The planned creation of the King Abdullah Financial District in Riyadh was announced in early May by King Abdullah bin Abdul Aziz Al Saud. In a speech at Euromoney’s conference in Riyadh, King Abdullah expressed his hope that the new centre will be the Middle East's first financial district on a scale, and of regulatory and technological standards, to match the major global financial centres.
Explaining the background to the Kingdom's ambitious but attainable strategy, his majesty said: "We are blessed with a robust economy, a stable currency and a strong financial sector with equally strong supervision." The intention to construct the world's first major financial district of the 21st century is the latest stage in what is already a well established programme of financial modernization by Saudi Arabia. It will follow the successful launch of the Tadawul, one of the world's most technologically advanced stock exchanges and the Capital Market Authority, which has introduced international-class regulation to the capital market.
The master plan for the King Abdullah Financial District will be completed by the end of the year. Construction will begin in 2007. Many of the world's major banks, financial institutions and professional service companies — already operating in Saudi Arabia — have indicated their intention to locate in the new district in order to play a major part in the diversification of the world's major oil economy.
The King Abdullah Financial District will be the headquarters for the Capital Market Authority (CMA) and the Stock Exchange (Tadawul), and for financial institutions and other service providers. Ibrahim Abdulaziz Al-Assaf, minister of finance, said: "Our common goal in establishing a new financial district is to provide an attractive working environment for the growing number of Saudis working in the financial sector."