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.


Officials detained as investigators smash drug-smuggling operation at Al-Jouf Airport

Updated 4 sec ago
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Officials detained as investigators smash drug-smuggling operation at Al-Jouf Airport

  • 9 people arrested, including Ministry of Interior employee, 4 people associated with the Zakat, Tax and Customs Authority, and a Saudi Electricity Company worker

RIYADH: A drug smuggling operation at Al-Jouf International Airport in Saudi Arabia, in which several government and other public-sector officials allegedly were involved, has been shut down following an extensive investigation.

An official source at the Ministry of Interior said on Thursday that nine people were detained, including a ministry employee, four people associated with the Zakat, Tax and Customs Authority, and one from the Saudi Electricity Company.

Their alleged roles in the smuggling network included helping to get the drugs into the Kingdom, ensuring shipments bypassed inspections, transporting them, and concealing them in homes and at other locations.

They also engaged in the promotion and distribution of the narcotics in the country, the Saudi Press Agency reported. The amount and type of drugs involved was not immediately apparent.

The Ministry of Interior said it remains committed to confronting all threats to national security and will take stringent action against anyone who jeopardizes the safety and stability of the country.


OIC discusses draft humanitarian funds statute

Updated 14 November 2024
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OIC discusses draft humanitarian funds statute

  • It discussed the draft humanitarian funds statute
  • Taha added that it was important to make every effort to finalize the statute of these funds

JEDDAH: The general secretariat of the Organization of Islamic Cooperation held a meeting of the open-ended Group of Governmental Experts in Jeddah on Thursday.
It discussed the draft humanitarian funds statute, in accordance with the Council of Foreign Ministers.
OIC Secretary-General Hussein Ibrahim Taha said that the meeting was held amid difficult and harsh humanitarian circumstances that required concerted efforts and collective action to adopt actions to help contain humanitarian crises and hardships.
In his speech, Taha added that it was important to make every effort to finalize the statute of these funds, undertake the necessary reforms to their working mechanism and support them with the financial resources to enable them to fulfil their role.
The statement delivered by assistant secretary-general for humanitarian, cultural and social affairs, ambassador Tariq Ali Bakhit, on behalf of OIC’s secretary-general, highlighted the significant challenges faced by member states in the humanitarian field.


KSrelief distributes shelter supplies in Afghanistan

Updated 14 November 2024
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KSrelief distributes shelter supplies in Afghanistan

  • KSrelief will distribute 4,882 shelter items, such as tents, blankets, plastic mattresses and other supplies

KABUL: The King Salman Humanitarian Aid and Relief Center has launched a shelter project for people returning from Pakistan to Afghanistan and victims of the 2024 floods.

It will distribute 4,882 shelter items, such as tents, blankets, plastic mattresses and other supplies across the provinces of Kabul, Ghazni, Bamyan, Badakhshan, Kunduz, Baghlan, Parwan, Kapisa, Panjshir, Herat, Nimroz, Nangarhar and Laghman. The project will help 29,292 people.

The scheme is part of the Kingdom’s humanitarian and relief efforts, through its humanitarian arm, KSrelief, to alleviate the suffering of the Afghan people.


KSrelief wins Global Humanitarian Achievement Award

Delano Roosevelt, CEO of National Council on US-Arab Relations, presents the award to the supervisor general of KSrelief.
Updated 14 November 2024
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KSrelief wins Global Humanitarian Achievement Award

  • Delano Roosevelt, the council’s second president and CEO, presented the award to the supervisor general of KSrelief, Dr. Abdullah Al-Rabeeah, in Washington
  • Dr. Al-Rabeeah said the award is an international acknowledgement of Saudi Arabia’s leading role in relief efforts

WASHINGTON: The Saudi aid agency KSrelief was honored with the Global Humanitarian Achievement Award by the National Council on US-Arab Relations, in recognition of relief efforts that have made a substantial impact in crisis regions around the world.

Delano Roosevelt, the council’s second president and CEO, presented the award to the supervisor general of KSrelief, Dr. Abdullah Al-Rabeeah, in Washington, the Saudi Press Agency reported.

Dr. Al-Rabeeah said the award is an international acknowledgement of Saudi Arabia’s leading role in relief efforts.

He underlined the Kingdom’s commitment to assisting people in need, supporting those affected by crises, and assisting refugees wherever possible.

He also affirmed that Saudi Arabia has consistently been a leader in charitable and humanitarian initiatives and is at the forefront of donor countries on regional and international fronts.


4th Saudi Green Initiative Forum hosted in COP16 Green Zone in Riyadh next month

Updated 14 November 2024
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4th Saudi Green Initiative Forum hosted in COP16 Green Zone in Riyadh next month

RIYADH: The Saudi Green Initiative announced on Thursday that the SGI Forum 2024 will take place on Dec. 3-4 under the theme “Action is in our nature.” 

The flagship climate and environment action event, now in its fourth year, will return to Riyadh for the first time since its launch in 2021 by Crown Prince Mohammed bin Salman, prime minister and chairman of the Supreme Committee for the Saudi Green Initiative.

The SGI Forum 2024 will coincide with the 16th session of the Conference of the Parties, or COP16, of the United Nations Convention to Combat Desertification, or UNCCD. 

According to an SGI press release, the Riyadh COP16 (Dec. 2-13) will be the largest-ever UNCCD conference, the first to be held in the Middle East region, and the largest multilateral conference hosted by Saudi Arabia.

At this year’s SGI Forum, hundreds of policymakers, business leaders and subject-matter experts from across the world will convene in a dedicated SGI Pavilion in the UNCCD COP16 Green Zone. 

Dozens of tailored sessions will explore best practices, innovations and progress against SGI targets, with the goal of deepening collaboration and scaling up action for a greener future.

Since the launch of SGI, a significant positive impact has been achieved, with 4+ GW of renewable energy capacity installed, more than 95 million trees and shrubs planted, and more than 1,660 endangered animals re-wilded across the Kingdom.

For the duration of COP16, the SGI will welcome the public to a 4,000 sq m SGI Pavilion, where visitors can enjoy an interactive journey through Saudi Arabia’s whole-of-society climate and environment efforts in the SGI Gallery. 

A multimedia showcase and a broad range of experts will enable guests to learn more about the more than 80 initiatives already launched as part of SGI. 

Visitors can also attend and exchange ideas during daily SGI Talks, an expert-led speaker series that launched in 2023.

The SGI was launched by the crown prince in 2021 to drive climate action across all levels of society and achieve Saudi Arabia’s ambition to achieve net-zero emissions by 2060. 

The initiative demonstrates the Kingdom’s dedication to improving the quality of life for current and future generations and addressing the region’s environmental challenges, including high temperatures, low rainfall, dust storms and desertification.

In 2022, the SGI Forum was held in Sharm El-Sheikh, Egypt, in tandem with UNFCCC COP27. The event revealed major climate action projects, including the launch of a circular carbon economy knowledge hub, and the establishment of a regional center for advancing emissions reduction with UNESCWA.

In 2023, the third SGI Forum took place in conjunction with UNFCCC COP28 in Dubai.

During the event, the Kingdom unveiled a 300 percent increase in installed renewable energy capacity since 2022, and more than 43 million trees were planted toward the goal of 10 billion.