Letter from the publisher

Dear Readers,

I am excited to present the second issue of KSA: The Next Frontier. The overwhelmingly positive response to our inaugural issue has been incredibly encouraging and deeply appreciated—thank you for your support and feedback. In this edition, you’ll discover captivating developments across Saudi Arabia, from luxurious resorts perched above the sea to a bespoke airline redefining comfort high above the ground. We hope you find the insights into the economic, cultural, and social transformation sweeping the Kingdom as intriguing as we do. If you do, please share this newsletter with friends, family, and business associates, whether they might be interested in the exciting investment opportunities, want to visit and see what’s happening in the Kingdom for themselves, or simply like to keep tabs on the remarkable transformations occurring in the Kingdom. Your continued engagement helps us bring the most relevant and compelling developments straight to you.

Warm regards,

Publisher, KSA: The Next Frontier

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The City of Earth Moving at the Speed of Light

Diriyah, the historic “City of Earth” located just northwest of Riyadh, holds a profound significance in Saudi Arabia’s cultural and historical narrative. Known as the birthplace of the Saudi state, it serves as a focal point for the Kingdom’s Vision 2030 initiative, which aims to diversify the economy and enhance cultural tourism. With rapid development underway, Diriyah is emerging as a vibrant hub that blends its rich heritage, embodied in the integration of traditional Najdi architecture with modern advancements.

The pace of transformation in Diriyah, a centerpiece of the Saudi Public Investment Fund’s giga projects, is accelerating remarkably. Recently, Diriyah Company, the entity spearheading this development, announced a landmark $2.08 billion contract with the Kingdom’s own El Seif Engineering Contracting Co., and the world’s largest construction firm, China State Construction Engineering Corporation, for the Northern District construction. This ambitious project will create a new mixed-use district featuring residential, commercial, educational, and cultural spaces. Construction is set to begin imminently on what promises to be a cornerstone in Diriyah’s evolution, aligning with Vision 2030’s goals to enhance urban infrastructure, increase the availability of education for all Saudis, and attract global investment.

In another major development, Diriyah Company has unveiled its largest deal to date: a $2.13 billion contract for constructing four luxury hotels and the Royal Diriyah Equestrian & Polo Club in Wadi Safar. The contract, which brings aboard Urbacon Saudi Company and Al Bawani Company to undertake the massive construction project, highlights Diriyah’s commitment to becoming a premier destination for high-end tourism and sports while creating jobs for Saudi nationals. The hotels will offer world-class accommodations, while the Equestrian & Polo Club will cater to elite sports enthusiasts, enriching the city’s cultural and leisure offerings. These assets round out Wadi Safar’s status as a hub of sports and recreation, joining the ongoing development of two golf clubs, including one designed by Australian golf legend Greg Norman. 

Additionally, Diriyah Company has announced the details of Zallal, the city’s mixed-use commercial office and retail development, set to open in the first half of 2025. This project, located next to the popular tourist destination Bujairi Terrace, is set to redefine the business landscape of Diriyah, providing two low-rise modern office buildings and 12 retail and food-and-beverage outlets to cater to both local and international enterprises. With more than 14,000 square meters of leasable space, Zallal’s introduction marks a significant step toward establishing Diriyah as a competitive business hub, fostering economic growth and attracting new investments. Moreover, Zallal is designed to place its most impressive vistas in the spotlight, including views of and beyond the UNESCO World Heritage site of At-Turaif. 

These advancements reflect Diriyah’s dynamic progress and its central role in Saudi Arabia’s Vision 2030, showcasing the city’s transformation into a global landmark while preserving its historical appeal – and all at the speed of light.

Luxury Meets Sustainability at the Red Sea

Red Sea Global, a prominent multi-project developer owned by the Saudi Public Investment Fund (PIF), is at the forefront of transforming Saudi Arabia's tourism sector with its visionary projects. As a major player in the Kingdom’s ambitious Vision 2030, Red Sea Global focuses on creating world-class destinations that blend luxury, sustainability, and cultural heritage. The company is spearheading the development of iconic destinations along the Red Sea coast, contributing to the diversification of the Saudi economy and enhancing its global appeal, while driving a global transition to regenerative tourism.

Red Sea Global operates with core values that underscore its commitment to excellence and ethical practices. The company places a strong emphasis on responsibility, specifically ensuring that all projects are executed with environmental and social stewardship in line with the broader commitments of Vision 2030 and the Saudi Green Initiative. Collaboration is central to their approach, as evidenced by their engagement with various stakeholders in business and workforce-development to achieve the Kingdom’s socio-economic goals. Passion drives their dedication to creating extraordinary experiences and innovative solutions, while respect guides their interactions with communities, partners, and the environment. These values are reflected in every aspect of their operations, from project planning to execution, and of course, operations.

Two landmark destinations announced by HRH Crown Prince Mohammad bin Salman bin Abdulaziz Al-Saud—The Red Sea and AMAALA—highlight Red Sea Global’s commitment to redefining luxury tourism. The Red Sea destination promises a series of pristine resorts and eco-friendly resorts set against a backdrop of stunning natural beauty. The recent openings of three resorts, including Nujuma, a Ritz-Carlton Reserve, exemplifies this vision, offering an unparalleled luxury experience with its exclusive accommodations and exceptional service. AMAALA, on the other hand, focuses on wellness, culture, and the arts, aiming to become a premier destination for discerning and sophisticated travelers when it opens its first resort next year. A third destination, Thuwal Private Retreat, is a buy-out-only collection of villa and suites owned and operated by the company on a coral archipelago, and promises an elite and personalized experience, replete with a gourmet chef, beach club, and wellness center. 

Red Sea Global has also formed strategic partnerships to enhance its offerings and operational capabilities. Collaboration with the Saudi Climbing and Hiking Federation aims to promote adventure tourism and engage visitors as they explore the region’s diverse inland landscapes. A partnership with Saudi Arabia’s leading travel company Almosafer enhances access to Red Sea Global assets by integrating advanced booking and travel management services. Additionally, Red Sea Global has teamed up with Oracle to bring cutting-edge hospitality technology to Saudi Arabia, further elevating the guest experience and setting new standards in the industry. 

Additionally, Red Sea Global has undertaken initiatives aiming to upskill the local population to prepare Saudi nationals for careers in hospitality and tourism. The English for Tourism 2024 project is a six-month online general English language program, which provides basic language skills and reduces barriers to apply for jobs, while giving participants the ability to make suggestions directly to the Red Sea Global team. As the first doors opened to new resorts, the first 400+ graduates of a vocational training program took up employment at the destination either directly with the developer or with one of their prominent partners such as Six Senses and daa International, who operate the solar-powered Red Sea International Airport.

In recognition of its achievements, Red Sea Global received the Sustainable Construction Organization of the Year at the 2023 Big 5 Global Impact Awards. This accolade acknowledges what the company is already becoming known for, which is its innovative approaches to sustainable development and commitment to minimizing environmental impact while creating high-quality and unique infrastructure. More recently, Group CEO John Pagano topped the Construction Business News Power 100 list as the number one developer in the region.

Seeing All Sides of Oxagon: NEOM’s Reimagined Industrial City

Among the ambitious and innovative regions that characterize Saudi Arabia’s NEOM project – an infrastructure initiative funded partially by an initial $500 billion investment by the Kingdom’s Public Investment Fund (PIF) to build new regions that epitomize the spirit of Vision 2030 – Oxagon stands out for its clean industrial opportunity.

Oxagon’s significance to Saudi Arabia’s Vision 2030 is clear. As HRH Crown Prince Mohammed Bin Salman, the driving force behind Vision 2030, emphasized when announcing the establishment of Oxagon in 2021, the region embodies the goals of economic diversification and sustainable development central to the Vision.

An industrial greenfield development taking shape on the Red Sea in northwest Saudi Arabia, Oxagon is envisioned as a reimagined cognitive-industrial city, set to be powered by 100% renewable energy. This NEOM city aims to contrast itself to traditional industrial cities by prioritizing livability throughout its communities, alongside industry.

Oxagon is premised on the belief that industry faces a global challenge and manufacturing needs to fundamentally change. Manufacturers now find themselves faced with changing customer demands for sustainable goods, increasingly volatile supply chains, a need for localized manufacturing, and rapidly evolving technology. 

But how is Oxagon responding to this, and why is the Kingdom the right place to spark this revolution? 

First, Oxagon is a greenfield site that integrates Industry 4.0 (also called the Fourth Industrial Revolution) and circularity (a supply chain that recovers and reuses its own resources) from the ground up, while bringing together industrial innovation, logistics, and smart infrastructure – with an aim to allow the seamless transition to 100% renewable energy power sources across production facilities. The city is gearing up to address the need for a systemic shift in manufacturing, focusing on innovation that allows at-scale testing of new technologies and leveraging AI, committing to net-carbon-zero manufacturing operations, enabling localized production models, and building thriving communities with world-class hospitality and retail offerings. 

The seven sectors that sit at the heart of Oxagon’s manufacturing ecosystem will help foster growth in non-oil sectors outlined in Vision 2030. In doing so, Oxagon intends to create a diversified and robust economy for the Kingdom and the Middle East/North Africa region, enhancing global competitiveness and leading innovation in sustainable industries.

Oxagon is building a renewable energy manufacturing ecosystem, in line with the Kingdom’s race to transition to renewable energy sources. NEOM Green Hydrogen Company, an equal three-way joint venture with NEOM, ACWA Power, and Air Products, is building the world’s largest green hydrogen plant in Oxagon. Progress is well underway, and the facility is set to produce 600 tonnes of carbon-free hydrogen by the end of 2026. 

PIF’s recent investment in three joint ventures to localize renewable energy production is testament to the Kingdom’s commitment to move away from fossil fuels. This commitment not only aligns with global sustainability goals, but also supports Saudi Arabia’s broader efforts to lead globally in renewable energy innovation.

This reimagined industrial city is strategically located on the Red Sea coast and will be home to a next generation port, the Port of NEOM. Since the port was transferred to NEOM in 2022, it has already expanded its services, offering general cargo, container handling, RoPax ferries, warehousing, and more. The port is Oxagon’s first operational asset and is actively supporting the overall development of NEOM by helping facilitate the import of necessary goods and materials. For example, in 2023, the port welcomed the first wind turbine delivery for NEOM Green Hydrogen Company; the current port operations are already set up to receive project cargo that supports tenants in Oxagon and NEOM during their construction phases. 

Set to revolutionize port operations, Port of NEOM will utilize state-of-the-art technology to streamline operations and reduce congestion and delivery times in international and local trade. 

Oxagon has begun the first phase of widening the basin for Port of NEOM to be able to welcome the world’s largest container vessels. When completed, the port will be one of the world’s most sustainable ports and, like the rest of Oxagon, will ultimately operate at net-zero-carbon levels with 100% renewable energy. The port’s first terminal is scheduled to open in 2025.

The port’s connectivity is already positioning Oxagon as a critical node in international logistics and trade networks. In 2023, Port of NEOM announced fixed port calls from two of the world’s largest shipping lines, CMA-CGM and MSC. Beyond offering manufacturers an entry point into NEOM and the Kingdom, Oxagon’s location at the crossroads of key trading lanes offers manufacturers seamless export and what many would argue is unparalleled connectivity to Asia, West and European markets. 

Parts of Oxagon are already coming onstream with residents calling it home today. YOTEL, IHG’s Hotel Indigo, and Kerten Hospitality’s House Residence brand already operate in Oxagon’s innovation district and first residential community. As part of its prioritizing livability across its communities, Oxagon is investing in comprehensive urban planning, hospitality, retail, mobility and more, to ensure all have access to healthy living, green spaces, advanced healthcare, education, and entertainment facilities.

Oxagon’s belief is that it can create a balanced and vibrant environment that supports both work and well-being in a pioneering urban landscape and will be a new model for industrial cities of the future. Based on current work and living trends around the world, the time seems well-suited for this type of balance.

Riyadh Air Approaching Cruising Altitude

The progress being made by Riyadh Air, Saudi Arabia’s newest flagship airline, illustrates just how fast the nation’s ambitious Vision 2030 plan is taking off. As a key player in the Vision, which aims to elevate Saudi Arabia’s global connectivity by establishing Riyadh as a major international hub, Riyadh Air will be key to wooing tourists to the Kingdom and making international commerce based in Saudi Arabia a pleasure, beginning with its maiden flight in 2025. Since being announced by HRH Crown Prince Mohammed Bin Salman in March 2023, plans for Riyadh Air’s launch mirror the Kingdom’s commitments to enhancing air travel infrastructure and attracting international visitors, thus becoming a leading global travel destination, boosting tourism and fostering economic growth.

To distinguish itself in the competitive aviation market, Riyadh Air is focusing on delivering an exceptional customer experience through a combination of cutting-edge technology, bespoke touches, and personalized service. The airline aims to set new standards in luxury and convenience, with a fleet of modern aircraft equipped with the latest amenities. Its service ethos is designed to cater to a diverse range of passengers, offering both high-end experiences for premium travelers and efficient, comfortable options for economy customers.

Another core pillar of Riyadh Air is its commitment to sustainability, exemplified by its recent alignment with the UN Global Compact. By endorsing all 17 UN Sustainable Development Goals, Riyadh Air has illustrated its dedication to environmental stewardship and sustainable practices, setting a benchmark for responsible aviation and global corporate citizenship.

Riyadh Air has forged significant partnerships with industry giants Boeing and GE Aerospace. These alliances are crucial for the airline’s growth and operational efficiency. Shortly after its launch in March 2023, the airline placed a large order for Boeing’s wide-body 787-9 Dreamliners. These state-of-the-art aircraft will form the backbone of Riyadh Air’s fleet, quickly enhancing the airline’s reputation for reliability and comfort. Meanwhile, GE Aerospace will supply advanced engines and support services, contributing to the airline’s goal of maintaining top-tier performance, consistency, and sustainability.

In addition, Riyadh Air recently signed a memorandum of understanding with Delta Air Lines. This agreement lays the groundwork for a robust partnership that includes codeshare agreements and joint ventures, aiming to expand route networks and enhance connectivity between Riyadh and the most popular global destinations. This strategic collaboration is expected to strengthen both airlines’ market positions and offer passengers a broad array of travel options in the Middle East and beyond.

Recently, Riyadh Air made headlines for a different kind of collaboration. Renowned fashion designer Mohammed Ashi unveiled the airline’s striking new crew uniform collection. This partnership not only enhances the airline’s brand image but also integrates contemporary fashion with practical design, reflecting Saudi Arabia’s cultural richness and modern aspirations. The uniforms, whose design concepts were unveiled in June during Haute Couture week in Paris, blend elegance and functionality, symbolizing Riyadh Air’s dedication to providing a sophisticated travel experience while showcasing the Kingdom's unique style on the global stage. And it doesn’t hurt to boast a partnership with the designer studio that has dressed Beyonce, Penelope Cruz, and Zendaya.

In June, Riyadh Air CEO Tony Douglas spoke at New York’s Wings Club, the premier forum for the discussion of aviation topics and events, demonstrating the airline’s commitment to serving the US market. Douglas has since reiterated Riyadh Air’s ambitious plans to connect Americans to the Middle East, telling KSA: The New Frontier: “We are making significant progress towards our maiden flight in summer 2025, ensuring we have world class suppliers and partnerships in place with global leading airlines, including our recent agreement with Delta Air Lines.”

Douglas emphasizes that along all dimensions, Riyadh Air is rethinking what an airline can be. “With the aim to be a digital native airline, leaving legacy systems and thinking behind, Riyadh Air will be the airline of the future adopting the most innovative technical solutions,” Douglas says. “But we will also have an eye on the past. Our recent cabin crew fashion launch is evocative of the halcyon days of air travel, reflecting one of our core pillars of an obsessional attention to detail with the aim of bringing back style and sophistication to airlines.”