Saudi Arabia is making a significant shift in its economic strategy by investing over USD 1.3 trillion in real estate and infrastructure projects. This ambitious plan includes major developments like Neom, Diriyah Gate, and Qiddiya, all designed to reduce the country's dependency on oil. By 2030, Saudi Arabia aims to attract USD 100 billion in foreign direct investment and welcome 150 million tourists annually. The projects will add 362,000 new hotel rooms and various giga developments along the western seaboard. Despite challenges such as labour shortages and supply chain issues, these initiatives are positioning Saudi Arabia to become the world's largest construction market.
Over the past eight years, Saudi Arabia has initiated USD 1.3 trillion in real estate and infrastructure projects to shift its economy away from oil dependency and enhance its appeal as a place to live, work, and travel. According to Knight Frank's latest Saudi Giga Projects Report, the volume of these projects has risen by 4% from the previous year. This includes over a million residential units and major developments like Neom on the Red Sea coast. Since 2016, when Saudi Crown Prince Mohammed bin Salman launched his economic diversification strategy, around USD 164 billion in real estate contracts have been awarded. The largest share of this investment, USD 28.7 billion, has been directed toward Neom, particularly for the development known as The Line, which features two mirrored towers expected to stretch approximately 105 miles.
According to Knight Frank, the largest awarded projects so far include USD 12 billion for National Housing Co., USD 9 billion for Diriyah Gate development, and nearly USD 7 billion for the Qiddiya entertainment city in Riyadh. While many of these mega projects are still far from completion, Saudi Arabia is pushing hard to address supply chain, labour, and cost challenges to meet its goals. Most developments are scheduled for completion between 2028 and 2030, positioning the country to become the world's largest construction market.
Riyadh remains a key focus, with approximately USD 35 billion in contracts awarded to date. By the early 2030s, the capital is projected to add almost 29,000 hotel rooms, 4.6 million square metres of office space, and 340,000 homes. Knight Frank also noted that additional developments are expected as the city prepares to host the 2030 World Expo and the 2034 FIFA World Cup. Knight Frank reported that over USD 54 billion has been invested in Saudi Arabia's western seaboard, where 17 major giga projects are currently in progress. The construction efforts are aimed at supporting economic diversification, accommodating a growing population, and enhancing the country's attractiveness for investment and tourism.
Saudi Arabia aims to attract USD 100 billion in foreign direct investment and 150 million tourists annually by 2030. Last year, it recorded around 109 million tourists, mostly local. To accommodate the expected surge in travellers, the country plans to add 362,000 new hotel rooms by the end of the decade, with this ambitious USD 110 billion development pipeline. Knight Frank suggested that more mid-range accommodations, rather than just luxury hotels, will be necessary to attract a broader range of tourists.
Saudi Arabia's strategic investment of USD 1.3 trillion in real estate and infrastructure projects over the past eight years aims to diversify its economy away from oil dependency and enhance its appeal for living, working, and tourism. Major projects like Neom, Diriyah Gate, and Qiddiya are central to this transformation, with substantial investments already made. As these developments progress towards completion by 2030, Saudi Arabia is poised to become the world's largest construction market, attracting significant foreign investment and millions of tourists annually, thereby boosting its economic diversification goals.
Advertisement
Facebook
Whatsapp
