UPDATE 2-Emaar says not investing in Kingdom project

(Adds additional details)

DUBAI, June 14 (Reuters) - Dubai developer Emaar Properties EMAR.DU denied on Sunday that it was investing in a development by Saudi Arabia's Kingdom Holding 4280.SE that will feature what would be the world's tallest tower.

Emaar shares surged 7.18 percent a day after Kingdom Holding Co said it had appointed the Dubai-based company for the project, with a total investment of at least 100 billion riyals ($26.7 billion).

"Emaar ... will not invest in any projects of this sort," it said in a statement emailed to Reuters.

Emaar said it has signed a deal with a business it identified in the Arabic-language statement as Jeddah Economic Company, adding that according to the agreement, it "would only offer management services for a real estate project against a fee."

An Emaar spokeswoman did not have an immediate comment.

Kingdom Holding, owned by billionaire Prince Alwaleed bin Talal, said on Saturday in an emailed statement that Emaar would be in charge of developing and supervising the construction of the Kingdom Tower.

Emaar is currently constructing the world's tallest tower, Burj Dubai, in the emirate -- a regional trade and tourism hub.

Prince Alwaleed, chairman of Kingdom Holding has signed the deal on behalf of Jeddah Economic Company with Emaar Chairman Mohamed Alabbar, Kingdom said in its statement on Saturday.