• The Line, which made international headlines when it was announced in 2021 for its sheer ambitiousness, is 170km-long, 500-metre-tall dual tower project that is part of the futuristic Neom development. Photo: Neom
    The Line, which made international headlines when it was announced in 2021 for its sheer ambitiousness, is 170km-long, 500-metre-tall dual tower project that is part of the futuristic Neom development. Photo: Neom
  • Grand Hyatt The Red Sea is part of phase one of the mega-tourism project in Saudi Arabia. Photo: Red Sea Global
    Grand Hyatt The Red Sea is part of phase one of the mega-tourism project in Saudi Arabia. Photo: Red Sea Global
  • The Maraya, the world's largest mirrored building, is part of the AlUla project. AFP
    The Maraya, the world's largest mirrored building, is part of the AlUla project. AFP
  • An 18th-century palace built from mud and straw, where the kingdom's royal family is said to have plotted its conquest of the Arabian Peninsula, in the historic district of Diriyah, on the outskirts of Riyadh. AFP
    An 18th-century palace built from mud and straw, where the kingdom's royal family is said to have plotted its conquest of the Arabian Peninsula, in the historic district of Diriyah, on the outskirts of Riyadh. AFP
  • A rendering of the Prince Mohammed bin Salman Stadium, which will be built in Qiddiya and feature a retractable roof. Photo: Qiddiya
    A rendering of the Prince Mohammed bin Salman Stadium, which will be built in Qiddiya and feature a retractable roof. Photo: Qiddiya
  • Amaala will have more than 25 hotels, luxury residences and 200 fine-dining outlets when completed in 2027. Photo: SCTH
    Amaala will have more than 25 hotels, luxury residences and 200 fine-dining outlets when completed in 2027. Photo: SCTH
  • The King Salman Park covers an area of more than 16 square kilometres. Photo: Royal Commission for Riyadh
    The King Salman Park covers an area of more than 16 square kilometres. Photo: Royal Commission for Riyadh
  • The Jeddah Central Project will be home to an industrial museum. Photo: Jeddah Central Project
    The Jeddah Central Project will be home to an industrial museum. Photo: Jeddah Central Project
  • Marafy canal will include water taxis and offer a direct canal link to King Abdulaziz International Airport. Photo: Roshn
    Marafy canal will include water taxis and offer a direct canal link to King Abdulaziz International Airport. Photo: Roshn
  • Masar is an urban development project in Makkah covering 1.2 square kilometres. Photo: Masar
    Masar is an urban development project in Makkah covering 1.2 square kilometres. Photo: Masar
  • The Mohammed bin Salman Non-Profit City, better known as Misk, is a district in Riyadh that will act as an incubator for youth volunteer groups, as well as local and international non-profits. Photo: Misk
    The Mohammed bin Salman Non-Profit City, better known as Misk, is a district in Riyadh that will act as an incubator for youth volunteer groups, as well as local and international non-profits. Photo: Misk
  • New Murabba is Riyadh’s new city centre and will include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues. Photo: New Murabba Development Company
    New Murabba is Riyadh’s new city centre and will include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues. Photo: New Murabba Development Company
  • The masterplan for Expo 2030 Riyadh, which was unveiled last June. Photo: Expo 2030 Riyadh
    The masterplan for Expo 2030 Riyadh, which was unveiled last June. Photo: Expo 2030 Riyadh
  • A Riyadh metro station in the King Abdullah Financial District. AFP
    A Riyadh metro station in the King Abdullah Financial District. AFP

Saudi Arabia megaprojects 2024: From Neom to AlUla, 17 developments shaping its future


Neil Halligan
  • English
  • Arabic

Read More: Neom: A guide to the 11 projects in Saudi Arabia's mega-development

From giant cubes to luxury seaside resorts, the list of megaprojects in Saudi Arabia continues to grow.

The kingdom's transformation under the Saudi Vision 2030 plan, which aims to diversify its economy and reduce its reliance on hydrocarbons, is changing the landscape of its cities and surrounding areas.

The Public Investment Fund, Saudi Arabia's sovereign wealth fund which manages more than $620 billion in assets, is at the heart of the Vision 2030 initiative.

Several of PIF's entities are leading the transformation with megaprojects. Some of the projects are of such scale and ambition that they are defined as giga-projects, considered “once in a generation” undertakings

.

The value of property and infrastructure projects announced since Saudi Arabia rolled out its National Transformation Plan in 2016 has crossed $1.25 trillion, according to real estate agency Knight Frank.

Here, The National takes a look at 17 megaprojects expected to shape the future of the kingdom.

Neom

A futuristic multibillion-dollar megacity in the north-west of the kingdom, Neom forms a core part of Saudi Vision 2030.

The ambitious $500 billion giga-project, supported with funding from the PIF as well as local and international investors, aims to be powered entirely by clean energy.

The plan for Neom is a city where public transport and autonomous vehicles will be residents' main modes of travel.

Luxury ecotourism destination Zardun is the latest project to be announced in Neom. Photo: Neom
Luxury ecotourism destination Zardun is the latest project to be announced in Neom. Photo: Neom

First unveiled by Crown Prince Mohammed bin Salman in 2017, it seeks to challenge the traditional concept of cities and lifestyle.

Eleven projects have been announced within Neom, including The Line, a 170km-long, 500-metre tall city, and the most recent, a luxury eco-tourism destination, Zardun.

Red Sea Project

The Red Sea Project, also announced in 2017, is set to add another layer to the region's booming tourism industry.

The luxury regenerative tourism destination on the West coast, in the Tabuk province, is surrounded by the world's fourth-largest barrier reef system.

The project covers more than 28,000 square kilometres and includes an archipelago of more than 90 islands, dormant volcanoes, mountain canyons and ancient archaeological sites.

The plans include an eco-friendly resort carved into the mountains, futuristic overwater villas with views to rival the Maldives and new mangrove habitats.

By 2030, it is hoped it will house 50 hotels with 8,000 rooms, and up to 1,000 residential properties.

The Red Sea International Airport opened in September, with domestic flights now operating from Riyadh and Jeddah.

AlUla

The development of AlUla, a vast area estimated to be the size of Belgium, is planned to transform the region into one of the kingdom’s cultural capitals.

The heritage site, with its preserved tombs and sandstone outcrops, is already a popular tourist destination and is served by Prince Abdul Majeed bin Abdulaziz International Airport, around 25km to the south-east.

The Royal Commission for AlUla (RCU) was established in 2017 to preserve and develop the 2,000-year-old archaeological and historical site.

AlUla Development Company, which is wholly owned by the PIF, launched operations in January last year. It plans to deliver hospitality, residential, retail and infrastructure projects as part of the tourism push.

Mada’in Salih features 111 monumental tombs carved into stone. AFP
Mada’in Salih features 111 monumental tombs carved into stone. AFP

Planned developments include more than 7,500 hotel rooms, 5,000 residential units, a staff village comprising more than 1,000 units, as well as infrastructure support.

AlUla is known as the home of Mada’in Salih, Saudi Arabia’s first Unesco World Heritage site.

The master plan includes the development of five districts – AlUla Old Town, Dadan, Jabal Ikmah, Nabataean Horizon and Hegra Historical City.

The RCU forecasts that the population of the area will triple to 130,000 by 2035, generating about 38,000 jobs.

In 2023, the RCU signed an agreement with France's Centre Pompidou to develop a contemporary art museum in AlUla.

Diriyah

Diriyah is a $62.2bn billion development project that aims to showcase Saudi Arabia's history.

Founded around 1446, Diriyah served as the home of the Saudi royal family, and later, the capital of the First Saudi State. In 1824, the Second Saudi State was founded in Riyadh, just to the south of Diriyah.

Diriyah Gate Development Authority, which is responsible for maintaining the heritage and history of Diriyah, is restoring many sites in the area, including Al Turaif District, the mud-brick city which is a Unesco World Heritage Site. The authority plans to complete restoration of all sites by 2025.

Diriyah Company, the developer behind the transformation of the city into a tourism giga-project, announced plans to create King Salman Boulevard, a 1.9km avenue inspired by the Champs-Elysees in Paris, and the Royal Diriyah Opera House, a first for the kingdom.

The heritage giga-project has set a target of 27 million domestic and international visitors by 2030.

Qiddiya Project

Qiddiya is set to be one of the largest entertainment destinations in the world. SPA
Qiddiya is set to be one of the largest entertainment destinations in the world. SPA

Qiddiya is a gigantic entertainment, sports and cultural development just outside Riyadh.

It is set to be one of the largest entertainment destinations in the world, covering 334 square kilometres.

When completed, it will have a Six Flags theme park, a Jack Nicklaus championship golf course, a water park, a speed park and a sports stadium.

Contracts worth 10 billion Saudi riyals ($2.66 billion) have been awarded so far for Qiddiya City, which will include 60,000 buildings and is expected to eventually have more than 600,000 residents.

The project aims to attract about 48 million visits a year.

In December, Qiddiya Investment Company unveiled plans to open the world's first gaming and esports district as part of the project. The 500,000-square-metre centre is intended to host up to 25 esports teams at a time, as well as being the regional headquarters for more than 30 video game companies.

Sports Boulevard

Launched in 2019, the Sports Boulevard is planned to become the largest linear park in the world.

It will be more than 135km long, extending through Riyadh, connecting Wadi Hanifa in the West to Wadi Al-Sulai in the east through Prince Mohammed bin Salman Road.

It will have paths for pedestrians and cyclists, as well as horse trails and other sports facilities.

Amaala

Amaala, when completed in 2027, will have more than 25 hotels, luxury residences and 200 fine-dining outlets. Photo: SCTH
Amaala, when completed in 2027, will have more than 25 hotels, luxury residences and 200 fine-dining outlets. Photo: SCTH

Spanning more than 4,000 square kilometres on Saudi Arabia’s north-western coast, Amaala aims to be a year-round destination focusing on luxury tourism and wellness.

When completed in 2027, it will have more than 25 hotels, luxury homes, 200 fine-dining outlets and a host of wellness and recreational facilities, set across three communities.

Projects already announced include Six Senses Amaala, Rosewood Amaala, Clinique La Prairie Health Resort and the Triple Bay Yacht Club.

The first phase of development, Triple Bay, is set for completion by the middle of 2024 and will consist of six hotels and more than 1,000 rooms.

The Amaala development will be powered by 100 per cent renewable energy and aims to have a zero-carbon footprint.

The project is being overseen by Red Sea Global, the developer behind the Red Sea Project.

King Salman Park

Unveiled in 2019, King Salman Park will be one of the largest city parks in the world once completed.

Located at the former Riyadh Air Base site, the park is envisioned as Riyadh's “green lung”, with sports amenities, a golf course and an equestrian centre.

With an overall size of 13.4 square kilometres, King Salman Park will be five times larger than London’s Hyde Park.

Work has already started on the Visitors Pavilion and the Royal Arts Complex.

The King Salman Park Foundation, which is responsible for the construction and operation of the park, launched the King Salman Park Real Estate Development Fund in September to develop more than 290,000 square metres of the park in partnership with the private sector.

The fund, valued at 4 billion riyals, will develop around 1,500 apartments and town houses overlooking the park, along with offices and retail, hotels and educational facilities.

Jeddah Central

Jeddah Central is a $20 billion project to develop 5.7 million square metres in the heart of Jeddah.

There will be six districts: the Beach, Leisure and Lifestyle district, the Sports Park district, the Wellness district, the Cultural and Creativity district, the Marina district and the Central district.

It will include four new landmarks: the industrial museum, the opera house, the sports stadium and the oceanarium.

The development will be completed across three phases, with the first, accounting for 45 per cent of the project, set to be finished by the end of 2027.

The second phase, due for completion in 2030, will focus on creating an economic, cultural and entertainment hub.

Marafy

The waterway will include water taxis and offer a direct canal link to the King Abdulaziz International Airport. Roshn
The waterway will include water taxis and offer a direct canal link to the King Abdulaziz International Airport. Roshn

Roshn Group – Saudi Arabia's biggest developer, owned by the PIF – announced plans to develop Marafy, a mixed-use megaproject north of Jeddah that includes an 11km canal.

The 100m-wide navigable canal, the first in Saudi Arabia, will be flanked by promenades and residential and commercial districts.

The canal will create a waterfront comparable in size to Chicago, Hamburg and central London, Roshn Group said. Water taxis will provide a direct link to King Abdulaziz International Airport.

The horseshoe-shaped waterway will be connected to Obhur Creek, which flows to the Red Sea.

The megaproject will accommodate more than 130,000 residents once completed.

Masar

Masar is a 1.2-square kilometre urban development project in Makkah.

The 100 billion riyal project features a 3.6km-long and 300-metre-wide central pedestrian boulevard leading to the Al Haram Mosque.

Hotels, commercial and retail facilities, residential buildings and public amenities are being developed either side of the walkway.

The owner and developer of Masar is Umm Al Qura for Development & Construction, whose investors include the PIF, the Ministry of Finance and the Public Pension Agency.

Mohammed bin Salman Non-profit City

Launched in 2021, Mohammed bin Salman Non-profit City (Misk) in Riyadh is a district that will act as an incubator for youth volunteer groups, as well as local and international non-profit institutions.

It will also house venture capital companies and investors who will support and incubate talent and businesses.

Occupying approximately 3.4 square kilometres, the city will host the Misk Foundation and its subsidiaries, schools, academies, local and international institutions and entrepreneurs. It will also house nearly 18,000 people.

More than 44 per cent of the city’s total area will be dedicated to open green spaces.

Thakher Makkah

The Thakher Makkah project is a master plan of around 100 plots that will be used for hotels, residential, commercial, and service-related projects.

The total value of the project, which spans 320,000 square metres, is 26 billion riyals.

New Murabba

The New Murabba Development Company's project will include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues
The New Murabba Development Company's project will include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues

Billed as Riyadh's new downtown, the New Murabba is a planned mixed-use development in the north-west of the city, at the intersection of King Salman and King Khalid roads.

At the heart of the project will be a huge cube structure called the Mukaab, built in a modern Najdi architectural style. It is set to be the world’s first immersive destination, offering virtual technology experiences.

The New Murabba will have more than 25 million square metres of floor area, feature more than 104,000 homes, 9,000 hotel rooms and vast retail space.

It will also comprise office and leisure space, and 1.8 million square metres for community facilities.

Built around the concept of sustainability, featuring green areas and walking and cycling paths, the project will also include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues.

The project is expected to be completed by 2030, in time for the global expo.

Expo 2030 Riyadh site

Saudi Arabia unveiled the masterplan for Expo 2030 Riyadh in June last year. Photo: Expo 2030 Riyadh
Saudi Arabia unveiled the masterplan for Expo 2030 Riyadh in June last year. Photo: Expo 2030 Riyadh

Riyadh's Expo 2030 site will cover about seven square kilometres and feature a “loop of the world” avenue connecting more than 200 pavilions.

Located near the under-construction King Salman International Airport, the site is designed as a futuristic city with a modern green oasis.

While no specific details have been released about the site, Saudi Arabia announced in June that it has allocated $7.8 billion of investments for Expo 2030.

Riyadh Metro

Work continues on Riyadh Metro, a $22.5 billion project that will consist of six metro lines connecting 85 stations across a 176km network.

The project is expected to carry 1.2 million passengers daily in its roll-out phase, growing to 3.6 million at full capacity. It is expected to be completed this year.

Jeddah Metro

Jeddah's planned metro, consisting of three lines, is expected to be completed by 2025.

The first phase will link King Abdulaziz International Airport with the Prince Abdullah Al-Faisal Stadium, central Al-Ruwais and Al-Khozam.

The $60 billion network was scheduled to be completed by 2020 but has been delayed due to hold-ups in the completion of Jeddah’s bus network.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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Korean Film Festival 2019 line-up

Innocent Witness, June 26 at 7pm

On Your Wedding Day, June 27 at 7pm

The Great Battle, June 27 at 9pm

The Witch: Part 1. The Subversion, June 28 at 4pm

Romang, June 28 at 6pm

Mal Mo E: The Secret Mission, June 28 at 8pm

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Nearby Sky, June 29 at 4pm

A Resistance, June 29 at 6pm 

 

Updated: February 05, 2024, 12:14 PM