PROJECTS

Some of Saudi Arabia’s biggest projects are in the midst of rapid construction.

In October, NEOM, the USD 500-billion giga-project backed by Public Investment Fund (PIF), recently held a meeting with 150 representatives of local and international design and construction companies.

"NEOM is interested in the future of design and construction, and presents a positive image of how projects should be, especially since the size of the project requires strong partnerships between NEOM and the entire global industrial chain to translate the vision of NEOM on the ground,” NEOM CEO Nadhmi Al-Nasr told delegates.

Launched in 2017, the smart city development is spearheaded by the PIF, the kingdom’s sovereign wealth fund, but also features a variety of local and international investors to develop its several phases.

Located in the strategically important region of Saudi, NEOM straddles the Middle East and Africa, and is at the crossroads of Asia and Europe. It will be spread over an area of 26,500 square kilometres, slightly smaller than the land area of Belgium.

Its location on the Gulf of Aqaba will ensure that residents enjoy an uninterrupted coastline stretching over 468 kilometres, with a dramatic mountain backdrop rising to 2,500 metres to the east.

The site will also become the gateway to the King Salman Bridge, connecting Asia and Africa, further elevating the economic zone’s significance.

More importantly, the project aims to be sustainable and among the most digitally connected city in the world.

In October, NEOM Tech & Digital Holding Company, the first holding company to be established as a subsidiary of NEOM, and OneWeb, the global communications network powered from space, have signed a USD 200 million (SAR 750 million) joint venture deal to bring high-speed satellite connectivity to NEOM, Saudi Arabia, and the wider Middle East and East African countries.

The partnership will use connections to sub-sea and terrestrial communications cables, the construction of 5G and fibre networks, and now LEO satellites to secure access to tens of terabytes of scalable capacity for both urban and rural businesses and communities in NEOM by 2030.

 

RED SEA’S HOTEL ROOM BOOM

Meanwhile, The Red Sea Development Company (TRSDC), which is developing a tourist destination on the west coast of Saudi Arabia, has signed nine agreements with international hotel brands to operate resorts in the first phase of the project.

These include Edition Hotels and St Regis Hotels and Resorts, part of Marriott International; Fairmont Hotel and Resorts, Raffles Hotels and Resorts, and SLS Hotels and Residences, part of global hospitality group Accor; Grand Hyatt, part of Hyatt Hotels Corporation; Intercontinental Hotels and Resorts and Six Senses, part of IHG Hotels and Resorts; and Jumeirah Hotels and Resorts, a global luxury hospitality company.

The project’s first phase is expected to be completed by the end of 2023, and will include around 16 hotels featuring 3,000 rooms across five islands and two inland sites. The company is expected to announce partnerships with more international hotel brands in the coming months.

“Hospitality is the anchor of The Red Sea Project. We are determined to create a world-class luxury destination and the hotel brands we partner with play a crucial role in delivering on this ambition,” said Jay Rosen, chief financial officer at TRSDC. “Our partnerships are cemented through a collaborative framework that emphasise synchronicity between all brands. In doing so, we aim to create more value and maximise destination success, empowering stakeholders to benefit from shared best practices and economies of scale.”

 

MORE TOURISM PROJECTS

Amaala, a leisure development located along the kingdom’s northwestern coast, is also making progress. Earlier this year, the company behind the project signed a memorandum of understanding with the Saudi Contractors Authority (SCA), a government subsidiary of the Ministry of Municipal and Rural Affairs, to co-operate in a number of areas including allowing access to an online “Project Participation Platform,” which allows Amaala to share projects in its pipeline with members of the SCA and receive information of qualified and interested parties intending to bid.

The company has already awarded several construction contracts to a Saudi companies including Al-Tamimi Group, HASCO, and Saudi Real Estate (Binyah). Work is well underway on-site to enable infrastructure and groundwork required to develop the destination.

Qiddiya, a major tourist and leisure development emerging near Riyadh is also working on a number of projects including the Six Flags Qiddiya theme park, featuring the world’s tallest roller coaster when it is finally built.

The project will feature stadiums, festival grounds, and golf courses, and is poised to become a premier regional retail and cultural destination.

In October, the PIF also announced ‘The Rig’ project on the Arabian Gulf, inspired by offshore oil platforms. The tourism project will be the world’s first tourism destination on offshore platforms and spread over an area of more than 150,000 square meters. It will provide a multitude of hospitality offerings, adventures, and aquatic sporting experiences.

According to PIF, The Rig will have a number of touristic attractions, including three hotels, world-class restaurants, helipads, and a range of adventurous activities, including extreme sports.