meed-logo

line1 line2 line3
SIGN IN / REGISTER

Transforming Riyadh into a world-class city

25 July 2024

 

Register for MEED's 14-day trial access 

Riyadh is changing fast. As the Saudi capital, it is not only located in the country’s geographical centre, but also at the heart of Vision 2030 and the kingdom’s economic transformation, with a wide range of ambitious development projects.

The city wants to be one of the best in the world. “The strategic vision for Riyadh focuses on transforming it into a world-class city that is sustainable, innovative and culturally rich,” says Fahad AlSolaie, deputy mayor for digital transformation and smart cities at Riyadh Region Municipality. 

“The vision includes improving quality of life for residents, diversifying the economy away from oil dependence, and promoting green and smart urban development.”

Riyadh’s ambitions are driven by population growth and people visiting the city for major global events. “Riyadh is expected to experience significant population growth in the coming years, driven by its economic expansion and global events hosted by the kingdom, such as Expo 2030 and major sports events,” says AlSolaie.

“Additionally, the presence of large-scale unique projects like the King Abdullah Global Gardens, the development of Wadi Al-Sulay, King Salman Park and others contribute to the city’s attractiveness and livability, further boosting population growth. It is targeted for the population of Riyadh to reach 10 million residents, reflecting its rising prominence as a business and cultural hub. This growth will enhance Riyadh’s status as a dynamic urban centre, equipped to meet the evolving needs of its expanding population.”

The vision includes improving quality of life, diversifying the economy, and promoting green and smart urban development
Fahad AlSolaie, Riyadh Region Municipality

Infrastructure projects

Riyadh Region Municipality is playing a key role in the city’s development. “Riyadh municipality is responsible for a wide array of infrastructure projects that are crucial for the city’s development and sustainability. These include paving, asphalting and road stabilisation projects, which are essential for maintaining and improving the city’s road networks,” says AlSolaie.

“The municipality develops public parks, ensuring that the necessary infrastructure is in place to provide recreational spaces. Bridge and tunnel construction and ongoing enhancements are also a significant focus, aimed at improving traffic flow and connectivity across the city. Furthermore, Riyadh is committed to extensive lighting projects and the maintenance of these systems, with the city one of the largest globally in terms of the number of streetlight poles.” 

A key responsibility of the municipality is to maintain the city’s cleanliness and environmental health, adds AlSolaie. “This involves regular street cleaning, waste management and pollution control measures to keep the city clean and environmentally sustainable. These efforts are integral to quality of life, contributing to the vision of making Riyadh a more livable and accessible urban environment.”

Signature schemes

The municipality is also involved in the delivery of a series of signature projects in and around Riyadh. “The King Abdullah Global Gardens project aims to create a vast green space that combines natural landscapes with high-tech interactive exhibits, promoting environmental education and sustainability,” says AlSolaie. 

The Wadi Al-Sulay development, meanwhile, is focused on transforming Wadi Al-Sulay into a recreational and cultural destination, featuring amenities that encourage outdoor activities and community gatherings.

The municipality collaborates extensively with other government agencies and private sector partners to ensure cohesive and integrated development. This includes coordinating efforts on large-scale projects, urban planning and infrastructure improvements to support the city’s growth.

“The municipality ensures alignment with master developers and major projects through regulatory frameworks, strategic planning sessions and collaborative platforms that facilitate integration of infrastructure projects and urban development efforts across the city,” says AlSolaie.

With aspirations to become one of the world’s most advanced cities, digital transformation is helping Riyadh achieve its goals. “Digital transformation is vital for Riyadh Municipality for several compelling reasons. Firstly, it enhances service efficiency by adopting digital technologies, streamlining operations, reducing manual processes, minimising errors and speeding up response times. This not only improves service delivery, but also cuts operational costs, allowing for better resource allocation. 

“Secondly, it improves citizen engagement through digital platforms that enable interactive and responsive communication. Citizens can easily access information, request services and provide feedback, enhancing transparency and building trust.

“Thirdly, digital transformation fosters innovation in urban management using technologies such as the Internet of Things , artificial intelligence and big data analytics to optimise urban functionalities like smart waste monitor manholes and public safety. 

“Additionally, it supports economic diversification by modernising infrastructure and services, thus attracting new businesses, especially in the technology sector, aligning with Saudi Arabia’s Vision 2030,” says AlSolaie.

Online services

Riyadh Region Municipality is moving its services online as part of the digital transformation. “Riyadh municipality is progressively digitising its services by offering e-services platforms where residents can access various municipal services such as mobile applications, geoportal web application and service requests online, thus increasing accessibility and convenience,” says AlSolaie. 

The drive to digitise will enable Riyadh to become a smart city. “By implementing advanced technologies such as the Internet of Things, artificial intelligence and geographic information systems, Riyadh Municipality is optimising key city functions such as reducing and monitoring visual pollution, enhancing public safety and conducting environmental monitoring,” he says. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/12219710/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Neom requests revised Gayal wind proposals

    6 September 2024

     

    Neom’s energy, water and hydrogen subsidiary Enowa has requested that the final bidders submit updated proposals for a contract to build a 1,200MW wind farm catering to the gigaproject in Saudi Arabia.

    This development follows the introduction of an addendum to the tender after companies submitted their best and final offers (bafos) for the contract to build the 1,200MW Gayal wind farm project in June, a source close to the project tells MEED.

    MEED reported on 9 July that Neom is progressing towards awarding the engineering, procurement and construction (EPC) contract to the selected bidder following receipt of the bafos.

    Enowa received the initial bids for the contract on 4 March.

    It is understood that PowerChina and Egyptian contractor Orascom are among the firms invited to bid for the Gayal wind farm EPC contract.

    The wind farm project site is approximately 35 kilometres northwest of the former town of Gayal.

    The project will have an estimated plot area of 164 square kilometres. The project duration is 31 months from the start of construction.

    The scope of work for the EPC contractors bidding for the scheme includes the design, supply and installation of wind turbine generators and foundations, three 380kV substations and control systems, meteorological towers, site roads, hard stands, crane pads and associated infrastructure.

    Enowa received bids for another renewable energy project, the 800MW Shiqri solar farm, in March. The client is conducting commercial clarifications for the solar project, MEED reported in May.

    Neom aims to be powered 100% by renewable energy by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12465111/main0411.jpg
    Jennifer Aguinaldo
  • Wabag confirms $317m Saudi water deal

    6 September 2024

    India-headquartered VA Tech Wabag has confirmed winning a contract to build a 300 cubic-metres-a-day (cm/d) seawater reverse osmosis (SWRO) plant project in Yanbu, Saudi Arabia.

    The value of the contract for the Yanbu 5 SWRO plant is $317m, the Bombay Stock Exchange-listed company said in a statement on 6 September.

    The engineering, procurement, construction and commissioning contract covers the design, engineering, supply, construction and commissioning of the desalination plant.

    According to Wabag, the plant will operate using dual media filters followed by a two-pass reverse osmosis process and re-mineralisation to produce clean potable water, which will be further distributed by Saudi Water Authority (SWA). 

    The plant is located on the west coast of Saudi Arabia, south of the Red Sea-facing Yanbu Al-Bahr, and is scheduled to be completed within 30 months of the contract award.

    MEED reported in July that Wabag submitted a lower bid for the contract.

    Saudi Arabia's main producer of desalinated water, SWA – formerly Saline Water Conversion Company (SWCC) – received two bids in May for the contract to build the Yanbu 5 SWRO project.

    The other bidder is understood to comprise a local contractor team and an overseas-based partner.  

    The bid evaluation process is ongoing for a second project, the Shuaiba 6 SWRO plant, which has a capacity of 545,000 cm/d.

    Two other projects, the Jubail and Ras Al-Khair SWRO projects, are in the bidding stage. They will each have the capacity to treat 600,000 cm/d of seawater.

    The four contracts are being procured using an EPC model, in contrast to the SWRO facilities being procured on a public-private partnership basis by state offtaker Saudi Water Partnership Company.

    SWA is the world's largest producer of desalinated water, with a capacity of at least 6.6 million cm/d. Plants utilising older and more energy-intensive techniques such as multi-stage flash technology account for the majority of the current capacity.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12464222/main3634.gif
    Jennifer Aguinaldo
  • Chinese companies win 95% of all Iraqi energy projects

    6 September 2024

    Commentary
    Wil Crisp
    Oil & gas reporter

    Companies headquartered in China have won 95% of all major project contracts awarded in Iraq’s oil, gas, chemicals and power sectors so far this year, as they increase their dominance in the market.

    A total of $12.1bn in energy project contracts were won by Chinese companies during the first eight months of 2024, according to data gathered by regional project tracker MEED Projects.

    The only major award so far this year that was not won by a company or partnership that was 100% Chinese, was the contract to rehabilitate the Baiji 2 gas-fired power station, which is estimated to be worth $1.3bn by MEED Projects.

    This contract was awarded to a consortium of Beijing-headquartered China State Construction Engineering Corporation (CSCEC) and German technology conglomerate Siemens.

    Commenting on the figures, one industry source said: “China has been a dominant force in Iraq’s energy sector for a long time and this is only increasing as time passes.

    “The huge presence that China has in the country’s energy sector is a source of concern for Iraq’s leadership, which doesn’t want to cede control of so many important infrastructure projects to companies from any single country.”

    “The problem is, other countries are reluctant to take on the risks of doing business in Iraq and at the same offer the competitive prices that Chinese contractors can offer.”

    The biggest energy project contract won by a Chinese contractor so far this year is the agreement for the development of the Al-Faw Investment Refinery project.

    The client on the project, state-owned Southern Refineries Company, signed a contract with CSCEC in May this year.

    The refinery will have a capacity of 300,000 barrels a day and will produce oil derivatives for both domestic and international markets.

    The project will be carried out in two stages. The first phase will involve refining operations, while the second will involve constructing a petrochemicals complex with a capacity of 3 million tonnes a year.

    The wider project also includes the construction of a 2,000MW power plant and the establishment of the Al-Faw Academy for Refinery Technology, to train 5,000 Iraqi workers that will eventually work at the facility.

    Hualu, a subsidiary of China National Chemical Engineering Company (CNCEC), signed a preliminary principles agreement for the project in December 2021.

    At the time, Iraq’s Oil Ministry said that the project would have an investment value of $7bn-$8bn.

    MEED Projects has estimated that the contract value of the deal signed with CSCEC in May for the refinery project is about $4bn.

    Other energy project contracts won by Chinese companies during the first eight months of this year included the contract for the Artawi 1,000MW photovoltaic solar power plant in Basra.

    This contract, estimated to be worth $1bn, was awarded to China Energy Engineering International Group.

    Chengdu-based DongFang Electric Corporation was awarded the main contract for a project to convert the Baghdad South power plant into a combined-cycle gas turbine power plant.

    The project is estimated to be worth $85m and will increase the capacity of the power plant by 125MW-625MW.

    Also this year, a subsidiary of PetroChina, the listed arm of state-owned China National Petroleum Corporation, signed an agreement to develop Iraq’s Nahr Bin Umar onshore gas field.

    The subsidiary, PetroChina Halfaya, was awarded the build-own-operate-transfer contract, which is estimated to be worth about $400m.

    Iraq’s Oil Ministry said that the field will have an initial output capacity of 150 million cubic feet a day.

    The project is expected to be completed within 36 months and will include the construction of gas-gathering facilities, storage tanks and pipeline networks to supply gas to power stations.

    Strong performance

    Chinese contractors also performed well in Iraq’s energy sector in terms of the value of contract awards in 2023.

    Last year, Chinese contractors won $2.3bn in Iraqi energy sector contracts, almost half of the $4.8bn that was awarded.

    Looking at the data for 2023 and the first eight months of 2024 together, Chinese companies won $14.5bn in contracts, 82% of the $17.6bn in energy project contracts awarded over the period.

    The second closest competitors were companies from Germany, which won just over $1bn in contracts, 6% of all awards.

    Iraqi companies were third, winning $816m in contracts, according to the data compiled by MEED Projects.

    Contracts were also won by companies from Italy, the Netherlands and Turkiye.

    Iraq is currently in the midst of a push to try and increase the volume of work being carried out by US companies in the country’s energy sector.

    Earlier this month, Iraq announced that it was planning to offer about 10 gas exploration blocks to international companies in a new licensing round that will be launched during a visit to the US by Iraqi Oil Minister Hayan Abdel-Ghani.

    Abdel-Ghani said that he will be specifically targeting US companies in the upcoming round.

    Earlier this year, the US international oil and gas company ExxonMobil completed its exit from Iraq’s West Qurna-1 oil field, handing over operatorship to PetroChina.

    Exxon’s plan to exit the West Qurna-1 oil field was first announced in April 2021, when Iraq’s Oil Ministry said the US-based oil company was considering selling its 32.7% stake.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12460160/main3355.jpg
    Wil Crisp
  • Region plugs in to electric future

    5 September 2024

    Commentary
    Colin Foreman
    Editor

    Read the September 2024 issue of MEED Business Review

    Saudi Arabia is well known as one of the world’s largest oil exporters. What is less known is that the kingdom is also one of the world’s most significant consumers of oil. 

    According to the US-based Energy Information Agency (EIA), Saudi Arabia consumed 3.65 million barrels a day (b/d) in 2022, making it the fifth-largest consumer globally, with a 4% share of the global total. 

    Much of Saudi Arabia’s oil consumption comes from the power sector, although this is changing as Riyadh embarks on an ambitious renewable energy programme. Another major contributor is combustion engines in automobiles. 

    Anyone who has experienced Riyadh’s traffic congestion in recent years will attest to the fact that Saudi Arabia has a lot of cars. 

    In the coming years, the plan is for the cars on Saudi Arabia’s streets to be electric rather than gasoline-powered.  

    This aim is supported by key initiatives involving establishing electric vehicle (EV) assembly plants in the kingdom and plants that will produce key components, most notably batteries.  

    For Saudi Arabia’s efforts and similar endeavours across the region to be successful, other factors will also need to be considered. Shifting from gasoline to electric will require upgrading infrastructure with charging points installed at service stations and in residential areas. 

    Overhauling infrastructure in existing urban areas is complicated and costly, but the region’s governments have demonstrated a clear commitment to making EVs work. Initial success is within reach as the region plays catch up with other geographies that have shown higher EV ownership rates are achievable. 

    Looking further ahead, if the region can successfully shift to EVs, it will prove that even the most oil-dependent economies can embrace change and lead the charge towards a cleaner and greener future.

    Must-read sections in the September 2024 issue of MEED Business Review include:

    > AGENDA: 
    > GCC ponders electric future
    > Region on the cusp of EV production boom

    > CURRENT AFFAIRS:
    > Outlook uncertain for Iraq gas expansion project
    > Security concerns threaten outlook for Libyan oil sector

    INDUSTRY REPORT:
    Analysis of the outlook for the downstream sector
    > Global LNG demand set for steady growth
    > Region advances LNG projects with pace

    > SAUDI GIGAPROJECTS: Communication gaps hinder Saudi gigaprojects

    > INTERVIEW: Legacy building at Diriyah

    > SAUDI STADIUMS: Top 15 Saudi stadium projects

    > LEADERSHIP: Navigating the impact of digital currencies on forex markets

    > KUWAIT MARKET REPORT: 

    > COMMENT: Kuwait’s prospects take positive turn
    > GOVERNMENT: Kuwait navigates unchartered political territory
    > ECONOMY: Fiscal deficit pushes Kuwait towards reforms
    > BANKING: Kuwaiti banks hunt for growth 
    > OIL & GAS:     Kuwait oil project activity doubles
    > POWER & WATER: Kuwait utilities battle uncertainty
    > CONSTRUCTION: Kuwait construction sector turns corner

    > MEED COMMENTS: 
    > Saudi World Cup bid bucks global trend for sporting events
    > Finance deals reflect China’s role in delivering Vision 2030
    > Harris-Walz portents shift in US policy on Gaza
    > Aramco increases spending despite drop in profits

    > GULF PROJECTS INDEX: UAE leads slight dip in market

    > JULY 2024 CONTRACTS: Saudi Arabia boosts regional total again

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The beginning of the end

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/12460011/main.gif
    Colin Foreman
  • PIF and Hyundai award car plant construction deal

    5 September 2024

    Register for MEED's 14-day trial access 

    Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund (PIF), and South Korea's Hyundai Motor Company have awarded the contract to build a vehicle manufacturing plant in Saudi Arabia.

    According to media reports, the firms awarded an estimated $248m contract to Seoul-headquartered Hyundai Engineering & Contracting.

    Construction of the plant is expected to start in 2024, and vehicle production in 2026.

    The facility will have a production capacity of 50,000 vehicles a year, including both conventional vehicles and electric vehicles (EVs).

    MEED reported in November last year that Hyundai Motor Company had appointed Seoul-headquartered Heerim Architects as the design consultant for its vehicle manufacturing plant in Saudi Arabia.

    PIF and Hyundai Motor Company signed a joint venture agreement to set up a vehicle manufacturing plant in the country in October last year.

    The PIF will hold a 70% share in the joint venture, with Hyundai holding the remaining 30% stake. The total investment for the project is estimated to be about $500m.

    In December 2022, Saudi Arabia's Industry & Mineral Resources Ministry signed a memorandum of understanding with Hyundai Motor Company to establish a car production plant in the kingdom. 

    The PIF is keen to invest in the kingdom's automotive sector. Last year, it launched the National Automotive & Mobility Investment Company (Tasaru Mobility Investments) to develop the local supply chain capabilities for the automotive and mobility industry in Saudi Arabia.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12457629/main.gif
    Yasir Iqbal