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The Diriyah gigaproject has inked agreements worth c. USD 1 bn with an unnamed Italian developer and a French firm, CEO Jerry Inzerillo told Reuters. Diriyah is also in talks with other foreign investors interested in equity stakes in hotels and real estate, with some already uptaking stakes in projects within Diriyah. “There’s a lot of interest from America, a lot of interest from every country,” Inzerillo said, adding that Diriyah is open to collaborating with any foreign investor that can “deliver quality and stay on time.”
What we don’t know: The identities of the companies involved, the nature of the agreements signed and what projects they will cover as well as the breakdown of the USD 1 bn investment were not shared.
There has been growing interest from global investors in Diriyah as tangible progress at the site boosts confidence, Inzerillo said. Upcoming events such as Expo 2030 have also reshuffled investment priorities to the benefit of Riyadh-based projects such as Diriyah. Despite the PIF’s recent gigaproject reprioritization, Inzerillo emphasized that the pace and ambition of the gigaprojects remain intact, describing the changes as a “realignment, not a reduction.”
Plenty of financing: Located at a UNESCO World Heritage site near Riyadh, the USD 63 bn project received some SAR 20 bn from the Public Investment Fund (PIF) in 2023-2024, with SAR 12 bn in additional financing from the fund expected next year, Reuters explained.
Background: Inzerillo unveiled plans by Diriyah Gate back in February to launch 11 new tourism, entertainment, and leisure projects by year-end. In July, the Diriyah Gate Development Authority (DGDA) awarded a SAR 8 bn development contract for four luxury hotels and another SAR 7.8 bn contract for the establishment of a mixed-use district in northern Diriyah. Other recent agreements include SAR 722 mn for excavation works for a new metro line, SAR 532.1 mn for car park excavations, as well as a 72.5k tons district cooling plant.
