The Jeddah Tower, expected to be the first 1-kilometre-tall (3,281 ft) building and the world’s tallest building in the making, will serve as a magnet for a surge in global investment in Saudi Arabia, attracting both international and domestic stakeholders to the Kingdom, industry experts said.
The ambitious project, projected to be 180 meter (591 ft) taller than the reigning title holder for the world’s tallest building, Burj Khalifa, when completed, will also help establish Saudi Arabia to be a major force in the global real estate market, they said.
The tower project is slated for completion in 2028.
“The impact of Jeddah Tower will extend far beyond its architectural grandeur. The construction of such an iconic structure will be a catalyst for transformative change within the Kingdom’s real estate and broader economic sectors,” Sankey Prasad, Chairman and MD, Middle East and India, Colliers, a leading global diversified professional services and investment management company, told Arabian Business.
“These types of landmark projects have historically been key drivers of urban development, creating attractive environments for businesses, residents, and tourists alike,” he said.
Farooq Syed, CEO of Dubai-based Springfield Properties, said as the Middle East region continues to expand its influence on the global stage, projects like the Jeddah Tower will complement Dubai’s established position as a global hub, fostering increased connectivity, collaboration, and economic opportunity across the region.
Other industry and real estate sector experts said the Jeddah Tower project is about much more than just vertical ambition but will ensure that Saudi Arabia remains at the forefront of economic transformation.
Jeddah Tower to mark next level of real estate development in Saudi Arabia
Sector experts said the ambitious Jeddah Tower project could mark the next level of real estate development in Saudi Arabia, kicking off a wave of new projects and multi-billion investments in the sector – both in the commercial and residential segments.
It will also further accelerate Saudi authorities’ efforts to create unparalleled opportunities for growth across a range of industries through a slew of sweeping reforms, strategic investments, and a wave of mega-projects to enhance its infrastructure, they said.
The Colliers’ regional top executive said as Saudi Arabia accelerates toward its ambitious Vision 2030, the real estate sector has swiftly emerged as a cornerstone of the Kingdom’s strategy for long-term sustainability and economic diversification.
The real estate landscape, in particular, has seen transformative shifts that are redefining the very fabric of Saudi Arabia’s economy and urban identity, he added.
“Among the most ambitious and exciting of these developments is the Jeddah Tower, a monumental project that stands as a powerful symbol of Saudi Arabia’s determination to modernize and diversify its economy.
“This towering feat of engineering and design will not only add a breathtaking architectural landmark to the Kingdom’s skyline but will also serve as a critical driver of economic growth and development,” Prasad said.
The Springfield Properties’ chief executive said the Jeddah Tower, the centerpiece of the 5.3-million-square-meter Jeddah Economic Company City, not only highlights the Kingdom’s drive to attract international investors, but also reaffirms its commitment to sustainable, future-focused growth.
The project will also cement the Kingdom’s position at the forefront of urban innovation, he said.
Project to redefine standards for commercial and residential developments in the country
Significantly, the Jeddah Tower project implementation comes at a time when the Saudi real estate market is seeing rapid expansion, involving both government and private, including international, investments.
The country’s real estate market is projected to reach a massive $248 billion by 2030 from the estimated $170 billion in 2023, driven by a surge in demand for housing, rapid urbanization, massive government investments in real estate and infrastructure projects, including the construction of new cities, and surging demand for commercial and industrial spaces following the leadership’s efforts to diversify the economy.
Amidst the on-going developments, the Jeddah Tower could serve as a focal point for international companies looking to establish a presence in the country as well as in the thriving hub of Jeddah, industry insiders said.
The ambitious project will also redefine the standards for commercial and residential developments in the region and the country, they said.
“The revival of the Jeddah Tower project signals Saudi Arabia’s unwavering ambition to redefine global real estate benchmarks,” Syed said.
“This milestone comes amid a wave of visionary real estate developments in Saudi Arabia, reflecting the excitement and momentum surrounding the nation’s economic transformation agenda,” he said.
Prasad said as Saudi Arabia continues its ambitious push to position itself as a major global player in real estate, the Jeddah Tower is poised to play an instrumental role in this evolution.
He, however, pointed out that as with any monumental project, the successful realization of the Jeddah Tower will depend on a number of critical factors.
“Ensuring the timely completion of the tower, maintaining high construction quality, and adhering to the Kingdom’s stringent sustainability standards will be crucial to the project’s success,” he said.
Addressing environmental concerns and creating robust regulatory frameworks, besides prioritizing worker welfare will also be essential to mitigating risks and ensuring the project’s long-term sustainability, the Colliers’ regional head said.
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