Saudi contract awards grow by 20% to US$ 196bn as Saudi powers ahead with Vision 2030 plans

06 October 2025

Saudi Arabia Giga Projects 2025

6 mins read

Total value of annual contract awards has risen sharply to US$ 196bn
Diriyah Gate project making strong progress, with US$ 3.7bn worth of contracts awarded in the first eight months of 2025
US$ 17.5bn stadium reinforces status as a premier destination for upcoming global sporting events

Riyadh | 06 October, 2025: The swift progress of Saudi Arabia’s giga projects transitioning from vision to reality has been highlighted in Knight Frank’s fourth annual Saudi Arabia Giga Projects Report. These projects include new cities, major infrastructure developments, world-class sports venues, and luxury tourism destinations. The multi-trillion-dollar initiative outlined in the government’s Vision 2030 plan is driving unprecedented economic transformation across the nation.

Knight Frank’s giga projects tracker shows that the value of contract awards has risen sharply to US$ 196bn this year, up 20% from 2024, underscoring the pace at which projects are moving into execution phase.

Riyadh is at the heart of the Kingdom’s transformation and is leading Saudi Arabia’s giga project agenda, with landmark developments such as Diriyah Gate, King Salman Park and the 220km Sports Boulevard redefining the city’s urban fabric. Collectively, these projects aim to position Riyadh as a global city, blending culture, lifestyle and leisure with economic dynamism.

Diriyah is the 15th century birthplace of the First Saudi State, so it is perhaps fitting that Diriyah Gate is among the most advanced giga project developments in the Kingdom, showcasing Saudi Arabia's cultural legacy while driving tourism growth. The US$ 63bn project is transforming Diriyah into a world-class heritage destination that merges historic Najdi architecture with modern luxury. Centred around the At-Turaif UNESCO world heritage site, the total value of commissioned projects to date stands at US$ 14.5bn, with a further US$ 45.6bn in the pipeline. US$ 5.9bn worth of contracts were awarded in 2024, with an additional US$ 3.7bn awarded in the first eight months of 2025.

Faisal Durrani, Partner – Head of Research, MENA at Knight Frank, said: “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. Projects worth more than US$ 237bn have been announced across real estate, infrastructure and transportation sectors since 2016, with US$ 44bn already 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 sqm of offices, 3 million sqm of retail and close to 30,000 new hotel rooms. This is one of the world’s most ambitious urban growth stories and the scale of development not only elevates Riyadh’s liveability, but underlines its evolution into a world-class hub for business, tourism and global talent.”

REDEFINING WESTERN SAUDI ARABIA

Western Saudi Arabia is emerging as a centrepiece of Vision 2030, according to Knight Frank, with giga projects such as NEOM – a new city the size of Belgium – The Red Sea and Qiddiya Coast redefining the region through futuristic development, protected natural landscapes and luxury tourism destinations.

In total, 17 giga projects are underway along the western seaboard, with US$ 431.3bn of investment announced since 2016, US$ 57bn of contracts already awarded and US$ 187.2bn in the pipeline.

By 2030, these initiatives will contribute to the completion of more than 382,500 new homes, 3 million+ sqm of offices, 4.3 million+ sqm of retail space and 330,000+ hotel rooms, redefining the region as a vibrant and globally competitive destination.

To date, construction contracts worth US$ 24bn have been awarded for NEOM and its sub-projects. These include US$ 470 million for Magna, US$ 3.31bn for Trojena – covering the construction of the world’s largest man-made lake, stretching 2.8 km – US$ 8.9bn for The Line and US$ 9.3bn for Oxagon.

A NATIONAL VISION

While Riyadh and the Western corridor have attracted much of the spotlight, giga projects across other regions and at the national level represent US$ 132.3bn in investment, driving economic diversification beyond the main hubs while improving quality of life through new housing, jobs and infrastructure.

These areas are becoming increasingly crucial to Saudi Arabia’s future as their varied geographies create a strong foundation for new tourism and infrastructure development.

Knight Frank is tracking US$ 31.4bn in commissioned projects and another US$ 85.3bn in the pipeline. These planned investments extend across the Saudi heartland while including significant allocations in traditional hubs.

Harmen De Jong, Regional Partner – Head of Consulting, MENA, said: “Outside the major centres, projects are also enhancing liveability and integration, from developing Aseer and its Soudah Mountains to boost domestic tourism, to revitalising downtown districts through the Downtown Company. At the same time, the National Housing Company is raising living standards through the delivery of large-scale public housing initiatives, while ROSHN, backed by the Public Investment Fund, is building master planned communities that expand homeownership and introduce new urban lifestyles across the Kingdom.”

PREMIER GLOBAL SPORTS AND LEISURE DESTINATION

Knight Frank’s report also highlights how Saudi Arabia’s giga projects’ agenda extends well beyond residential and commercial developments, with sports infrastructure emerging as a central pillar of the government’s Vision 2030.

De Jong continued: “By 2032, more than a dozen stadiums are set for expansion, upgrades, or entirely new construction, with project values totalling around US$ 17.5bn. Collectively, these investments will reinforce the Kingdom’s capacity to host global tournaments such as the 2027 AFC Asian cup and the 2034 FIFA World Cup, while also serving as multi-purpose venues integrated within urban entertainment and cultural districts”.

Alongside this, Saudi Entertainment Ventures (SEVEN), a subsidiary of the Public Investment Fund, is spearheading a nationwide roll out of world-class entertainment destinations with a total investment exceeding US$ 4.7bn.

With more than 570,000 sqm of retail space in the pipeline, SEVEN aims to transform Saudi Arabia’s leisure landscape, supporting Vision 2030’s Quality of Life programme and positioning the Kingdom as a regional hub for entertainment and tourism. Spanning cities including Riyadh, Jeddah, Makkah, Madinah, Dammam and Abha, these projects will deliver state-of-the-art cinemas, theme parks, family entertainment centres and retail experiences in integrated lifestyle hubs.

Amar Hussain, Associate Partner – Research, MENA at Knight Frank, said: “Saudi’s strong pipeline of stadium and entertainment destination projects reflects not only the government’s ambition to host world-class sporting events and attract international visitors but also its strategy to diversify the economy and improve quality of life. New retail lifestyle destinations, for instance, are already attracting leading global brands, and by blending global concepts with local culture. These projects are enhancing community engagement and creating new opportunities for investment and job creation across the Kingdom.”