Foundations for the Future: Saudi Arabia’s Infrastructure Leap
By the Basilinna Team
December 19, 2024
Your Talking Points
Saudi Arabia allocated $17.3 billion for municipal infrastructure in 2024, with a projected increase to $21.3 billion by 2025.
King Salman International Airport, Riyadh Metro, and Qiddiya are central to the nation’s infrastructure revolution.
Mobilizing over $53 billion by 2025, the Saudi National Infrastructure Fund (NIF) catalyzes private and public partnerships.
The Saudi Public Investment Fund’s acquisitions in Heathrow and planned investments in Newcastle Airport expand Saudi Arabia’s influence in aviation.
From Vision to Reality: Saudi Arabia’s Infrastructure Revolution
Saudi Arabia is accelerating its infrastructure transformation with an ambitious vision for the future. In 2024, the Kingdom allocated $17.3 billion to infrastructure development, with spending projected to rise to $21.3 billion by 2025. Central to this transformation are monumental projects that aim to redefine urban development, transportation, and sustainability.
At the forefront of these efforts is King Salman International Airport, a $33 billion project designed to handle 120 million passengers annually by 2030, reinforcing Saudi Arabia’s ambitions to become a global aviation hub. The Riyadh Metro, valued at $22.7 billion, initial phase launched in December 2024 and set for completion in 2026, will revolutionize urban mobility, easing congestion and fostering connectivity and economic growth in the capital. Other major projects, such as the King Abdullah Financial District, which is operational but not with full capacity, yet and King Salman Park, and Qiddiya, are poised to enhance economic opportunities and recreational offerings by 2027.
To streamline coordination and execution, the Riyadh Infrastructure Projects Center was established in 2023. This strategic body plays a pivotal role in ensuring the timely and efficient delivery of transformative projects across Riyadh. Complementing domestic efforts, the National Infrastructure Fund (NIF) has been instrumental in attracting private investments, with a target of mobilizing over $53 billion by 2025.
Saudi Arabia’s infrastructure ambitions extend beyond its borders. The Public Investment Fund (PIF) has invested $1.3 billion for a 15% stake in Heathrow Airport and is planning another $1.3 billion investment in Newcastle Airport. These strategic moves enhance the Kingdom’s global aviation footprint, fostering international partnerships and cultural exchange.
The Saudi Infrastructure Summit, hosted by H.H. Dr. Prince Faisal Bin Abdulaziz Bin Ayyaf, Mayor of Riyadh Province took place between September 24-26, 2024, further solidified the Kingdom’s position as a global leader in innovation and sustainable development. The event highlighted $53 billion worth of projects, including 42 initiatives under the National Transformation Program valued at $19.7 billion. These initiatives span renewable energy, urban development, and infrastructure and logistics, aligning with Vision 2030 goals to improve quality of life and create a resilient, diversified economy.
Saudi Arabia’s infrastructure revolution is not just about buildings and transport systems; it represents a holistic approach to growth. By integrating sustainability, innovation, and strategic investments, the Kingdom is positioning itself as a global leader in connectivity and development, paving the way for a prosperous future.
Digging Deeper
The National Infrastructure Fund (NIF) is central to Saudi Arabia’s infrastructure expansion, aiming to mobilize over $53 billion by 2025. It bridges public needs with private sector innovation, with a strong commitment to sustainability to ensure resilient infrastructure for future generations.
Transformative Projects
Saudi Arabia’s infrastructure transformation is driven by flagship projects designed to enhance mobility, sustainability, and urban development. Along with giga projects across the Kingdom such as NEOM, The Red Sea Global, THE RIG., Jeddah Historical District, the Kingdom has prioritized spending to focus primarily on the capital, given Riyadh Expo’s significance to the country, socially, economically and reputationally. Key major projects happening in Riyadh are:
King Salman International Airport: Valued at $33 billion and designed to handle 120 million passengers annually by 2030, aligning with the Kingdom’s ambitions to be a global aviation hub.
New Murabba: the estimated project cost is more than $50bn and it is scheduled for completion by 2030 with the aspiration to develop the world’s largest modern downtown.
Diriyah Gate: Projects worth $12.6bn are in execution at Diriyah Gate, while $9.5bn-worth of schemes are in design and tendering stages.
Riyadh Metro: The largest metro project in the Middle East, valued at $22.7 billion, initial phase launched in December 2024 and set for full completion in 2027.
Qiddiya: A cultural and entertainment hub valued at $20 billion, with its first phase launching in 2025.
King Salman Park: valued around $2.7bn to become one of the largest urban parks globally, targeting completion by 2027, designed to enhance urban livability and green spaces.
Sports Boulevard: A 135-kilometer recreational trail slated for completion in 2026, promoting sports and active lifestyles.
Event Readiness
Saudi Arabia’s infrastructure projects are not isolated endeavors; they are part of a cohesive strategy to connect the Kingdom with the world. In the capital Riyadh, initiatives like the Riyadh Metro and King Salman International Airport enhance mobility and accessibility, supporting the influx of millions expected for Riyadh Expo 2030 with investments amount for of $7.8 to prepare for this event.
The Kingdom’s preparations for the FIFA World Cup 2034 alone are estimated to inject an additional $26 Billion into sports facilities, infrastructure, and pre-tournament arrangements, as noted by Bassem Ibrahim, Director of Sports Sector Investments at the Saudi Ministry of Investment. These efforts underline the Kingdom’s commitment to leveraging global events to enhance its infrastructure and foster international partnerships.
Final Thoughts
With economic growth forecasted at 4.4%—the fastest in three years—and leadership commitment affirmed by H.E. Minister of Finance Mohammed Al Jadaan’s remarks on the 2025 budget deficit as “intentional for sustainable development,” Saudi Arabia is entering a decisive phase. The groundwork for key projects is set, and the focus has shifted to accelerated implementation. This momentum is driven by clear milestones such as Riyadh Expo 2030 and FIFA World Cup 2034, firmly aligning with the Kingdom’s overarching Vision 2030 goals.
For companies and investors, Saudi Arabia’s infrastructure revolution represents an unmatched opportunity. With a clear roadmap, robust economic growth, and unwavering leadership commitment, the Kingdom is creating fertile ground for multinational businesses to thrive. From large-scale urban developments to transformative global partnerships, Saudi Arabia is not just a market of growth but a strategic hub for innovation and global connectivity.
Published by Basilinna Institute. All rights reserved.
