meed-logo

line1 line2 line3
SIGN IN / REGISTER

Vision 2030 drives tall tower plans

2 October 2023

Commentary
Colin Foreman
Editor

As work restarts on Jeddah Tower, economists and historians will revisit the theory, known as the Skyscraper Index, that the completion of record-breaking towers coincides with recession.

The notion that completing extreme skyscrapers and economic downturns are correlated is a longstanding debate.

The origins of the Skyscraper Index can be traced back to the early 20th century. In the 1920s, the completion of the Chrysler Building (pictured) and the Empire State Building in New York coincided with the Great Depression. The correlation then repeated itself when the Petronas Towers in Malaysia were finished during the Asian financial crisis in the late 1990s.

Then in 2008, construction work for the Burj Khalifa in Dubai was in the final stages as the global financial crisis crippled the emirate’s property market with debt.

There are three broad reasons commonly used to explain the phenomenon. The first is overconfidence and speculation. Building tall towers is an expensive venture, which means the decision to go ahead with them is typically made during a period of economic exuberance. The danger is that this exuberance can also create speculative bubbles that may burst before tall towers are completed.

The likelihood of bubbles bursting before completion is increased by the second reason for the correlation: long construction periods. Record-breaking towers take a long time to plan, design and construct, and during the time between their conception and completion, the economic landscape inevitably changes.

The third reason is the misallocation of resources. In boom times, investors are prone to chasing higher returns without fully assessing the risks. Pouring resources into large building projects is often an example of such misallocations, and when economic corrections occur, these projects can become symbols of excess.

The head start means Jeddah Tower should comfortably be completed before 2030

Improved fortunes

Jeddah Tower has restarted during a period of economic exuberance for Saudi Arabia. Oil prices are riding high, with Brent crude trading at nearly $95 a barrel at the end of September. While output cuts mean the Saudi economy is technically in recession, the performance of the non-oil sector remains robust and record levels of project spending are expected to be achieved by the end of this year.

Top 10 tallest towers in the region 

How long it will take to complete Jeddah Tower is not yet clear. While the tower is a major undertaking, it does have some advantages over a new project. It has already been designed, and the foundations and one-third of the superstructure have been completed.

This head start means that the tower should comfortably be completed before 2030. This will be crucial because Riyadh has committed to completing projects worth hundreds of billions of dollars as part of Vision 2030, and this spending should help cushion Saudi Arabia’s economy from any storm clouds and headwinds that may be gathering elsewhere in the world.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11180916/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Chinese firm wins Qiddiya Janadriyah cultural district hotels

    30 June 2026

     

    Beijing-headquartered China State Construction Engineering Corporation (CSCEC) has won a contract to deliver the Janadriyah cultural district at Qiddiya entertainment city on the outskirts of Riyadh.

    The contract was awarded by gigaproject developer Qiddiya Investment Company (QIC).

    The scope covers the construction of six structures, including a heritage building, a gateway hotel, a wadi hotel, a creative hub, a community centre and an open-air market.

    QIC tendered the contract in December last year, as MEED exclusively reported.

    The award is CSCEC’s second major win at Qiddiya in recent weeks.

    Earlier this week, MEED exclusively reported that QIC had awarded CSCEC a contract to build a new transport hub at Qiddiya entertainment city.

    The project is located within the resort core zone of the development.

    MEED understands the scope includes construction of a parking structure for up to 2,000 vehicles; a transport hub comprising a passenger flow system and ticketing and transit-related facilities; retail, food and beverage and hospitality facilities; mechanical, electrical and plumbing (MEP) systems; and soft and hard landscaping works.

    QIC is accelerating plans to develop additional assets at Qiddiya City.

    Last week, MEED reported that QIC had invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.

    The multipurpose arena is designed to International Olympic Committee standards.

    It will be located in District 18, in the Uptown South area of Qiddiya.

    Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.

    The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.

    It will have a seating capacity of 18,000 spectators.

    QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489285/main.jpg
    Yasir Iqbal
  • Aldar launches Yas Island community park project

    30 June 2026

    Abu Dhabi-based real estate developer Aldar, in partnership with the Abu Dhabi Department of Community Development (DCD), has announced the launch of Yas Community Park on Yas Island.

    A key feature of the park is Nabdh Yas, a community hub developed in collaboration with DCD.

    Once open, Nabdh Yas will serve as a central gathering space and host a range of community-led programmes.

    In a statement, Aldar said: “Nabdh Yas will be delivered on a public-private partnership (PPP) basis, marking the first time private sector investment has been directed towards this type of community infrastructure.

    “With DCD overseeing the hub’s development and long-term management, the initiative reflects Abu Dhabi’s focus on innovative approaches that generate lasting social value and enhance community wellbeing,” the statement added.

    A memorandum of understanding was signed between Aldar and DCD.

    The agreement establishes a framework to expand the Nabdh Community Hub model across Aldar developments in Abu Dhabi, Al-Ain and Al-Dhafra.

    Last month, Aldar announced its Q1 financial results, reporting a 20% year-on-year increase in net profit after tax to AED2.3bn ($626m).

    Aldar Development recorded a 14% year-on-year rise in revenue to $1.7bn, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 23% to $599m.

    UAE revenue backlog rose to $17bn at the end of March from $16.6bn at the end of December, with an average duration of 29 months.

    The group attributed its performance to revenue from its development backlog and steady income from its investment properties.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489270/main.jpeg
    Yasir Iqbal
  • Dubai sets August deadline for Airport Express metro bids

    30 June 2026

     

    Dubai’s Roads & Transport Authority (RTA) has given consultants until 10 August to submit proposals for a contract to study and design the Airport Express Line, which will extend from Dubai International airport (DXB) in the Al-Garhoud area to Al-Maktoum International Airport (DWC) in the Jebel Ali area.

    The previous deadline was 8 July.

    The proposed line will stretch about 55 kilometres and include five stations, providing passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    The RTA issued the tender in April, with an initial deadline of June, as MEED reported.

    The new line will run from the Red Line metro station at DXB through Al Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing to DWC.

    There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch towards Business Bay, where another station will be built.

    The new line appears to follow a similar route to the Etihad Rail high-speed railway project, which is under construction and due to be completed by 2030.

    The Airport Express Line scheme is the latest metro project to be tendered by the RTA this year. Earlier this month, MEED exclusively reported that the RTA had issued the request for qualification notice for a contract to build the new Gold Line, as part of its expansion of the Dubai Metro network.

    Tendering activity is also ongoing for the Route 2020 extension, which will start from the Expo 2020 metro station and connect to DWC’s West Terminal.

    MEED exclusively reported in April that consultants had submitted bids for the project.

    The extension to the line will run for about 3km and will feature two stations.

    The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489266/main.jpg
    Yasir Iqbal
  • Eni increases gas production in Libya

    30 June 2026

    The Italian oil and gas company Eni has announced the startup of offshore gas production enabled by the Sabratha compression project in Libya.

    The client on the project was Mellitah Oil & Gas (MOG), a joint venture of Eni and Libya’s state-owned National Oil Corporation (NOC).

    The Sabratha compression project was designed to increase gas output from the Bahr Essalam gas field, located approximately 100 kilometres off Libya’s coast.

    The scope of the project included the installation of a new 1,600-tonne compression module on the Sabratha platform, equipped with new compression trains, providing an overall compression capacity of about 440 million cubic feet a day.

    In a statement, Eni said: “The new module enables production under low-pressure conditions, offsetting the natural decline of the Bahr Essalam field and maximising gas recovery, ensuring increased volumes of gas of about 800 million cubic metres per year and associated condensate.

    “This additional production will play a critical role in sustaining national power generation, reinforcing Libya’s energy security, and supporting export to Italy via the Greenstream pipeline.”

    The company also said that the project strengthened the resilience of Libya’s gas infrastructure and represented “a tangible contribution to the stability and growth of the country’s energy sector”.

    MOG also has two other projects in Libya that are currently under execution.

    The first is the Bouri gas utilisation project, whose tie-in and commissioning activities are under way following the recent installation of the Bouri gas recovery module.

    The other project, known as ‘Structures A&E’, will develop two offshore gas fields.

    Eni has been present in Libya since 1959 and last year had average equity production in the country of approximately 162,000 barrels of oil equivalent a day.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17489032/main3444.jpg
    Wil Crisp
  • Jordan faces fresh round of challenges

    29 June 2026

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17479483/main.gif
    MEED Editorial