Saudi Arabia’s $63.2 billion Diriyah project is poised to attract significant Indian investment, transforming the historical site into a major tourism and urban development hub. Key players like Tata and Oberoi are already planning expansions. With strong bilateral trade and a focus on hospitality, the project signals robust economic collaboration between India and Saudi Arabia.
Saudi Arabia’s ambitious $63.2 billion Diriyah project is actively attracting significant investment from Indian companies like the Tata and Oberoi groups. This massive real estate and tourism initiative aims to revitalize the historical birthplace of the modern Saudi kingdom, including the UNESCO World Heritage Site of At-Turaif. With the project backed by the Public Investment Fund, opportunities for Indian investment span various sectors, enhancing trade ties between India and Saudi Arabia.
Inzerillo, a representative for the project, emphasized India’s critical role as a trading partner, with bilateral trade reaching approximately $52.8 billion in 2022-23. He noted that Diriyah is keen to collaborate with existing Indian firms and prospective investors, citing over 3,000 Indian companies already active in sectors such as construction and IT. The economic collaboration aims to leverage Indian investment in hotels and urban development.
Exciting developments are underway, such as the Taj Hotel group planning to open its 250th property in Diriyah, featuring 202 rooms. Additionally, an Oberoi Hotel is in progress near a new equestrian and polo center, contributing to a total of over 40 luxury hotels planned for the area. The project offers tailored investment packages across diverse asset classes, including hospitality, residential, and educational sectors.
The tourism aspect is another focal point, with Diriyah positioned as a key attraction for Indian tourists, expected to play a significant role in Saudi Arabia’s goal of 50 million visits annually by 2030. With a reported 1.5 million Indian visitors last year, marking a 50% increase, the Indian market’s importance to Saudi tourism continues to grow.
Inzerillo highlighted the anticipated economic impact of the Diriyah project, projecting contributions of $18.6 billion to Saudi GDP and the creation of 178,000 jobs. Furthermore, he praised the existing workforce of over 200 Indian employees involved in engineering, design, and finance at the site, demonstrating the deepening economic ties between India and Saudi Arabia.
The City of Earth project is part of Saudi Arabia’s broader Vision 2030 initiative aimed at diversifying the economy beyond oil. By enhancing infrastructure and tourism, the Kingdom seeks to foster long-term business relationships with international partners, particularly from India. The project draws on historical significance and aims to create a vibrant urban center that showcases Saudi culture and heritage, attracting both tourists and investors.
In summary, the Diriyah project represents a pivotal opportunity for Indian companies looking to expand in Saudi Arabia. With its extensive investment potential and encouragement for tourism, the project is set to redefine economic partnerships between the two nations. The expected growth in tourism and the creation of thousands of jobs underscore the project’s significance in boosting the Saudi economy.
Original Source: m.economictimes.com
