(Nov 18): A Saudi state-backed developer building one of the world’s largest city parks started a US$1 billion investment fund to drive development and attract private investors.
King Salman Park Foundation said in a statement that it is partnering with domestic firms Ajdan Real Estate and Sedco Capital to establish the fund, which will back construction of homes, hotels and offices in a neighbourhood within the project. The foundation will provide the land, while private-sector partners will fund construction, according to the statement.
The US$25 billion park — built on an old air base in the capital Riyadh — is set to span an area five times the size of New York’s Central Park and feature residential areas, lakes, cultural centres and sports facilities.
There is no set opening date, but most of the project is expected to be completed by 2030, according to the foundation’s chief executive officer George Tanasijevich.
“As we get areas completed and suitable for inviting the public, then we’ll move forward,” Tanasijevich said in an interview on Monday. “But we need to be nimble. We want to make sure it’s smooth for the broader market.”
Started in 2019, the project is a key part of a portfolio of works designed to improve the quality of life in Riyadh. Building more green spaces could help lower ambient temperatures in the capital, where summer temperatures often exceed 45° C (113° Fahrenheit).
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The kingdom will increasingly seek external partners to accelerate development of its 17 sq km (6.6 sq miles) project in the run up to 2030, according to Tanasijevich.
That’s in line with Saudi Arabia’s strategy to enlist the help of private companies and international investors for investments in economic diversification projects. The shift is intended to ease some of the spending burden on the government and its wealth fund, known as the PIF.
King Salman Park expects to announce soon additional companies that have won rights to develop the park’s first zones and plans to offer further rights in 2026, Tanasijevich said.
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“A lot of those who have made inquiries or participated in the bid process are from Saudi or the region but we’re looking to broaden our reach because we want to make sure we’re getting the best from all around the world,” he said.
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