Saudi’s Diriyah Gate Project Seeks Global Investment to Cover Half the Cost

Diriyah Gate, one of Saudi Arabia’s major and most ambitious projects, has thus far been financed by the nation’s Public Investment Fund (PIF). Diriyah Gate Development Authority’s CEO, Jerry Inzerillo, expressed confidence that foreign investors will ultimately contribute at least half of the project’s $64 billion budget. During the Future Investment Initiative (FII) in Riyadh, Inzerillo described recent discussions with international investors, including an Italian investor committed to developing two hotels and an apartment complex, with plans to withdraw equity from those investments. Additionally, he mentioned interest from a Colombian investor looking to fund all 37 hotels in Diriyah, amounting to nearly $2 billion, and indicated that investors from the UAE, Kuwait, and other Gulf Cooperation Council (GCC) countries were also showing enthusiasm.

Inzerillo reported that $15 billion of the $64 billion budget had already been spent, with full expenditure expected. He remains optimistic that foreign investments will cover at least half of the project’s costs by 2030.

This ambitious goal is set against a backdrop of rising foreign investment in Saudi Arabia, with Minister of Investment Khalid A. Al-Falih reporting $26 billion in foreign direct investment (FDI) last year. Al-Falih explained that FDI had exceeded targets, with international companies establishing a presence in Saudi Arabia at rates 10 times higher than before the launch of Vision 2030.

Diriyah’s development continues to be on track for a 2030 completion date, which aligns with Riyadh’s anticipated role as host for the World Expo that year. Inzerillo has noted that investment is coming from diverse sources, with large-scale investors and smaller buyers contributing to the launch of branded residences in Diriyah. Following Dubai’s lead, Diriyah has collaborated with luxury hotel brands such as Ritz-Carlton, Oberoi, Capella, and Baccarat to sell branded apartments and villas. To date, over 110 of the 120 Ritz-Carlton apartments have been sold, along with eight of the 10 Oberoi-branded villas, with full occupancy expected by 2026. To attract international buyers, Diriyah even showcased 350 residences at Harrods in London this July.

Amid rising scrutiny of Saudi government spending, Inzerillo emphasized to the Financial Times that Diriyah’s spending approach is cautious and strategically conscious of geopolitical uncertainties. He remarked that responsible spending was fundamental but emphasized the importance of being prepared for global shifts.

Saudi Arabia’s push for investment extends beyond Diriyah. In April, BlackRock announced a $5 billion investment backed by PIF for the region, with plans for a Riyadh-based investment team. Around the same time, Neom’s CEO, Nadhmi Al-Nasr, hosted an event for dozens of bankers to explore partnership opportunities for Neom, the Kingdom’s largest project, attracting 24 international banks and financial institutions. Although reports indicate some scaling back within Neom, including The Line, Inzerillo suggested this reflects prioritization for other Saudi initiatives. With Saudi Arabia securing the 2029 Winter Games for Trojena, funding has been directed toward that project to prepare for the global event, temporarily adjusting Neom’s timeline.

Inzerillo clarified that rather than austerity, this shift exemplifies Saudi’s approach to strategically redirect resources to meet emerging priorities.

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