Diriyah Gate CEO: Half of Cost Will Be Paid By Foreign Investors

30.10.2024 - 15:53 / skift.com / Josh Corder

Diriyah Gate, one of Saudi Arabia’s largest and costliest projects, has been funded so far by the nation’s sovereign wealth fund, PIF. But Diriyah Gate Development Authority group CEO Jerry Inzerillo is confident at least half of its $64 billion budget will ultimately be covered by foreign investors.

“This morning I met with an Italian investor who’s doing two hotels and an apartment complex with us,” Inzerillo told Skift on the sidelines of the Future Investment Initiative (FII) in Riyadh. “We [Diriyah] are building those hotels, but the investor is taking out that equity. Then we had a Colombian [investor] who wanted to invest in a fund to fund all of our [37] hotels. Big numbers, we’re talking almost $2 billion. Then we have the Emiratis coming, the Kuwaitis, the rest of the GCC.”

Inzerillo added: “We’ve already spent $15 billion of the $64 billion. We’ll spend the whole 64 but I’m very confident at least half of that will be taken out by foreign investment by 2030.”

It’s a lofty goal, considering the Kingdom as a whole had $26 billion worth of foreign investment last year, according to Minister of Investment Khalid A. Al-Falih on stage at the same event.

Al-Falih said: “FDI [foreign direct investment] is ahead of target. Last year we recorded $26 billion in FDI. Foreign investors in Saudi Arabia are voting with their money and their feet. The number of international companies set up in Saudi is 10x what it was before the Vision [2030] was announced.”

Inzerillo previously told Skift that Diriyah is on track to be completed in 2030, in time for the World Expo in Riyadh that year.

Some of the money will be come from big investors, and some will come in much smaller pieces. The launch of branded residences in Diriyah is an example of this.

As is often seen in Dubai, Diriyah has been selling properties that are branded with luxury hotel groups. Ritz-Carlton, Oberoi, Capella, Baccarat and other branded apartments and villas are all being sold right now.

“We had 120 Ritz-Carlton apartments, we kept a few in our pockets for important people, but we’ve sold over 110. We just had the co-CEOs of Oberoi in Diriyah and we have 10 branded villas, eight of which are sold. Baccarat residences are on sale, and Capella is on sale. We’re doing well on the sales side. Those will probably be occupied by 2026.”

In July, Diriyah headed to the Harrods department store in London to pitch these properties to international buyers. A highlight of the event was the showcase of 350 residences.

Inzerillo’s comments come at a time when media is increasingly scrutinizing how the Saudi government is spending its money. Inzerillo spoke with Financial Times this month about how his tourism development is being “very, very mindful”