A construction boom in Saudi Arabia: an overview of grand projects
In 2016, Saudi Arabia unveiled the ambitious Vision 2030 project, which aims to reduce the state’s dependence on the oil industry. This strategy includes the systematic implementation of a large number of reforms in various sectors of the economy. The project is already demonstrating excellent results, for example, since its launch there has been a construction boom in the country’s real estate market.
Analysts have estimated that between 2016 and 2022 Saudi Arabia built facilities totaling 1.1 trillion dollars. In this case, the strategy for 2030 is expected to erect 555 thousand housing units, and 275 thousand hotel rooms. In addition, up to a specified period in the country should appear a shopping space of 4.3 million sq. m. and 6.1 million sq. m. of office facilities.
Now in the process of construction, besides various objects, there are 15 large-scale projects. The latter include the creation of a modern megalopolis NEOM, and the resort “Red Sea”. In addition, Diriyah, a city with centuries-old history located in the western part of Riyadh, is in the process of reconstruction.
Many experts have positively assessed the dynamics of Saudi Arabia’s construction sector. According to Knight Frank, the country is turning into the most ambitious construction site in the world. A number of works worth a total of 7.5 billion dollars have already been implemented for the NEOM, and this is despite the fact that the project itself is only 29% implemented. Thanks to the new megalopolis, the housing stock of Saudi Arabia will increase by 300 thousand units.
The city is being built from scratch on the shores of the Red Sea, and it will occupy an area of 26 thousand square meters. It is planned that the innovative megalopolis in the future will become a technological center, will have several ports, and develop tourism and commercial sectors. In addition, all the modern discoveries in the field of health care and improving the lives of citizens will be introduced here. An important part of the project is focused on energy efficiency and the use of renewable sources to ensure the city’s processes.
Another project included in the Vision 2030 development strategy is Al-Qaddia, a 334-square-meter technopark. The first phase is expected to be delivered next year, and the initial cost of the project was estimated at $8 billion.
The technopark is located in Riyadh and will include a huge number of entertainment venues, boutiques, restaurants, and hotel complexes.
It should be noted that almost all of the grand ideas that are implemented as part of Vision 2030 are aimed at reducing the use of fossil resources. The Saudis want to build cities and complexes of the future that do not harm the environment as they do now in the world.