Saudi Arabia-based developer Kingdom Holding Company has awarded a $1.2 billion contract to the Bin Laden Group for constructing a one-kilometer tall tower in Jeddah to become as the world's tallest building.
Five contractors were invited to offer proposals for the Kingdom Tower and a short list was made of three firms that submitted final offers.
"The Saudi Bin Laden Group [SBG], whose offer was the most attractive in terms of price, quality and schedule, was chosen for the project," the company said in a statement.
Kingdom Tower will be the first construction phase of Kingdom City, Jeddah Economic Company's (JEC) new urban development of more than 5.3 million square metres of land in the north of Jeddah overlooking the Red Sea and Obhur Creek.
With a total construction area of over 500,000 square metres, the Kingdom Tower will be a mixed-use building taking some five years to build.
The overall estimated cost of the entire Kingdom City project is anticipated to be $20 billion.
"We intend Kingdom Tower to become both an economic engine and a proud symbol of the Kingdom's economic and cultural stature in the world community," said Talal Al Maiman, Executive Director of Development and Domestic Investments, a board member of Kingdom Holding Company and a board member of Jeddah Economic Company.
"Kingdom Tower will be a landmark structure that will greatly increase the value of the hundreds of other properties around it in Kingdom City and indeed throughout North Jeddah."
American company Adrian Smith + Gordon Gill Architecture has been employed to design and oversee development of the project. Adrian Smith also designed the Burj Khalifa, the Jin Mao Tower in Shanghai and the Trump International Hotel and Tower in Chicago.
"This tower symbolises the Kingdom as an important global business and cultural leader and demonstrates the strength and creative vision of its people," said Smith, who was working for Skidmore Owing and Merill, architects of Burj Khalifa, when he worked on Dubai's iconic tower.
The Bin Laden Group was founded in 1931 by Sheikh Mohammed bin Laden Sayyid, father of Osama Bin Laden, whose relationship with the country's founder, Abdel Aziz al Saud, led to important government contracts such as refurbishing the shrines at Mecca and Medina.