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Gulf's Megaprojects Led By Saudi Arabia & Kuwait | |
| Sumita Pawar |
While Europe’s Trans-European Transport Network will cost $600 billion, China’s Belt and Road Initiative predicts an investment of over $1 trillion. Meanwhile, several projects in the Gulf Region exceed $100 billion, such as NEOM, set to house 450,000 residents by 2026, and The Line, a futuristic city in the UAE that is 170 km long, 200 m wide, and 500 m tall. Silk City in Kuwait, meanwhile, will be home to the world’s future tallest building, Burj Mubarak.
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Other Gulf megaprojects include the entertainment and tourism complex Dubailand, the King Abdullah Economic City, and the 2,000-kilometer rail project connecting GCC member countries.
Mega Projects
Kuwait’s project allocation during the 2022-2023 fiscal year shrank by nearly 18 percent compared with the previous fiscal year, according to official data.
Budgetary capital spending in the current fiscal year, which started on April 1, covered 129 projects with a combined value of nearly 1.3 billion Kuwaiti dinars ($4.29 billion), showed the figures by the Supreme Council for Planning and Development.
Saudi Arabia is undergoing a major economic transformation in line with its overarching Vision 2030 strategy, which also involves creating a better quality of life for residents, attracting more tourists and developing a more diverse and future-focused economy.
Sustainability Issues
Concerns have been raised about the environmental impact of these development projects, and the financial viability of large investments, but the report suggests that the Gulf region will continue to lead in this area.
Construction software company, 1Build, predicts that by the end of the decade, we will see the world’s first construction megaproject that costs over $1 trillion.
Clearly, the construction industry is witnessing an era of transformational expansion, with more companies and nations than ever before setting their sights on huge, game-changing projects.