Costs for Saudi Arabia’s mega-projects keep getting higher
Knight Frank, the London-based real estate consulting firm, estimates the total cost of Saudi Arabia's plans at $1.3 trillion, up 4% from 2023
A nighttime view of Riyadh, Saudi Arabia. (Photo: Getty Images)
The price tag keeps on getting higher for Saudi Arabia’s ambitious national building program – from the futuristic city of Neom in the west to the Qiddiya cluster of theaters, theme parks and a Formula 1 track in Riyadh.
Tallying the expenditures indicated for all the property, infrastructure and tourism projects that the kingdom has started over the past eight years, Knight Frank, the London-based real estate consulting firm, estimates the total cost at $1.3 trillion, up 4% from a year ago.
About $164 billion worth of real estate contracts have been awarded since 2016, when Saudi Crown Prince Mohammed bin Salman unveiled his Vision 2030 strategy to wean the country off its dependence on oil and unleash underdeveloped industries such as mining, manufacturing, tourism and entertainment, Knight Frank said in a report.
The largest chunk of that money – $28.7 billion – has gone to Neom, with heavy spending on the development within it known as The Line, a pair of mirrored towers expected to eventually span more than 105 miles through the desert. Bloomberg reports.
Other banner projects include establishing the National Housing Co. with $12 billion to build more than 1 million homes, the development of Riyadh’s Diriyah Gate section at $9 billion and the entertainment city of Qiddiya in the capital with almost $7 billion.