Once hailed as a symbol of Saudi Arabia’s ambitious push toward economic diversification, King Abdullah Economic City (KAEC) was designed to be a thriving metropolis on the Red Sea—complete with ports, luxury housing, and business hubs. But nearly two decades after its launch, much of the city remains eerily quiet. Promised growth has stalled, and visitors are more likely to find empty streets than bustling innovation.
Here are five telling signs that KAEC has shifted from a visionary dream to a modern-day ghost city on the Red Sea.
Sparse Population and Empty Streets
When you wander through King Abdullah Economic City (KAEC), the emptiness becomes immediately apparent. The vast boulevards stretch out before you, yet the sparse development leaves them hauntingly empty.
Designed for a thriving population of 2 million, the city currently houses only about 10,000 residents, highlighting its severe underpopulation. As you investigate, the empty streets echo the silence, with only 15% of the planned construction completed.
Luxury villas stand as symbols of ambitious dreams, but they struggle to find buyers. This contributes to the ghostly atmosphere. Despite the presence of around 100 companies, the city’s vision of creating 1 million jobs remains distant.
KAEC’s reality starkly contrasts with its grand designs, creating an eerie, desolate vibe.
Limited Development and Investment
Despite the grand vision for King Abdullah Economic City (KAEC), the limited development and investment tell a different story.
You’d expect a vibrant metropolis, but the reality is starkly different. As of 2018, only 15% of KAEC’s massive SR 207 billion development was completed. The population reached just 10,000 by 2024, far below the intended 2 million.
Economic challenges, particularly falling oil prices, have greatly impacted progress. Although major corporations like Pfizer and Mars have joined the project, the anticipated surge hasn’t materialized.
Multiple revisions to the master plan couldn’t overcome these hurdles. The struggle to attract investment and enhance population growth underscores KAEC’s difficulties in meeting ambitious goals, painting a picture of unfulfilled potential and stagnation.
Incomplete Infrastructure and Facilities
While limited development and investment have stifled King Abdullah Economic City’s growth, the incomplete infrastructure and facilities further cement its ghost city status.
Only about 10% of the city is complete, resulting in a desolate appearance that mirrors a “Mad Max” movie set. The targeted population of 2 million seems a distant dream, with only 10,000 residents currently calling it home.
The city’s limited public transportation forces reliance on cars, adding to urban sprawl concerns. Unfinished residential and commercial areas dominate the landscape, reinforcing its ghost town image.
Wide, empty boulevards and sparse structures highlight the lack of lively community life. This incomplete infrastructure hinders the city’s potential, making it a stark symbol of unfulfilled ambitions.
Unrealized Economic and Job Opportunities
King Abdullah Economic City (KAEC) stands as a symbol of unfulfilled promises, with its ambitious economic vision largely unrealized. Despite the goal of creating one million jobs, KAEC struggles with economic viability, attracting only around 100 companies.
This shortfall contributes to a population of merely 10,000, far below the anticipated two million. Job opportunities are scarce, and the luxurious villas fail to draw the intended demographic, stunting economic growth.
Additionally, the unfinished container port hinders KAEC’s promise as a major economic engine. With only 15% of the city completed, critical developments remain stalled.
These unrealized economic and job opportunities culminate in a stagnation that underscores KAEC’s challenges in fulfilling its lofty ambitions.
Competition From Newer Vision 2030 Projects
As Saudi Arabia pushes forward with its Vision 2030 projects, KAEC finds itself overshadowed by groundbreaking initiatives like The Line, Oxagon, and Trojena.
These mega-city projects are redefining urban living and industrial development, drawing immense investment and attention. The Line’s futuristic design and zero carbon emissions promise a sustainable lifestyle for millions, making KAEC’s initial vision seem outdated.
Oxagon, the world’s largest floating industrial complex, is powered by renewable energy, diverting focus from KAEC’s industrial ambitions. Trojena’s creative approach to tourism, with year-round skiing and luxury accommodations, captures the interest of younger demographics.
As these projects flourish, KAEC risks being perceived as less competitive and relevant in the Red Sea region without redefining its offerings to keep pace.