A glimpse into Al Qiddiyah

May 2017

KSA’s first cultural, sports and entertainment city is a major opportunity for the private sector, foreign, local investors and lenders to invest in infrastructure and services covering a wide array of sectors.

One of the objectives announced in Vision 2030 is to promote culture and entertainment considered necessary to the quality of life of Saudi citizens and residents. In line with the foregoing objective, the Saudi government intends to enhance the role of government funds, while also attracting local and international investors, creating partnerships with international entertainment corporations and providing land suitable for cultural and entertainment projects. These projects are expected to contribute to the Saudi economy and create jobs. Vision 2030 aims also at having three Saudi cities recognised in the top-ranked 100 cities in the world. A national program (“Daem”) aiming at enhancing the quality of cultural activities and entertainment by creating a national network of clubs, encouraging the exchange of knowledge and international experiences and promoting awareness of a wide range of hobbies and leisure activities has been planned for. One of the vision’s objectives is to have by 2020 more than 450 registered and professionally organised amateur clubs providing a variety of cultural activities and entertainment events. To that end, the General Authority for Entertainment was established in 2016 with a mandate to regulate and develop the entertainment sector in Saudi Arabia by setting out plans and criteria to organise venues, facilities, and entertainment events and support them. The Saudi government also plans to increase foreign direct investment and private sector’s contribution to the economy. It also aims at fostering long term investments and increasing the Public Investments Fund’s (PIF) assets.

In April 2017, HRH Prince Mohammad Bin Salman Al Saud, Deputy Crown Prince and Chairman of the Public Investments Fund (Saudi sovereign fund) announced the launch of a project to build the largest Cultural, Sports and Entertainment city in the world in the south west part of Riyadh, in Qiddiyah, with a 334sq.km surface. The city will focus on entertainment, car racing, sports, housing, leisure and hospitality. It will be the first of its kind in the world and will include a sports facilities aiming at preparing the Saudi youth to regional and global sports competitions, car racing, as well as entertainment facilities and events, hotels, restaurants, malls and residential units. Its groundbreaking ceremony is expected to take place in the beginning of 2018 and the completion of the project’s first phase is expected in 2022. The PIF will be the main investor alongside major Saudi and international investors.

Qiddiyah is a strong expression of the Saudi government’s commitment to its announced plans aiming at diversifying the country’s economy away from oil dependency. It also demonstrates the government’s determination to break down the vision’s objectives into specific projects and initiatives aiming at fulfilling its various components. The foregoing is supported by close project management structures and capabilities organised at different levels of the government (Council of Ministers and Ministries) with clear Key Performance Indicators set out for each of the vision’s components, projects and initiatives.

Qiddiyah is a response to major needs of Saudi citizens and residents. It will for example provide to citizens and residents of Riyadh, and other Saudi cities, entertainment facilities which are currently lacking and for which Saudi families usually travel abroad. The foregoing would enhance the quality of life and channel back to the country considerable family vacation budgets which will be spent in the country rather than abroad. The city should also attract foreign sports and car racing fans and experts who would have the opportunity to compete locally and regionally in a unique environment offering specialized facilities. It will create jobs for young Saudi graduates and professionals and provide a unique opportunity for major global and regional entertainment, tourism, leisure and hospitality corporations to partner with local Saudi companies, recruit young Saudi talents and transfer knowledge to the local Saudi partners, executives and employees. This is also expected to foster the creation and development of social, cultural and sports amateurs and hobbies clubs which will contribute to the well being of Saudi citizens and residents.

On the investment side, the project is a major opportunity for the private sector, foreign, local investors and lenders to invest in infrastructure and services covering a wide array of sectors. The key role of the PIF as major investor should provide sufficient comfort to international, regional and local sponsors and lenders to contribute to the project. International, regional and local operators will also have an opportunity to participate in a unique project across various sectors covering entertainment, tourism, hospitality, leisure, retail, housing and others.

Saudi Arabia provides considerable investment and business opportunities across a wide array of industries and sectors. The diversification of its economy requires mid-long term investments and business commitment. The private sector, whether foreign or local, is required to play the role of a mid-long term partner. Qiddiyah provides to them a unique opportunity to participate in one of several other similar projects planned across the country. The success of this first project would open further opportunities in Saudi Arabia but also on the regional and global levels.

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