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Gigaprojects in Saudi are valued at USD 1.3 tn: The total value of real estate and infrastructure gigaprojects launched in the Kingdom since broad-based diversification plans were unveiled eight years ago have hit USD 1.3 tn, according to an annual review (pdf) by London-based real estate consultancy Knight Frank. The value of gigaprojects in the Kingdom rose 4% in the past year. The report looks at the pace at which Saudi’s gigaprojects have been progressing, providing a rundown of the projects’ announced values, commissioned values to date, and the value of projects in the pipeline. Bloomberg also had the story.
Countrywide breakdown: For the USD 1.3 tn in projects unveiled across the Kingdom, commissioned projects stand at USD 164 bn, while projects in the pipeline are valued at USD 249 bn, according to the real estate consultancy.
Neom is in the spotlight: The Kingdom’s “Belgium-sized superstate” Neom has so far unveiled plans to develop 12 destinations at a total USD 500 bn project value. These include Neom’s flagship USD 150 bn sustainable city, dubbed The Line, and its USD 47.6 bn industrial hub, Oxagon. To date, some USD 28.7 bn in projects announced at Neom have been commissioned, with another USD 71 bn in the pipeline.
Zooming out: The Western seaboard of Saudi Arabia — which includes Neom — is home to 17 gigaprojects with a combined value of USD 685 bn unveiled since 2016, the report explains. These include the USD 27 bn King Abdullah Economic City and USD 17 bn tourism destination Red Sea Global. To date, USD 54.4 bn in construction contracts have been awarded in the region, including in Neom, while USD 116.2 bn-worth are in the pipeline.
The capital city came in second in project value after Neom: Out of Riyadh’s USD 195 bn real estate and infrastructure development plan, some USD 35 bn in projects have been commissioned, while USD 71 bn are in the pipeline. Riyadh’s highlights include a planned USD 63.9 bn urban community at Diriyah Gate, a USD 50 bn New Murabba downtown area, and a USD 21.8 bn entertainment city at Qiddiyah.
Project volumes + breakdown: The Kingdom’s gigaprojects include more than one mn new residential units, 362k hotel keys, upwards of 7.4 mn sqm of new retail space, and more than 7.7 mn sqm of new office space to accommodate population growth, as well as boosted tourism and businesses. These numbers are expected to rise further with the upcoming 2030 World Expo and the 2034 FIFA World Cup (which Saudi is bidding to host), with both events projected to trigger a new wave of projects in Riyadh, according to the report.
Special Economic Zones (SEZs) are also on the table: The Kingdom has also launched several SEZs, leveraging its geographical location as a conduit for global trade. These zones, such as the King Abdullah Economic City Special Economic Zone and Ras Al Khair SEZ, are focused on logistics, shipbuilding, and high-tech industries, helping shift the Kingdom’s reliance away from oil, and luring in FDI.
