Vision 2023-related projects exceed 1.3 trillion dollars

Saudi Arabia has been trying for several years to reduce the country's dependence on oil-related revenues. With this goal in mind, Saudi Crown Prince Mohammed bin Salman launched the Vision 2030 initiative in April 2016. Since then, this innovative project has already seen 87% of its 1,064 initiatives completed or in progress, according to data from the Vision 2030 annual report.    

NEOM was one of the latest projects presented by the Kingdom. The jewel in the crown of this 28.7 billion dollar initiative is The Line, a future smart city 200 metres wide, 170 kilometres long and capable of accommodating more than 9 million people. 

In addition to NEOM, other projects that have received major investments so far include the National Housing Company, 12 billion dollars, Diriyah Gate, 9 billion dollars, or the ‘Qiddiya’ entertainment city in Riyadh, 7 billion dollars, according to Ashraq Business.   

In total, Vision 2023-related projects exceed 1.3 trillion dollars. Saudi Arabia increased the volume of initiatives by four per cent over last year, including more than one million housing units and at least 17 mega-projects. 

While many of these initiatives are still in their early stages, the Kingdom is working to overcome challenges related to supply chains, labour and costs to ensure that targets are achieved. 

In this regard, most of these projects are expected to be completed between 2028 and 2030, boosting Saudi Arabia's efforts to become the world's largest construction market. 

Moreover, Riyadh remains a major development hub, winning contracts worth 35 billion dollars. By the beginning of the next decade, the Saudi capital is expected to be home to 29,000 hotel rooms, 4.6 million square metres of office space and 340,000 residential units. This will coincide with major events to be held in the city, such as Expo 2030 and the 2034 World Cup.  

Also, according to Ashraq Business, more than 54 billion dollars has been allocated to the development of the Kingdom's west coast and surrounding areas, where at least 17 mega-projects are currently being implemented. 

All of these construction projects in the Kingdom aim to support economic diversification plans and provide housing for the population, while also boosting Saudi Arabia's attractiveness as an investment and tourism destination. 

Indeed, Saudi authorities are seeking to attract foreign direct investment worth 100 billion dollars by 2030, with the aim of receiving 150 million tourists annually in the same period. Last year it received around 109 million tourists, mostly local residents. 

Due to the growing number of tourists, Saudi Arabia is expected to add 362,000 new hotel rooms. There is also a need to build more affordable hotels, not just four- and five-star hotels, in order to attract a wider range of tourists. This plan will be a key element in achieving the Kingdom's target of attracting 150 million tourists by 2030.