_Arabia_
Trusted Member
September 12, 2024 12:44 PM GST
by Staff Writer
Saudi Arabia has launched an ambitious $1.3 trillion wave of real estate and infrastructure projects as part of its strategy to diversify its economy away from oil and become a global hub for living, working, and travel. The country’s extensive development drive, which spans the past eight years, marks a 4% increase in project volume compared to the previous year, according to Knight Frank’s latest Saudi Giga Projects Report.
This development spree includes over one million new residential units and mega-projects like the futuristic NEOM on the Red Sea coast, all aimed at enhancing the quality of life for locals and attracting foreign investment and tourism.
Faisal Durrani, Head of Research, MENA at Knight Frank, highlighted a 58.5% rise in announced homes over the past year, linked to government efforts to increase homeownership to 70 % by 2030 from nearly 64 % today.
“The unprecedented response by private and public-sector-linked developers cannot come soon enough. In Riyadh, which sits at the epicentre of the economic transformation of Saudi Arabia, apartment prices have climbed by 58 % over the last three years, while villa values have climbed by 38 % over the same period and at SAR 5,155 per square metre are now higher than those in Jeddah for the first time,” Durrani added.
During the first six months of 2024, residential transactions accounted for 61% of real estate deals, marking a significant 41% increase in sales to nearly 91,860 transactions. The total value of these transactions surged by 48% to SAR 77.6 billion. The growth in homeownership to 63.74% by the end of 2023 can be attributed to government initiatives such as the Sakani and Wafi programmes.
Since 2016, when Crown Prince Mohammed bin Salman unveiled his plan to reduce Saudi Arabia’s dependence on oil, the kingdom has awarded $164 billion in real estate contracts. The biggest slice of this funding—$28.7 billion—has gone to NEOM, particularly its flagship project, The Line.
Other significant projects receiving major investment include National Housing Co. ($12 billion), Diriyah Gate ($9 billion), and Qiddiya, Riyadh’s upcoming entertainment city, which has seen almost $7 billion in awards.
Though many of these mega-projects are still in progress, Saudi Arabia is working hard to overcome supply chain issues, labour shortages, and rising costs to meet its 2028-2030 targets. The kingdom is expected to become the world’s largest construction market as these projects move closer to completion.
Riyadh, the country’s capital, remains a focal point with $35 billion in contracts awarded so far. By 2030, the city will boast 29,000 new hotel rooms, 4.6 million square metres of office space, and 340,000 new homes. Riyadh is also gearing up to host major global events, such as the World Expo in 2030 and the FIFA World Cup in 2034, ensuring a continuous flow of new developments.
Saudi Arabia’s western region has attracted over $54 billion in development funding, with at least 17 ‘giga’ projects underway. These developments aim to elevate the kingdom’s tourism appeal while supporting its broader economic diversification strategy. With plans to attract 150 million tourists annually by 2030, Saudi Arabia is fast becoming a prime destination for international visitors and investors alike.
To accommodate the anticipated influx of travellers, Saudi Arabia plans to add 362,000 new hotel rooms by the end of the decade. Knight Frank estimates that this ambitious hotel pipeline, expected to cost $110 billion, will be instrumental in meeting tourism targets.
These projects collectively will contribute to the growth of the kingdom’s housing stock with the addition of 382,500 new homes. Furthermore, there will be 3 million square metres of new offices, 4.3 million square metres of new retail space, and 330,000 new hotel rooms by 2030.
Amazing project. I still remember the times when anti-KSA elements were saying that such projects would never be built. The past 6-8 years have been one massive disappointment for them.
The rise of non-oil revenue since 2015. Reached 472 billion riyals in 2024.
Approximately a 300% rise in 9 years.
Projected economic growth in the GCC for 2025.
KSA leading with 4.8%.
PIF signs an agreement with Schuler Group (largest manufacturer in the world of presses) to establish the world’s most advanced, fully automated auto body assembly plant, within the Ceer (the first Saudi Arabian electric vehicle brand) electric vehicle manufacturing complex in King Abdullah Economic City.
More info about Ceer:
ceermotors.com
Saudi Arabia invest over $1.3 trillion in real estate and infra projects
Riyadh, the country’s capital, remains a focal point with $35 billion in contracts awarded so farby Staff Writer
Saudi Arabia has launched an ambitious $1.3 trillion wave of real estate and infrastructure projects as part of its strategy to diversify its economy away from oil and become a global hub for living, working, and travel. The country’s extensive development drive, which spans the past eight years, marks a 4% increase in project volume compared to the previous year, according to Knight Frank’s latest Saudi Giga Projects Report.
This development spree includes over one million new residential units and mega-projects like the futuristic NEOM on the Red Sea coast, all aimed at enhancing the quality of life for locals and attracting foreign investment and tourism.
Faisal Durrani, Head of Research, MENA at Knight Frank, highlighted a 58.5% rise in announced homes over the past year, linked to government efforts to increase homeownership to 70 % by 2030 from nearly 64 % today.
“The unprecedented response by private and public-sector-linked developers cannot come soon enough. In Riyadh, which sits at the epicentre of the economic transformation of Saudi Arabia, apartment prices have climbed by 58 % over the last three years, while villa values have climbed by 38 % over the same period and at SAR 5,155 per square metre are now higher than those in Jeddah for the first time,” Durrani added.
During the first six months of 2024, residential transactions accounted for 61% of real estate deals, marking a significant 41% increase in sales to nearly 91,860 transactions. The total value of these transactions surged by 48% to SAR 77.6 billion. The growth in homeownership to 63.74% by the end of 2023 can be attributed to government initiatives such as the Sakani and Wafi programmes.
Since 2016, when Crown Prince Mohammed bin Salman unveiled his plan to reduce Saudi Arabia’s dependence on oil, the kingdom has awarded $164 billion in real estate contracts. The biggest slice of this funding—$28.7 billion—has gone to NEOM, particularly its flagship project, The Line.
Other significant projects receiving major investment include National Housing Co. ($12 billion), Diriyah Gate ($9 billion), and Qiddiya, Riyadh’s upcoming entertainment city, which has seen almost $7 billion in awards.
Though many of these mega-projects are still in progress, Saudi Arabia is working hard to overcome supply chain issues, labour shortages, and rising costs to meet its 2028-2030 targets. The kingdom is expected to become the world’s largest construction market as these projects move closer to completion.
Riyadh, the country’s capital, remains a focal point with $35 billion in contracts awarded so far. By 2030, the city will boast 29,000 new hotel rooms, 4.6 million square metres of office space, and 340,000 new homes. Riyadh is also gearing up to host major global events, such as the World Expo in 2030 and the FIFA World Cup in 2034, ensuring a continuous flow of new developments.
Saudi Arabia’s western region has attracted over $54 billion in development funding, with at least 17 ‘giga’ projects underway. These developments aim to elevate the kingdom’s tourism appeal while supporting its broader economic diversification strategy. With plans to attract 150 million tourists annually by 2030, Saudi Arabia is fast becoming a prime destination for international visitors and investors alike.
To accommodate the anticipated influx of travellers, Saudi Arabia plans to add 362,000 new hotel rooms by the end of the decade. Knight Frank estimates that this ambitious hotel pipeline, expected to cost $110 billion, will be instrumental in meeting tourism targets.
These projects collectively will contribute to the growth of the kingdom’s housing stock with the addition of 382,500 new homes. Furthermore, there will be 3 million square metres of new offices, 4.3 million square metres of new retail space, and 330,000 new hotel rooms by 2030.
Amazing project. I still remember the times when anti-KSA elements were saying that such projects would never be built. The past 6-8 years have been one massive disappointment for them.
The rise of non-oil revenue since 2015. Reached 472 billion riyals in 2024.
Approximately a 300% rise in 9 years.
Projected economic growth in the GCC for 2025.
KSA leading with 4.8%.
PIF signs an agreement with Schuler Group (largest manufacturer in the world of presses) to establish the world’s most advanced, fully automated auto body assembly plant, within the Ceer (the first Saudi Arabian electric vehicle brand) electric vehicle manufacturing complex in King Abdullah Economic City.
More info about Ceer:
The First Saudi Electric Vehicle Brand | Ceer
Discover Saudi's first electric vehicle brand leading KSA's automotive manufacturing sector. Drive into the future with Ceer electric vehicles.
ceermotors.com
ALAT will invest $100 billion in artificial intelligence and semiconductors.
