Diriyah Giga Project

The Diriyah project in Saudi Arabia is a monumental undertaking. With an estimated cost of USD 63 billion, it is being developed on the outskirts of Riyadh. The project aims to create a vibrant urban environment, enhancing Saudi Arabia‘s cultural and economic landscape. Indian firms are increasingly showing interest in this initiative, with major players like the Tatas and Oberois already on board.

Overview of Diriyah

Diriyah is envisioned as a new city, often referred to as the “City of Earth.” It will accommodate 100,000 residents and provide office space for an additional 100,000. The project features over 40 luxury hotels, more than 1,000 retail outlets, and 150 dining options. Cultural amenities include museums, an opera house, and an event arena with a capacity of 20,000.

Economic Significance

Diriyah is expected to contribute USD 18.6 billion to Saudi Arabia’s GDP. It will create approximately 178,000 jobs. The project is supported by the Public Investment Fund of Saudi Arabia. It aims to enhance economic ties between India and Saudi Arabia, which already stands at a trade volume of around USD 52.8 billion as of 2022-23.

Indian Firms Involvement

Numerous Indian companies are exploring opportunities in Diriyah. The hospitality sector is particularly active, with the Taj Hotel group planning to open its 250th property there. An Oberoi Hotel is also under construction near the equestrian centre. Indian firms are encouraged to engage in various asset classes, including residential, hospitality, and healthcare.

Tourism Potential

Diriyah is positioned to become a major tourist attraction. The UNESCO World Heritage Site of At-Turaif has already drawn over three million visitors since its opening. The Saudi Ministry of Tourism anticipates increases in tourist arrivals, with a target of 50 million visits annually by 2030. Indian tourists are expected to play important role in this growth.

Strategic Partnerships

Diriyah is keen on encouraging partnerships with Indian companies. Over 3,000 Indian firms are currently operating in Saudi Arabia, contributing to various sectors like construction and IT. The project is part of a broader strategy to enhance India’s role as a key trading partner.

Future Prospects

The scope for Indian investment in Diriyah is vast. The project offers tailored investment packages across multiple sectors. This initiative not only strengthens bilateral trade but also showcases Saudi Arabia’s commitment to cultural heritage and tourism.

Questions for UPSC –

1. Critically analyse the impact of the Diriyah project on Saudi Arabia’s economy and its bilateral trade with India.
2. What are the key features of the Diriyah project? Explain its significance in promoting tourism in Saudi Arabia.
3. What are the potential benefits for Indian firms investing in Diriyah? Discuss the sectors that may see growth.
4. Explain the role of cultural heritage in the economic development of regions like Diriyah. How can it attract international tourists?

Answer Hints:

1. Critically analyse the impact of the Diriyah project on Saudi Arabia’s economy and its bilateral trade with India.

1. Diriyah is projected to contribute USD 18.6 billion to Saudi Arabia’s GDP.
2. The project aims to create approximately 178,000 jobs, boosting employment rates.
3. It enhances Saudi Arabia’s trade ties with India, which reached USD 52.8 billion in 2022-23.
4. Over 3,000 Indian firms already operate in Saudi Arabia, indicating strong economic ties.
5. Diriyah serves as a strategic platform for further investments and partnerships between the two nations.

2. What are the key features of the Diriyah project? Explain its significance in promoting tourism in Saudi Arabia.

1. Diriyah will feature over 40 luxury hotels and more than 1,000 retail shops.
2. It includes cultural amenities like museums, an opera house, and a 20,000-seater event arena.
3. The UNESCO World Heritage Site of At-Turaif is a central attraction, drawing millions of visitors.
4. The project aims for 50 million tourist visits annually by 2030, boosting tourism revenue.
5. Diriyah’s development aligns with Saudi Arabia’s Vision 2030, promoting cultural tourism and heritage.

3. What are the potential benefits for Indian firms investing in Diriyah? Discuss the sectors that may see growth.

1. Indian firms can tap into a diverse range of investment opportunities across multiple sectors.
2. Key sectors include hospitality, with the Taj and Oberoi hotels already investing in the area.
3. Opportunities also exist in residential, healthcare, education, and mixed-use developments.
4. Investment packages are tailored to suit various sizes and asset classes, encouraging participation.
5. Strengthening bilateral trade relations can lead to increased market share for Indian companies in the region.

4. Explain the role of cultural heritage in the economic development of regions like Diriyah. How can it attract international tourists?

1. Cultural heritage sites like At-Turaif enhance the appeal of Diriyah as a tourist destination.
2. Heritage tourism can drive economic growth by attracting international visitors and investments.
3. Diriyah’s commitment to preserving cultural assets aligns with global tourism trends favoring authentic experiences.
4. Events and festivals centered around cultural heritage can further engage tourists and boost local economies.
5. Showcasing Saudi Arabia’s rich history and culture can differentiate it in a competitive tourism market.