'Economic Cities,' Saudi Arabia's Mega Projects

Saudi Arabia's government has made huge investments in the hopes of building new cities and districts to attract investment and tourism, despite past failures.

1 minute read

August 21, 2017, 11:00 AM PDT

By Casey Brazeal @northandclark


King Abdullah Financial District in Riyadh

New buildings under construction in the King Abdullah Financial District in Riyadh. | Ali Al-Awartany / Shutterstock

Saudi Arabia's program to build new "Economic Cities" includes more than one plan for developments over 50 square miles, whether these will attract the tourists and business development they seek to spur, remains to be seen. "The kingdom is converting thousands of square kilometers of sand into new cities as it seeks to diversify away from crude, create jobs and boost investment," Sarah Algethami writes in Bloomberg Business.

These initiatives look to kickstart some projects that have been slow to take off and will include two new projects. One project announced in July aims to attract tourists to Saudi Arabia's beaches on over 50 islands in the Red Sea. The area of this project is bigger than Belgium. Some have pointed out cultural barriers to attracting tourists including the country's alcohol restrictions and clothing requirements.

Plans were also announced for a city called Al Faisaliyah, "The city will have residential units, entertainment facilities, an airport and sea port," Algethami reports. The kingdom announced these plans despite the slow growth of its many previous attempts at mega projects including the King Abdullah Financial District of 70 buildings that has yet to attract a single institution.

Monday, August 14, 2017 in Bloomberg

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Blue and white Seattle Link light rail train exiting concrete Downtown Bellevue Tunnel in Bellevue, WA.

Why Should We Subsidize Public Transportation?

Many public transit agencies face financial stress due to rising costs, declining fare revenue, and declining subsidies. Transit advocates must provide a strong business case for increasing public transit funding.

April 7, 2025 - Todd Litman

Silhouette of man holding on to back of bicycle ridden by woman with Eiffel Tower in background.

Paris Bike Boom Leads to Steep Drop in Air Pollution

The French city’s air quality has improved dramatically in the past 20 years, coinciding with a growth in cycling.

April 14 - Momentum Magazine

Multifamily housing under construction.

Why Housing Costs More to Build in California Than in Texas

Hard costs like labor and materials combined with ‘soft’ costs such as permitting make building in the San Francisco Bay Area almost three times as costly as in Texas cities.

April 14 - San Francisco Chronicle

Western coyote looking at camera in grassy field.

San Diego County Sees a Rise in Urban Coyotes

San Diego County experiences a rise in urban coyotes, as sightings become prevalent throughout its urban neighbourhoods and surrounding areas.

April 14 - Fox 5