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Since the initiation of Saudi Arabia’s National Transformation Plan in 2016, the total value of unfinished real estate and infrastructure projects has exceeded a staggering $1.25 trillion. At the same time, ongoing projects are estimated to be worth $250 billion, according to the latest Saudi Giga Projects Report by Knight Frank.
Faisal Durrani, Partner and Head of Research for the Middle East & North Africa, commented that arguably one of the most extensive real estate development initiatives ever witnessed globally is progressing rapidly in Saudi Arabia, as the deadline for achieving Vision 2030 approaches. Durrani also highlighted that the office construction pipeline remains steady at 6 million square meters, a figure influenced by the completion of 300,000 square meters of office projects since the previous autumn.
He also emphasizes the growth in office construction projects, especially considering the significant shortage of premium Grade A office spaces in cities like Riyadh. This scarcity stands in stark contrast to many international cities where occupancy rates have not yet returned to pre-pandemic levels.
In various other commercial sectors, Durrani highlights plans for the development of 5.3 million square meters of retail space and the addition of 289,000 hotel rooms. These endeavors align with Saudi Arabia’s goal to attract 100 million visitors by 2030, a substantial increase from the 17 million visitors recorded last year, positioning the Kingdom as the 14th most visited nation worldwide.
Knight Frank’s report assesses the value of real estate and infrastructure projects in the western part of the country, Riyadh, and the remaining provinces. The western region of Saudi Arabia continues to be a pivotal element in the Kingdom’s transformative vision, anticipating the delivery of $687 billion worth of real estate projects by the end of the decade.
The western part of the Kingdom is home to the most prominent and attention-grabbing projects in the country, notably NEOM, the $500 billion futuristic city. Throughout the past year, various components within NEOM have been unveiled, including Trojena, the designated venue for the 2030 Asian Games, and Sindalah, a luxurious island and hospitality destination in the Red Sea, which will be the first of NEOM’s projects to materialize. NEOM as a whole is also advancing rapidly, with $70 billion worth of projects already awarded.Of that, 45% has already been successfully completed.
Beyond the high-profile giga projects garnering attention across the nation, there is a growing focus on enhancing the quality of life for Saudi Arabia’s residents by creating exceptional urban environments, as highlighted by Knight Frank. This includes recent expansions like Qiddiya’s $266 million Qiddiya Coast theme park extending to Jeddah, the $500 million Riyadh Sports Boulevard, and the ambitious $23 billion ‘Green Riyadh’ initiative aimed at transforming the Saudi Arabian capital into a lush, green metropolis through the planting of 7.5 million trees. Additionally, the Amanat Al Sharqiya project in Dammam, covering 650,000 square meters, will rejuvenate the city’s corniche area.
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