Saudi Arabia is expected to spend more than $175 billion annually on industrial and mega projects between 2025 and 2028 as the Kingdom’s construction boom kicks into full gear, according to McKinsey & Co. With about $1.3 trillion of major projects in the works, such as the high-tech new city of NEOM and the Red Sea resorts off the Kingdom’s west coast, spending is expected to peak at as much as $180 billion in 2026 and 2027, the consultancy said in a report.
Saudi Arabia’s so-called giga projects are key to the Kingdom’s plans to transform itself into a top tourism destination and to shift its economy away from oil. To help achieve its ambitious targets, the Kingdom has awarded $250 billion worth of construction contracts since 2016. It’s also launching a new airline and airport as part of the 2030 plan led by Crown Prince Mohammed bin Salman.
The Kingdom also plans to build 660,000 homes — almost as much as neighboring Dubai’s entire housing supply — and add 289,000 hotel rooms, 6 million sq. meters of office and 5.3 million sq. meters of retail space, according to property consultant Knight Frank LLP.
Read the full story at Al Arabiya