Riyadh Invests USD 1.6 Billion in Road Development

Saudi Arabia is investing massively in improving its various infrastructure in cities such as Riyadh, Jeddah, and Dammam. From new airports, stadiums, luxury hotels, and parks, to futuristic cities, it is set on becoming a leading tourist hub.

With more attractions and facilities catering to tourists, Saudi Arabia is cementing its position as a preferred destination.

About the Riyadh road development program

Earlier, in September 2024, the Riyadh municipality signed five road development contracts amounting to USD 1.6 billion (SAR 6 billion). Moreover, the investment seeks to boost mobility, enhance quality of life, and promote efficiency and sustainability.

The contracts will cover asphalting and rehabilitating Riyadh’s road network, which spans 83 million square meters. Apart from mobility, the undertaking will also create safer roads for motorists and thoroughfares that meet international quality standards.

To execute the project, the Riyadh municipality divided the metropolis into five zones, namely the north, south, east, west, and central zones. With the zoning system, they hope to provide a more accurate evaluation of road conditions and identify improvement areas.

In September, Saudi Arabia announced it would build a sports complex worth USD 3.3 billion (12.3 billion). The project is possible through a partnership between Alpha Jossor Investments and UK-based Blockchain Sports Ecosystem.

The sports complex will have a football academy with cutting-edge training facilities, 1,500 villas, and more than 3,300 apartments. The value of these real estate developments is approximately USD 1.6 billion (SAR 426.4 million).

Saudi Arabia’s construction boom

Earlier, the Royal Commission for Riyadh City’s Board of Directors launched the development program of Riyadh’s main and ring roads. The project, which costs USD 3.5 billion (SAR 13 billion) will develop 500 kilometers of Riyadh’s road network.

Saudi Arabia’s construction contracts also increased to USD 32 billion (SAR 118.8 billion) for the first quarter of 2024. According to a US-Saudi Business Council (USSBC) report, it was the second-highest figure on record. Large investments in the kingdom’s petroleum and gas sector were the chief contributors to this surge.

Additionally, Saudi Arabia’s Vision 20230 giga-projects also contributed to this development. These include the futuristic city of NEOM, real estate developer ROSHN, and the Red Sea Project, to name a few. Other landmark projects include Riyadh’s Sports Boulevard, the King Salman Park,

Developing the construction sector

Speaking to Arab News, USSBC director of economic research Albara’a Al-Wazir spoke about the development of the kingdom’s construction sector.

“Saudi Arabia’s construction sector is experiencing exponential growth, marked by significant developments in social and physical infrastructure, enhanced quality of life, and substantial foreign direct investments,” he said.

These developments in Riyadh and other cities underscore Saudi Arabia’s broader Vision 2030 strategy of becoming a leading tourist destination. Moreover, it helps improve quality of life for residents and visitors, as well as diversify the economy away from oil.

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