Saudi Arabia's King Abdullah has instructed the finance ministry to implement the massive SR50-billion ($13.32 billion) pilgrim city project in Madinah to further improve services provided to pilgrims.

Work on the first phase of the King Abdullah Pilgrim City has already begun, said an Arab News report.

The city, located 3 km to the west of the Prophet’s Mosque in Madinah, will cover an area of over 1.6 million sq m and accommodate 200,000 people.

The project will be financed by state-owned Public Investment Fund.

The first phase of the project will cost SR3.3 billion ($880 million), while the second phase will be worth SR2.7 billion ($719 million), the report said quoting a finance ministry source.

The project will have 100 administrative and residential towers and 30 hotels, apart from the haj ministry headquarters, the haj secretariat, and the Madinah governor’s office. It will also include a 400-bed hospital and a railway and bus station.

The city will house offices for the Supreme Haj Committee in Madinah, and administrative offices for haj operators.