Saudi Arabia’s US$261bn budget shows the government’s optimism for economic diversification and their expansion plans for the Kingdom.
Saudi’s current market is undergoing massive transformation, with over $200 billion worth of construction underway or in the planning phase. According to the BNC Network, these are the ten highest value development (or redevelopment) projects in the Kingdom.
Al Faisaliya City
This development tops the BNC list, worth US$25 billion. Located on the western coast of Makkah, it will cover 2450 sq km and will provide 995,000 housing units for 6.5 million people. The development will include a governmental complex, an airport and a seaport.
Grand Mosque (Holy Haram Mosque Expansion)
The mosque’s expansion is expected to be completed in 2018, and is worth US$21.3 billion which will be completed in 3 phases. The expansion will include the addition of a seven storey building with 74 prayer halls, an ornate prayer hall of 250,000 sqm and a 5000 sqm central ceremonial area.
Dahiyat Al Fursan
This project consists of the construction of 100,000 houses and infrastructure work. The project is due to be complete by 2020 and valued at US$20 billion.
Al Ruwaid Redevelopment
This Jeddah-based project is a redevelopment to transform the area into an urban district. The project is expected to be completed by 2030.
King Abdullah Security Compounds (Phase 5)
Phase 5 of the King Abdullah Security Compounds is under development by the Ministry of Interior and is valued at US$8 billion and is expected to be completed by this year.
Al Shamiya and Mataf Expansion (Holy Haram Mosque Expansion)
The US$5 billion redevelopment will include a widening of the Mataf by 20 metres to increase its’ accommodation of pilgrims from 50,000 to 130,000 per hour.
Mall of Saudi
This project will begin in 2020, based in Riyadh. The mall will cover 8,660,000 sqm and will include indoor snow parks and 3,000,000 sqm of shops, restaurants, entertainment areas, offices, residential units, showroom spaces, luxury hotels and serviced apartment buildings.
New Jeddah Downtown (Phase 1)
The development, valued at US$2 billion, will have a mixed use purpose and will redesign the current waterfront, the Corniche of Jeddah. The development will also build 12,000 housing units.
The Avenues (Al Malqa)
The Avenues is a mall, expected to cover 1.7 million sq m and will be completed in 2019. The project will include two residential towers, two hotel towers, a medical tower and office units.
Riyadh Medical Village
The village is expected to be completed by 2018 and valued at US$1.5 billion. The project involves the constructions of 10 hospitals, 33 clinics, a hotel, a training centre, housing units and offices.
The Vision 2030 has pushed the government to increase the construction in the Kingdom to facilitate the social and economical shifts in the country, with the younger generation creating a demand for higher quality urban areas. The large increase in development provides opportunities for international contractors to enter the Kingdom and participate in the transformation.