HOLY CITY OF MEDINA, Saudi Arabia: Agence France Presse (AFP) reported that Saudi Arabia is pouring billions of dollars into the holy city of Medina, burial place of the Prophet Mohammad (s) and the cradle of Islam, to turn the holy site into a hi-tech bastion.

The so-called Knowledge Economic City (KEC) is the fourth in a series of projects launched by the oil powerhouse in December 2005 aimed at attracting foreign investment and bolstering development.

The "city" is being promoted by the Saudi Arabian General Investment Authority (SAGIA) and financed by the private sector a few kilometers from the center of Medina and the Mosque of the Prophet, a top pilgrimage destination.

SAGIA Governor Amr al-Dabbagh told AFP that the projects were inspired by some 3,000 "special economic zones" that exist around the world to promote investment.

"In our case we call them Economic Cities because they have more ingredients," he said. "They are places where people can work, enjoy life and make money."

KEC is the latest in a series of mammoth development schemes in the kingdom, where the first project, known as King Abdullah Economic City, is being built at Rabigh on the west coast. The KEC is being built around a special theme to promote knowledge and sciences through education, health and information technology.

The history of Medina was one of the reasons it was chosen to host the new city.

Medina is cradle of Muslim civilization and the birthplace of Islam along with Makkah, the holiest city in Islam, which is also in the Hijaz in western Saudi Arabia.

"Medina was the springboard for Islamic civilization," said Tahir Mohammad Bawazir, chairman of Knowledge Economic City Developers Company Ltd. "This is the place where it all started. So there is history."

The Prophet Mohammad (s) tomb is in Medina.

The KEC project's backers hope that Medina's rich past will attract Muslim scientists as well as companies wanting to do business with the Arab and Muslim worlds, bolstering development on all fronts.

"It's an attractive proposition for people to live here," said Bawazir.