Diriyah, one of Saudi Arabia’s giga-projects, has secured nearly $1 billion in deals with European firms. The project’s CEO, Jerry Inzerillo, revealed these agreements as the development aims to attract even more foreign investments. Diriyah is part of Saudi Arabia’s plan to diversify its economy and reduce its dependence on oil.
PIF Backs $63 Billion Project
With a total value of $63 billion, Diriyah is one of the major initiatives supported by Saudi Arabia’s Public Investment Fund (PIF). The PIF aims to drive economic growth through significant construction projects. In 2023 and 2024, the fund invested around 20 billion riyals ($5.33 billion) into Diriyah. It is expected to contribute an additional 12 billion riyals next year, according to Inzerillo.
Recently, Diriyah signed deals totaling nearly $1 billion with an Italian developer and a French company. Discussions are also ongoing with other foreign investors interested in acquiring equity stakes in hotels and real estate. However, Inzerillo declined to name the European firms involved.
Global Interest in Diriyah’s Development
“There’s a lot of interest from America and every other country,” Inzerillo said. He emphasized the focus on quality and timeliness from potential partners. The $925 billion PIF fund is also driving other projects, including the futuristic desert city, Neom.
Vision 2030: A Future Beyond Oil
Saudi Arabia’s Vision 2030 seeks to diversify the Kingdom’s economy and reduce its dependence on oil. Foreign investment plays a crucial role in realizing this ambitious goal. Inzerillo noted that foreign investors have already acquired stakes in several Diriyah projects, with more deals expected soon. “It’s no longer just renderings or promises; investors now see the progress,” he said, noting a surge in interest.
Adjusting Priorities Amid Global Events
Although some projects like Neom’s The Line have seen adjustments, Inzerillo stressed that Saudi giga-projects continue to move forward. The focus has shifted due to upcoming global events like Expo 2030, which Riyadh is set to host. “It’s a realignment, a re-prioritization, not a reduction,” he added.
