< Previousfluidity of the entertainment industry, especially in Saudi Arabia. He notes: “Entertainment is very fluid and means something different to everyone as it is simply an enjoyment of an activity. Saudi Arabia is very mindful of this, ensuring that there is something for everyone across all the regions. “What also makes the kingdom a very different prospect is cultural integration. Prior to 2016 – when Vision 2030 was launched – entertainment did exist but mainly as a form of recreational activity to celebrate culture and heritage,” French adds. “Vision 2030 enabled reform and structure that was intended to support the implementation of entertainment projects with various commissions and authorities to ensure that culture and heritage remain an integral part of the future.” Mitigating the challenges The reality of working on leisure and entertainment projects in the kingdom involves mitigating the challenges that “THERE IS A HUGE DESIRE TO IMPROVE PEOPLE’S LIVES WITH ENTERTAINMENT AND LEISURE PROJECTS THAT FOCUS ON SPORTS, WELLBEING, AND CULTURAL AND INTELLECTUAL ENRICHMENT.” Edward McIntosh, regional design director at Atkins | LEISURE & ENTERTAINMENT | Joe Saghbini, business development director, Dewan Architect + Engineers. The kingdom’s rst and the region’s largest waterpark. [Image: Qiddiya] The Qiddiya waterpark will offer a mix of wet and dry attractions. [Image: Qiddiya] 30 ordering in bulk and assigning a number of projects to the same contractor, Compass was able to prevent any interruption in construction.” According to Salameh, site conditions, project funding, and coping with timelines are also some of the main challenges in constructing leisure and entertainment projects. He notes: “With a big appetite in the market, most developers have very tight project timelines, and this, at times impacts the quality and cost which was already planned from day one. To avoid this, a number of agile approaches must be implemented to manage and deliver the projects, in addition to, of course, having the fund ready.” Perhaps one of the most unique challenges in building leisure and entertainment projects in the kingdom is finding ways to address issues faced by contractors and designers to execute projects of this scale. One particular firm that confronted these issues head- on was Dewan Architect + Engineers, the company behind some of the biggest leisure and hospitality ventures in Saudi Arabia. In addition to working on multiple projects for The Red Sea Development Company (TRSDC), Dewan is also the lead consultant for Qiddiya Water Park. In speaking with Dewan’s business development director, Joe Saghbini, we concluded that working on these gigaprojects posed major challenges never tackled before in the kingdom. He says: “The Qiddiya project presented the team with major challenges related to the complexity and technicality of the project as well as opportunities to learn about new specialist trades associated with theme parks and water rides.” Saghbini added: “The sheer size of the project and the creation of the central “mountain” pushed the team to develop new practices and tools to deliver this project. Elsewhere in kingdom, we are also the lead consultant for Triple Bay Yacht Club by AMAALA. The project offered the team the opportunity to develop and materialise a very special and iconic design and use its full capacity and mastery of the Revit tool to ensure a higher level of coordination.” Despite these challenges, the Kingdom of Saudi Arabia is establishing itself as a growing economy capable of becoming one of the world’s newest and largest tourism destinations. Mohammed Salameh, associate director, Compass Project Consulting. | LEISURE & ENTERTAINMENT | 31 questions and minor obstacles, propelling the industry to come up with problem- solving techniques to cope with these challenges. Furthermore, dealing with a new industry is not the only problem faced by contractors in Saudi Arabia, and Salameh from Compass details this. He mentions five main challenges faced by contractors starting with the reality of working in a sector where problems are still in the beginning stages of being solved. In dealing with the freshness of the leisure and entertainment industry, he says: “Assigning expert consultants who support clients and contractors during the project life cycle is very important. So is having early procurement strategies across the projects. Logistics, mainly in the first couple of years due to the pandemic impacted the supply chain globally, but by come with executing operations in a new and pioneering industry. As a contractor, entering the sector without adequate experience attracts a pool of unanswered | COVER STORY | 32 | COVER STORY | 32A BRIGHT VISION FOR SAUDI ARABIA Vision 2030 has proven to be promising for Saudi Arabia’s economic and social development, bringing a plethora of opportunities driven by major investments in key sectors such as industrial, construction, infrastructure, tourism, and entertainment Words by: Ranju Warrier | Images: Supplied & Shutterstock | COVER STORY | 33 | COVER STORY | 33The Kingdom of Saudi Arabia unveiled Vision 2030 in 2016, defining it as “an ambitious vision for an ambitious nation”. Since then, Vision 2030 has become synonymous with transformation and a pathway to the future. Representing a progressive plan to unlock the nation’s vast potential, the national vision has become the driving force of the kingdom’s economic transition. In the nearly seven years since the vision’s launch, the kingdom has witnessed both striking change and exponential growth. While the vision itself draws upon the nation’s culture, heritage, and history, its objectives are aimed at helping Saudi Arabia reduce its dependence on oil. Bringing scores of opportunities driven by major investments in the industrial sector, construction, infrastructure, as well as tourism and entertainment, Vision 2030 is to be promising for the economic and social development of the country. With the launch of the national vision, Saudi Arabia revealed several multi- million-dollar mega and gigaprojects. These projects — some of them futuristic — propelled the construction sector to the top of the sectoral development ladder. As a result, the construction industry’s role has shifted to that of a ‘catalyst’ for the vision’s effective realisation. This raises a vital question: how is Saudi Arabia’s construction industry powering Vision 2030? “Investments aimed at developing assets that will provide a diversified GDP, one that is much less dependent on oil, is a cornerstone of Vision 2030,” Dr. Walid Mahmoud, chief executive, AECOM Arabia tells Construction Week Saudi. The construction sector is key to developing these assets and although the majority of the assets will remain government/ semi-government investments, they will be delivered by private sector companies, both local and international.” He continues: “The empowerment of the private sector through the improvement of contractual methods and terms, greater access to finance, and unlocking of trade barriers will lead to greater successful outcomes of Vision 2030.” According to a report by Invest Saudi, which is overseen by the Ministry of Investment, as the kingdom continues to become one of the most attractive investment destinations in the region and across the globe, the construction “THE TRANSFORMATION OF THE CONSTRUCTION INDUSTRY IN THE LAST SEVEN YEARS STARTED WITH THE OPENING UP OF THE MARKET.” Dr. Walid Mahmoud, chief executive, AECOM Arabia | COVER STORY | 34Construction is a catalyst for the vision’s realisation. Dr. Walid Mahmoud, chief executive, AECOM Arabia. industry witnessed a 514% increase in construction investment licenses issued in Q2 2022 compared to Q2 2021. This accounted for 528 licenses. Working in parallel to with the National Transformation Plan (NTP), and Vision 2030, Saudi Arabia has expanded its investment in diverse projects. Key projects include NEOM, Qiddiya, The Red Sea Project and AMAALA, as well as ROSHN. In addition to these ‘gigaprojects’, the kingdom has also been investing heavily in various infrastructure, transport, and social development projects, such as the Riyadh Metro, Jeddah Metro, King Salman Park, Prince Mohammed Bin Salman Nonprofit City, among others. According to Gurminder Sagoo, client director at WSP Middle East, in order to successfully illustrate the compounding success that Vison 2030 has had — and is having — in transforming construction in KSA, the industry must consider two major modal shifts unfolding within the very fabric of the kingdom – both of which are creating opportunity on “a scale the world has never seen”. He says: “Firstly, the core proponents of Saudi Vision 2030 are creating a modal shift in terms of empowering the kingdom’s homegrown population. The visionary leadership of HRH Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud has opened Saudi to the world. In doing so, this is creating the fundamentals for future growth and increasing the opportunities for the country’s citizens to play vital roles in the future success of the country’s economic and social roadmap. “Secondly, Saudi Vision 2030 is redefining the way in which the country exports itself to the world. This modal shift is having an enormously positive impact on the interplay between Saudi and the global community as it embarks on diversifying away from reliance on the carbon economy.” However, Sagoo stresses that while these modal shifts go hand-in-hand, the biggest catalyst in all of this has been “the internal piece”. He says: “Creating an environment for people to thrive, is engaging them in all aspects of setting King Abdullah Financial District, Riyadh. | COVER STORY | 35Saudi Arabia has been creating a story of transformation through the realisation of Vision 2030. And in doing so it has acted as the as a driver for proliferating construction activity in the country, with workloads increasing simultaneously across sectors. As a result, over the past seven years, both public and private sector engagement in the economy have increased throughout the nation. “A unique factor of Saudi Vision 2030 is that it has brought the public and private sectors closer together,” Sagoo explains, adding that, despite numerous projects being carried out under the vision, the PIF and the entities which sit within it are “now operating like private developers”. He goes on to explain this further: “This is encouraging because it elevates the commercial thinking and go-to-market mindset behind what is essentially a public sector-driven, public-funded development market. As a result of this, the increased interplay between the public sector and private sector entities has resulted in an enormous need for collaboration. “In the construction sector, this contemporary approach is crucial due to the sheer scale and pace of development in the kingdom.” According to Sagoo, the pace at which gigaprojects such as The Red Sea Project, developed by The Red Sea NEOM, Saudi Arabia. financing solutions will support the investment and continuation of the construction sector,” he says. “Saudi Arabia’s strong project award value demonstrates the advancing efforts on the back of investment towards economic diversification with the construction of major cities within the kingdom being a catalyst for future growth for KSA.” Deeb adds: “This construction sector boom is also encouraging many multinational firms to set up their MENA HQ in Riyadh, which is in line with Vision 2030.” the fundamentals required to achieve future outcomes. All of a sudden, Saudi nationals are involved in designing and master planning huge projects, and the global construction sector is now laser focused on providing the guidance, skills, and knowledge transfer required to empower the future generations of Saudi leaders.” In essence, right from Saudi Vision 2030’s inception in 2016, the regional and global construction sector has been engaged at every level to provide the solutions needed to drive the vision. Sagoo further adds: “By including the world’s brightest architects, engineers, master planners, urban designers, and immersing this talent with the kingdom’s youth, together they’re engaged in the ideation of how you translate that vision into reality for people on the ground. That impact has become exponential, and in many ways has generated a circular economy for empowering talent in the kingdom’s construction sector.” According to Maroun Deeb, head of Project and Development Services, KSA & Bahrain at JLL, the construction sector has been forecasted to record an annual average growth rate of 4.1% until 2026 as project programmes are expected to expedite in response to Vision 2030. “The Public Investment Fund (PIF) and strategies relating to innovative Maroun Deeb, head of Project and Development Services, KSA & Bahrain at JLL. | COVER STORY | 36Development Company (TRSDC), have been building resorts, infrastructure, and coordinating various pockets of development throughout a 28,000km2 site “is nothing short of exceptional”. He says: “A key driver of this is a renewed shift towards a private sector development mindset and engaging private sector companies at every stage to deliver agile, effective outcomes.” “It takes agility and it takes a different cultural mindset, and this is the thing: Authorities and public sector entities in the kingdom are striving to be competitive, drive change, and create exponential growth. Achieving this relies upon construction industry expertise. It’s uplifting to think that Saudi Arabia has harnessed the ability to challenge the status quo when it comes to how these sectors cooperate and, in a way, integrate with aligned goals of bringing the best minds Saudi attracts some of the world’s brightest architects, engineers, master planners, and urban designers. together to affect meaningful change,” Sagoo explains. Both Vision 2030 and the NTP have laid the groundwork for the incorporation of sustainable development goals into the national planning process. At the heart of these goals, Saudi Arabia has successfully diversified into tourism, entertainment projects, and innovative industrial developments, all with a focus on a dynamic approach to construction delivery while keeping the design and delivery processes sustainable. To this point, Sagoo says: “The industry has a responsibility to talk about sustainability in a similar way in which we’ve collectively aligned on health & safety or quality in the past. It’s about working together to develop and build in a way that recognises the environment and raises the global benchmark for sustainable placemaking.” Furthermore, the boom in the construction market and the ambitious programmes being planned and implemented have been encouraging the “SAUDI ARABIA’S STRONG PROJECT AWARD VALUE DEMONSTRATES THE ADVANCING EFFORTS ON THE BACK OF INVESTMENT TOWARDS ECONOMIC DIVERSIFICATION.” Maroun Deeb, head of Project and Development Services, KSA & Bahrain at JLL | COVER STORY | 37use of modern methods of construction and digital technology which will change how infrastructure, real estate, and other built assets are designed, constructed, operated, and maintained in the future. “The transformation of the construction industry in the last seven years started with the opening up of the market, moving away from a small number of very large Saudi construction firms delivering the vast majority of projects to a model that is more akin to a free market,” Dr. Mahmoud says. He adds: “As such, the doors are now open to many local and international contractors, consultants, and supply chain to enter the market and contribute to the major development programmes of Vision 2030. “This influx will benefit the KSA construction market by bringing international expertise, capacity, and potentially the investment required to meet the aspirations of the kingdom.” As the construction industry continues to support the kingdom’s economic “FUTURE PROOFING [THE CONSTRUCTION INDUSTRY] REQUIRES THINKING ABOUT WHERE WE NEED TO BE IN TERMS OF ESTABLISHING WHAT ‘GOOD’ LOOKS LIKE FOR SAUDI ARABIA.” Gurminder Sagoo, client director, WSP Middle East The construction sector is powering Vision 2030. | COVER STORY | 38construction sector. The rising costs are related to growing demand, supply chain disruptions, and rising energy and transportation costs, in addition to increasing labour costs due to a [global] skilled labour shortage, inflation, and rising interest rates, which are expected to remain a challenge for the short to medium term and could impact the overall cost of construction and availability of resources.” Meanwhile, Sagoo calls out for the industry “to remember that Saudi Arabia is carrying out lots of projects across lots of sectors, and they’re not small”. He says: “They [projects] are big, and the rate and the breadth in which we’re delivering them – from Greening Riyadh to Maldivian resorts along the Red Sea coast – means that the challenges for the construction sector require diverse perspectives.” “Future proofing thus requires thinking about where we need to be in terms of establishing what ‘good’ looks like for Saudi Arabia, what ‘good’ looks like from an international standards perspective, and what ‘good’ looks like for sustainability when you’ve got exponential development.” On a concluding note, Deed adds: “Since 2015, KSA has recorded strong results in relation to project awards, specifically in the last three years, as they have recorded the highest value of project awards compared to other countries in the Middle East, with infrastructure, entertainment, hospitality, and residential being key players in the construction sector.” It’s fair to say that Saudi Arabia’s journey to date has been nothing short of remarkable in terms of the construction industry and future development to support its cities, sectors, and people. As 2030 approaches, the vision will continue to gain momentum, unlocking opportunities across a wealth of sectors including construction, in support of a better tomorrow for the Kingdom of Saudi Arabia and its people. After all, every success story begins with a vision. transformation as part of Vision 2030 goals, significant opportunities for construction stakeholders have naturally arisen. However, incredible it may be to deliver monumental projects, it clearly comes with its own set of challenges. Ones that the industry must mitigate in order to meet the towering targets. Highlighting some of these challenges, Deeb says: “Rising costs appear to be the most significant challenge, which we have already witnessed over the last two years related to volatility within the Gurminder Sagoo, client director, WSP Middle East. | COVER STORY | 39Next >