Since the inception of Saudi Arabia’s National Transformation Plan in 2016, real estate and infrastructure projects yet to be completed have surpassed a whopping $1.25 trillion in value. Meanwhile, projects already underway are valued at $250 billion, as revealed in Knight Frank’s latest Saudi Giga Projects Report.
Faisal Durrani, Partner – Head of Research, Middle East & North Africa, said, “Arguably one of, if not the most expansive real estate development programs ever seen in the world is gathering pace in Saudi Arabia as the 2030 deadline nears to realise Vision 2030.”
Durrani notes that the office pipeline remains stable at 6 million square meters, a figure influenced by the 300,000 square meters of office projects finalized since the previous Autumn. He also highlights the growing office pipeline against the backdrop of a pronounced deficit of prime Grade A spaces in cities like Riyadh. This shortage sharply contrasts with several global hubs where occupancy rates have yet to recover to pre-pandemic figures.
In other commercial sectors, Durrani points out plans for 5.3 million square meters of retail space and an addition of 289,000 hotel rooms. These initiatives align with Saudi Arabia’s aspiration to attract 100 million visitors by 2030, a substantial rise from the 17 million last year, positioning the Kingdom as the 14th most frequented nation globally.
Knight Frank’s report analyses the value of real estate and infrastructure projects across the western half of the country, Riyadh and the remaining provinces. Western Saudi Arabia remains a central piece in the transformative vision for the Kingdom, with $687 billion of real estate projects expected to be delivered by the end of the decade.
Harmen de Jong, Partner – Head of Strategy & Consultancy, Saudi Arabia, added, “The western half of the Kingdom contains the highest concentration of headline-grabbing projects in the country, including of course NEOM, the $500 billion super city. Over the course of the last year, various subcomponents in NEOM have been revealed, including Trojena, host location for the 2030 Asian Games and Sindalah, the luxury island and hospitality destination in the Red Sea, which will be the first of NEOM’s projects to materialise. NEOM overall is also progressing rapidly, with $70 billion of projects now awarded, 45% of which has been completed.”
Away from the headline-grabbing gigaprojects around the kingdom, there is a growing emphasis being placed on the well-being of Saudi Arabia’s residents through the improvement and provision of world-class urban environments, says Knight Frank.
This includes Qiddiya’s recent plans to expand to Jeddah with the $266 million Qiddiya Coast theme park, in addition to the $500 million Riyadh Sports Boulevard as well as the $23 billion ‘Green Riyadh’ which will transform the Saudi Arabian capital into a verdant metropolis through the planting of 7.5 million trees.
Elsewhere, Dammam’s 650,000 sqm Amanat Al Sharqiya project will see the revitalisation of the city’s corniche.
