$7.2 bn project planned near Saudi capital

CAIRO/EGYPT: Saudi Arabia's Al-Shoala Group and Dubai-based Emaar Properties have teamed up on a $7.2 billion community project near the Saudi capital of Riyadh.

Emaar said the Rawabi Rumah project will have luxury homes, apartments, commercial and retail space, hospitals and community centers. The community project will include a 400-acre (162-hectare) park.

Al-Shoala's chairman, Prince Meshal bin Abdul-Aziz, said in a statement Saturday that the project will create 25,000 jobs.

``Rawabi Rumah will be a trend-setting development and a new lifestyle destination for the Saudi people,'' Meshal said.

The community plan is the latest in a series of ambitious mega-projects in the region. Gulf Arab countries, flush with oil funds, are looking to revamp their landscapes with gleaming skyscrapers and full-service gated communities, while trying to diversify their oil-based economies.

The push for new job creation in Saudi Arabia comes as the country struggles with rising unemployment that has in the past been blamed by some for radicalization of youths.

Some economists and analysts, however, say such efforts fail to address education and other key areas requiring reform that are critical to sustainable economic growth in a country where the bulk of the work force are foreigners.

Emaar said in a statement that several international designers are aiding in plans for the community. It said 60 percent of the area was allocated for residential development.