Five practical strategies shaping Saudi Arabia’s giga-projects.
As Saudi Arabia’s giga-projects such as NEOM, Qiddiya, and the Red Sea Project redefine the global construction landscape, efficient cost management has become as vital as visionary design. To meet the ambitious goals of Vision 2030, companies involved in these mega-developments are pioneering innovative strategies to maximize value while minimizing waste.
Here are the top five cost-saving strategies shaping construction in the Kingdom, along with the industry leaders helping drive them forward.
1. Embrace Value Engineering Early
Companies like AECOM, a global infrastructure consulting firm, are working with NEOM to apply value engineering from the earliest design stages. By analyzing alternative systems and materials, AECOM helps ensure that futuristic urban development’s balance high performance with cost efficiency,without compromising sustainability or durability.
2. Optimize Design with Technology
At Qiddiya Investment Company, design consultants such as DAR Al-Handasah and engineering firm AtkinsRéalis are leveraging Building Information Modeling (BIM) to coordinate complex structures. BIM allows teams to anticipate clashes, reduce rework, and streamline construction, ultimately delivering massive entertainment and cultural facilities more efficiently.
3. Adopt Modular and Prefabricated Solutions
The Red Sea Global (RSG) development has embraced modular construction to minimize environmental disruption and accelerate project timelines. Partnering with companies like Katerra and Red Sea Modular, RSG is reducing reliance on on-site labor while ensuring high-quality finishes produced in controlled off-site facilities.
4. Source Materials Strategically
Saudi giga-projects also benefit from strategic procurement managed by leading contractors such as Saudi Binladin Group and Nesma & Partners. By negotiating bulk supply contracts for steel, cement, and advanced building systems, these companies secure cost savings, ensure consistency of materials, and mitigate supply chain risks.
5. Focus on Lifecycle Costs, Not Just Initial Savings
Companies like Arup and WSP Middle East play a key role in advising NEOM and Diriyah Gate projects on sustainable design. Their expertise in smart grids, energy-efficient systems, and resilient infrastructure ensures that cost savings extend beyond construction, lowering operational and maintenance expenses for decades to come.
Together, these strategies showcase how global and local companies are reshaping construction economics in Saudi Arabia. By leveraging innovation, technology, and smart planning, they are proving that building for the future can be both visionary and cost-effective.
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