Diriyah Gate project to cost $63 bln, return on commercial assets seen at above 9%: CEO

Jerry Inzerillo, CEO of Diriyah Gate Development Authority (DGDA)

Jerry Inzerillo, CEO of Diriyah Gate Development Authority (DGDA), said that the planned Diriyah project will cost nearly $63 billion. It will span a total area of 14 kilometer square in Riyadh, after adding spaces for housing, universities and other projects.

The project will include 20,000 residential units, which will be available for lease or ownership. A total of 2,500 units will be located in DG 1, 5,000 in DG 2 and 12,500 in DG 3. These units will have varying areas.

Meanwhile, more than one million meter square is designed for corporate headquarters, Inzerillo added, noting that this space could be increased in DG 3.

The development will also feature over 1,000 shops and no shopping malls. It will comprise 100 restaurants, 38 hotels, two universities, and 20 schools to provide an integrated community, the CEO explained.

The DGDA signed contracts with 38 hotels to receive visitors in historical Diriyah. The project aims to attract 27 million visitors by 2030, of whom seven million are expected to visit the UNESCO World Heritage site.

Elsewhere, Inzerillo expected the return on commercial assets in the project, exclusive of schools, mosques and infrastructure, to exceed 9%, adding the project is likely to be completed between 2028-end through 2029. The Diriyah development has already started delivering returns and income.

Wadi Safar will be built on a large space. It is allocated for farms, housing and luxury tourism. Wadi Safar will comprise 10 large resorts, unlike other hotels in Diriyah. Sale of units at Wadi Safar masterplan will begin this year, he concluded.

In June 2020, the DGDA started to develop the first phase of the world’s biggest cultural and heritage project to to preserve historical Diriyah; the Jewel of the Kingdom, Argaam earlier reported.