Vision 2030: All you need to know about Saudi Arabia’s giga-projects

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The Qiddiya project aims to be a destination where Saudis can find excitement, inspiration, creative communities and opportunities for investment and work. (Supplied)
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The Red Sea Project has been described as one of the world’s most ambitious tourism and hospitality projects, aimed at setting new standards in sustainable development and redefining the world of luxury tourism. (Supplied)
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The Qiddiya project aims to be a destination where Saudis can find excitement, inspiration, creative communities and opportunities for investment and work. (Supplied)
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The Red Sea Project has been described as one of the world’s most ambitious tourism and hospitality projects, aimed at setting new standards in sustainable development and redefining the world of luxury tourism. (Supplied)
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Amaala is another giga-project planned for Saudi Arabia, and aims to focus on ultra-luxury ‘wellness tourism’ and the arts. (Supplied)
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The Red Sea Project has been described as one of the world’s most ambitious tourism and hospitality projects, aimed at setting new standards in sustainable development and redefining the world of luxury tourism. (Supplied)
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Amaala is another giga-project planned for Saudi Arabia, and aims to focus on ultra-luxury ‘wellness tourism’ and the arts. (Supplied)
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The Red Sea Project has been described as one of the world’s most ambitious tourism and hospitality projects, aimed at setting new standards in sustainable development and redefining the world of luxury tourism. (Supplied)
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NEOM is a giant zone being developed in the northwest of Saudi Arabia with $500 billion investment support from the public investment fund (PIF). (Supplied)
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Amaala is another giga-project planned for Saudi Arabia, and aims to focus on ultra-luxury ‘wellness tourism’ and the arts. (Supplied)
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The Red Sea Project has been described as one of the world’s most ambitious tourism and hospitality projects, aimed at setting new standards in sustainable development and redefining the world of luxury tourism. (Supplied)
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The Red Sea Project has been described as one of the world’s most ambitious tourism and hospitality projects, aimed at setting new standards in sustainable development and redefining the world of luxury tourism. (Supplied)
Updated 11 May 2019
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Vision 2030: All you need to know about Saudi Arabia’s giga-projects

  • Huge developments aim to put Kingdom on global tourism map
  • Work on first development in $500bn NEOM zone set to complete in 2020

RIYADH: Saudi Arabia is making sincere efforts towards economic, social and cultural diversification with the works in progress on giga-projects, which are designed to be places of inspiration, discovery and fruitful engagements for the millennial generation.

The biggest development projects till date: Qiddiya Entertainment City, NEOM, the Red Sea Project and Amaala resort will shape the future of tourism as an important hub to meet and satisfy the recreational, social and cultural needs of the Kingdom’s current and future generations.

Crown Prince Mohammad bin Salman in 2016 mandated the development of long-term model of prosperity for the Kingdom and the result was Vision 2030, an ambitious yet attainable blueprint to ensure that Saudi Arabia is a vibrant society, a thriving economy and a progressive nation.

These developments are part of the Crown Prince’s ambitious plan Saudi Vision 2030 that aims to diversify the economy, away from a dependency on oil and society with varied and rich experience of a quality lifestyle including world class tourism.

In response to multiple societal challenges including limited entertainment options, demographic and social change, careers in a world beyond oil, and public health, the Public Investment Fund (PIF), a sovereign wealth fund owned by Saudi Arabia has been tasked with developing the series of “giga-projects.”




Qiddiya city has been named after the Aba Al-Qid road (Camel Trail) that used to connect Al-Yamama to Hijaz. (Supplied)

QIDDIYA

The Qiddiya project aims to meet these challenges by providing a destination where Saudis find excitement, inspiration, creative communities and career and investment opportunities.

Qiddiya city has been named after the Aba Al-Qid road (Camel Trail) that used to connect Al-Yamama to Hijaz. When completed Qiddiya will become a place to live, work and play, a prominent landmark and an important hub to meet and satisfy the recreational, social and cultural needs of the kingdom’s current and future generations.

Qiddiya, an important hub planned in the Saudi capital to fulfill the recreational and entertainment needs of the people, will see the launch of the construction phase this year. Qiddiya CEO Mike Reininger told Arab News in January: “2019 will see Qiddiya move from the planning and design phase to the construction phase.”

The Qiddiya site is 40 kilometers from the center of Riyadh city. When completed, this prominent landmark is expected to be the world’s largest entertainment city, surpassing Walt Disney World in Florida.

The ambitious project hopes to attract local, regional and international tourists. It includes theme parks, entertainment centers, sports amenities capable of hosting international competitions, training academies, desert and asphalt tracks for motorsport enthusiasts, water- and snow-based recreation, adventure activities alongside nature and safari experiences, and an array of historical, cultural and educational activities and events.

Visitors will have access to more than 300 recreational and educational facilities designed around five cornerstones of development that drive the strategy: Parks and attractions, sports and wellness, motion and mobility, nature and environment, and arts and culture.




The area earmarked for the NEOM project offers excellent prospects for leisure tourism, combining the Red Sea, beautiful beaches and islands and unspoiled natural beauty. (Supplied)

NEOM

NEOM, is a giant zone being being developed in the northwest of Saudi Arabia with a $500 billion investment support from the Public Investment fund (PIF).

The project, which has been described as “the destination for the future of living,” will stretch across the Egyptian and Jordanian borders and aims to transform the Kingdom into an international pioneering example, through introduction of value chains of industry and technology.

The area earmarked for the NEOM project offers excellent prospects for leisure tourism, combining the Red Sea, beautiful beaches and islands and unspoiled natural beauty.

The origin of the name is a combination of the Latin word “neo” meaning “new,” and the first letter “m” of the Arabic word “mustaqbal” which means “future”.

NEOM, which was announced in 2017 and is in a pristine position on the Red Sea, is expected to focus on luxurious living, and will include high-end hotels and villas. Moreover, homes in the development will be marketed to both regional and international buyers.

Saudi Arabia announced in January this year that it will start developing the first urban area of the zone after the founding board, chaired by Crown Prince Mohammed bin Salman, approved the master-plan for NEOM Bay, which will include homes, lifestyle and tourist facilities, and “innovation centers.” Construction work was expected to start in the first quarter of 2019 and will be completed in 2020.

“We are now preparing for the development of NEOM Bay area, which will provide a new concept of urban living that will enable it to become a platform for attracting the world’s top minds for creating advanced economic sectors,” said Nadhmi Al-Nasr, NEOM chief executive, in January.

In late January, Saudi Arabia established a company to develop NEOM. The closed joint-stock NEOM Company will be fully owned by the PIF and will develop the vast project, which will include multiple cities, airports, a seaport, tourist areas, industrial complexes and “innovation centers.”

According to Al-Nasr, the new entity will be responsible for developing a new global destination from scratch on a huge area and a futuristic civilization that is based on sustainability and livability.

“All this aims to turn NEOM into a global center for attracting investment, knowledge, innovation and technology in order to compete with all economic capital cities,” he said.

NEOM’s economic prospects will focus on 16 sectors: Energy, water, mobility, bio-tech, food, manufacturing, media, entertainment, culture, and fashion, technology including digital, tourism, sport, design and construction, services, health and well-being, education and liveability.




The Red Sea Project will set new standards in sustainable development and redefine the world of luxury tourism with objectives to position the Kingdom on the global tourism map. (Supplied)

THE RED SEA PROJECT

The Red Sea Project, one of the giga-projects announced by the crown prince in 2017, is billed as one of the the world’s most ambitious tourism and hospitality projects: An ultra-luxury destination that is being created around one of the world’s hidden natural treasures.

The Red Sea Project will set new standards in sustainable development and redefine the world of luxury tourism with objectives to position the Kingdom on the global tourism map.

Once completed, visitors will be able to explore the wonders and rich cultural heritage of Saudi Arabia’s untouched Red Sea Coast.

This is a touristic project that includes more than 90 unspoiled islands located between the cities of Umluj and Al-Wajh. It covers a number of the Red Sea’s untouched islands and a nature reserve containing regional flora and fauna.

Situated between the cities of Umluj and Al Wajh on the west coast of Saudi Arabia, the site is strategically located at the crossroads of Europe, Asia, the Middle East and Africa and within eight hours’ flying time of 80 percent of the world’s population.

The vision of the project includes creating an exquisite ultra-luxury destination within a pristine 28,000 sq km area that includes an archipelago of more than 90 unspoiled islands, volcanoes, desert, mountains, nature and culture.

The project is planned to set new standards for sustainable development and environmental protection, exceed expectations with the highest standards of service excellence and use technology to enable a seamless personalized experience that will position Saudi Arabia on the global tourism map.

The project offers a secure and stable environment for investors within the world’s fastest growing tourism region. In December 2018 King Salman received a team from the Red Sea Development Company (TRSDC), led by CEO John Pagano at Al-Yamama Palace in Riyadh that gave a progress report on the ambitious tourism and leisure project with a presentation detailing the master plan and its economic and developmental objectives, which aim to establish it as a leading global destination in the luxury tourism sector.

The first phase of the project, scheduled for completion in 2022, includes 14 luxury and hyper-luxury hotels providing 3,000 rooms across five islands and two inland resorts on the Kingdom’s west coast, an airport to serve the destination, and marinas, along with residential properties and recreational facilities.

By the time the project is completed, there will be 22 developed islands out of a total of 90 islands.

It is expected to create 70,000 jobs and play a significant role in driving economic diversification in the Kingdom by attracting nearly a million visitors a year and contributing SR22 billion to the country’s GDP.

Notably, plans to develop the project have been given the green light. The TRSDC has received final approval from its board of directors for the program’s master plan in January this year.

Commenting on it Pagano said: “With the master plan approved, we are now identifying investors and partners who are interested in working with us on realizing the objectives of the project and who share our commitment to enhance, not exploit, the natural ecosystems that make the destination so unique.”

Significantly, the Red Sea project ensures protection of ecology. As part of the planning process, major environmental studies were carried out to ensure that the area’s sensitive ecology was protected both during and after completion of the development.

Furthermore, the master plan is underpinned by an extensive smart destination management system that will support a wide range of personalized products and services designed to appeal to the modern luxury traveler.

The TRSDC employed the world’s first destination-scale computer simulation techniques, created in Saudi Arabia, to assess the impact of the development and future tourism on the environment. The resulting plan now targets a 30 percent net increase in biodiversity over the next two decades, a conservation equivalent to designating the site as a marine protection area.

Technology also underpins the destination’s sustainability initiatives, with a suite of sensors and monitoring devices in place to track and measure variations in environmental factors such as water salinity, temperature, visibility and tidal flows.

“The leadership of the Kingdom has shown great foresight in its insistence on balanced development of this pristine destination,” said Pagano. “Our plan not only envisions a stunning luxury destination, it also takes tangible, measurable steps to enhance that destination for future generations to enjoy and cherish.”




The Amaala resort, already being dubbed the Riviera of the Middle East, will be focused upon wellness and healthy living. (Supplied)

AMAALA

The Amaala project is another global destination aims to focus on ultra-luxury “wellness tourism” and the arts alongside other Red Sea mega-projects NEOM, a 26,500 square mile business zone and Saudi Arabia’s answer to Silicon Valley currently under development in the northwest of the kingdom and the Red Sea project.

This ultra-luxurious destination on the Kingdom’s northwestern coast of the Red Sea has been announced by the PIF, which is spearheading the project and will provide initial funding. Partnership and investment packages will be available to the private sector as it progresses.

The “Amaala” resort, already being dubbed the “Riviera of the Middle East,” will be focused upon wellness and healthy living. The resort will be located in the Prince Mohammed bin Salman Nature Reserve. PIF said Amaala will sit alongside NEOM and the Red Sea Project as part of a giga-projects investment portfolio, which will establish a unique “tourism ecosystem,” supporting economic diversification and creating high-value job opportunities.

Nicholas Naples, a veteran luxury hospitality and development executive, will be the CEO of the project, PIF said in September 2018.

“Amaala will awaken the world’s imagination by rephrasing the current concept of the luxury tourism experience, especially in terms integrative wellness, specialty treatments and related recreational offerings,” Naples said at the time.

“Amaala represents a unique and transformational luxury experience where full-fledged wellness tourism is integrated alongside a curated mix of arts, culture and sports offerings that are individually tailored for the ultra-luxury lifestyle, including the availability of  a fashion scene, healthy-living services, and year-round sea expeditions,” Naples added.

According to the developers, Amaala will feature “extraordinary architecture and unprecedented luxury in both hotels and private villas as well as a quaint retail village.”

It will also include an arts academy that will foster the growth and development of young artists from Saudi Arabia and the region.

PIF announced there will be cultural events, artistic performances and related conferences in a bid to bring international visitors to the region, where they can enjoy a wide array of unique and personalized holiday experiences set against stunning scenery, mountainous landscapes and diving among pristine coral reefs.

The project will include marinas and a yacht club and aims to be a destination for boutique luxury cruises.

The retail areas will include a mix of galleries, ateliers, artisan workshops and bespoke outlets along with a wide range of international and local restaurants.

As envisioned in Vision 2030, Amaala – along with the other giga-projects — will support the diversification of Saudi Arabia’s leisure and tourism industry, while promoting cultural conservation, ecological preservation and sustainability.


Saudi PIF raises over $1bn with 2% STC stake sale 

Updated 5 sec ago
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Saudi PIF raises over $1bn with 2% STC stake sale 

RIYADH: Saudi Arabia’s Public Investment Fund has raised SR3.86 billion ($1.02 billion) through the sale of a 2 percent stake in Saudi Telecom Co. 

The offering, consisting of 100 million shares priced at SR38.6 each, was met with strong demand from both local and international institutional investors, according to a statement. 

The transaction represents the largest accelerated bookbuild offering ever conducted in Saudi Arabia and the broader Middle East and North Africa region, underscoring robust investor appetite for exposure to the region’s telecom sector and strategic assets managed by PIF. 


Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Updated 29 min 12 sec ago
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Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

  • Dogecoin got a bump after US President-elect Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE

NEW YORK: Wow, much bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been racing higher in value since Donald Trump won the presidential election last week. It got another bump after Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.
All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here’s some explanation about what’s going on:
What is dogecoin?
It’s a cryptocurrency, whose value rises and falls against the US dollar based on however much people will pay for it.
At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the Internet without having to worry about a central bank or government affecting how many are in circulation.
How much has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It’s since more than doubled to nearly 38 cents, as of Wednesday afternoon, according to CoinDesk. It briefly got above 43 cents earlier Wednesday.
Why is it climbing so much?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is the most famous digital currency, has set an all-time high above $93,000 after starting the year below $43,000.
Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk have to do with any of this?
Musk has become one of Trump’s close allies. He’s also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”
In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.
It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”
It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.
This all sounds weird.
Dogecoin’s history is interesting.
In 2021, on April 20, dogecoin fans tried but failed to get its value above $1 on what they were calling “Doge Day.”
April 20 has long been an unofficial holiday for marijuana devotees, and Musk himself has referred to 420 several times in his career, including his tweet in 2018 saying he had secured funding to take Tesla private at a price of $420 per share.
Is the Shiba Inu whose picture is in the meme getting special treats because of all this?
Sadly, no. The dog, whose real name was Kabosu, passed away in Japan earlier this year at 18 years old. Much rest, may she have.


Number of active mining licenses in Saudi Arabia reaches 2,295

Updated 27 min 23 sec ago
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Number of active mining licenses in Saudi Arabia reaches 2,295

  • The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 35 new mining licenses in September, the Saudi Press Agency reported on Wednesday citing the National Center for Industrial and Mining Information.

These permits included 24 exploration licenses, seven quarry licenses for building materials, three reconnaissance licenses, and 1 mining exploitation and small mine license.

Official spokesperson for the ministry, Jaraah bin Mohammed Al-Jaraah, explained that by the end of September 2024, the total number of active mining licenses in the sector had reached 2,295. The majority of these licenses are quarry licenses for building materials, with 1,461 issued, followed by 566 exploration licenses, 203 mining exploitation and small mine licenses, 42 prospecting licenses, and 23 surplus mineral resource licenses.

Al-Jaraah emphasized that the Ministry of Industry and Mineral Resources is focused on protecting and enhancing the value of the mining sector in alignment with Saudi Arabia’s Vision 2030. The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion.


Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Updated 13 November 2024
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Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

RIYADH: Saudi Arabia’s Capital Market Authority has approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

These changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

“By facilitating the listing requirements for debt instrument, we are increasing the attractiveness of the local debt capital market to drive increased participation from issuers and investors,” Mohammed Al-Rumaih, CEO of the Saudi Exchange, said.

The amendments to the listing rules of debt instruments mark a significant milestone in the continued development of Saudi Arabia’s debt capital market, further reinforcing our commitment to building a globally competitive and sophisticated debt capital market.”

The reforms aim to strengthen Saudi Arabia’s regulatory framework for debt instruments, creating a more dynamic and accessible market. Notably, the amendments allow the Kingdom’s development funds, sovereign wealth funds, and development banks to issue debt instruments through exempt offerings, subject to specific conditions.

This flexibility will enable these institutions to better align their financing strategies with Saudi Arabia’s broader development goals.

“As we move forward, the Saudi Exchange remains focused on providing a robust platform for debt financing that supports the Kingdom’s Vision 2030 ambitions, specifically the Financial Sector Development Program aspirations in deepening the debt capital market,” Al-Rumaih said.

The new regulations also simplify the documentation process for public offerings, reducing prospectus requirements by more than 50 percent.

A dedicated section for public offerings will improve regulatory clarity, ensuring that all material information is disclosed to investors while maintaining investor protection.

In addition to easing public offering requirements, the changes introduce more flexibility for private offerings. The CMA has eliminated the prior requirement for advance notification before launching an offering.

Issuers can now notify the CMA and immediately proceed with their offerings, a change that is expected to expedite the financing process and improve efficiency.

These regulatory enhancements are part of Saudi Arabia’s broader efforts to develop its sukuk and debt markets as a crucial funding channel for businesses.

By improving access to financing, the reforms are expected to drive greater economic growth and help position the sukuk and debt markets as central components of the Kingdom’s financial ecosystem.

The reforms align with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the economy and enhance the capital markets. They also reflect the CMA’s ongoing commitment to improving market transparency, protecting investors, and increasing market participation.

In parallel, the CMA recently invited public feedback on amendments to the investment funds regulations, which are also part of efforts to refine the framework for private and foreign investment funds, particularly in retail markets. These changes aim to better protect retail investors, addressing risks that emerged from a 2021 regulation allowing individual retail investments up to SR200,000 ($53,245).

The consultation period for these proposed changes will run for 30 calendar days.

With these far-reaching regulatory reforms, Saudi Arabia is poised to further strengthen its sukuk and debt markets, positioning them as key drivers of economic growth and investment. The CMA’s efforts to enhance transparency and investor protection are expected to boost both domestic and international confidence in the Kingdom’s financial markets.


Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Updated 13 November 2024
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Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

  • Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF
  • Remaining shares held by PIF represent 62% of the firm’s issued share capital

RIYADH: Saudi Arabia’s Public Investment Fund has announced the offering of 2 percent of its Saudi Telecom Co.’s stake, amounting to 100 million shares, to qualified institutional investors locally and globally.

Goldman Sachs Saudi Arabia and SNB Capital, acting as joint global coordinators and bookrunners for PIF, announced that the share price, or offer rate, would be determined through an accelerated book-building process, according to a statement on the Saudi Stock Exchange.

This falls in line with PIF’s vision, which has about $925 billion assets under management, of becoming a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

The Tadawul statement said that following the completion of the offering, the remaining shares held by PIF in the company, representing 62 percent of the firm’s issued share capital, will be subject to a 90-day contractual lock-up undertaking.

The company will not receive any proceeds from the issuance, and the offering will not dilute the shares of the organization’s additional shareholders.

The statement also said that the final number of offer shares, price, and results will be announced by Nov. 14. 

The sale will be executed through off-market negotiated deals on Nov. 14 before market opening, under the Negotiated Deals Framework stipulated under the Trading and Membership Procedures issued by the Saudi Exchange.

The offering will be available to institutional investors within the Kingdom, qualified foreign institutional backers in line with the Rules for Foreign Investment in Securities, and institutional beneficiaries of swap agreements made with a Capital Market Authority-authorized person to trade shares on the Saudi Exchange on their behalf. 

It will also be open to Gulf Cooperation Council investors, including companies and funds authorized to trade in Saudi shares.