly be financed by the private sector, will attract foreign investment and also help mobilise local investment, estimating that the project could create more than 500,000 jobs.

SAGIA said that, within a week of application, all necessary licensing procedures will be complete.

Master developer on the city project will be Dubai-based Emaar Properties, while a group of companies from Saudi Arabia and the United Arab Emirates has been formed to facilitate investments for the project, including the Saudi Binladen group.

Project construction on the multi-stage development began on 21 December 2005.

His Excellency Amr Al-Dabbagh, SAGIA governor, said: “The city is one of the most impressive projects Saudi Arabia has attempted in the new millennium. The fact that we were able to move ahead with this project on a fast-track basis shows that Saudi Arabia is moving ahead with confidence to transform the economy and build more sustainable prosperity for its citizens.”

Emaar chair Mohamed Ali Alabbar added: “This city will be a world-class location in which to work, live and play and a shining example for Saudi Arabia’s transformation into a global economic powerhouse and further consolidate its position as the Middle East’s largest economy.” Details: www.sagia.gov.au

Photograph: An aerial view of the new city