TOURISM

RIYADH TO TRANSFORM ITSELF INTO AN ECONOMIC POWERHOUSE

Saudi Arabia’s capital is about to get a massive makeover. 

Crown Prince Mohammed bin Salman announced that the kingdom’s most populous city will soon see a new development to expand its economy and tourism potential. 

The city accounts for half of the country’s non-oil economy and is an efficient job generator, with the cost to create employment in the metropolis 30% lower than in other Saudi cities.

“All of Riyadh’s features set the groundwork for job creation, economic growth, investment, and many more opportunities,’’ the Crown Prince said in a conversation with senator Matteo Renzi, former prime minister of Italy and member of the board of trustees of the FII Institute at the Fourth Edition of the Future Investment Initiative during a panel titled ‘The Future of Riyadh’ on 28 January.

‘’We are therefore aiming to make Riyadh one of the 10 largest city economies in the world – today it stands at number 40, the 40th largest city economy worldwide,’’ he said. ‘’We also aim to increase its residents from 7.5 million residents today to around 15 to 20 million residents in 2030.’’

Riyadh also benefits from being a low-cost business destination, with the cost of real estate and infrastructure around 29% less compared to other cities. In addition, the capital’s robust infrastructure also gives it an advantage as a destination.

Thanks to heavy investment in its transportation and digital network, the city is also gaining popularity as a business and tourist destination. The capital was ranked 53rd out of 109 cities in the IMDB’s Smart City Ranking in 2020. Riyadh jumped 18 places, one of the biggest leaps in the surveyed cities, compared to the year before.

The latest development will add to Riyadh’s appeal, which is already in the midst of an ambitious upgrade, as the city will see projects worth billions of dollars completed over the next few years.

These include a quartet of projects that look to improve the quality of life, through parks, sports stadia and facilities, art installations and green spaces, and create touristic living spaces in the city.

The King Salman Park, Green Riyadh, Riyadh Art and Sports Boulevard are expected to be built for USD 23 billion, and raise the living standards for citizens and create new landmarks for tourists.

Al-Qiddiya, a USD 2.7 billion project located 40 kilometres outside the city centre, will focus on sports and cultural events, racing circuits and theme parks. In November, Qiddiya Investment Company (QIC) reported that it had awarded SAR 2 billion to Saudi companies. That included a SAR 1.1 billion, three-year development, to build major projects and bridges.

In January, QIC said it was in partnership with Intamin Amusement Rides, to begin the design process for ‘Falcon’s Flight’, a signature attraction of Six Flags Qiddiya – a theme park set to be part of Qiddiya’s first phase.

Underpinning these developments is a vast transit network that will connect the sprawling city.

The Riyadh Metro, stretching across 176 kilometres (km) and 85 station will also reduce congestion, decrease pollution and boost connectivity for the burgeoning city. It will be the world’s longest driverless transport network, featuring 80 bus routes, covering 1,900 km and 3,000 bus stations.

“Like many cities, Riyadh is facing 21st century challenges: Its population of almost 7 million is expected to reach 8.3 million by 2030.

Today, 89% of daily trips in the city are done by private cars, making the need for a public transit network imperative,” according to the Riyadh Development Authority (RDA).

“The USD 27 billion investment in the public transit network will also increase productivity for both the city and its residents, while generating an excellent return on investment, with every USD 1 spent leading to USD 3.4 in public savings,” the RDA noted.

In addition, the USD 4 billion King Abdullah Financial District, featuring 59 towers for 50,000 residents will solidify Riyadh’s growing prowess as a regional financial powerhouse.

 

The Integrated Logistics Bonded Zone will also help attract international companies, encourage co-location and promote economic diversification.

The kingdom has ambitious tourism plans that spans other parts of the country,including NEOM City Project and the Red Sea Development on the west coast. But the focus on upgrading the capital city, which remains the economic hub of the country, will create new investment and tourism opportunities.

The investment is already paying dividends. Fahd bin Abdulmohsen Al-Rasheed, chief executive officer of the Royal Commission for Riyadh City, noted that 24 international companies recently signed agreements to establish their main regional offices in Riyadh.

The companies included PepsiCo Inc., Schlumberger Ltd, Deloitte Ltd, PricewaterhouseCoopers, Restaurants Brands International Inc. subsidiary Tim Hortons Inc., Bechtel Corp., Bosch Group and Boston Scientific Corp., among others.