With $1.1tn investment, Saudi Arabia to become the world’s biggest construction site — Knight Frank

Foreign labourers work at a construction site in the Saudi capital Riyadh, on June 16, 2022. (AFP)
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Updated 06 September 2022
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With $1.1tn investment, Saudi Arabia to become the world’s biggest construction site — Knight Frank

  • The consultancy firm is currently monitoring 15 giga-projects in the Kingdom
  • Many of these planned projects are new standalone supercities, official says

RIYADH: Following the launch of Saudi Arabia’s Vision 2030 in 2016, the Kingdom is on its way to becoming the world’s biggest construction site with a total investment of SR4.13 trillion ($1.1 trillion) in infrastructure and real estate projects, according to global real estate consultancy Knight Frank.

The real estate firm projected that Riyadh’s population will reach 17 million by 2030, up from about 7.5 million today. The city has unveiled real estate projects worth $104 billion since the Kingdom’s National Transformation Plan launch in 2016.

“Vision 2030 has lit the embers of excitement across the Kingdom, and with NEOM positioned as a crown jewel in the transformative plans, people are eager to be part of history,” Faisal Durrani, partner and head of Middle East research, Knight Frank told Arab News.

Saudi Arabia will easily become the largest construction site in history, with planned construction projects in the Kingdom being over 555,000 residential units, over 275,000 hotel keys, over 4.3 million square meters of retail space, and over 6.1 million square meters of office space, Durrani said.

The consultancy firm is currently monitoring 15 giga-projects in the Kingdom, many of them new standalone supercities, said Harmen de Jong, partner and head of real estate, Strategy& Consulting in the Kingdom.

NEOM is expected to house 9 million residents across 300,000 new homes once completed, making it the largest giga-project announced to date, Jong added.

Among 1,000 Saudi households surveyed, Diriyah Gate came third in popularity as a place to own a home, behind NEOM and The Red Sea Project.

NEOM is radically redefining urban living in resource-poor regions, Durrani said. At the same time, sub-cities like the Octagon, Trojena and the Line will set new benchmarks for luxury living in the area.

Around 30 percent of Saudi homeowners are prepared to spend more than $800,000 on a second home at NEOM. “Developers have their work cut out to satisfy this pent-up demand,” Durrani added.

De Jong said that the construction progress of part of the projects stands at 29 percent, with only $7.5 billion of subprojects being commissioned.

Riyadh’s rebirth 

Another head-turning giga-project is the $20 billion Diriyah Gate which will give Riyadh 20,000 homes when it is completed in 2027, creating a city-sized historic district.

Knight Frank estimated that about $2.3 billion had been spent on Diriyah Gate’s construction.

“Not to be outdone, Riyadh’s repositioning as a commercial nerve center of the Kingdom is well underway. And businesses from the world over are already clamoring to be at the center of the Middle East’s second and much-needed global hub,” Durrani said.

Durrani added that the planned development of 2.8 million square meters of world-class office space could not come at a better time with Grade A office occupancy levels hovering around 97 percent across the city.

According to Knight Frank, an international airport worth $147 billion is also set to open shortly. Nearly 74 percent of the $200 billion national infrastructure investment goes toward the new airport. 

“The city is also attracting a huge number of internal migrants, and with readily available support to get on the housing ladder, house prices are rising rapidly and currently stand some 26 percent higher than this time last year,” he said. 

Well-being hub

The Kingdom is also improving and providing world-class urban environments for its residents with the $500 million Riyadh Sports Boulevard and the $23 billion Green Riyadh, planting 7.5 million trees in the Saudi capital to transform it into a green, vibrant metropolis.

It also extends to the 19,000 hospital beds planned for $13.8 billion, of which $8.6 billion will be spent in Riyadh Province alone.

According to de Jong, over 80 new educational institutions are being constructed for $82 billion.

“What’s more, healthcare, education and well-being sit at the core of the transformative plans, which will contribute to an extraordinary evolution in the Kingdom’s physical realm, making it unrecognizable from what we see today by the end of the decade,” Durrani said.


Mawhiba to host ‘Beyond Creative Minds’ conference this month

Updated 14 November 2024
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Mawhiba to host ‘Beyond Creative Minds’ conference this month

  • The organization, which nurtures the talents of gifted students, says event is a ‘global platform for talented and creative youth to collaborate in building a prosperous future’
  • It is expected to attract experts and researchers in the fields of science, technology and innovation from more than 50 countries

RIYADH: Mawhiba, an organization that works to nurture the talents of gifted students in scientific fields, will hold its third international conference this month with the theme “Beyond Creative Minds.”

Its Global Conference for Giftedness and Creativity will take place from Nov. 24 to 26 at King Abdullah Petroleum Studies and Research Center in Riyadh. Khalid Al-Sharif, the organization’s acting secretary-general, described the event as a “global platform for talented and creative youth to collaborate in building a prosperous future through the exchange of ideas and expertise.”

He told the Saudi Press Agency: “The event reflects the Kingdom’s commitment to supporting and empowering talent and promoting a culture of innovation to address future global challenges.”

The conference is expected to attract experts and researchers in the fields of science, technology and innovation from more than 50 countries, many of whom will give keynote speeches, take part in panel discussions and lead workshops.

Al-Sharif said the event will include a “‘creathon’ aimed at finding creative solutions to contemporary challenges. Attendees will also have access to exhibitions and various cultural visits scheduled alongside the conference.”

He added that Mawhiba, more formally known as the King Abdulaziz and His Companions Foundation for Giftedness and Creativity, will continue to develop talent, support creativity and provide resources to nurture the potential of gifted individuals. He thanked Minister of Education Yousef Al-Benyan for the substantial support he provides for the biennial conference.


Saudi and French ministers discuss cultural cooperation

Updated 14 November 2024
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Saudi and French ministers discuss cultural cooperation

  • Prince Badr bin Abdullah bin Farhan and Rachida Dati discussed cultural exchanges and cooperation relating to museums, libraries, theater, the arts, cuisine, heritage and film production

RIYADH: Saudi Arabia’s minister of culture, Prince Badr bin Abdullah bin Farhan, and his French counterpart, Rachida Dati, held talks in Paris on Wednesday on cultural cooperation.

They discussed cultural exchanges between their countries and cooperation relating to museums, libraries, theater, the arts, cuisine, heritage and film production.

Riyadh and Paris are looking to strengthen partnerships, nurture talent through training programs for workers in cultural sectors, and exchange expertise, the Saudi Press Agency reported. The Kingdom’s assistant culture minister, Rakan Al-Touq, also took part in the meeting.


Riyadh governor receives Albania’s envoy

Updated 13 November 2024
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Riyadh governor receives Albania’s envoy

Riyadh Gov. Prince Faisal bin Bandar received Ambassador of Albania to the Kingdom Saimir Bala in Riyadh on Wednesday.

They discussed various topics of common interest, the Saudi Press Agency reported.

Meanwhile, Eastern Province Gov. Prince Saud bin Nayef bin Abdulaziz met with Ukrainian Ambassador to Saudi Arabia Anatolii Petrenko in Dammam on Wednesday.

Prince Saud welcomed the ambassador to the Eastern Province. During the meeting, the two exchanged friendly talks and discussed a number of topics.
 


Biofach offers look into Saudi Arabia’s agricultural growth, future

Updated 13 November 2024
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Biofach offers look into Saudi Arabia’s agricultural growth, future

  • The Kingdom and MENA region represent an emerging market for organic food, says organizing official

RIYADH: Saudi Arabia is among the Gulf Cooperation Council nations taking significant steps to invest in developing its organic food and beverage sector, which has experienced a growth surge in recent years.

The three-day Biofach Saudi Arabia, which was held alongside Saudi Organic Food Day and concluded on Wednesday, is a key platform showcasing the Kingdom’s commitment to developing its agricultural future.

Biofach was organized by 1st Arabia Tradeshows and Conferences in collaboration with NurnbergMesse, with support from the Saudi Ministry for Energy, Water and Agriculture and the Saudi Organic Farming Association.

Christian Beyer, manager of international events at NurnbergMesse, highlighted the potential of the Middle East and North Africa region: “The MENA region, especially Saudi Arabia, represents an emerging market for organic food that was estimated at USD 7 billion in 2022 and can expect ongoing growth.”

Recognizing the importance of organic farming for food security and environmental sustainability, Saudi authorities are focusing on enhancing rural production and improving supply chains to ensure organic products reach consumers efficiently.

The exhibition’s knowledge-exchange platform addressed local challenges, including effective water and fertilizer management, which are crucial for the region’s arid climate.

Among the exhibitors was the Saudi company Aamal Al-Andalus, which provides organic fertilizers to address soil degradation and declining fertility. Their products are said to help treat and reduce environmental stress, increase agricultural production, and improve the quality of crops to enhance export opportunities.

Youssif Abdulqader, sales manager and engineer at Aamal Al-Andalus, told Arab News: “Food around the world is increasingly going organic, particularly when all inputs in the plants come from organic and safe sources.”

He noted that this shift is largely driven by the health issues linked to consuming fruits and vegetables produced through conventional farming methods, which are often less beneficial or even harmful to human well-being.

Abdulqader explained: “Conventional farming practices are generally well-structured and effective; however, they face challenges such as the excessive use of pesticides and their persistence in the soil.”

Farmers often encounter bacterial issues within their crops that need to be addressed cost-effectively to maximize profitability.

“This is where organic alternatives can be prohibitively expensive, prompting conventional farmers to seek cheaper, often internationally banned options,” he added.

He added that the use of pesticides results in chemical residues that can remain in the plant’s environment.

These residues pose significant health risks when consumers ingest vegetables like cucumbers and tomatoes.

“There is a concern that these chemicals may contain heavy metals that the human body cannot process, leading to serious health issues such as cancer, kidney failure, and liver diseases, which are frequently associated with traditional farming practices,” he explained.


Prophet’s Mosque imam attends India peace forum

Updated 13 November 2024
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Prophet’s Mosque imam attends India peace forum

  • More than 50,000 Muslims attended the event, which was broadcast on several media platforms and garnered more than 4 million views

RIYADH: The imam and khatib of the Prophet’s Mosque, Sheikh Abdullah Al-Baijan, took part in a peace conference themed “Islam is the Religion of Humanity and Peace” during his recent visit to India

More than 50,000 Muslims attended the event, which was broadcast on several media platforms and garnered more than 4 million views, the Saudi Press Agency reported on Wednesday.

As guest of honor, Al-Baijan delivered a speech in which he said that Islam was a religion of security and peace. He warned against divisions among Muslims and said that such discord threatened national unity, led to chaos and could incite wars.

Minister for Wakf and Haj in the government of Kerala Shri. V. Abdurahiman also spoke at the event, praising Saudi Arabia for its efforts in promoting Islam, peace and moderation.

Al-Baijan also joined the 35th All India Ahle Hadith Conference in New Delhi, where he commended Saudi Arabia’s efforts, led by its leadership, to promote security, peace, stability and the safeguarding of human dignity globally.