Construction contracts worth $24bn have now been awarded for Saudi Arabia’s Neom project and sub-projects, according to property consultancy Knight Frank.
They include $470m for Magna, $3.31bn for Trojena – set to have the world’s largest man-made lake – $8.9bn for The Line, and $9.3bn for Oxagon.
On the country’s western seabord, 17 giga projects are underway including Neom, The Red Sea, and Qiddiya Coast. Knight Frank said that here, $57bn of contracts had already been awarded and $187.2bn worth were in the pipeline.
Overall, the value of annual contract awards in Saudi Arabia has risen to $196bn, up 20% from 2024, the consultant said in its annual Saudi Arabia Giga Projects Report.
Under the kingdom’s multi-trillion-dollar Vision 2030 plan, new cities, major infrastructure projects, sports venues and luxury tourism destinations are bringing about what the company called “unprecedented national economic transformation”.
Riyadh in the lead
Riyadh is leading on giga projects with developments such as Diriyah Gate, King Salman Park and the 220km Sports Boulevard.
The $63bn Diriyah Gate cultural project at the At-Turaif Unesco world heritage site is among the most advanced. The value of commissioned projects to date stands at $14.5bn, with a further $45.6bn in the pipeline.
“Riyadh has firmly established itself as Saudi Arabia’s new economic powerhouse, accounting for 63% of all new jobs created in the Kingdom since 2019,” said Faisal Durrani, head of MENA research at Knight Frank.
He said projects worth more than $237bn have been announced across real estate, infrastructure and transportation sectors since 2016, with $44bn already awarded in construction contracts.
“These investments will support projected growth in the city’s population from 7 million in 2022 to 10.1 million by 2030, with more than 340,000 homes, 4.8 million sq m of offices, 3 million sq m of retail and close to 30,000 new hotel rooms.” Durrani said, adding that it was “one of the world’s most ambitious urban growth stories”.
Stadiums galore
Meanwhile, giga projects across other regions represent investments worth $132.3bn, which Knight Frank said was “driving economic diversification beyond the main hubs while improving quality of life through new housing, jobs and infrastructure”.
Sports infrastructure is also booming, with more than a dozen stadiums – representing a combined project value of $17.5bn set for expansion, upgrades, or new construction.
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