As Saudi Arabia fervently pursues the objectives of Vision 2030, the nation is witnessing a surge in ambitious endeavours, commonly referred to as “Giga” projects, as a cornerstone of its economic diversification strategy. Spearheaded and financially supported by the Public Investment Fund (PIF), these colossal initiatives promise to catalyse economic growth, bolster infrastructure development, and facilitate substantial job creation.
The landscape of Saudi Arabia is undergoing a remarkable transformation through an array of megaprojects, a pivotal facet of the grand Vision 2030 blueprint. This visionary plan, anchored in substantial investments, propels the nation’s economy beyond its historical reliance on oil. This endeavour manifests as job opportunities and an elevated global status as a nexus of commerce and tourism. Central to Vision 2030 aims to reduce the country’s dependence on oil revenue. This comprehensive framework enriches various public service sectors, including healthcare, education, infrastructure, recreation, and tourism. Unveiled on October 24, 2017, by Crown Prince Mohammed bin Salman, the blueprint rests on three foundational pillars are as follows:
- Positioning the nation as a cultural and economic epicentre in the Arab and Islamic realms,
- Establishing it as a potent global investment destination, and
- Capitalising on its strategic location to bridge Afro-Eurasian connectivity.
A glimpse into 5 ongoing megaprojects by the grand ventures offers insight into Saudi Arabia’s imminent transformation, poised to redefine the nation’s trajectory. These ventures signify the potency of Saudi Arabia’s commitment to change and herald a future where innovation and progress harmoniously intertwine.
1. NEOM
NEOM, the ambitious $500 billion megaproject in Saudi Arabia, has already completed 20% of its infrastructure. Earlier this year, NEOM made a significant announcement regarding the location of a new luxury destination on the Red Sea – Sindalah Island. This island retreat will offer world-class luxury and is designed to promote relaxation, well-being, and immersive experiences.
NEOM has formed a partnership with Marriott International, encompassing three properties. Two of these properties will fall under the Luxury Collection brand, and the other will be an Autograph Collection hotel, marking a first for Saudi Arabia. The island is set to welcome visitors in 2024.
2. OXAGON
OXAGON is a groundbreaking concept that claims the title of the “world’s largest floating structure.” This innovative venture is set to take shape in the southwestern region of NEOM, the futuristic megacity in Saudi Arabia projected to be a remarkable 33 times the size of New York City. Distinguished by its unique design, half of OXAGON will reside atop the Red Sea, which boasts an average depth of 500 metres.
OXAGON is poised to be a catalyst for economic advancement and diversification. It aligns with the aspirations outlined in Vision 2030. This project is expected to redefine global approaches to industrial development, prioritising environmental conservation while generating employment opportunities and driving growth within NEOM. Its impact extends to bolstering Saudi Arabia’s regional trade and commerce while also creating a new global focal point for trade flows. Mohammed bin Salman expressed his satisfaction that OXAGON’s business and development are already underway, with anticipation for the city’s rapid expansion.
3. Diriyah
Integrating distinctive elements of international tourism and hospitality with the rich Najdi architectural heritage of the region, the Diriyah project is a noteworthy project undertaken by the Diriyah Company. This development occurs in Saudi Arabia’s first capital and is a megaproject initiated by the Public Investment Fund (PIF).
To benefit multiple sectors, including F&B, hospitality, and construction, while also drawing in a plethora of investment prospects, the project has made remarkable progress. This progress is evidenced by the allocation of fresh contracts and the engagement of global and domestic brands, all contributing to its ongoing evolution.
4. Red Sea
While ensuring the safety of the flora and fauna of the region, Red Sea Global aims to attract financial support and investments to expand the Arabian tourism market. The project focuses on establishing 50 hotels across the landscape upon its completion.
In the meantime, significant progress is being made in the development of AMAALA, with particular attention directed toward the wellness hub known as ‘Triple Bay.’ This area takes centre stage in the inaugural phase of this mega-project, with completion anticipated by mid-2024. Notably, AMAALA achieved a significant milestone last year when 300 signed contracts amounted to $1.75 billion, underscoring the project’s consistent advancement. Presently, there is an additional $1.62 billion in active tender, indicating the vast scope of this enterprise.
5. Qiddiya
Qiddiya is a PIF-supported project by Qiddiya Investment Company (QIC), which will be an integrated entertainment destination.In the most recent development, QIC has agreed worth $18.3 million with Kier International, a company listed on Tadawul. This agreement binds engineering, design, electrical, communications, civil, and electromechanical endeavours for the Water Theme Park project.
This latest advancement follows the previous allocation of a $745.4 million contract to a collaboration between ALEC Saudi Arabia Engineering and Contracting, and El Seif Engineering Contracting, aimed at a key attraction within the Qiddiya project.
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