Diriyah, one of Saudi Arabia’s major development initiatives, is capturing global attention with its recent successful deals and ongoing negotiations for foreign investments. The ambitious project has already secured agreements amounting to nearly $1 billion with leading European companies, marking a significant milestone in its progress.
As part of the Public Investment Fund’s (PIF) expansive $63 billion effort, Diriyah is set to play a pivotal role in diversifying Saudi Arabia’s economy beyond its traditional oil dependence. Situated at a UNESCO World Heritage site near Riyadh, the project has received substantial backing from the PIF, with investments totaling approximately 20 billion riyals ($5.33 billion) for 2023 and 2024. An additional 12 billion riyals are anticipated for the following year.
Global Interest and Strategic Partnerships
Diriyah has recently finalized substantial deals with an Italian developer and a French company, with further discussions underway to attract international investors interested in acquiring equity in hotels and other real estate ventures. Jerry Inzerillo, the CEO of Diriyah, emphasized the widespread interest from various countries, including the United States, highlighting the project’s commitment to partnering with nations that can deliver quality results on time.
The driving force behind such transformative projects, including the innovative NEOM city, is the PIF’s impressive $925 billion sovereign wealth fund. This fund is a cornerstone of Crown Prince Mohammed bin Salman’s Vision 2030, aiming to revolutionize Saudi Arabia’s economic landscape by reducing reliance on oil and fostering foreign investment.
The Vision for a Diversified Future
Diriyah has already attracted foreign investors who have acquired stakes in several of its initiatives, with more expected to join. Inzerillo noted the growing confidence in the project’s feasibility and the tangible progress that has been made, dispelling any doubts about its viability. The shift from conceptual renderings to concrete developments has led to a surge in foreign investment interest.
While Saudi Arabia’s ambitious economic transformation plans, unveiled in 2016, have faced skepticism, the commitment to these giga-projects remains unwavering. The PIF is now focusing on investments with higher success potential, even as it adjusts priorities in light of upcoming global events such as the Expo 2030 world fair, which Riyadh will host. Inzerillo clarified that these adjustments represent a strategic realignment rather than a reduction in scope, ensuring that the pace and ambition of Saudi Arabia’s development projects continue unabated.
