According to the company's statement, the skyscraper will be 1,000 meters (3,280 feet) high and will be built in the city of Jeddah off the Red Sea. Dubai's Emaar Properties real estate company will be in charge of developing the project.
The project, named Kingdom Tower, will spread over 23 million square meters and will include commerce, housing and office areas. It will be built not far from Jeddah's international airport.
The total cost of the project is estimated at some $27 billion, and the tallest tower in the world will be built in its center.
The tallest tower in the world today is Burj Dubai, which is 800 meters (2,625 feet) hight and is still being built by Emaar.
The Kingdom Tower project was first displayed in 2003. Four years later, an American company was declared responsible for developing an auditorium, but according to Saudi media the company announced early this year that it would not be interested in the project.
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd.