meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia plans $1 trillion capital

26 July 2023

 

Register for MEED's guest programme 

In late June, a Saudi delegation led by Crown Prince Mohammed bin Salman visited Paris to present Riyadh’s bid for hosting Expo 2030 to the Bureau International des Expositions.

The reveal of the masterplan for the $7.8bn Expo site is the latest move by Riyadh to make the Saudi capital one of the world’s top 10 cities with a population of 15-20 million. 

Prince Mohammed set out the objectives in January 2021. “Our target is to have Riyadh become one of the top 10 largest city economies in the world.

“Today it is ranked among the top 40 largest city economies worldwide. Our target is to increase its population from 7.5 million to around 15-20 million in 2030,” he said in a broadcast interview with former Italian Prime Minister Matteo Renzi. 

Prince Mohammed explained the rationale for doubling the size of Riyadh. “There is no doubt that the world economies are not only based on countries but rather cities. Eighty-five per cent of the world economy comes from cities, and in the next few years, this number will increase to 95 per cent.” 

Riyadh’s assets

Developing Riyadh will build on its existing strengths. “Riyadh has very special features. Today Riyadh represents about 50 per cent of the non-oil economy in the Kingdom of Saudi Arabia,” said Prince Mohammed. 

“The cost of job creation is 30 per cent less than in other cities in Saudi Arabia. The cost of infrastructure and real estate development is 29 per cent less.”

Heading off any questions about Riyadh’s ability to deliver such ambitious plans, Prince Mohammed referred to the city’s historical growth.

“The infrastructure is already quite outstanding because of the work done by King Salman over a period of more than 58 years, during which he managed to grow a city of 150,000 residents into a metropolis of 7.5 million people,” he said. 

Turning these plans into reality will require massive investment. Speaking at the Expo presentation in June, Minister of Investment Khalid al-Falih revealed that $1tn of investment is planned for the Saudi capital. He said Saudi Vision 2030 targets national-level investments of over $3.3tn by the end of the decade, with at least 30 per cent allocated to the city of Riyadh. 

Construction boom

Riyadh is already experiencing an uptick in construction activity, according to data from regional projects tracker MEED Projects. Since bottoming out in 2017 during the austerity-driven years following the 2014 collapse in oil prices, the annual total of contract awards has been steadily climbing.

In 2022, there were $12.2bn in contract awards, the highest on record since 2013, when there were $32bn of awards. The total in 2013 was boosted by the $23bn of contract awards signed in one day for the Riyadh metro. Without those awards, 2022 would be Riyadh’s best year for project activity.

There were $12.2bn of awards in 2022, the highest since 2013

More awards are expected. There are nearly $9bn of contracts at the bid evaluation stage, which, if awarded this year, will push the annual total to over $20bn. Looking further ahead, there are another $9bn of contracts at the bidding stage and $6bn at prequalification. There are $110bn in design and $60bn under study. 

The future pipeline includes some of the most ambitious projects to be launched in Saudi Arabia over the past year.

In February, New Murabba Development Company was launched to develop the world’s largest modern downtown on 19 square kilometres of land at the intersection of King Salman and King Khalid roads to the northwest of the city. The project includes the cube-shaped Mukaab building, which will be 400 metres high, 400 metres wide and 400 metres long.

Contractors win New Murabba early works deals

In November last year, King Salman International airport was launched. If completed on time in 2030, it will become the world’s largest airport in terms of passenger capacity, accommodating up to 120 million passengers by 2030 and 185 million by 2050. It will cover an area of about 57 square kilometres, allowing for six parallel runways.

There are also projects that have not yet been announced. The Public Investment Fund is understood to be close to appointing an architect for a 2-kilometre-tall tower in the north of the city. Once the project is completed, it will be more than double the height of the world’s tallest building: Dubai’s 828-metre-tall Burj Khalifa.

Another major building programme could emerge if Riyadh succeeds in its bid to host football’s Fifa World Cup in 2030 with Egypt and Greece. 

These projects will join others that have moved into construction over the past few years, such as Diriyah Gate, King Salman Park, Sports Boulevard, Roshn’s Sedra and Warefa developments, Saudi Entertainment Ventures’ Exit 10 and Exit 15 projects and Qiddiya entertainment city. 

As the project workload builds, the race to deliver has started. Competition for resources has risen, putting upward pressure on prices. In its latest global construction costs report, UK consultant Turner & Townsend said the Riyadh market is already overheating and will warm further in the future. 

With so much activity pinned on Vision 2030 and possibly Expo 2030 and the 2030 World Cup, there are questions about what comes next. Unlike Doha after the 2022 World Cup, and to a lesser extent Dubai Expo, there are more major events coming to Riyadh, including the 2034 Asian Games, which it secured in December 2020.

Main image credit: Riyadh Expo 2030

https://image.digitalinsightresearch.in/uploads/NewsArticle/11030775/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Consultant wins Jeddah metro design

    22 May 2026

     

    French engineering firm Egis has been appointed to undertake the preliminary design consultancy for the Jeddah Metro Blue Line project.

    The project client, Jeddah Development Authority, issued the tender in early January, when MEED exclusively reported that Saudi Arabia had restarted plans to build the Jeddah Metro.

    Engineering consulting firms submitted bids in April, as MEED reported.

    The Blue Line will run from King Abdulaziz International airport and connect to the Haramain high-speed railway station.

    The line will be 35 kilometres (km) long and will include 15 stations.

    Project history

    Plans for the Jeddah Metro were first publicly floated in the early 2010s and were formally packaged into a wider Jeddah public transport programme around 2013-14.

    In 2014, French engineering firm Systra was appointed to complete preliminary engineering for the Jeddah Metro, as MEED reported at the time.

    In the same year, US-based engineering firm Aecom was awarded a SR276m ($74m) contract to provide pre-programme management consultancy services.

    Under its 18-month contract, Aecom was expected to provide staff to support preliminary planning and design work for various phases of the metro project.

    This was followed by the appointment of UK-based architectural firm Foster + Partners in 2015 to design the metro stations.

    The project then stalled as government spending priorities were reset and major capital programmes were reviewed following the fall in oil prices in 2015, with the metro’s scope, cost and delivery model coming under reassessment.

    Early concept designs envisaged a multi-line network integrated with buses and, later, other city-wide mobility upgrades.

    Route details

    According to Jeddah Transport Company’s website, the scheme comprises 81 stations and 197 trains serving more than 161km. The network will have four lines:

    • Orange Line: a 44.8km line running along Al-Madinah Road and Old Makkah Road, with 29 stops including one at Obhur Bridge
    • Blue Line: a 35km line running from King Abdulaziz International airport to the Haramain high-speed railway station, with 15 stations
    • Green Line: a 17km line running through the city centre, from the downtown area to the Haramain railway station, with nine stops
    • Red Line: A 59.7km line running from King Abdullah Stadium north to Old Makkah Street through King Abdulaziz Road and King Abdullah Road, with 25 stops

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16949416/main.jpg
    Yasir Iqbal
  • Egypt signs gas deal with QatarEnergy and Exxon Mobil

    22 May 2026

    Egypt’s Ministry of Petroleum & Mineral Resources has signed a preliminary gas agreement with state-owned QatarEnergy and US-based Exxon Mobil.

    The memorandum of understanding (MoU) focuses on cooperation in the development of natural gas discoveries in Cyprus.

    The plan involves transporting gas from offshore discoveries in Cypriot waters to Egypt via pipelines.

    In a statement, Egypt’s Ministry of Petroleum & Mineral Resources said that the deal would strengthen the North African country’s status as a regional hub for natural gas trading.

    The agreement was witnessed by Egypt’s Prime Minister Mustafa Madbouli.

    It was signed by Muhammad Al-Bajouri, from the legal affairs department of the Ministry of Petroleum & Minerals, and Kanan Nariman, vice-president for the development of liquefied natural gas (LNG) at Exxon Mobil.

    It was also signed by Ali Immunae, director of international exploration and production at QatarEnergy.

    Commenting on the MoU signing, Saad Sherida Al-Kaabi, the minister of state for energy affairs, and president and chief executive of QatarEnergy, said: “This MoU represents an important step in advancing regional energy cooperation across the Eastern Mediterranean through unlocking the long-term commercial potential of natural gas resources across that region.”

    Egypt’s Ministry of Petroleum & Mineral Resources said the agreement paved the way for QatarEnergy and Exxon to take advantage of existing Egyptian infrastructure in the gas sector, especially the country’s existing LNG export terminals.

    Under the terms of the agreement, a study will be conducted to analyse the feasibility of linking the gas discoveries in Cyprus to Egypt’s gas facilities.

    The signatories will also establish a commercial framework aimed at achieving “the maximum possible benefit from natural gas resources in both Egypt and Cyprus”.

    Egypt’s Minister of Oil and Gas Karim Badawi said the ministry has been working with ExxonMobil to explore cooperation on the development of gas discoveries in Cyprus.

    He said the partnership with Egypt would help QatarEnergy and Exxon reduce the cost of developing the discoveries while allowing Egypt to achieve an economic return.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16944918/main.jpg
    Wil Crisp
  • Kuwait’s Heisco working on active projects worth $3.5bn

    22 May 2026

     

    Kuwait’s Heavy Engineering Industries & Shipbuilding Company (Heisco) is in a strong position to weather challenges in the country’s project market, with active projects worth $3.5bn, according to documents seen by MEED.

    The company also has active maintenance and service contracts that are worth $843m.

    Heisco’s projects span the oil, gas, power, water, construction, transport and industrial sectors.

    The company’s biggest active project contract is the $576m project to upgrade Kuwait’s Doha West power station.

    This contract was awarded to Heisco by Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEW) in July 2024.

    The company’s second-biggest active project is focused on the construction of crude oil pipelines and associated works in North Kuwait.

    This $565m contract was awarded to Heisco by Kuwait’s state-owned upstream operator Kuwait Oil Company (KOC) in February this year.

    Other major project contracts include a $442m MEW contract for the rehabilitation of the Az-Zour South power and water distillation station and a $223m KOC contract for the construction of flowlines and associated works in the West Kuwait Area.

    Heisco’s biggest active maintenance contract is worth $295m and is focused on providing mechanical maintenance services at Kuwait’s Mina Abdullah Refinery.

    This contract was awarded by the state-owned downstream operator Kuwait National Petroleum Company (KNPC) in July 2023 and it officially started in September that year.

    The contract is currently due to conclude in November 2028.

    Heisco’s second-biggest active maintenance contract is worth $95m and was awarded by Wafra Joint Operations (WJO) for work in the Divided Zone, which is shared by Kuwait and Saudi Arabia.

    WJO’s onshore operations cover an area of about 5,000 square kilometres in the Divided Zone.

    Saudi Arabian Chevron and Kuwait Gulf Oil Company are equal shareholders in WJO.

    Six major fields have been discovered in the WJO area to date: Wafra, South Fuwaris, South Umm-Gudair, Humma, Arq and North Wafra.

    Heisco’s Wafra maintenance contract was awarded in October last year and officially started in November the same year.

    The contract is expected to conclude in May 2031 and its scope is focused on the maintenance of tanks and vessels as well as the provision of welding services.

    Market headwinds

    Kuwait’s oil and gas sector has been severely impacted by the blockade of the Strait of Hormuz, through which all of its crude exports are normally shipped.

    The country recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.

    While the closure of the Strait of Hormuz is expected to have a significant impact on Kuwait’s project sector for some time, Heisco’s strong project pipeline is likely to help it weather the challenging economic environment.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16792105/main.png
    Wil Crisp
  • Eni makes oil and gas discovery in Egypt

    22 May 2026

    A joint venture of Italy’s Eni and state-owned Egyptian General Petroleum Corporation (EGPC) has made a major oil and gas discovery in Egypt’s Western Desert region.

    The partnership, known as Agiba Petroleum Company, made the discovery with an exploratory well drilled in the Bustan South block.

    Initial estimates indicate the presence of approximately 330 billion cubic feet of gas and 10 million barrels of condensate and crude oil.

    Together, this is a total of 70 million barrels of oil equivalent (boe), making the discovery Agiba Petroleum Company’s biggest in 15 years.

    The new discovery is located only 10 kilometres from existing facilities and infrastructure, which should enable rapid development and connection to production.

    The well revealed several sandstone and limestone reservoirs, according to a statement from Egypt’s Ministry of Petroleum & Mineral Resources.

    The ministry said: “This new discovery reflects the success of the Ministry of Petroleum & Mineral Resources’ efforts and the incentives it offered to partners to intensify exploration activities in areas adjacent to existing fields.

    “This facilitates new discoveries near existing infrastructure and production facilities without the need for new infrastructure development.

    “This contributes to reducing the cost of producing a barrel, accelerating the integration of discoveries into the production map, and encouraging partners to implement the latest data collection and analysis technologies to increase the chances of successful exploration.”

    Egypt is seeing increased interest in its oil and gas resources due to disruptions to shipping through the Strait of Hormuz, which have significantly reduced oil and gas exports from the GCC and Iraq.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16944815/main.jpg
    Wil Crisp
  • Wasl Group launches Cedarwood Estates South villas

    21 May 2026

    Dubai-based real estate developer Wasl Group has announced the launch of Cedarwood Estates South, the newest addition to its expanding freehold portfolio in Dubai.

    The project is located within The Next Chapter, Wasl’s development in the Jumeirah Golf Estates area.

    Cedarwood Estates South features 74 villas in four-, five- and six-bedroom layouts.

    The launch follows Wasl Group’s award of a contract to Beijing-headquartered China State Construction Engineering Corporation to develop the overall infrastructure for The Next Chapter.

    The masterplan spans 4.68 million square metres across six districts: Central Park, The Village, Town Centre & Grand Lake, Golf Course North, Golf Course South and Equestrian Village.

    The development will offer 780 villas, 62 mansions, 97 branded residences, 752 estate homes and 10,654 apartments.

    It will also include a five-star Mandarin Oriental resort, a tennis stadium, an 18-hole golf course and academy, an equestrian centre, a school, retail centres and other associated facilities.

    Wasl Group is one of Dubai’s largest real estate development and asset management entities, established in 2008 by the Dubai Real Estate Corporation.

    The company was set up to consolidate and manage a significant portfolio of government-owned real estate assets.

    Headquartered in Dubai, Wasl operates across residential, commercial, hospitality and mixed-use segments, and is known for masterplanned communities and urban regeneration projects.

    Over the years, Wasl has delivered several mid- to large-scale developments and partnered with international hospitality brands through its Wasl Hospitality arm, helping to expand Dubai’s hotel inventory and support the city’s wider tourism and economic growth agenda.

    According to data from regional projects tracker MEED Projects, Wasl Group has a portfolio of over 128 projects, valued at about $18bn.

    Wasl’s major developments include Wasl1, Wasl Gate, Wasl Village and Wasl 51.

    Its asset portfolio includes notable landmarks such as the Mandarin Oriental Hotel, One & Only The Palm, One & Only Royal Mirage, Nikki Beach, Grand Hyatt Dubai, Le Meridien Mina Seyahi Beach Resort & Marina, the Westin Dubai Mina Seyahi Beach Resort & Marina, Dubai Creek Golf & Yacht Club and Emirates Golf Club.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16936615/main.jpeg
    Yasir Iqbal