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.


Saudi Arabia sends 25th relief plane to Lebanon

Updated 5 sec ago
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Saudi Arabia sends 25th relief plane to Lebanon

RIYADH: Saudi Arabia’s 26th relief aircraft loaded with humanitarian aid including food, medical supplies and shelter equipment arrived at Beirut-Rafic Hariri International Airport on Thursday, state news agency SPA reported.

The plane, operated by King Salman Humanitarian Aid and Relief Center, departed King Khalid International Airport in Riyadh earlier in the day as part of a continuing effort to transport hundreds of tonnes of medical supplies and food aid for Lebanese families displaced by the conflict.

A earlier statement from the Saudi aid agency KSrelief said the aid deliveries showed that the Kingdom was “standing with needy and affected countries … in the face of crises and difficulties.”


Saudi foreign minister arrives in Kuwait for ministerial meeting for Gulf Supreme Council

Updated 10 min 47 sec ago
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Saudi foreign minister arrives in Kuwait for ministerial meeting for Gulf Supreme Council

KUWAIT: Saudi foreign minister Faisal bin Farhan arrived in Kuwait on Thursday ahead of the ministerial meeting for the Supreme Council of the Cooperation Council for Arab States of the Gulf. 

The preparatory ministerial meeting is set to discuss the agenda of the 45th session of the Supreme Council of the Cooperation Council for the Arab States of the Gulf which is scheduled for next Sunday in Kuwait City. Leaders from all over the Gulf will attend the meeting. 

The minister was welcomed by his counterpart Abdullah Al-Yahya.


Saudi Arabia’s King Salman inaugurates Riyadh Metro project

Updated 28 November 2024
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Saudi Arabia’s King Salman inaugurates Riyadh Metro project

  • Riyadh Metro network includes six train lines measuring 176 km and 85 stations
  • Metro will be open to public from Dec. 1, operate daily from 6am to midnight

RIYADH: Saudi Arabia’s King Salman inaugurated the Riyadh Metro project on Wednesday, Saudi Press Agency reported.

The project is considered the backbone of the public transport network in Riyadh, SPA said.

King Salman watched an introductory film about the project, which is distinguished by its exceptional design and technical specifications.

The Riyadh Metro consists of a network that includes six train lines measuring 176 km and 85 stations, including four main stations.

“The Riyadh Public Transport Project, which spans metro and bus networks, is the culmination of concerted efforts made by King Salman and the outcome of his visionary leadership while serving as the Chairman of the High Commission for the Development of Arriyadh, the predecessor of the Royal Commission for Riyadh City,” Crown Prince Mohammed bin Salman said. 

The Public Transport Project in Riyadh City was launched based on various studies prepared by the High Commission for the Development of Arriyadh.

The studies considered the current and future needs of the public transport sector in the capital and identified the best solutions and options for establishing a sustainable public transport system that is compatible with the city and its characteristics.

The metro will begin to be available for public use from Dec. 1 and will operate daily from 6 a.m. to midnight. 

The lines will open over the next two months in stages — with the blue, yellow and purple lines opening on Dec. 1, the red and green lines opening on Dec. 15, and the orange line opening on Jan. 5, 2025. 

Following the announcement, Saudi Minister of Tourism Ahmed Al-Khateeb posted on X: “Under the patronage of the Custodian of the Two Holy Mosques, may Allah protect him, the #RiyadhMetro project was inaugurated — reflecting the leadership’s commitment during this prosperous era to enhancing Riyadh’s infrastructure and raising the quality of life in the city.

“This aligns with the goals of #SaudiVision2030, further establishing the city’s position as a tourist destination that attracts visitors from around the world.”

Abeer Al-Shehri, a Riyadh-based lawyer, told Arab News that the new metro would cut the time she spent in traffic and the number of postponed appointments.

“As a lawyer, my profession involves fieldwork at courts, the Public Prosecution and police stations. Sometimes I have to attend sessions at the office while also having two important appointments to attend,” she said.

“With the traffic, there’s not enough time for both, so I’m forced to postpone one. Additionally, client meetings at the company’s office often take place around noon, and it’s well known that at that time, it’s impossible to reach the location within an hour without being late.

“This forces me to leave at least an hour earlier. The metro will significantly improve the time wasted in traffic, and as a lawyer, it will allow me to commute back and forth to the office in record time.”

Riyadh resident Faisal Suliman Al-Anzy told Arab News that he was “happy and excited” about Wednesday’s announcement.

He plans to use the metro “for visiting friends, (especially at) the weekend when there are traffic jams everywhere.”


Saudi official elected vice chair of organization that sets standards for global food trade

Updated 28 November 2024
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Saudi official elected vice chair of organization that sets standards for global food trade

  • Saudi Food and Drug Authority says selection of Khalid Al-Zahrani by Codex Alimentarius Commission is a ‘milestone’ and ‘testament to our commitment to global food safety
  • Al-Zahrani has represented the Kingdom on several international committees, including at the World Trade Organization

RIYADH: Saudi official Khalid Al-Zahrani was chosen on Wednesday to be vice chair of the Codex Alimentarius Commission, which sets the standards for the international food trade that are designed to ensure products are safe and protect consumer health.

Representatives of the Saudi Food and Drug Authority who were present for the vote at the commission’s 47th annual session in Geneva, Switzerland, congratulated Al-Zahrani on his election.

“This is a significant milestone for Saudi Arabia and a testament to our commitment to global food safety and standards,” said Hisham Aljadhey, the authority’s CEO.

“By assuming the role of vice chair of Codex, (Saudi Arabia) aims to further strengthen international collaboration, promote sustainable food practices and ensure the well-being of consumers worldwide.”

Al-Zahrani has served as the Codex chairperson for the Near East region since 2020 and was reelected to the position in 2023.

He also represented Saudi Arabia on several international committees, including the World Trade Organization’s Technical Barriers to Trade, the Gulf Cooperation Council Standardization Organization, and the International Organization for Standardization’s Food Products Committee.

He works closely with the Kingdom’s Food and Drug Authority, which aims to prioritize sustainability and enhance efficiency, inclusiveness and transparency within food systems. The authority was recognized in January by the World Health Organization as one of the first five countries in the world to eliminate the use of industrially produced trans fats in food, alongside Denmark, Lithuania, Poland and Thailand.

“Al-Zahrani’s election highlights the exceptional quality of Saudi staff at the SFDA and the authority's efforts in food-safety legislation and oversight,” the authority said.

The Codex Alimentarius (Latin for “Food Code”) is a collection of internationally recognized standards, codes of practice, guidelines and other recommendations related to food production, labeling and safety, published by the UN’s Food and Agriculture Organization and the WHO.


Saudi development fund chief meets Congo’s finance minister

Updated 27 November 2024
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Saudi development fund chief meets Congo’s finance minister

CEO of the Saudi Fund for Development Sultan Al-Marshad met Congo’s Minister of Finance Doudou Fumba Likunde, the Saudi Fund said on X on Wednesday.

During the meeting, they reviewed development cooperation between the two sides that began 40 years ago, as well as discussing ways to enhance economic cooperation to develop vital sectors in Congo.

Ambassador of Saudi Arabia to Congo Abdulaziz Al-Badi was present during the meeting.