Approvals to start construction of the 'City of Silk' in Kuwait are expected by the end of the year, a report said.

The $77 billion city, which aims to revive the ancient Silk Road trade route, will be the largest single real estate development in the Middle East, Eric Kuhne, managing director of Eric R Kuhne and Associates, which provided designs for the seaside city, was quoted as saying ny an AFP report.

The city, located in Subbiya, will be home to 750,000 people when completed in 2030.

Built on an area of 200 sq km, the city will consist of four major zones -- city of commerce, city of leisure and recreation, city of ecology and city of diplomacy and education, Kuhne said.

The commerce city will sit in the middle of a canal system and aims to boost Kuwait's efforts to become a regional trade and financial centre, he said.

At the centre of the commerce city, a 1,001-metre (3,284 ft) tower will be built.

The leisure city will house an international-standard Olympic village while the education and diplomacy city will house several universities and is also expected to be home to a number of foreign missions, he said.

Kuhne said the project has been approved in principle and that work is under way to secure passage of the necessary legislation for the city to be treated as a free trade zone.