Saudi Arabia has awarded construction contracts with a combined value of $250 billion, and has launched around $1.25 trillion worth of real estate and infrastructure projects since 2016, a new report has found.
In its annual Saudi Giga Projects report (via The National), Knight Frank said Saudi Arabia has commissioned projects worth $250bn since the launch of the Public Investment Fund’s Vision 2030, which aims to diversify the economy and reduce the kingdom’s reliance on oil.
“Arguably one of, if not the most expansive real estate development programs ever seen in the world is gathering pace in Saudi Arabia as the 2030 deadline nears to realise Vision 2030,” said Faisal Durrani, head of research for the Mena region at Knight Frank.
Construction deals worth $250 billion
As part of Vision 2030, Saudi is creating many giga-projects, attractions and entertainment experiences, as well as new infrastructure and residential homes. The kingdom aims to receive 100 million tourists by 2030.
Knight Frank said the value of real estate and infrastructure projects across the western half of the country has grown to $687bn.
“The western half of the kingdom contains the highest concentration of headline-grabbing projects in the country, including of course Neom,” said Harmen de Jong, partner and head of strategy, Saudi Arabia, at Knight Frank.
“Neom overall is also progressing rapidly, with $70bn of projects now awarded, 45 per cent of which has been completed,” he said.
Saudi Arabia’s giga-projects, such as Neom, Red Sea and Qiddiya, will expand the kingdom’s residential, office, retail, hospitality and industrial offerings to house the projected population growth to 50 million by 2030, according to the report.
Last month, the Public Investment Fund (PIF) launched a tourism investment company called Asfar to support the growth of the kingdom’s tourism sector.
Since opening to tourists in 2019, Saudi Arabia has become one of the fastest-growing tourism markets globally, recording 93.5 million visits in 2022.
In its annual report for 2022, the PIF said its assets under management were more than 2.23 trillion riyals ($594bn).
Images courtesy of Neom and Red Sea Global
