Saudi Arabia has announced real estate and infrastructure projects valued at over $1.25 trillion since 2016, with key Giga projects including NEOM and the Red Sea Coast Development.
In line with the Vision 2030 initiative, the largest Arab economy has embarked on a sprawling journey to reshape its real estate and infrastructure sectors.
Vision 2030: A Pioneering Initiative
The Vision 2030 agenda is a strategic outline by Saudi Arabia to reduce its dependence on the hydrocarbon sector and stimulate other economic sectors.
The plan is to cultivate the country’s industrial base, expand its infrastructure, and improve sectors like real estate, healthcare, and education to generate employment opportunities for its growing population.
Tourism and Hospitality: Central to Vision 2030
Tourism and hospitality are critical to the success of Vision 2030. The Public Investment Fund, the Kingdom’s sovereign investment entity, supports several projects.
These include the futuristic city of Neom, with an estimated cost of $500 billion, multiple developments along the Red Sea coast, and multiple projects in Riyadh.
The Unprecedented Real Estate Development
As the deadline for Vision 2030 draws closer, Saudi Arabia witnesses one of the world’s most expansive real estate development programs.
The Kingdom, which boasted the fastest-growing major economy last year, plans to welcome 100 million tourists by 2030. This ambition has led to a significant expansion in retail and hospitality facilities.
Red Sea Global: Pioneer of Luxurious Tourism
The Red Sea Project which includes Red Sea Global and Amaala epitomizes luxurious tourism, providing an unmatched and diverse experience for global travelers. It spans over 90 pristine islands, vast deserts, and striking mountain scenery, making it truly exceptional.
ROSHN: PIF Funded Real Estate
ROSHN Group is Saudi Arabia’s most trusted multi-asset class real estate developer and a giga-project wholly owned by the Kingdom’s Public Investment Fund (PIF). ROSHN supports the government’s goal of achieving a 70% homeownership rate by 2030.
One of its notable projects is the Marafy project in Jeddah which includes an 11km Artificial Canal. It aims to develop integrated neighborhoods and contribute to the growth and development of the Jeddah region.
Neom: The City of the Future
Neom, a $500 billion mega city, is one of the ten districts in Saudi Arabia. The city is rapidly progressing, with $70 billion of projects already awarded and 45% completed. Neom’s sub-components, such as Trojena, the host location for the 2030 Asian Games, and Sindalah, a luxury island, are taking shape.
Qiddiya: Innovative Experiences Hub
Qiddiya, a key element of Vision 2030, serves a dual role by promoting economic diversification and creating new career opportunities, all while enhancing the lives of the Kingdom’s youth.
Internationally acclaimed as a hub for cutting-edge and engaging encounters, Qiddiya will feature diverse attractions centered on five key themes: Sports and wellbeing, Nature and ecology, Parks and entertainment, Motion and transportation, and Arts and heritage.
Diriyah: A Historic Landmark
Diriyah is a $63 billion Gig Project backed by the Public Investment Fund which aims to revitalize the historic birthplace of the Saudi Royal Family, enhancing its global significance as a premier cultural destination. It is described as an unparalleled cultural experience for visitors and driving economic growth for the Kingdom.
Jerry Inzerillo, group CEO of the Diriyah Gate Development Authority, says, “We are committed to preserving and promoting the history and culture of the city, and we look forward to welcoming visitors from all over the world to bear witness to its beauty and be a part of the legacy it represents,”
Riyadh: The Development Hub
Riyadh is a hotspot of development activity, accounting for 18% of all current real estate projects, valued at approximately $229 billion. The volume of planned residential units has increased by 30% over the past year, encouraging news for potential homeowners.
Additional PIF funded projects in Riyadh include the new Murabba and the highly anticipated new King Salman International Airport.
The Commercial Market Evolution
The commercial market in Saudi Arabia is also evolving. Plans are underway to add 5.3 million square meters of retail space and 289,000 hotel rooms, supporting the goal of hosting 100 million visitors by 2030. The office real estate pipeline is growing steadily, reaching six million square meters.
Revolutionizing the Country’s Landscape
Saudi Arabia’s Vision 2030 is an ambitious initiative to revolutionize the country’s economic, social, and infrastructural landscape. The Kingdom’s real estate and infrastructure sectors have seen a surge in investment, marking a new era of development.
As the journey towards 2030 unfolds, it will be interesting to watch how Saudi Arabia navigates the challenges and leverages opportunities to realize its vision.