Saudi Arabia: $24 billion awarded in construction contracts for Neom
Saudi Arabia has awarded $24 billion in
construction contracts for its flagship Neom
development and its sub-projects, according to a new report by property
consultancy Knight Frank,
marking a major leap forward in the Kingdom’s giga project pipeline.
The contracts include $470 million for Magna, $3.31
billion for Trojena
— home to what will be the world’s largest man-made lake — $8.9 billion for The Line,
and $9.3 billion for Oxagon,
the futuristic industrial hub on the Red Sea coast.
Western Saudi Arabia leads with $57 billion in awards
Saudi Arabia’s western seaboard, which hosts 17
of the nation’s giga projects including Neom, The
Red Sea, and Qiddiya Coast, has emerged as a major driver of
national development. Knight Frank reports that $57 billion in contracts have
already been awarded in this region, with another $187.2 billion still in the
pipeline.
Read More Saudi
TROJENA awards contract for 4.4 km NEOM time travel tunnel
Overall, the Kingdom’s annual contract awards
surged to $196 billion in 2025 — a 20% increase from 2024 — as Vision 2030
projects gain momentum across sectors from urban development and infrastructure
to sports and tourism. Knight Frank described the scale of investment as part
of an “unprecedented national economic transformation.”
Riyadh: The new economic powerhouse
The capital city Riyadh continues to lead
Saudi Arabia’s rapid urban growth with landmark projects such as the $63
billion Diriyah Gate, the 220-kilometre Sports Boulevard, and the expansive King
Salman Park.
Contracts in Riyadh currently total $14.5
billion, with an additional $45.6 billion expected to be awarded soon.
“Riyadh has firmly established itself as Saudi
Arabia’s new economic powerhouse, accounting for 63% of all new jobs created in
the Kingdom since 2019,” said Faisal Durrani, Head of MENA Research at Knight
Frank.
Since 2016, the capital has seen $237 billion
worth of projects announced, including $44 billion in construction contracts.
These investments are set to support Riyadh’s population growth from 7 million
in 2022 to 10.1 million by 2030, delivering 340,000 new homes, 4.8 million m²
of office space, 3 million m² of retail, and nearly 30,000 hotel rooms.
Read More Neom
set to initiate the tendering process for the construction work on The Line
Durrani described the city’s transformation as
“one of the world’s most ambitious urban
growth stories.”
Diversification and sports development
Beyond Riyadh and Neom, giga projects valued
at $132.3 billion are being developed across other regions — expanding housing,
creating new jobs, and improving infrastructure as Saudi Arabia diversifies
beyond its major cities.
The sports sector is also witnessing a surge,
with more than a dozen new stadiums planned or under construction, representing
$17.5 billion in total investment.
Together,
these initiatives underscore Saudi Arabia’s determination to reshape its
economic landscape — with Neom and Riyadh leading the charge in what Knight
Frank calls a “multi-trillion-dollar transformation under Vision 2030.”
Source: https://www.constructionkenya.com/
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