Saudi Arabia’s $1.3 Trillion Infrastructure Investment

Mega-developments and Neom are set to transform the kingdom's economy

Saudi Arabia has invested $1.3 trillion in construction and infrastructure over the past eight years, aiming to diversify its economy beyond oil exports. A key project is the Neom megaproject, valued at $500 billion.

Real estate consultancy Knight Frank reports over a million residential units and mega-developments are underway in Saudi Arabia, a 4% increase from 2023. Crown Prince Mohammed bin Salman initiated this growth in 2016 with a $164 billion investment in real estate.

The Line, a significant part of Neom, is the world’s largest construction site. This 650-foot-wide linear city will stretch 105 miles and accommodate 9 million people upon completion.

Currently, about 2,800 staff live and work at Neom, funded by Saudi Arabia’s $700 billion sovereign wealth fund, PIF. Neom’s budget stands at $500 billion, more than half of PIF’s total holdings.

In August, Saudi Arabia revealed its design for the 2034 FIFA World Cup stadium, suspended 1,150 feet above ground in Neom. Additionally, Riyadh plans to build eight new stadiums, including the 92,000-capacity King Salman International Stadium for the event’s opening and final matches.

Riyadh’s development includes $35 billion in contracts, adding 29,000 hotel rooms, 4.6 million square meters of office space, and 340,000 homes by the next decade. The Vision 2030 project aims to attract 150 million tourists annually by the end of the decade.

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