Firm led by Crown Prince Leads Mass Jeddah Demolition, Expels Tens of Thousands

February 3, 2022

By Ali AlAhmed, Lama El Baz & Daniel Reynolds.

WASHINGTON, DC – A company led by Saudi Crown Prince Mohammed bin Salman is expelling over half a million people after abruptly razing dozens of neighborhoods in the Saudi port city of Jeddah over the last few weeks, according to information gathered by the Institute for Gulf Affairs.

Online videos and photos have emerged since the start of the mass demolition of over 63 neighborhoods in the southern part of the western metropolis, which is the second largest Saudi city, according to a government list of planned demolitions.

“It feels like Jeddah was hit by a nuclear bomb,” said stunned local resident Alaa, who spoke to IGA in an online event on condition of anonymity for fear of government reprisals.

Jeddah Sturm und Drang
Drone video footage posted online showed huge swathes of Jeddah reduced to mountains of rubble. “This looks like footage from the Syrian civil war,” said one resident, “the devastation is so huge.”

The ongoing demolition of apartment buildings, schools, mosques and even hospitals, has already reached an area of 169 square miles according to approximate calculations by IGA. This is an area two and half times the size of Washington, DC.

The demolitions are being done by the Jeddah Development and Urban Regeneration Company (JDURC). Large parts of Jeddah are facing an uncertain future after abrupt and large-scale demolitions left more than half a million people displaced over the past few weeks.

The Saudi government is justifying the demolition of these neighborhoods by claiming that they are undeveloped and have become slums populated by illegal aliens. But some observers believe that the crown prince and his allies have their eye on prime real estate in Jeddah, and are using the eviction of inhabitants of these areas as a way to redevelop these neighborhoods and in the process make a handsome profit. The truth is that these neighborhoods have been neglected by the government for decades, and have been populated by both working-class Saudis and foreigners.

Inhabitants complained that they were given only 14 days to move out of their homes, and that no written document was given to them ordering the expropriation of their property. Instead, officials from the JDURC have appeared at people’s doorsteps to inform them of the expropriation, or have just spray painted the outside of buildings indicating that they will be demolished. No one has received financial compensation yet from the government.

JDURC is owned by the Saudi Public Investment Fund. MBS, as the crown prince is commonly referred to, is the chairman of both entities. Saudi opposition figure Abdurahman Al-Suhaimy, said the decision to start the demolition was ordered by MBS after a private meeting with his aides a few weeks ago.

Another company involved in the demolition is Saudi-based Manarah Al-Jubail Contracting Company (MCCL), a subsidiary of the Indian AMARANZ Group.

AlSuhaimy, a former government official and real-estate businessman said the plan appears to be seizing these neighborhoods then recycled them for resale at much higher prices. AlSuhaimy said this practice was done before in Madinah and Makkah cities where lands were forcibly taken away to be resold at great profit to other private entities backed by the government.

Online videos

Following online outrage about the sudden demolitions, the Makkah Region Governor’s Office, that includes Jeddah, issued a statement on Friday asking people to submit applications to receive compensation for their homes and buildings. The statement, issued during the weekend, confirmed the widespread complaint that home and building owners were forced out without being compensated for their homes and property.

The governor’s office asked homeowners to submit their house deeds to the Jeddah Municipality and to the State Properties General Authority to be considered for compensation. The statement said homeowners who do not have valid deeds would receive compensation for the rubble only.

The Saudi press has been largely silent about these mass demolitions of entire neighborhoods, even though they have uprooted hundreds of thousands of people living in these neighborhoods. Many government and private schools in these areas have been torn down, forcing thousands of students to relocate to other schools and consequently overloading them. “My children are attending classes only two days a week because of the overcrowding,” said Abu Rose, one of the displaced residents.

Foreign Role in Other Redevelopment Project

In a separate area of Jeddah, the British architecture firm of Wilkinson Eyre is providing plans for a redevelopment initiative called the Central Jeddah Project.

According to the company’s website and a statement by its CEO Ahmed Al-Sulaim, the Central Jeddah Project has three stages, with the first one reaching completion in 2027, the second one in 2030 and the third and last one after 2030.

Al-Sulaim told AlArabiya TV in December of last year that the project will build 17,000 housing units, 2,700 hotel rooms, an opera house, a marina, a sports stadium, gardens and tourist destinations. Al-Sulaim added the plan will raze all buildings in an area of Jeddah measuring 5.7 million square meters, including historical districts, and will cost US$20 billion.

The Makkah governor’s office didn’t return IGA emails asking it about the scope of both projects.

On the Line:

1. Jeddah Central – https://www.jeddahcentral.com
2. Wilkinson Eyre – https://www.wilkinsoneyre.com
3. Manarah Al-Jubail Cont. Co. (MCCL) – https://manarahglobal.com
4. Jeddah Municipality – https://www.jeddah.gov.sa/index.php
5. Makkah Governorship – https://www.makkah.gov.sa