According to real estate consultancy Knight Frank, the total cost of the infrastructure and real estate projects started since the grandiose Vision 2030 plan of Saudi Arabia was introduced in 2016 has surpassed $1.1 trillion.
Saudi Arabia’s reform plan, known as Vision 2030, aims to change the country’s economic structure and get it ready for the post-hydrocarbon era. As part of the plan, the monarchy has started a number of “giga-projects,” such as the development of the Red Sea and the future city of NEOM.
“Throughout the entire urban environment, it is evident that the world’s fastest-growing economy is undergoing a spectacular transition. The kingdom’s planned building will undoubtedly make Saudi Arabia the largest construction site in history “said Partner and Head of Middle East Research Faisal Durrani. By 2030, Saudi Arabia is anticipated to have built more than 555,000 houses, 275,000 hotel rooms, more than 4.3 million square metres of new retail space, and more than 6.1 million square metres of new office space as part of its extensive transformation plan.
“In Saudi Arabia, a daring new vision is emerging. The entire metropolitan environment is oozing with the incredible shift occurring in the nation with the fastest economic growth. By 2030, Saudi Arabia will undoubtedly be the largest construction site the world has ever known, according to Faisal Durrani, partner and head of middle east research at Knight Frank. This includes over 555,000 residential units, over 275,000 hotel keys, over 4.3 million square metres of new retail space, and over 6.1 million square metres of new office space.
However, according to Knight Frank, only $7.5 billion worth of side projects have so far been commissioned, with a 29% construction progress rate. The $20 billion Diriyah Gate in Riyadh, which will increase the number of residences in Saudi Arabia by 20,000 by 2027, is another enormous effort. According to Knight Frank, 46% of the $5 billion worth of development has been finished. Around $104 billion worth of real estate developments has been announced in Riyadh during the previous six years. By 2030, the city’s population is projected to increase from about 7.5 million to 17 million.
