Saudi developer wins $610m Qiddiya giga-project contract

Qiddiya

• 22-month contract for infrastructure
• Qiddiya to offer 300 leisure facilities over 367 sq km
• Aims to attract 17 million visitors a year

A SAR2.3 billion ($610 million) contract has been awarded to carry out key infrastructure work on Saudi Arabia’s Qiddiya giga-project, described as the country’s capital of entertainment.

The Saudi Real Estate Company said in a filing on the Saudi Stock Exchange on Monday that contracts have been agreed between the Qiddiya Investment Company and one of its subsidiaries.

Under the deal, a joint venture of Saudi Real Estate Infrastructure Company and Infraroad Contracting Co will commission, test and construct major infrastructure components for the multi-billion dollar Qiddiya project.

• Saudi Arabia to begin preparing Vision 2040
• Saudi Arabia adds Diriyah to PIF’s gigaproject portfolio
• Reimagined kingdom: Saudi Arabia’s tourism challenge

The 22-month contract will include primary and secondary roads, utilities networks and pedestrian bridges as well as a sewage treatment plant, irrigation water storage tanks and pump station and a solid waste transfer facility.

Shares of Saudi Real Estate Company initially jumped by more than 8 percent following the announcement.

Qiddiya is beginning to take shape 45 minutes’ drive south-west of Riyadh. First announced in 2017 as part of Vision 2030, the project covers 367 square kilometres and will include 300 leisure and entertainment facilities, a theme park, waterpark, golf courses, cinemas and a performing arts theatre.

Among its developments will be a cliff-top stadium with a capacity in excess of 40,000 that will become the home ground for both Al-Nassr and Al-Hilal football clubs. 

The development of Qiddiya is being driven by the Qiddiya Investment Company, a company fully owned by the Public Investment Fund. 

Currently in its design and construction phase, the fully integrated destination hopes to attract 17 million visitors a year, provide 25,000 jobs and contribute up to $4.5 billion to the country’s GDP by 2030. 

Saudi Real Estate Company said last month that it made a loss of SAR73 million in the first half of 2023, impacted by a drop in revenue by 14 percent and losses of SAR46 million in one of its projects.