Property consultancy Knight Frank has provided updates on Saudi Arabia’s NEOM, regarded as the world’s largest construction project. The firm noted in its annual Saudi Giga Projects Report that construction contracts worth $24 billion have already been awarded. These include various projects such as $470m for Magna and $3.31 billion for Trojena, set to be the world’s largest man-made lake. Moreover, it includes $8.9 billion for the Line and $9.3 billion for Oxagon.
The Kingdom is imbued in various other projects, with a total of 17 being in the works. Other than NEOM, it includes The Red Sea project and the Qiddiya Coast project. In their report, Knight Frank noted that $57 billion of contracts had already been awarded and $187.2 billion worth in the pipeline. The report’s findings highlight the progress of Vision 2030. The aspiration aims to position Saudi Arabia as a regional hub for lifestyle, leisure, tourism, and economic activity. Projects such as Qiddiya City have also taken shape since the urban design scope was released in 2023. Though the report does not provide insight into setbacks, NEOM is facing major challenges in its projects. For instance, NEOM’s Trojena desert ski project is being retendered as the project continues to prepare to host the 2029 Asian Winter Games. NEOM is making progress on various of its projects such as NEOM sky stadium, the first of its kind in the world.
Project Factsheet
Importance:
- World’s largest construction project worth an estimated $8.8 trillion.
- Will revolutionize city life and sustainability as part of Saudi Arabia’s Vision 2030 vision.
- Comprises sub-developments such as The Line, Oxagon, Trojena, and Magna — each of which symbolizes one of NEOM’s future pillars.
- Hopes to position Saudi Arabia as an innovation, tourism, and economic diversification leader.
Infrastructure:
- Includes cutting-edge smart-city infrastructure with renewable energy, AI, and autonomous transport.
- The Line is a linear city that runs solely on renewable energy, and $8.9 billion worth of construction contracts have already been awarded.
- Trojena features the largest man-made lake in the world and mountain tourism amenities, with contracts worth $3.31 billion having been awarded.
- Oxagon, worth $9.3 billion, will be the world’s largest floating industrial hub.
- Coastal tourism growth Magna has witnessed $470 million worth of contract awards.
Developer/Consortium:
- Operated by Saudi Arabian Public Investment Fund (PIF) fully owned NEOM Company.
- Supported by international engineering and construction firms through multibillion-dollar partnership deals.
- Real estate consultancy Knight Frank monitors and reports on development progress through its Saudi Giga Projects Report, published annually.
Funding/Timeline:
- Value of $24 billion in contracts already awarded under NEOM; part of total $57 billion worth of contracts signed on all Saudi giga projects.
- An additional $187.2 billion worth of projects in the pipeline.
- Phased completion forecasted to occur during the 2030s, in keeping with Saudi Vision 2030 ambitions.
- Contributes significantly towards Vision 2030 vision for urbanization, sustainability, and attracting investment internationally.
Scope of Projects in Saudi Arabia Other than NEOM
Other than Saudi Arabia’s NEOM, Riyadh is leading on giga projects with developments such as Diriyah Gate. It also includes King Salman Park and the 220km Sports Boulevard. The report notes that the $63bn Diriyah Gate cultural project at the At-Turaif Unesco world heritage site is among the most advanced. Furthermore, the value of commissioned projects to date stands at $14.5bn, with a further $45.6bn in the pipeline. Faisal Durrani, head of research at Knight Frank for the Middle East and North Africa commented on the latest report. He noted that, “Riyadh has firmly established itself as Saudi Arabia’s new economic powerhouse, accounting for 63 percent of all new jobs created in the Kingdom since 2019.”
Furthermore, he added that projects worth more than $237 billion have been announced across various construction phases since 2016. These entail real estate, infrastructure, and transport since 2016. $44 billion of these projects have already been awarded in construction projects. He further described Riyadh as witnessing “one of the most ambitious urban growth stories in the world.” Sports infrastructure is also booming, with more than a dozen stadiums. It represents a combined project value of $17.5bn set for expansion, upgrades, or new construction.
