What are the "Al-Qiddiya," "Neom," and other projects in Saudi Arabia?

The "Al-Qiddiya" project

The "Al-Qiddiya" project (القدية) is a large-scale tech park covering 334 square kilometers in Riyadh, aimed at becoming a leading center for entertainment, sports, and arts in Saudi Arabia. The idea for this ambitious initiative was announced in April 2017, with the first phase of construction scheduled for 2023.

Project funding

The funding for this project is handled by"Qiddiya Investment Company"a closed joint-stock company, fully focused on the sovereign investment fund of Saudi Arabia. This closed institution is not open to free investments, which means that the allocated funds for implementing the concept remain within a circle of experienced specialists. At the initial assessment stage, the total project cost was approximately8 billion dollarsHowever, Philippe Gass, the head of the company, noted that this figure is only preliminary and may significantly increase later on.

Concept and infrastructure

Despite its name, this tech park will not be a traditional science city; instead, it will turn into a cozy place for relaxation. The following is planned for its layout:

• restaurants
• stores
• sports complexes
• luxury hotels

Attention will also be given to the racetracks where international-level events will be held regularly. Prince Khalid bin Sultan Al-Faisal emphasized:“We are passionate motorsport enthusiasts and believe that Saudi Arabia has all the necessary conditions to host significant events such as the Dakar Rally, Formula E races, and Formula 1.”.

The city of Neom

Another important project is"The City of Neom"The NEOM project, which represents the concept of a smart city of the future. NEOM aims to become a technological, investment, and tourist center for the country, serving as an important step in the strategy to diversify the economy in the post-oil era. The initiative was presented in 2017. The city of NEOM will be built from scratch in the northwest of Saudi Arabia, along the Red Sea coast, near the borders with Jordan and Egypt. The total area of this new megacity will be26 thousand square kilometers.

Investments in Neom

It will take about500 billion dollarsIt is expected that various structures will be built in this city.

• ports
• commercial zones
• research centers
• sports and tourist facilities

It is projected that the population of Neom will exceed one million people. This city is expected to set new standards in such important areas as:

• healthcare
• security
• ecology
• public order

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The "Al-Uidyan" Project

There is also a project.“Al-Uidyan”The "Wadiyan Project," which is a modern suburb of Riyadh. It is located in the Al-Malqa area in the northwest of the city and is just a 20-minute drive from the city center and 15 minutes from King Khalid International Airport. The total area of "Al-Widyan" is7 million square metersand it includes 12 plots, most of which will be allocated for green parks.

Infrastructure of Al-Widyan

The remaining area will be used for:

• construction of residential complexes
• creation of comfortable infrastructure
• educational institutions such as kindergartens, schools, and universities

This project has the potential to serve as a model for future urban developments and offers numerous opportunities for both residents and potential investors.

Introduction to the Al-Uidyan Project

In 2017, large-scale initiatives began for the implementation of a grand project called Al-Uidyan, which is scheduled to be completed in the next seven years. Investments in this project have now exceeded 10 billion dollars, which is several times more than the initial amount of 2.7 billion. Al-Uidyan represents an innovative initiative in the field of private construction, with minimal government influence.

Goals and objectives of the project

It is expected that this project will serve as an example for others and clearly demonstrate how technology and efficiency can transform the real estate market. Several key tasks have been set within Al-Widyan:

• Reduction of inefficient resource consumption— in particular, energy costs should be reduced by 40%, and water consumption by 35%;
• Simplification of bureaucratic proceduresfor local and foreign investors;
• Reduction of vehicle trafficto reduce carbon emissions;
• Implementation of modern technologiesthat will contribute to the regulation and development of the real estate market.

Campaign for the Development of the Red Sea

In addition, the infrastructure along the Red Sea is actively developing as part of a project called the "Red Sea Development Campaign." This large-scale project covers the western coast and stretches from Al-Wajh to Umluj. It includes an archipelago of 90 islands with a total area of 30,000 square kilometers, featuring not only mountain ranges and canyons but also dormant volcanoes and unique examples of Islamic culture.

Investor and cultural heritage

The main investor in this venture issovereign fund of Saudi Arabiawhich aims to draw attention to the cultural heritage of the region and create the first tourist complex in the Middle East, combining the splendor of nature and cultural treasures. Architects have been given a challenging task: to build eight thousand hotel rooms while preserving historical monuments and protecting the ecosystem. The scale of this project is underscored by a zero-emission strategy: it completely eliminates non-renewable energy sources, the use of single-use plastics, and waste disposal.

Development of the central part of Jeddah

We also cannot ignore the project concerning the central part of Jeddah, which involves the construction of key facilities such as:

• Opera house;
• Museum;
• Stadium;
• Aquarium.

In addition to this, the construction of 17,000 apartments and more than 2,500 hotel rooms is planned on an area of approximately 5.7 million square meters, oriented towards the Red Sea coast.

Investment expenses

Investing in this infrastructure is estimated to be around75 billion Saudi riyalsApproximately 20 billion dollars will be funded by the sovereign wealth fund of Saudi Arabia.

Project in Jeddah

In Jeddah, the implementation of a large-scale project is beginning, which involves the creation of a multifunctional infrastructure with a yacht marina, various restaurants, cafes, and retail spaces. The total length of the coastline will be 9.5 kilometers, of which 2.1 kilometers will be designated for beaches. Open and public spaces will occupy about 40% of the entire area.

Technologies and changes

In accordance with the intentions of Crown Prince Mohammed bin Salman, there are plans to implement modern technologies that will transform Jeddah into a smart city with the latest solutions. According to him, the revitalization of this region is part of a broader initiative aimed at developing all provinces of Saudi Arabia. It is expected that by 2030, the Jeddah Central project will attract additional investments of approximately47 billion rialswhat is equivalent to11 billion US dollars.

Investor interest

Megaprojects have always attracted the interest of investors, as they represent a great opportunity for investment and profit. Currently, there is a growing interest in real estate in the Neom area of Saudi Arabia. Research conducted by Knight Frank shows that in 2022, Neom became the most attractive place to live among wealthy residents of the kingdom, surpassing the popularity of the Red Sea Development project.

• Approximately1.96%Residents of Riyadh, Jeddah, and Dammam have expressed their desire to purchase housing in Neom.

Risks for investors

Nevertheless, investors should consider certain risks associated with real estate investments in Saudi Arabia. The kingdom's economy has recently opened up to foreign investments, and it is important to keep in mind the complex relationships between the Al Saud royal family and the West, which often criticizes the conservative aspects of society. Although foreigners formally have the right to purchase real estate in Saudi Arabia, the actual opportunity to invest in large projects is available to only a few.

Opening for foreign investments

Saudi Arabia, one of the last countries in the region, has taken a step towards opening its doors to international investments. In particular, on June 19, 2000, the king signed a decree allowing foreigners to purchase real estate in the kingdom. However, to successfully complete the transaction, it is necessary to obtain approval from government authorities, including permission from the Ministry of Internal Affairs for individuals and additional approval from the Ministry of Foreign Affairs for legal entities.

How to arrange the purchase of real estate

To successfully complete a real estate purchase in Saudi Arabia, you should follow certain steps:

• Start by accessing the Absher app, which is used to obtain permission for purchasing a plot of land or an apartment.
• Select the Absher Individuals tab if you are using this service for the first time to enter your information and create a new account.
• On the main page of the app, find the "My Services" section, and then go to the "General Services" subsection.

Such actions will make the process of obtaining permits more accessible and understandable for users who are encountering this procedure for the first time.

Conclusion

In concluding the discussion of large-scale projects such as "Al-Qiddiya," "Neom," "Al-Ula," the Red Sea development project, and the renovation of downtown Jeddah, I want to emphasize that Saudi Arabia is taking decisive steps towards modernizing and diversifying its economy. These projects are not only ambitious initiatives aimed at creating new centers for entertainment and tourism, but they also reflect a broader strategy for changing the country's development paradigm.

The development of projects like "Al-Qiddiya," with its focus on entertainment and motorsports, as well as the "Neom" project, which promises to become a hub for technology and sustainable development, creates a platform for a future economy that is less dependent on oil. This is certainly inspiring, as such efforts will help create new jobs, attract local and foreign investors, and support innovation.

Moreover, attention to environmental and sustainable development issues, as seen in the "Al-Uidyan" project, demonstrates an awareness of the importance of protecting the environment for future generations. The goal of reducing resource consumption and carbon footprint has become one of the key tasks in the context of global climate change.

The introduction of the "tourism race" with projects like the development of the Red Sea and the Jeddah Center demonstrates Saudi Arabia's desire not only to preserve its cultural heritage but also to showcase it on the international stage. This creates opportunities to attract tourists eager to discover the uniqueness of the region.

Main findings

• Economic diversity:The projects aim to create new entertainment centers and reduce dependence on oil.
• Sustainable development:Projects like "Al-Uidyan" highlight the importance of environmental protection.
• Cultural heritage:The development of the Red Sea and the center of Jeddah contributes to attracting tourists and preserving cultural values.

In conclusion, all these efforts indicate that Saudi Arabia is focused not just on economic growth, but also on creating a socially responsible and sustainable future. We are on the brink of a new era, and it will be interesting to see how these ambitious plans are implemented in practice and how they will change the face of the country in the coming decades. The true success of these projects depends on their execution and the ability to adapt to a rapidly changing world, but most importantly, this reflects a spirit of change and a desire to move forward.