Diriyah Company awarded $27bn in construction contracts since early 2024
Despite broader government spending reductions, Diriyah remains one of Saudi Arabia’s most
advanced giga-projects. Development of this significant district in north-west
Riyadh has accelerated over the past year.
“Our vision is to build a vibrant, walkable city
where people can live, work, learn, and celebrate culture in one extraordinary
destination,” says Jerry
Inzerillo, Group CEO of Diriyah Company.
The Diriyah masterplan outlines a major new urban district expected to accommodate more than 100,000 residents, with homes, offices, cultural institutions, and a wide range of amenities. According to Knight Frank’s latest Saudi Arabia Giga Projects report, Diriyah Company has awarded $27bn in construction contracts since early 2024.
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Key awards include a $1.5bn contract for the
20,000-seat multi-purpose Diriyah Arena and a $1.4bn contract for the Kingdom’s
first opera house, the Royal
Diriyah Opera House. In the first half of this year alone, more than $5bn
in tenders were issued, among them a $600m contract to develop Diriyah Square,
the project’s flagship luxury retail district. The contract covers 73 buildings
and 400 retail units designed in the traditional Najdi architectural style.
Once complete, Diriyah is projected to
contribute $18.6bn to Saudi Arabia’s GDP and create nearly 180,000 jobs. Across
the Diriyah and Wadi Safar masterplans, the development will include 40 luxury
hotels and more than 300 branded residences.
Work is underway on the education-focused Northern District, and several major hotel brands—such as Raffles Diriyah, Armani Diriyah, and Fauchon L’Hotel Diriyah—broke ground at the end of 2024. The Qurain Cultural District was announced late last year, and construction began in May on the Asaan Misk Heritage Museum, designed by Zaha Hadid Architects.
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Several assets are already operational,
including the mixed-use Zallal development in Bujairi District, Diriyah Art
Futures (run by the Ministry of Culture), and the 134-room Bab Samhan hotel,
which opened in January as Diriyah’s first hotel.
All development is designed to complement At
Turaif, the UNESCO World Heritage Site that served as the capital of the first
Saudi state, and the Bujairi Terrace dining district. Both opened in 2022 as
part of the Diriyah Gate project—a historic, cultural, and lifestyle hub
featuring museums, galleries, retail, dining, hotels, and public spaces.
Key
figures:
·
$27bn — contracts awarded in the past year
·
3.6 million — visitors to At Turaif and Bujairi Terrace
to date
·
$18.6bn — projected economic contribution
However, the overall completion timeline for
Diriyah has shifted from 2027 to 2030, reflecting the complexity of
infrastructure works, the challenge of securing foreign investment, and broader
macroeconomic pressures.
When unveiled in 2022, Diriyah Square was
originally scheduled to open in 2024. Its new completion date has not been
announced, though construction of its 10,500-space underground car park was 55%
complete as of July 2025. Structural engineering for the above-ground
components—including retail, hotels, branded residences, office spaces, and the
grand mosque—is now progressing.
Diriyah’s phased delivery strategy, including the early openings of At Turaif and Bujairi Terrace, has generated early revenue and tangible momentum—an approach that stands in contrast to the front-loaded strategy of some other giga-projects. According to Nicholas Fearnley, head of global construction at Oxford Economics, this model is proving highly advantageous in the current environment, reducing risk and enhancing investor confidence.
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Square to be the centre of attraction in Diriyah
Diriyah’s heritage significance and its deep ties to Saudi history also strengthen its appeal among international visitors. By mid-2025, At Turaif and Bujairi Terrace had recorded more than 3.6 million visits, according to Diriyah Company.
Source:
Arabian Gulf Business Insight
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