RIYADH (Reuters) – German conglomerate Siemens will develop the power grid for King Abdullah Economic City, Saudi Arabia’s ambitious business and residential hub, the project’s manager said on Sunday.

Emaar Economic City, which is spearheading the project, signed a memorandum of understanding with Siemens to develop the grid in two phases, the first of which will be completed by the end of 2008 and includes three main power stations and its network, the Saudi firm said.

The second phase will begin in September 2008 and includes four main power stations and its network and is expected to be completed in June 2010.

It gave no financial details.