Diriyah CEO sets the record straight
17 February 2025
Register for MEED’s 14-day trial access | Beat the queue for the Saudi Gigaprojects 2025 summit (12-14 May)
There can be few busier people in Saudi construction right now than Jerry Inzerillo, group CEO of Diriyah Company, the developer behind the $63.2bn Diriyah gigaproject.
A charismatic New Yorker with the distinctive accent to match, he has been the most visible persona behind what is arguably one of the most impressive and advanced projects of the kingdom’s $1tn capital expenditure drive.
Centred around the At-Turaif Unesco World Heritage Site on the western outskirts of Riyadh, Diriyah has opened its first assets to the public, most notably the retail-focused Bujairi Terrace and its first hotel, the Luxury Collection Bab Samhan Hotel.
These are already proving popular; even on a weekday lunchtime, the former was packed with Saudis enjoying a meal or simply walking between the rows of upscale boutiques enveloped in Diriyah’s characteristic Najdi architectural style.
At night, Bujairi Terrace is so busy that advanced tickets are required just to enter the precinct to avoid overcrowding.
Opened in December 2022, Diriyah's Bujairi Terrace offers an array of restaurants and cafes
Asset manager role
Managing this is a new challenge for Diriyah Company as it transitions from a developer primarily focused on infrastructure delivery to one that is now also operating as an asset manager for its completed elements.
“Think about it: right now in the day, we have 40,000 construction workers on site, but last night, we had 13,000 people visiting At-Turaif,” Inzerillo said in early January.
“We’re trading; we’re open; we’re earning revenues from Bab Samhan, the first of 40 hotels to open. It’s already trading very, very well – it’s going to be a very popular hotel.
“I’ve been here 6.5 years now and I’m more optimistic than I’ve ever been.”
Visitors are not just there to shop and eat. Diriyah’s protocol department now has more than 20 staff to handle between nine and 15 protocol moments a day.
“Heads of state, cabinet members and prominent CEOs come every day to see His Royal Highness [Crown Prince Mohammed Bin Salman]. They view the masterplans, see it being built and then have a meal before going to the Unesco site,” says Inzerillo.
I’m seeing robust interest and activity now, not just kicking the tyres as we say in New York. I’m seeing people really coming up to us now. We have dozens of deals right now. We’re very far down the road in terms of equity
Jerry Inzerillo, group CEO of Diriyah Company
Concrete proof of delivery
The Diriyah CEO spoke with MEED at the opening of two new $200m substations built by Saudi Electricity Company to serve the gigaproject specifically. His presence at the event was a reminder of how keen Diriyah Company is to tell the world – and potential investors – about the development’s progress.
It is no secret that the gigaprojects programme has failed to attract the amount of local or foreign sector investment that it may have initially expected. Opinions vary, but it is fair to say a lack of clarity on project scopes, timeframes and visions, combined with the Covid pandemic and missteps in the initial communication strategy on what the gigaprojects stood for, have all been stumbling blocks in drawing in private investment.
However, this is changing as the gigaprojects themselves start to be delivered and more concrete proof of their demand potential is made clear.
Not that Inzerillo has any doubts about their ultimate investment potential and successful delivery. When asked about these issues, his response was clear: “Look I think there are two factors [behind these issues] and I don’t see them as unhealthy. In fact, it’s the opposite – I see them as healthy,” he asserts.
“Our [Saudi Arabia’s] intention was to take tourism from 3% of GDP to 10% by 2030, while our target was to attract 100 million visits by the same date. We achieved this by December 2023. We’ve already broken 5% of GDP and we feel very confident that we’ll make the 10% objective.
“We’re now putting the infrastructure in the new 58 million square-metre King Salman International airport and other transport infrastructure around the country. All the gigaprojects are opening hotels; for example, look at the great work being done along the Red Sea coast; the great work being done now on Qiddiya.
“So, I think what happened was a lot of people said, ‘Ok, we believe in Saudi Arabia. We certainly believe in its vision. But you know what? We’re going to wait a year or two till we see evidence that the projects are progressing as projected. We intend to be in the kingdom a long time, so let’s wait a year or two before committing.’”
JOIN THE LEADERS BUILDING VISION 2030 AT THE 3RD EDITION OF MEED's SAUDI GIGAPROJECTS SUMMIT
12-14 May – Riyadh, Saudi Arabia
CLICK HERE TO REGISTER YOUR INTEREST
Optimistic outlook
Inzerillo highlights Covid’s impact on the investment environment, adding that it delayed investment plans by two years, but appetite has now caught up.
“I’m seeing robust interest and activity now, not just kicking the tyres as we say in New York,” he states. “I’m seeing people really coming up to us now. We have dozens of deals right now. We’re very far down the road in terms of equity.
“I’m feeling very, very optimistic. I mean, you would think the CEO would naturally be optimistic, but I’m seeing a lot of evidence now.”
This bullishness is underpinned by three huge contracts awarded last year, totalling more than $5.6bn to build the North Cultural and Qurain Avenue districts, forming core components of the Diriyah Gate (DG) 1 phase of the gigaproject, as well as hotel and leisure assets on its residential and hospitality-focused Wadi Safar district.
The pace of activity is continuing into 2025 with a number of major contracts under tender or bid evaluation on the DG2 second phase, including three interchanges on King Khalid Road, the King Salman Grand Mosque, Royal Diriyah Opera House, infrastructure development works, the Northern Community and Diriyah Arena assets.
Just as significant was the award in early January of a $114m contract covering architectural construction and design services for DG2’s Boulevard District. One of the centrepieces of this second phase, the boulevard will be almost two kilometres long and will be lined on both sides by luxury boutiques and restaurants. Construction work on the boulevard should start in 2026.
One of the largest palaces in Diriyah, Salwa Palace extends over an area of 10,000 square metres
On time, on budget
Maintaining this pace of procurement is important given some of the – often negative – headlines following the ‘pause’ in gigaproject spending in the first half of 2024 as the government and the gigaproject companies’ owner, the Public Investment Fund (PIF), assessed their priorities and expenditure allocations in the face of soaring costs and timelines that threatened to be missed.
While much of this attention has been on Neom, particularly its The Line component, other gigaprojects such as The Red Sea, Roshn and Qiddiya threaten to be put into the same basket, an argument Inzerillo is keen to set straight.
“Now, one has to deal with real economic facts, and that is that post-Covid, you had major supply chain issues, which caused this hyperinflation. We’ve taken that into consideration and made adjustments. We’re on time, we’re on budget,” he stresses.
“We’ve been very fortunate because of our track record. We have a rockstar team. None of our funding has been even touched in the slightest by the PIF.”
Diriyah has had success in mitigating soaring materials and contracting costs primarily by bundling different works packages into the three ‘mega’ contracts awarded in 2024 as a means of consolidating work to just a handful of contractors.
At the same time, it secured long-term supply agreements from local manufacturers for key materials such as windows, doors and concrete. Scope revisions, such as the incorporation of the originally planned DG3 residential district into the DG1 element, have also contributed to putting a lid on cost pressures.
“We always said we had five gigaprojects,” explains Inzerillo. “We had the DG1 historical district. We had DG2, which is 500 tech companies, 100 media companies and 50 entertainment companies. And then there was talk about DG3. When we revisited DG3, it really was just an extension of DG1. So now what we’ve done is [merged] what was called DG3 into DG1. In other words, we merged two phases into one family, but the investment remains the same.”
Reprioritisation of resources
As for last year’s re-evaluation of the gigaprojects’ priorities and delays to the programme overall, Inzerillo attributes these to unforeseen events.
“Now, here’s the other point about the reprioritisation,” he says, referring to last year’s slowdown in gigaproject activity. “Three years ago, no one had any definitive evidence that Saudi Arabia would win the 2027 Asian football games. Three years ago, no one knew that we would be able to win the Winter Asian Games. Three years ago, no one knew we would win the 2030 World Expo in Riyadh. And three years ago, no one predicted the Kingdom of Saudi Arabia would win the 2034 World Cup.
“So, what would need to happen to do those four global events? The answer is, of course, it requires a reprioritisation of resources because now there’s a giant emphasis on delivering these events, especially in Riyadh …. It’s a natural recalibration to host these global events to diversify the economy and certainly hyper stimulate tourism.”
The PIF is expected to provide another SR12bn this year for further development at the gigaproject
Investor interest
Inzerillo, who started his varied, five-decade career in the kitchens of a Brooklyn catering company and then onto senior hotel management positions in the US and South Africa before heading up both IMG Artists and the Forbes Travel Guide, is equally forthright about Diriyah’s investment potential and the success it has had to date, even if much of it has yet to be formally announced.
“We have a very big interest from investors now,” he says. “I’m seeing my investment division getting really busy, which is very encouraging. I think that when we get to this time next year, we’re going to see a big repetition of what I call replacement equity.
“On some of the commercial assets right now, we’re getting great interest from foreign equity. We’ve had several cases now where foreign partners, such as Saudi, GCC and international partners, have seen the project out of the ground. They can really see it right in front of them.
“We have a major development with a retail developer from Italy and one from Colombia on buying hotels and going into residential sales with us as joint-venture partners. Funding has been front-loaded from the PIF, which is why it’s important to be a gigaproject within the PIF family. What’s also important is that it allows us to keep up the pace and, more importantly, maintain our quality.”
To date, the PIF has funded all of the infrastructure works on the gigaproject and is expected to provide another SR12bn this year for further development.
But at some point, Diriyah Company and the other PIF project subsidiaries are expected to obtain financing, particularly once they start earning revenues. Neom and Red Sea Global have already successfully raised funds through a combination of bond issuances and corporate loan agreements, and Diriyah itself is likely to go down the same route.
Likewise, it is expected to eventually go public when the time is right.
“When will that happen,” says Inzerillo. “That will obviously depend on PIF’s input, which is very important, but we’ve already started the process of getting ready for an initial public offering at some point. I’d be very happy to see that happen before 2030 as I think it would be a great accomplishment. And I’m optimistic to that effect.”
With its first assets up and running and a record value of contracts awarded in 2024, Diriyah is developing at a rapid pace and its CEO is clearly confident it will have most of its core components ready by the launch of the World Expo 2030.
Much still needs to be done, however. Line 2 of the Riyadh metro will be extended into the development, where it will interchange with the planned Line 7, linking the new King Salman International airport with Qiddiya via Diriyah. The Q Express, a planned express train linking the airport with the entertainment gigaproject, will also stop at Diriyah. All three projects will be handled by other clients and, therefore, somewhat out of Diriyah Company’s direct control.
Likewise, it remains unclear what the full impact of Expo 2030 and the 2034 World Cup will be on the project ecosystem in the capital. Combined with the giant New Murabba development and ongoing works on the King Salman Park and Sports Boulevard megaprojects, the market is not likely to settle any time soon.
And despite all the positive talk, there are still very few concrete announced investments in the gigaprojects. Yet, with its first areas already opened and other key elements well under way, Diriyah is arguably better placed than most to capitalise on this unprecedented investment opportunity.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
Nakheel awards $953m Palm Jebel Ali villas deal27 April 2026
-
Iraq’s first LNG terminal to be completed in June27 April 2026
-
-
Kuwait approves Doha desalination plant award27 April 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Partners launch feed-to-EPC contest for Duqm petchems project
27 April 2026
Register for MEED’s 14-day trial access
Omani state energy conglomerate OQ Group and Kuwait Petroleum International (KPI), the overseas subsidiary of Kuwait Petroleum Corporation, have initiated a feed-to-EPC competition among contractors to develop a major petrochemicals complex at Duqm.
Under a feed-to-EPC model, the project operator selects contractors to carry out front-end engineering and design (feed). It then awards the engineering, procurement and construction (EPC) contract to the contractor with the most competitive feed proposal, while compensating the other contestants for their work.
OQ8, the 50:50 joint venture of OQ and KPI, is understood to have issued the tender for the Duqm petrochemicals project’s feed-to-EPC competition in mid-March, with a deadline of 6 May for contractors to submit proposals, sources told MEED.
Several local and international contractors based in Oman are believed to be participating in the competition, according to sources.
OQ Group CEO Ashraf Bin Hamad Al-Maamari and KPI’s CEO Shafi Bin Taleb Al-Ajmi signed an agreement on 3 February, during the Kuwait Oil & Gas Show and Conference, to develop a major petrochemicals-producing complex in Oman’s Duqm. The parties did not disclose details at the time.
ALSO READ: Duqm petrochemicals revival provides fillip to Gulf projects market
The agreement represented a significant step forward in Oman and Kuwait’s long-held plans to jointly develop a petrochemicals complex next to the existing Duqm refinery, which will benefit from favourable feedstock access and strong cost competitiveness.
The planned facility will also benefit from in Al-Wusta governorate, along Oman’s Arabian Sea coastline.
OQ8 had struggled to make meaningful progress on the Duqm petrochemicals project since the plan was conceived as early as 2018, for a variety of reasons.
The original plan for the Duqm petrochemicals facility, estimated at $7bn, centred on a mixed-feed steam cracker with a capacity to produce 1.6 million tonnes a year (t/y) of ethylene. The project also included a polypropylene (PP) plant with a capacity of 280,000 t/y and a high-density polyethylene (HDPE) plant with a capacity of 480,000 t/y.
The complex was also expected to include an aromatics plant, as well as storage facilities for naphtha and liquefied petroleum gas (LPG).
The project’s prospects were temporarily boosted when Saudi Basic Industries Corporation (Sabic) expressed interest in investing by signing a non-binding memorandum of understanding with OQ in December 2021.
Reuters reported in December that Sabic was withdrawing from the project, leaving OQ to look for other partners. The new agreement between OQ and KPI is understood to have followed the Saudi chemical giant’s departure.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16577785/main.jpg -
Nakheel awards $953m Palm Jebel Ali villas deal
27 April 2026
Dubai-based real estate developer Nakheel, now part of Dubai Holding, has awarded two contracts worth AED3.5bn ($953m) to local firms for the construction of 544 villas at its Palm Jebel Ali project in Dubai.
The first contract was awarded to Ginco General Contracting for the construction of 354 villas across fronds A to D.
The second contract was awarded to United Engineering Construction Company (Unec) for the construction of 190 villas on fronds E and F.
Construction is expected to begin in Q2 this year, with completion scheduled for 2028.
Earlier phases
In October 2024, Nakheel awarded three contracts worth AED5bn ($1.3bn) for the construction of 723 villas on fronds K to P. The contracts went to Ginco, Unec and the local Shapoorji Pallonji.
Under these awards, Ginco is delivering 197 villas on fronds O and P, Shapoorji Pallonji is constructing 275 villas on fronds M and N, and Unec is building 251 villas on fronds K and L. Villa construction is expected to be completed by 2026.
Infrastructure works
This was followed by Nakheel awarding infrastructure contracts worth over AED750m ($204m) to local firm Dutco Construction for works on Palm Jebel Ali.
The infrastructure work includes utility connections, excavation, backfilling, and the construction of roads and pavements across fronds A to G. It also covers 11-kilovolt power distribution and telecommunications-related utility works.
Reclamation contract
In August 2024, Nakheel awarded an AED810m ($220m) contract to complete the reclamation works for the project.
The contract was awarded to Belgium’s Jan De Nul. Its scope includes dredging, land reclamation, beach profiling and sand placement to support the construction of villas across all fronds.
Masterplan details
Nakheel released details of the new masterplan for Palm Jebel Ali in June 2023. Twice the size of Palm Jumeirah, Palm Jebel Ali will have 110 kilometres of shoreline and extensive green spaces. The development will feature more than 80 hotels and resorts, along with a range of entertainment and leisure facilities.
It includes seven connected islands that will cater to approximately 35,000 families. The development also emphasises sustainability, with 30% of public facilities expected to be powered by renewable energy.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16577782/main.jpg -
Iraq’s first LNG terminal to be completed in June
27 April 2026
Iraq’s first liquefied natural gas (LNG) import terminal is expected to be completed in early June, according to the country’s Ministry of Electricity.
The terminal, which has an estimated investment value of $450m, is being developed at the Port of Khor Al-Zubair and will have a capacity of 750 million standard cubic feet a day (cf/d).
Ministry spokesperson Ahmed Mousa told the Iraqi News Agency that “work is proceeding at an accelerated pace to complete the LNG platform”, noting that “the government has set 1 June as the date for finishing the project”.
In October last year, US-based Excelerate Energy signed a commercial agreement with a subsidiary of Iraq’s Ministry of Electricity to develop the floating LNG terminal.
The contract was signed at the office of Iraq’s Prime Minister Mohammed Shia Al-Sudani during a ceremony attended by senior officials from both countries, including the US deputy secretary of energy James Danly.
The contract included a five-year agreement for regasification services and LNG supply with extension options, featuring a minimum contracted offtake of 250 million cf/d.
Ahmed Mousa said that “under the contract, the company is responsible for completing the facility as well as securing the agreed gas quantities from any source, in line with the specified terms”.
He added: “Work is continuing according to the planned timelines to complete the project on schedule, as part of the Ministry of Electricity’s plans to keep pace with peak summer loads.”
Although Iraq is Opec’s second-largest oil producer after Saudi Arabia, it is a net natural gas importer because its lack of infrastructure investment has meant that, until 2023, it flared roughly half of the estimated 3.12 billion cf/d of gas produced in association with crude oil.
Iraq’s reliance on flaring associated gas instead of gathering and processing it has prevented the country from fully realising its potential as a gas producer and forced the Iraqi government to rely on costly gas and electricity imports from Iran.
Recently, Iraq’s oil and gas sector has been disrupted by fallout from the US and Israel’s attack on Iran on 28 February and the subsequent regional conflict.
Over recent weeks, Iraq’s oil exports have collapsed by about 80% amid problems shipping crude through the Strait of Hormuz.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16577746/main.jpg -
Iraqi LNG import terminal raises questions about energy strategy
27 April 2026
Commentary
Wil Crisp
Oil & gas reporterIraq’s first LNG import terminal is set to come online in early June, at a time when global LNG prices are likely to remain close to their highest levels in more than three years.
The disruption to global oil and gas exports in the wake of the US and Israel’s attack on Iran on 28 February led to LNG prices soaring, with natural gas prices in Asia and Europe rising to their highest levels since January 2023 during March.
So far, there has been little progress towards a diplomatic or military solution to reopen the Strait of Hormuz, and most analysts do not forecast significant price declines in the near term.
On 24 April, the International Energy Agency (IEA) said that the combined effect of short-term supply losses and slower capacity growth could result in a cumulative loss of around 120 billion cubic metres of LNG supply between 2026 and 2030.
While the IEA expects new liquefaction projects in other regions to offset these losses over time, it still believes the crisis will lead to prolonged tight market conditions through 2026 and 2027.
This means that Iraq will likely have to pay elevated prices for imported LNG for some time to come – if it can receive shipments at all.
The port of Khor Al-Zubair is located in the Arabian Gulf, and LNG shipments from the US or Australia would need to pass through the Strait of Hormuz before reaching the terminal.
This will only be possible if a solution is found to the ongoing blockade of the shipping route.
Investment debate
Iraq’s project to develop a floating LNG terminal is estimated to cost $450m, and many in Iraq may question whether this was the best use of these funds.
While it may have been difficult for Iraqi policymakers to foresee the attack by the US and Israel on Iran and its impact on LNG markets, Iraq had several strong options to enhance domestic energy security rather than turning to LNG imports.
The most obvious of these was investing in infrastructure to enable it to utilise its domestic gas reserves.
According to the World Bank’s 2025 Global Gas Flaring Tracker Report, in 2024, Iraq burned off more unused gas than any other country, except Russia and Iran, which ranked first and second, respectively.
That year, an estimated total of more than 18 billion cubic metres of natural gas was flared in Iraq due to a lack of infrastructure to properly capture and process it.
It is highly likely that projects to gather and process this gas would have been more reliable and cost-effective than investing in a new floating LNG terminal, which increases the country’s exposure to global LNG price fluctuations and shipping disruptions.
Other options could have included developing domestic gas fields or investing in solar and battery storage projects, which have become increasingly affordable in recent years.
The cost of solar panels has fallen by more than 95% over the past decade.
Power shortfall
As things stand, Iraq is likely to face severe electricity shortages this summer.
On 21 April, Iraq’s Ministry of Electricity said it plans to produce 30,000MW this summer, well short of the predicted peak demand of around 55,000MW.
Ahmed Musa, a spokesperson for the Electricity Ministry, told the state-run Iraqi News Agency that the shortfall will result in planned outages across the country.
He also said that even meeting the 30,000MW target is contingent on sufficient gas supplies.
If Iraq experiences the same level of power outages as last year – or worse – many are likely to view the $450m spent on an LNG import terminal as a waste of money and an expensive symbol of poor planning.
Power cuts this summer could stoke unrest at a time that is already politically precarious due to the ongoing regional conflict.
In recent years, electricity shortages have repeatedly fuelled protests in Iraq during the summer months, particularly in Basra, where blackouts and poor public services have driven people to take to the streets.
If the Strait of Hormuz does not reopen soon, Iraq’s economic crisis will deepen, and electricity shortages are likely to further undermine the country’s stability.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16577743/main.jpg -
Kuwait approves Doha desalination plant award
27 April 2026
Kuwait’s Central Agency for Public Tenders has approved the recommendation of the Ministry of Electricity & Water to award a KD114.28m ($371.5m) contract to supply, install, operate and maintain the second phase of the Doha seawater reverse osmosis (SWRO) desalination plant.
A joint venture of Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco) and India’s VA Tech Wabag has been selected for the project, with the award understood to be pending final approval from the Audit Bureau.
The project will deliver a production capacity of about 60 million imperial gallons a day (MIGD) and will include the desalination plant with full reverse osmosis trains, pre- and post-treatment systems, recarbonation equipment, booster pumps, and safety and filtration systems.
The total project duration is 96 months. The Doha SWRO desalination plant is part of Kuwait’s broader programme to expand water production capacity and reduce reliance on thermal desalination methods.
MEED previously reported that the Heisco/Wabag joint venture submitted the lowest bid. Bidders and prices included:
- Heavy Engineering Industries & Shipbuilding / Wabag: $373.2m
- Cox Water (Spain): $538.1m
- Orascom Construction (Egypt): $568.4m
In April 2025, MEED reported that Kuwait had retendered the contract for the facility after the ministry cancelled the initial tender in June 2024.
The Ministry of Electricity & Water awarded South Korea’s Doosan Heavy Industries & Construction – now known as Doosan Enerbility – a $422m contract in May 2016 to build the 60 MIGD Doha 1 SWRO plant.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16577722/main.jpg