Saudi Arabia Awards $24bn Contracts for Neom Projects

Construction contracts totalling $24 billion have been awarded for Saudi Arabia’s Neom project and its sub-projects, according to a recent report by property consultancy Knight Frank.

These contracts include $470 million for Magna, $3.31 billion for Trojena — which features the world’s largest man-made lake — $8.9 billion for The Line, and $9.3 billion for Oxagon.

Saudi Arabia’s western seaboard is currently home to 17 giga projects, including Neom, The Red Sea, and Qiddiya Coast. Knight Frank noted that contracts worth $57 billion have already been awarded in this region, with a further $187.2 billion still in the pipeline.

The country’s overall annual contract awards have surged to $196 billion, marking a 20% increase from 2024, the report highlights.

This growth is part of Saudi Arabia’s Vision 2030 plan — a multi-trillion-dollar initiative aiming to transform the kingdom through new cities, major infrastructure, sports venues, and luxury tourism destinations.

Knight Frank described this as an “unprecedented national economic transformation”.

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Riyadh is making waves with projects like the $63 billion Diriyah Gate, which is part of the At-Turaif UNESCO World Heritage site, King Salman Park, and the impressive 220-kilometre Sports Boulevard.

Contracts for projects in Riyadh total $14.5 billion so far, with another $45.6 billion pending.

“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. 

He said over $237 billion in projects have been announced since 2016, with $44 billion awarded in construction contracts.

“These investments will support projected growth in the city’s population from 7 million in 2022 to 10.1 million by 2030, with more than 340,000 homes, 4.8 million square metres of offices, 3 million square metres of retail, and close to 30,000 new hotel rooms,” Durrani said.

He described Riyadh’s growth as “one of the world’s most ambitious urban growth stories”.

Across other regions, giga projects valued at $132.3 billion are helping to diversify the economy beyond the major centres, while enhancing living standards through new housing, employment opportunities, and improved infrastructure, according to Knight Frank.

The sports sector is also expanding rapidly, with over a dozen stadiums planned for renovation, expansion, or new builds, totalling $17.5 billion in project value.

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