RIYADH’S CONSTRUCTION BOOM SIGNALS OPPORTUNITIES

The unveiling of four major projects designed to boost the quality of life in Saudi’s capital, Riyadh, will be a tonic for the construction sector, creating a whole host of commercial opportunities for Saudi companies, including small and medium enterprises (SMEs).

These projects – King Salman Park, Sports Boulevard, Green Riyadh and Riyadh Art – are part of Saudi Vision 2030 initiative’s Quality of Life Programme, which aims to make the kingdom a top living destination for both Saudi citizens and expatriate residents.

The Quality of Life Programme is focused on upgrading the country’s healthcare, housing, and transportation sectors, as well as creating opportunities to pursue heritage, culture and arts, social engagement, sports, entertainment and recreational activities.

Riyadh, which is home to 5.86 million residents, is the most populous city in the country, and will see the four major projects get under way with an investment of USD 23 billion.

The King Salman Park, near the Eastern Ring Road, will be a green cluster spread across 9.3 million square metres (sqm), with various gardens spread over 400,000 sqm, a circular pathway for pedestrians and water features.

Some of the projects’ key features include a golf course, residential complexes, commercial and business units, hotels, anequestrian centre, sports fields, music and art complex, Islamic gardens and a science museum. A fountain and vertical gardens will also be key tourist attractions.

King Salman Park will be the biggest city park in the world, covering an area of more than 13 square kilometres.

“The park will contribute to improving the quality of life in the city in alignment with the kingdom’s vision 2030 and we will raise Riyadh’s ranking significantly in the top 100 cities of the world,” according to the site

In a further effort to upgrade the city’s green credentials, the government will also launch the Green Riyadh Project, which will feature the planting of 7.5 million trees across the city’s gardens and parks, mosques, schools, academic, healthcare and public facilities.

Behind the scenes, a vast new network for water recycling will also be created, which will be a boon for the construction sector.

The theme of encouraging healthy lifestyle will also be on full display at the Sports Boulevard, which will extend for 135 kilometres across Riyadh, connecting Hanifah Valley in the West with Al Salai Valley in the East.

“There are 10 zones with facilities for almost every sporting activity you can imagine. Construction starts soon and before you know it you’ll be able to enjoy many of the sports as these facilities will be easily [accessible] from almost everywhere in the city,” according to the project website.

The project will encompass eight zones, including Sand Dunes Part Zone, featuring a zoo; and an Art Zone, hosting museums, libraries, studios, art forums, and conference halls. A Sports Zone will feature 60 sports sites, including 60 football pitches, 18 covered courts for basketball and tennis, 12 courts for volleyball and a park for skiing.

Finally, the Riyadh Art project will spread across the city, featuring 1,000 installations artworks and landmarks across the city. The project, aimed at stimulating tourism and recreational traffic, will position Riyadh as a global cultural and art centre.

Construction on all the four wellbeing projects will commence in the second half of 2019.

Despite the moderation in construction activity, Saudi Arabia is home to planned and ongoing projects worth USD 824 billion, according to BNC Network, which tracks construction projects in the region.

The consultancy noted that there are 10,962 urban construction projects, 2,577 utilities projects, 2,390 transportation initiatives, 1,262 industrial developments and 453 oil and gas projects under way in the kingdom.

Similarly, the Royal Institution of Chartered Surveyors' (RICS) latest Middle East Construction and Infrastructure survey for the fourth quarter of 2018, revealed that Saudi Arabia was the only country in the region that saw an increase in construction activity.

“Survey participants in Saudi Arabia reported a robust increase in project workloads,” and an increase workload for all infrastructure segments, RICS said in its latest report.

Some of the key construction projects under way in the kingdom include the King Abdullah Security Compounds (Phase Five) and the Grand Mosque (Holy Haram Mosque expansion), valued at USD 8 billion and USD 21.3 billion, respectively and developed by the Ministry of Municipalities and Rural Affairs in Makkah.

The spate of new projects, apart from other developments such as NEOM City, the National Industrial Development and Logistics Programme will ensure that the Saudi construction sector has a healthy order book.