Five exciting mega-projects set to boost economies in the UAE, Saudi Arabia and beyond
For many years, the UAE and Saudi Arabia have been focusing on ways to diversify their wealth away from gas and oil, creating new sources of revenue to boost The Gulf economies.
Since 2020, just under 30 real estate mega-projects have been launched in the GCC region, representing approximately $USD1 trillion in investments. Such ambitious projects aim to create a thriving and sustainable economy through innovation and technology, while reducing the region’s dependence on fossil fuels as a prime source of income.
However, a mega-project doesn’t necessarily have to mean large-scale investment in construction and real estate. If the opportunities are there, any ambitious, high-cost initiative that has the potential to increase GDP can be defined as mega.
So, with that in mind, here’s our pick of the five most exciting mega-initiatives taking place in the UAE and Saudi Arabia today.
1.NEOM – Saudi Arabia
NEOM is the flagship of Saudi Arabia’s ambitious Vision 2030. At 33 times the size of New York, this extraordinary $500 billion high-tech city is situated at the ‘crossroads of the world’ in northwest Saudi Arabia and extends more than 450 km along the Red Sea coast.
The ‘living laboratory’ merges advanced technology with innovation to create a prosperous and sustainable living model powered by 100% renewable energy. So much more than a smart city, NEOM is a cognitive revolution in clean, intelligent urban living, combining high-tech innovation and business diversity with an exceptional lifestyle and the utmost respect for nature.
At the heart of NEOM’s vision to put ‘people first’ before infrastructure and transportation is ‘The Line’, an unprecedented development that will have no cars, no roads, and no carbon emissions. Running on 100% renewable energy and preserving 95% of the land for nature, the Line will cover just 34 square kilometres, accommodating 9 million people and creating 380,000 jobs.?
Planned for completion in 2025, the NEOM project offers exciting investment opportunities in 14 economic sectors, including design and construction, education, energy, and biotech, estimated to generate an annual income of $USD100 billion.
NEOM’s contribution to the Kingdom’s GDP is expected to reach $USD48 billion by 2030.
2.Emirates Crop One – UAE
Emirates Crop One is another sustainability-driven mega-project from the Middle East and will be the world’s largest vertical farm. The $USD40 billion project is a joint venture between Ag-Tech startup Crop One Holdings and Emirates Flight Catering.
Lack of arable land and water shortage means the UAE must import almost 90% of the food needed to feed its 9.8 million residents. Emirates Crop One should provide a viable and sustainable solution to home-grown food production in the UAE.
The 330,000-square-foot warehouse-like facility, located in Dubai, is set to produce more than 900,000 kilos of fresh produce annually. The AI-powered, closed-loop water recycling system used to irrigate the vertical farm consumes 95% less water than traditional field-grown fruits and vegetables. Initially, the food grown will be used for Emirates’ passenger meals and will be available in stores around the UAE under the Bustanica brand.
But the ambitious collaboration doesn’t intend to stop at the UAE. In line with the UAE’s National Food Security Strategy 2051 and Water Security Strategy 2036 goals, Crop One aims to expand on a global level, eventually transforming food production across the world.
3.Store of the Future – UAE
Since the COVID-19 lockdowns, e-commerce has soared, leaving many wondering if the death of the traditional shopping mall is imminent. Well, not in Dubai. Thanks to a collaboration between ‘Mall of the Emirates’ owner Majid Al Futtaim and US-based Global IT leader Cisco, a new type of bricks-and-mortar shopping experience has emerged.
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Welcome to the Store of the Future, where customers can delight in a personalised shopping journey augmented by cutting-edge technology, set to entice the younger generation of tech-savvy Dubai residents and visitors.
Virtual reality, AI, magic mirrors, and next-gen sensors work together to deliver a truly immersive and customised shopping experience, tailor-made for every customer. For example, you will be able to pick up a product and get all the information you need about it onscreen, or use ‘beauty mirrors’ to try out make-up and beauty products without physical contact.
Intelligent cloud-based technology also gives retailers valuable insights into customer demographics and behaviour, such as dwell time, footfall and even sentiment analysis.
There’s no denying COVID-19 has fundamentally changed how we live and work today. The Store of the Future has been designed with post-pandemic concerns in mind. The result is an amazing example of how technology can be used to unite the physical and digital worlds to deliver a safe, efficient and enthralling shopping experience.
4.Etihad Rail - UAE
Etihad Rail is the UAE’s newest national rail network, designed to connect the seven emirates of the UAE with its neighbouring GCC nations: Saudi Arabia, Qatar, Kuwait, Bahrain and Oman. Established in 2009, the rail project is due to be completed in 2024 and aims to enhance the economic and social development of the GCC region.
As the UAE’s largest land rail network, it will stretch 1,000 km over the Emirates, providing a sustainable, safe and ultra-modern transport network for around 36 million passengers and 60 million tonnes of freight annually by 2030.
Pandemic lockdowns and increasing environmental concerns have led to a growing move towards high-speed rail travel as a more sustainable alternative to flying – drastically reducing noise pollution and transport emissions. It’s estimated that Etihad Rail could contribute around $USD54 billion to the UAE economy in the next 50 years, with around $USD12 billion coming from tourism, business and investment opportunities arising from greater connectivity.
5.Mega-sporting initiatives – Saudi Arabia
In another bold move to diversify revenue, boost tourism and move away from oil and gas reliance, Saudi Arabia aims to make its mark on the lucrative international sporting scene. ?
When it comes to helping the local economy, the signing of soccer superstar Cristiano Ronaldo to Al Nassr FC can be considered a mega project. Earning an estimated $USD200 million a year, CR7 is officially the world’s highest-paid soccer player.
The signing of the 37-year-old Portuguese superstar is one of many strategic moves to present the Arab states as more open, global and diverse. The historic signing came just weeks after neighbours Qatar became the first Arab nation to host the FIFA World Cup in November 2022.
Thanks to other major sporting events, such as the Formula One Abu Dhabi Grand Prix and WWE’s first live event in Saudi Arabia in 2023, sports tourism in the Middle East is estimated to increase by 30%, bringing around $USD 600 billion in revenue. ?
Next generation mega-projects
As technologies advance and environmental concerns increase, the potential for innovative, large-scale profitable projects will also grow. In the not-so-distant future, we could be seeing mega-projects such as:?
The need for countries to diversify their economies, offering a more sustainable, connected, smarter way of life for residents and visitors will be the main drivers of innovation and investment in the future. It’s vital, therefore, that mega projects play a central part in protecting and improving the planet for future generations.