Saudi Arabia has embarked on a $1.3 trillion initiative to diversify its economy through extensive real estate and infrastructure projects. These efforts, spanning eight years, aim to reduce the kingdom’s dependence on oil and enhance its appeal as a destination for living, working, and tourism.
According to Knight Frank’s latest report, the volume of these projects has grown by 4% from the previous year. Key undertakings include over a million residential units and mega-developments like Neom on the Red Sea coast. Since 2016, $164 billion in real estate contracts have been awarded, with Neom receiving the largest share at $28.7 billion, particularly for The Line, a pair of extensive mirror-clad towers.
Other significant projects include $12 billion for the National Housing Co., $9 billion for Diriyah Gate, and nearly $7 billion for the Qiddiya entertainment city in Riyadh. Despite challenges with supply chains, labor, and costs, Saudi Arabia is on track to become the world’s largest construction market by 2030, with many developments scheduled for completion between 2028 and 2030.
Riyadh remains central to these efforts, with $35 billion in contracts awarded. The capital is set to see substantial growth, including nearly 29,000 new hotel rooms, 4.6 million square meters of office space, and 340,000 homes by the next decade. The city is also preparing for major events like the World Expo 2030 and the FIFA World Cup 2034.
On the western seaboard, $54 billion has been allocated to at least 17 giga projects. These developments aim to support economic diversification, accommodate a growing population, and boost investment and tourism. The kingdom targets $100 billion in foreign direct investment by 2030 and aims to host 150 million tourists annually by that year.
To meet the anticipated influx of travelers, Saudi Arabia plans to add 362,000 new hotel rooms by the decade’s end, with a focus on mid-market accommodations to attract a broader range of visitors. Knight Frank emphasized that this ambitious pipeline, costing $110 billion, is crucial to achieving the 2030 visitor target.