Value of Saudi construction contracts rises 20% amid gigaproject surge

The capital Riyadh is at the heart of the Kingdom’s transformation and is leading Saudi Arabia’s gigaproject agenda, with landmark developments such as Diriyah Gate, King Salman Park and the 220km Sports Boulevard redefining the city’s urban fabric.

Diriyah Gate is said by the report to be among the most advanced gigaprojects (typically defined as projects worth over US$10 billion) in the Kingdom.

The US$63.5 billion schemet is transforming Diriyah into a world-class heritage destination and has total value of commissioned projects to date stands at US$14.5 billion, with a further US$45.6 billion in the pipeline. US$5.9 billion worth of contracts were awarded in 2024, with an additional US$3.7 billion awarded in the first eight months of 2025.

Faisal Durrani, Partner, head of research, MENA at Knight Frank, said, “Riyadh has firmly established itself as Saudi Arabia’s new economic powerhouse, accounting for 63% of all new jobs created in the Kingdom since 2019. Projects worth more than US$237 billion have been announced across real estate, infrastructure and transportation sectors since 2016, with US$44 billion already awarded in construction contracts.”  

Contract update for NEOM and more

Western Saudi Arabia is a centrepiece of Vision 2030, according to Knight Frank, with gigaprojects such as NEOM, The Red Sea and Qiddiya Coast among the most notable.

In total, 17 gigaprojects are underway along the western seaboard, with US$431.3 billion of investment announced since 2016, US$57 billion of contracts already awarded and US$187.2 billion in the pipeline.

To date, construction contracts worth US$24 billion have been awarded for NEOM and its sub-projects. These include US$470 million for Magna, US$3.31billion for Trojena – covering the construction of the world’s largest man-made lake, stretching 2.8 km – US$8.9 billion for The Line and US$9.3 billion for Oxagon.

While Riyadh and the Western corridor have attracted much of the spotlight, gigaprojects across other regions and at the national level represent US$132.3 billion in investment, driving economic diversification beyond the main hubs while improving quality of life through new housing, jobs and infrastructure.

Knight Frank is tracking US$31.4 billion in commissioned projects and another US$85.3 billion in the pipeline.