Since the launch of its bold Vision 2030, Saudi Arabia has embarked on an array of giga-projects as part of its economic diversification plans.
The value of real estate and infrastructure projects in Saudi Arabia has reached $1.3 trillion over the past eight years, as the Kingdom aims to become a global destination where people can live, work and travel.
Saudi Giga-projects
In its annual review of Saudi Arabia’s giga-projects and development plans, the real estate consultancy group, Knight Frank, highlighted the accelerated pace at which the Kingdom is advancing a transformed economy and real estate sector.
The Saudi Giga Project Report estimated the value of Vision 2030 projects at $1.3 trillion, a 4% up from a year ago. The report pointed out that the total volume of the awarded contracts since 2016 reached $164bn. Meanwhile, the total value of projects underway stands at $249bn.
The new giga-projects will add more than 1 million residential units, 362,000 hotel rooms, as well as over 7 million square meters of retail space and another 7 million square meters of office space.
Riyadh
According to the Saudi Giga Project Report, Riyadh is the centerpiece of Saudi Arabia’s economic transformation plans. The Saudi capital city is experiencing a surge in housing demand, as it attracts Saudi youth and expats who seek better job opportunities.
As a result, house prices increased 50% over the past 4 years. This rising demand is fueling development activity in Riyadh, with the announcement of a total of $314bn in real estate, infrastructure, and transportation projects since 2016. Moreover, $60bn have been awarded in construction contracts so far.
Riyadh Giga-projects
By 2030, Riyadh is expected to add 340,000 new homes (including ROSHN and NHC units), 4.6 million square meters of new offices, 2.6 million square meters of new retail and 28,800 new hotel rooms.
The Knight Frank report expected that the 2030 World Expo and the FIFA World Cup 2034, which Riyadh prepares to host, will supercharge new projects that will “unleash a slew of new developments across the city.”
The report pointed to several giga-projects in Riyadh, including the New Murabba, Diriyah Gate, Qiddiyah, The North Pole, and King Salman Park.
Western Saudi Arabia
The London-based consultancy firm noted that there are 17 giga-projects underway in the western region of Saudi Arabia, with an estimated value of $685.5bn. The value of awarded contracts has reached $54.5bn, including those connected to the super-city NEOM.
One of the largest giga-projects in the Kingdom’s western seaboard and the surrounding areas is the $500bn-NEOM, with $28.7bn awarded contracts and $71bn projects underway. Other projects include Red Sea Global, Obhur City, King Abdullah Economic City, Jeddah Economic City, and AlUla.
These projects will add more than 382,500 new residential units and 330,000 hotel rooms. Furthermore, they will add over 4.3 million square meters of retail space and 3 million square meters of office space.
NEOM
The Knight Frank report highlighted NEOM as the crown jewel of Saudi Arabia’s transformation plans. The innovative giga-project features 12 destinations within its borders, including The Line, its largest project so far with a value of $150bn.
Currently, projects in NEOM have awarded $28.7bn in construction contracts, including $0.1bn at Magna, $3bn at Trojena for constructing the world’s largest man-made lake, and $10.5bn at The Line.
NEOM involves several sub-projects, such as OXAGON, SINDALAH and other luxury projects on the Gulf of Aqaba.
Other Saudi Regions
As part of the economic diversification efforts to enhance the quality of life, several giga-projects are planned in other Saudi regions and on a national scale. These future investments are valued at $115bn, with $23.2bn awarded contracts, according to Knight Frank.
These projects play a pivotal role in enhancing infrastructure, boosting tourism, and creating new economic opportunities across various regions.
According to the report, these projects will add over 535,000 residential units, 3,500 hotel rooms, in addition to 415,000 square meters of retail space.
The projects include Soudah and Rijal Almaa – the Arabian Highland, King Salman Energy Park, and Al Wadi Project – Ardara. Meanwhile, the national projects include Saudi Entertainment Venture (SEVEN), ROSHN, Saudi Downtown Company, and the National Housing Company (NHC).
