Over the past eight years, Saudi Arabia has launched real estate and infrastructure projects valued at USD 1.3 trillion as part of an ambitious plan to diversify its economy beyond oil, and enhance its appeal as a destination for living, working, and tourism.

According to Knight Frank’s latest Saudi Giga Projects Report, the volume of these projects has increased by 4% in the past year. These include more than a million residential units and large-scale developments like Neom on the Red Sea coast. 

Since 2016, when authorities introduced a strategy to reduce the kingdom’s reliance on oil revenue and improve the quality of life for its citizens, approximately USD 164 billion in real estate contracts have been awarded.

Neom, the futuristic city being developed on the Red Sea, has attracted the largest portion of that spending, with USD 28.7 billion allocated. Major projects receiving substantial investment include the National Housing Company (USD 12 billion), Diriyah Gate development (USD 9 billion), and Riyadh's Qiddiya entertainment city (USD 7 billion).

Although many mega projects are still in progress, Saudi Arabia is accelerating efforts to address challenges related to supply chains, labour, and costs. Majority of developments are expected to be completed between 2028 and 2030, positioning the country to become the world's largest construction market by that time.

Riyadh remains a central hub, with USD 35 billion worth of contracts awarded so far. By the next decade, the Saudi capital is set to gain nearly 29,000 hotel rooms, 4.6 million square metres of offce space, and 340,000 homes, as it prepares to host global events like the 2030 World Expo and the 2034 FIFA World Cup.

Knight Frank also noted that more than USD 54 billion has been invested in Saudi Arabia’s western region, where 17 major giga projects are currently underway.

Much of this construction aims to support economic diversification, accommodate the growing population, and attract international investors and tourists. Saudi Arabia plans to generate USD 100 billion in foreign direct investment by 2030 and aims to welcome 150 million tourists annually by the same year. In 2023, the country recorded around 109 million visitors, mostly domestic.

To meet the anticipated influx of tourists, the kingdom is on track to add 362,000 new hotel rooms by the end of the decade, with an investment of USD 110 billion. Knight Frank stressed the importance of developing more mid-range accommodations, alongside the four- and five-star hotels, to appeal to a broader range of visitors, which will be essential for achieving the 2030 target of welcoming 150 million tourists.