Unlocking Opportunities: Diriyah’s Transformative Journey6 min read
- 15 November, 2023
- Posted by: Derya Bandak
- Categories: Legal, Saudi Arabia
In the heart of Saudi Arabia, Diriyah stands poised for a remarkable transformation. The Diriyah Gate Development, spearheaded by the Diriyah Gate Development Authority (DGDA), is set to unfold a $10 billion investment in 2024 to elevate this historic city into a premier tourism destination.
Investment in Infrastructure
With a commitment of $7.5 billion in 2023, the DGDA laid the groundwork, covering an expansive 14 square kilometres. This strategic investment serves as the foundation for the ambitious vision to create the largest pedestrian-friendly cultural heritage city. Diriyah is on track to become a living testament to the rich history of Saudi Arabia, featuring 30,000 homes, 42 hotels, 9 museums, 100 restaurants, and even a golf course.
Cultural Heritage and Tourism Magnet
Diriyah’s historical significance as a UNESCO World Heritage site, coupled with its status as the ancestral home of the ruling family, positions it as a cultural and tourism magnet. The project aligns with Saudi Arabia’s goal of attracting 70 million international tourists annually by 2030.
Boosting Local and Foreign Businesses
The ripple effect of the Diriyah Gate Development extends beyond cultural enrichment. Local businesses are set to thrive, with increased foot traffic and a surge in demand for services. The hospitality industry stands to benefit significantly.
Foreign Business Opportunities
For foreign businesses, Diriyah opens avenues for substantial growth. With the planned 42 hotels, the hotel industry becomes a focal point for international investors. The allure of being part of a transformative project in a burgeoning tourist destination is an enticing prospect.
Beyond hotels, foreign companies find a golden opportunity in public procurement for infrastructure and construction projects. The massive investment in Diriyah’s development necessitates collaboration with global players. As the city expands, the demand for expertise in construction, urban planning, and related fields becomes a key factor.
Regional Headquarters: An Imperative Move
In order to participate in Saudi Arabian procurement procedures, the establishment of a regional headquarters (RHQ) in the Kingdom will be mandatory for foreign companies interested in public contracts from 2024 onwards. In addition to the requirement of an RHQ, however, the Kingdom offers significant incentives.
How TME Services Can Support Your Business
Diriyah’s journey from a historic city to a thriving cultural hub signifies more than a physical transformation. It marks an economic and cultural renaissance, presenting opportunities for both local and foreign businesses. As the DGDA propels Diriyah toward its vision, the world watches eagerly, anticipating the rise of a global tourism and business landmark. The ambitious project also offers foreign companies the opportunity to play an active role in this project and ultimately to enter a new, highly profitable market in Saudi Arabia as a result.
TME Services is a team of 45 legal, tax, accounting, and compliance professionals with over 18 years of experience in the GCC region. Over the past decade, we have advised a significant number of SMEs in relation to business formation and alignment in Saudi Arabia, ensuring that our clients are well-oriented in the new and rapidly evolving legal and tax landscape and reducing the legal liability of managers that can arise in relation to non-compliance.