Neom and sub-projects awarded $24bn in construction contracts

 

Report says  $24bn awarded to Neom and sub-projects in construction contracts  

Saudi Arabia’s Neom development and its sub-projects have now secured $24 billion in construction contracts, according to a new report by property consultancy Knight Frank.

 

The breakdown includes:

• $470 million for Magna
• $3.31 billion for Trojena, which will feature the world’s largest man-made lake
• $8.9 billion for The Line, the linear smart city
• $9.3 billion for Oxagon, the futuristic industrial hub

 

These contracts form part of the wider transformation underway on Saudi Arabia’s western seaboard, where 17 “giga-projects” — including Neom, The Red Sea Project, and Qiddiya Coast — are progressing. Knight Frank reports that $57 billion in contracts have already been awarded across these developments, with an additional $187.2 billion in the pipeline.

 

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Construction sector booming

According to Knight Frank’s 2025 Saudi Arabia Giga Projects Report, total annual contract awards across the Kingdom have reached $196 billion, marking a 20% increase compared to 2024.

This surge aligns with Saudi Arabia’s Vision 2030 — a multi-trillion-dollar initiative to diversify the economy through the creation of new cities, modern infrastructure, luxury tourism destinations, and sports venues. The report calls the current pace of development an “unprecedented national economic transformation.”

 

Riyadh leading the charge

The capital, Riyadh, has emerged as a central hub for these mega-developments, hosting major projects such as:

 

• Diriyah Gate ($63 billion cultural development near the At-Turaif UNESCO World Heritage Site)
• King Salman Park
• 220km-long Sports Boulevard

 

To date, $14.5 billion in contracts have been awarded for Diriyah Gate alone, with another $45.6 billion in planned developments.

“Riyadh has firmly established itself as Saudi Arabia’s new economic powerhouse,” said Faisal Durrani, Head of MENA Research at Knight Frank. “Since 2019, the city has accounted for 63% of all new jobs created in the Kingdom.”

Since 2016, over $237 billion in projects have been announced in Riyadh across real estate, transport, and infrastructure, with $44 billion already awarded in contracts.

 

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These investments are expected to fuel a population increase from 7 million in 2022 to 10.1 million by 2030, supporting the development of:

 

• 340,000+ homes
• 4.8 million sq m of office space
• 3 million sq m of retail
• Nearly 30,000 new hotel rooms

 

Durrani describes this as “one of the world’s most ambitious urban growth stories.”

 

Expanding beyond the capital

Outside Riyadh, giga-projects valued at $132.3 billion are helping to diversify the national economy, improve infrastructure, and raise living standards across the Kingdom.

A notable area of investment is sports infrastructure. More than a dozen stadiums — representing a combined value of $17.5 billion — are planned for upgrades, expansion, or entirely new construction, further enhancing Saudi Arabia’s positioning as a regional sports and entertainment hub.

Source: Global Construction Review