Gulf Construction Online - A capital entertainment hub

Saudi Arabia

Qiddiya was launched by King Salman bin Abdulaziz last year.

A capital entertainment hub

01 May 2019

A stark escarpment – part of the Jebel Tuwaiq mountain range that stretches over 1,000 km – has been chosen as the location for the Saudi capital’s proposed mega entertainment hub that will house more than 45 projects. Qiddiya will be built, 45 km from downtown Riyadh, under a multi-billion-dollar investment to offer over 300 recreational and educational facilities.

Spread over a clifftop that provides stunning views more than 200 m above the valley, Qiddiya – the ‘go-to’ Saudi destination of the future – will cover a massive area of 334 sq km, 103 sq km of which will be developed area.

The masterplan for the ambitious project is currently awaiting approval, a spokesperson for the project tells Gulf Construction.

“The development, which aims at transforming the capital into a centre for entertainment, sports, culture and the arts in the kingdom, is part of the Saudi Vision 2030 and draws from its rich heritage,” says the spokesman.

Qiddiya will spread over an area of 334 sq km on a clifftop.

An expert global advisory board, made up of 12 experts, was set up last year. It was tasked with advising Qiddiya’s board and executive team on best practices within a broad range of subject matters from their own experiences, and introducing potential operators and investors to the opportunities offered by the rapidly growing Saudi market.

“The advisers come from across themed entertainment, hospitality, grassroots and elite sports, adventure and motor activities, culture and the arts. They also bring specialist insight from the worlds of planning and design, finance, regulation, and commercial real estate development,” says the spokesman.

The first-of-its-kind project in Saudi Arabia was officially launched by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz at the end of April last year and the ground-breaking ceremony was conducted in the presence of Crown Prince HRH Mohammed bin Salman bin Abdulaziz, Deputy Prime Minister, Minister of Defence and Chairman of the Public Investment Fund (PIF) – which supports the project – as well as several princes and ministers and an audience of 300 dignitaries from around the world.

The project aims to attract 17 million visitors and employ more than 60,000 people over the next decade.

Qiddiya is set on a land area 2.5 times the size of Walt Disney World, or 100 times the size of Central Park in New York. The project’s vision is being brought to reality through a newly-formed company Qiddiya Investment Company (QIC), which is wholly owned and backed by the PIF.

Located a 45 minutes’ drive from the international airport in Riyadh, the development features a portfolio of offerings, expressed as five cornerstones, which guide the overall strategy for Qiddiya’s integrated development. These include theme parks and attractions; sports and wellness; motion and mobility; culture and arts; and nature and environment.

Qiddiya has carefully crafted to respect and enhance the site’s natural patterns. It will have 231 sq km of undeveloped natural area, while the 103 sq km of planned developed area will be divided into several segments, including the city centre covering 4 sq km, resort core over 3.5 sq km, nature and wildlife 18.4 sq km, motion and mobility 12.9 sq km, aerodrome and airfield 7 sq km, residential 21.6 sq km, logistics and support 6.2 sq km, and the green buffer covering 26.1 sq km. Around 32 per cent of the developed area will be allocated for golf and villas, while another 26 per cent for future development.

There will be seven areas of development totalling 10,300 hectares, and a transportation and utility network extending about 145 km will be built within the development.

Support facilities and connectivity will make Qiddiya a round-the-clock destination, including commercial and industrial, healthcare, community services, and public transportation.

Visitors to Qiddiya will have access to ground-breaking entertainment, sporting, and cultural attractions across innovatively designed facilities focusing on: theme parks and entertainment centres; sports amenities capable of hosting international competitions, and training academies; desert and asphalt tracks for motorsport enthusiasts; water and snow-based recreation; outdoor and adventure activities alongside nature and safari experiences; and an array of historical, cultural and educational activities and events. There will also be malls, restaurants, cafes, hotels and real estate projects, and services to cater for all segments of society.

The spokesman says Qiddiya has several priorities when it comes to developing strategic partnerships. It will appoint general contractors, suppliers and other vendors with the capacity to execute work, given the scale of Qiddiya, and ensure timely and financially feasible delivery of the project.

There will be strategic capital partners, in both debt and equity capital markets, who can participate in various early works projects, or in longer-term commercial projects.The developer will look for partners to help it privatise Qiddiya’s infrastructure, including power, water, district cooling, waste management and telecom infrastructure.

Private partners will be taken on board to run the Qiddiya Foundation facilities and programmes.

For the specialised hospital for sports medicine, highly reputable healthcare operating partners will be sought.

Qiddiya will offer participant and sponsorship opportunities that provide visibility and brand recognition in various industries such as automotive, financial services, technology, etc.

Qiddiya will be implemented in three stages of development. Currently under way, the first phase of the development is advancing towards a late 2022 grand opening. Phases Two and Three of the development, with a timeline from 2023-35, will include expansion of offerings and growing capacity.

“In 2019, we will open a welcome centre on site to host visitors eager for information about Qiddiya. We are developing partnerships with investors and operators to contribute to making Qiddiya come together,” the spokesman says.

Highlighting the feasibility of the project, he points out statistics show that 67 per cent of the Saudi population is under 35. This young population not only enjoys strong purchasing power, but they are the largest consumers of entertainment services.

Moreover, 69 per cent of Saudi population falls within the middle and high income bracket. They also annually spend $23 billion abroad, $10 billion of which is on entertainment and leisure, which means Saudis are the largest spenders in international tourism in the G20 group as a percentage of the GDP, he points out.

On the other hand, due to a lack of entertainment options at home, Saudi households spend the least on recreation and cultural activities domestically compared to regional households.

Qiddiya seeks to harness the current outbound international tourism spend by diversifying entertainment offerings in Saudi Arabia and acting as a catalyst for creating a richer life for Saudi citizens.

The project aims to propel Saudi household spending on entertainment domestically, while creating professional opportunities for the country’s youth, empowering females, contributing to healthier lifestyles, and encouraging Saudi talent to pursue international creative arts and athletics with the support of professional training and facilities.