Saudi Arabia's Diriyah Gate project looking for new investments
Saudi Arabia's ambitious Diriyah
Gate project, a landmark cultural and tourism development, is set to secure
substantial foreign investment to cover half of its $64 billion budget. The
Diriyah Gate Development Authority (DGDA), initially financed by Saudi Arabia’s
Public Investment Fund (PIF), is seeking to diversify funding sources, with CEO
Jerry Inzerillo confident in attracting international investors to support at
least 50% of the costs by 2030.
Speaking at the Future Investment
Initiative (FII) in Riyadh, Inzerillo highlighted promising talks with foreign
investors, including an Italian group committed to building two hotels and an
apartment complex, as well as a Colombian investor interested in funding all 37
hotels in Diriyah with a $2 billion commitment. He also noted strong interest
from investors in the UAE, Kuwait, and other Gulf Cooperation Council (GCC)
nations.
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To date, Diriyah Gate has allocated
$15 billion of its projected budget, with spending expected to continue as
planned. This investment drive aligns with a broader increase in foreign direct
investment (FDI) in Saudi Arabia. Minister of Investment Khalid A. Al-Falih
reported $26 billion in FDI in 2023, with international businesses establishing
a Saudi presence at unprecedented rates following the launch of Vision 2030.
Scheduled for completion by 2030,
Diriyah Gate aims to enhance Riyadh's position as a top global destination and
support the city’s bid to host the World Expo that year. A key component of the
project involves partnerships with luxury hotel brands—such as Ritz-Carlton,
Oberoi, Capella, and Baccarat—which have launched branded residences in
Diriyah. Thus far, over 110 Ritz-Carlton apartments and eight Oberoi-branded
villas have been sold, with full occupancy anticipated by 2026. Diriyah even
displayed 350 units at Harrods in London to capture international interest.
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to attract tourists all year round
In a climate of increased scrutiny
on government spending, Inzerillo assured stakeholders that Diriyah Gate
maintains a careful, strategically conscious approach to expenditures,
considering geopolitical shifts. He emphasized that while prudent, this
approach remains adaptable to global priorities.
Saudi Arabia’s drive to attract
investment extends beyond Diriyah. In April, BlackRock announced a $5 billion
investment, establishing a Riyadh-based team, while Neom CEO Nadhmi Al-Nasr
held an event with over 24 international banks to explore partnership
opportunities for Neom, the Kingdom’s largest megaproject. Although recent
reports suggest some rescheduling within Neom, Inzerillo pointed out that the
Kingdom is realigning resources to prepare for major events, including the 2029
Winter Games in Trojena, which highlights Saudi Arabia's strategic reallocation
of investments in response to evolving national priorities.
Source: https://ceoworld.biz/
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