Trump Tower Jeddah Underscores Saudi Arabia’s Status as Global Investment Hub

The Trump Organization is planning to develop a new tower in Saudi Arabia, furthering its investments in the Gulf region.

According to a joint press release, the Trump Organization and a Saudi developer announced on Monday a deal to construct a high-rise luxury tower in the coastal city of Jeddah, underscoring the Kingdom’s position as an attractive destination for global investments.

Project Announcement

In their press release, real estate international developer Dar Global and the Trump Organization announced plans to develop a new project in Jeddah, Saudi Arabia. They said that the new agreement expands on the great success achieved by the Trump International Oman project.

Trump Tower Jeddah Underscores Saudi Arabia’s Status as Global Investment Hub
Dar Global and the Trump Organization signing the deal

Dar Global is developing the Trump International Oman project, a luxury project featuring a hotel, villas and a golf course, scheduled to open in late 2028. The Trump Organization does not own the Oman hotel but grants the use of Trump name under license, according to Agence France Press (AFP).

Targeting Saudi Market

Trump Tower Jeddah will target the luxury Saudi market and international investors. It significantly promotes Dar Global growth strategy, which focuses on leveraging opportunities in the Kingdom.

Dar Global is the international arm of the Saudi mega-developer Dar Al Arkan. It is listed on the London Stock Exchange and currently has projects under development, valued at $5.9bn, in 6 countries, including the UAE, Oman, Qatar, the UK, Spain, and Bosnia.

This new project will further enhance its real state offerings in Saudi Arabia, as it is Dar Global’s first project in the Kingdom, according to the press release.

More Opportunities

Praising the new partnership, Ziad El Chaar, CEO of Dar Global, said: “We are delighted to strengthen our ongoing relationship with The Trump Organization and expand our portfolio by delivering premium properties to redefine Saudi Arabia’s high-growth real estate market.”

El Chaar added that the new project will boost investment opportunities for both organizations. “The new agreement in Saudi Arabia will leverage the strengths of both organizations to attract more international investors and vacationers. This collaboration underscores our commitment to grow our footprint by elevating the standards of luxury living in the region,” he said.

Investment Expansion

Executive Vice President of the Trump Organization, Eric Trump, expressed his excitement about the new tower in Jeddah. He said: “We are thrilled to expand our footprint in the Middle East and bring the Trump standard of luxury to the region through our long-standing relationship with Dar Global.”

The former US president’s son also stressed the significance of partnership with Dar Global. “This collaboration embodies our shared vision of creating landmark developments that exude luxury, quality, and sophistication. Together with Dar Global, we are setting new benchmarks for excellence, aiming to meet the demand for iconic properties in key markets,” he added.

Jeddah: Saudi Liveable City

Jeddah is a major port city in central Hijaz region along the Red Sea coast. It is one of the most liveable cities in the world in the Global Liveability Index 2024.

Along with Riyadh and Al Khobar, Jeddah made strong gains and improved its ranking in this year’s edition of the Global Liveability Index owing to sustained investment in healthcare and education.

Global Liveability Index 2024: Three Saudi Cities Make Progress
Jeddah, Saudi Arabia

This overall improvement is the result of the continued efforts made by the “Quality of Life Program.” This program, launched in 2018, aims to create a better quality of life for all, in order to transform Saudi Arabia into a top destination where people can live, work and play.

To achieve the objectives of Saudi Vision 2030, the “Quality of Life Program” seeks to get 3 Saudi cities ranked in the top 100 liveable cities in the world by 2030.

For this purpose, the Program focuses on the empowerment of arts and culture, promotion of sports and leading a healthy life, and the development of more liveable urban areas. It is also creating new sectors to diversify the economy and enhance employment opportunities.

Biggest Construction Market

In its Construction Landscape Review—H1 2024 report, the global real estate consultancy Knight Frank said that Saudi Arabia is on its way to become the world’s biggest construction market by the end of 2028.

The report projected that Saudi Arabia’s total construction output value will reach $181.5bn by the end of 2028. Therefore, it will increase almost 30% from 2023 levels. The output value for the sector reached $141.5bn in 2023. This is due to the Kingdom’s investments in the residential, institutional, infrastructure, industrial, energy and utilities, and commercial sectors.

Saudi Arabia to Become World’s Largest Construction Market by 2028
Construction output value-Frank Knight report

The residential sector had the biggest share of the output value, with 31% ($43.5bn) of the total output value in 2023. The Knight Frank report also projected that the value of the residential sector will hit $56.9bn by 2028.

Investment Hub

Saudi Arabia has established itself as a global investment hub, in line with goals of its ambitious Vision 2030 that aims to diversify the Kingdom’s economy. The Saudi General Authority of Statistics (GASTAT) announced that the foreign direct investment (FDI) net flow in Saudi Arabia increased by 5.6% in the first quarter of 2024 to reach $2.5bn (SAR 9.5bn).

Meanwhile, FDI inflows rose by 0.6% in Q1 2024, reaching $4.5bn (SAR 17bn), and the outflows declined by 5.1%, totaling $1.9bn (SAR 7.5bn). Moreover, the Kingdom’s non-oil activities hiked by 3.4% year-on-year in the first quarter of 2024.

Under Vision 2030, the Saudi Public Investment Fund Program has launched a number of giga-projects that provide investment opportunities. These include: NEOM, boasting the world’s smartest technology and unparalleled support for entrepreneurship; ROSHN, promoting modern societies and lifestyles; the captivating Red Sea project, introducing a new era of tourism in the Kingdom and beyond; Qiddiya, the hub of entertainment, sports, and the arts in the Kingdom; and Diriyah, a one-of-a-kind project showcasing rich cultural heritage and tourist attractions.

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