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Saudi Arabia will build the world’s tallest tower in Jidda, after Prince Alwaleed bin Talal—the prince with big stakes in Citigroup and News Corp.—signed a $1.23 billion construction deal with the Bin Laden Group. The tower, according to plans, will be more than 3,200 feet tall and include a hotel, condos, and offices. Currently, the 2,700-foot-tall Burj Khalifa in Dubai is the world’s biggest.