Saudi Vision 2030 driving over $1 trillion in construction investment
Meanwhile, Saudi Arabia is undergoing a historic transformation - its Vision 2030 agenda driving over $1 trillion in construction investment.
From NEOM to Qiddiya, The Red Sea Project and Diriyah Gate, the country's appetite for innovation is not just rhetoric - it's policy, stated Vladimir Vlahovic, the Founder of Solventry, a Austrian consultancy specialising in building construction spinoffs, joint ventures and innovation strategies.
Vlahovic believes Saudi Arabia's construction sector should leverage spinoffs and JVs to accelerate innovation. It highlights how Saudi-European partnerships are helping turn proven technologies into industry benchmarks.
European firms often struggle to scale innovation at home. Regulatory complexity, fragmented approvals, and a risk-averse procurement culture make internal spinoffs and ConTech startups hard to sustain.
By contrast, Saudi Arabia offers: A long-term investment horizon; Government-driven localisation incentives and Mega-projects that are open to proven, yet under-deployed technologies.
For firms looking to break out of the pilot trap, Saudi Arabia offers a testing ground at unprecedented scale, he stated.
Austria's Rhomberg Group created CREE GmbH to bring its hybrid timber modular system to market. Despite strong sustainability credentials and technical reliability, adoption in Europe remained limited.
In 2023, Portuguese contractor Casais became a shareholder in CREE. By 2025, Casais partnered with Saudi-based Nahaz Investment Group to launch Casais Entirez, a JV focused on delivering modular, sustainable buildings aligned with Vision 2030.
In December 2024, the NEOM Investment Fund partnered with Denmark's GMT Robotics to bring robotic automation into rebar cage assembly - one of the most labour-intensive and hazardous activities in construction, said Vlahovic.
GMT's robotic systems enable high-precision off-site fabrication, reducing on-site labour by up to 90% and improving safety and speed.
This collaboration aligns with NEOM's goal to establish new global standards for industrialised construction.
Although already present in the region, German tower crane manufacturer Wolffkran entered into a joint venture with Saudi Arabia's Zamil Group in early 2024 to establish a local manufacturing facility in Riyadh.
The JV will produce 300 cranes to support the Kingdom's growing construction needs.
These case studies demonstrate a clear pattern: when European innovation meets Saudi delivery ambition, well-structured partnerships enable scale.
According to Vlahovic, properly designed JVs and spinoffs offer operational autonomy with corporate support; shared investment risk and accelerated market entry as well as localisation, cultural integration, and long-term scalability.
Some of the key success factors for joint ventures in Saudi Arabia include:
*Strategic Fit – Solutions must address Vision 2030 priorities such as digital infrastructure, housing, industrialisation, and automation.
*Operational Autonomy – JV teams should lead market strategy, client relationships, and execution—without excessive oversight from parent firms.
*Cultural Integration – Partnerships must blend startup agility with corporate discipline and combine international standards with local insight.
Vlahovic pointed out that Saudi Arabia was not just building cities - it was also redefining how construction should be delivered.
"With Vision 2030 and the 2034 FIFA World Cup driving record-breaking investment, the demand for scalable, tech-enabled construction delivery is growing rapidly," he stated.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
21-07-2025
- Gulf Insider
Saudi Arabia Hits Reset On NEOM: Did Costs For ‘The Line' Spiral Out Of Control?
Saudi Arabia is officially reassessing its $500 billion NEOM mega-city, with its most iconic component—'The Line'—now under a strategic review. The move, confirmed by NEOM, has sparked renewed scrutiny over whether the costs and complexity of the futuristic project are spiraling beyond control. NEOM described the strategic checks as 'common practice' for long-term developments, but the timing of the announcement coincides with growing reports of budget strain and operational slowdowns across the kingdom's Vision 2030 infrastructure program. According to Bloomberg , the Public Investment Fund (PIF), which backs NEOM, has hired external consultants to assess the viability of the linear city. While the exact scope of the review has not been disclosed, industry experts suggest it likely includes evaluations of technical feasibility, financing options, and projected economic impact. In a separate development reported by Semafor , NEOM is preparing to lay off a significant portion of its workforce and relocate more than 1,000 employees from the remote construction site to Riyadh. The planned move marks a reversal of a prior policy under former CEO Nadhmi Al-Nasr, who had mandated that staff remain based at the site itself. Employees moved to the capital are expected to lose on-site benefits such as housing and meals, effectively resulting in a pay cut, according to people familiar with the matter who spoke to Semafor . The scope and timeline of The Line are also reportedly being scaled back. CNBC , citing sources close to the project, reported that development has been frozen on large sections of The Line, with the number of active construction workers cut by 35% since April 2025. The report attributed the cutbacks to a wider liquidity crunch that has hit Vision 2030 projects, prompting government agencies to prioritise financial stability over rapid expansion. Vendors have reportedly faced delayed payments, and capital originally earmarked for energy-sector projects is being reallocated. One of the affected sub-projects could be Oxagon's green hydrogen facility, which is 80% complete and jointly developed by Air Products, ACWA Power, and NEOM. Though still progressing, CNBC sources suggest that financial pressures are increasingly affecting NEOM's ability to maintain its ambitious timelines. Perhaps the most eye-catching development is the estimated final cost of NEOM. According to an internal report seen by The Wall Street Journal , the total price tag has now ballooned to $8.8 trillion—a staggering leap from the original $500 billion projection. The WSJ report also revealed that the project is now expected to reach its so-called 'end-state' by 2080. The first phase, expected to cost $370 billion, may only be completed by 2035. The dramatic increase in costs and delay in timelines is likely to place even greater pressure on Saudi Arabia to attract private investment—something the government has repeatedly stated it is banking on to complete the futuristic city. Also per Bloomberg , Saudi officials have scaled down some of NEOM's most ambitious targets. Instead of 170 kilometres of linear development, only 2.4 kilometres of The Line are expected to be built by 2030. The targeted population figure for the same year has also been reduced from 1.5 million to just 300,000. Despite the downsizing, Saudi authorities still maintain that The Line will eventually span 100 kilometres and remain a centrepiece of the NEOM vision. The project, personally championed by Crown Prince Mohammed bin Salman, remains a key pillar of the kingdom's plan to diversify away from oil through technology, tourism, and innovation. But as the reassessment continues and fiscal constraints mount, NEOM's evolution may no longer mirror the sci-fi blueprint initially envisioned. Instead, it could unfold as a much more gradual—and costly—experiment in urban design.
Syyaha
12-06-2025
- Syyaha
SAUDI'S BOLD BET: ACCELERATING VISION 2030 THROUGH INTELLIGENT INNOVATION
By Ismail Ibrahim, Sales Director & General Manager for CEMEA at SUSE Saudi Arabia is undergoing a once-in-a-generation transformation, one that is as much about digital intelligence as it is about economic diversification. At the heart of this transition lies artificial intelligence (AI), now a cornerstone of Vision 2030. More than just a technological upgrade, AI is evolving into a system-wide force, reshaping how the Kingdom educates its people, governs its institutions, builds its infrastructure, and positions itself on the global stage. The foundation for this AI revolution was laid with the creation of the Saudi Data and Artificial Intelligence Authority (SDAIA), an organisation designed to align national policy, research, and investment around emerging technologies. With a vision to become a global leader in AI, Saudi Arabia has set ambitious goals: by 2030, AI is projected to contribute $135 billion to the country's GDP, accounting for 12.4% of its national output. What makes this vision credible is not just the scale of ambition, but the pace of execution that's already underway. A pivotal moment came in May 2025 with the launch of Humain , a sovereign AI company backed by the Public Investment Fund (PIF) and unveiled by Crown Prince Mohammed bin Salman. Humain reflects Saudi Arabia's intent to not just adopt AI, but to create its own AI infrastructure and capabilities from the ground up. Central to this initiative is the development of Arabic-language foundational models, secure data capabilities, and next-generation computing infrastructure, ensuring that AI reflects and serves the cultural and strategic priorities of the region. Yet this transformation isn't just confined to infrastructure and capabilities. Saudi Arabia is taking a whole-of-society approach to AI, embedding it in education, workforce development, and national mega-projects. Giga-projects like NEOM are integrating AI into urban planning, autonomous transport, and civic systems from the ground up, creating living laboratories for intelligent design. Even in healthcare, AI is poised to unlock $27 billion in economic value by 2030, improving everything from diagnosis to hospital operations to individualised patient care. Crucially, Saudi Arabia is not overlooking the ethical dimensions of AI also. The Kingdom ranks amongst the top three nations globally for AI ethics readinessreadines, a reflection of its early investments in responsible AI frameworks. From privacy-preserving technologies to transparent governance mechanisms, the country is positioning itself as a leader not only in innovation, but in how innovation is deployed and regulated. As the ecosystem matures, the role of enterprise technology providers becomes increasingly central. This is where companies like SUSE, known for its enterprise-grade open-source platforms, have an important opportunity to contribute. In a significant move aligning with Vision 2030, SUSE signed a Memorandum of Understanding (MoU) with Saudi Arabia's National Housing Company (NHC) at LEAP 2025. This strategic partnership aims to accelerate digital transformation within the Kingdom's housing sector, leveraging SUSE's expertise in open source solutions to enhance scalability, security, and efficiency in housing projects. SUSE's solutions are well-positioned to support Saudi Arabia's ambitions, —whether in national data centres, sovereign cloud environments, or smart city deployment, providing the backbone on which innovation can reliably thrive. What's unfolding in Saudi Arabia is more than an AI strategy; it's the blueprint of a digital nation. Through bold public investment, international collaboration, and a clear focus on values and talent, the Kingdom is demonstrating what's possible when a country commits not just to using AI, but to helping shape its future. For global leaders in technology, investment, and policy, Saudi Arabia is no longer just a market to watch; it's becoming a partner in building the next intelligent economy.
Trade Arabia
11-06-2025
- Trade Arabia
Cisco powers secure infrastructure for the AI era
Cisco today (June 11) unveiled new innovations to help companies adapt and transform in the artificial intelligence (AI) era. Enterprises are under pressure to accelerate secure AI adoption and drive value from AI investments, said Cisco in a statement. To help organizations meet these opportunities, Cisco continues to reimagine the datacenters and workplaces of the future, it stated. "Cisco is delivering the critical infrastructure for the AI era—secure networks and experiences, optimized for AI that connect the world and power the global economy," remarked Jeetu Patel, President and Chief Product Officer, Cisco. "We're witnessing an unprecedented surge in innovation as organizations embrace agentic AI to automate workflows and solve complex problems. Cisco has a rich history of helping companies run their infrastructure; today, we're building on that foundation to power the next generation of AI," he added. Patrick Milligan, chief information security officer, Ford Motor Company, said: "Agentic AI is being used across Ford's business, from design to engineering to manufacturing and for customer support." "As we build, deploy, and manage sophisticated AI capabilities at scale, Cisco's networking and security solutions are an important part of the overall technology infrastructure," he explained. At Cisco Live, Cisco unveiled a wide range of new products and enhancements to help customers navigate the shift to agentic AI, including: Workplaces for the age of AI: Creating an intelligent workplace relies on modern network infrastructure that adapts to increased traffic, ensures always-on access, and delivers robust security. Meanwhile, organizations must empower people to work smarter and more effectively than ever. To meet these demands, Cisco announced new devices to power campus, branch, and industrial networks, and AI-powered unified management to help organizations move past reactive workflows to conducting autonomous, proactive network management. Simplified Operations for the age of AI with AgenticOps: Cisco is unveiling multiple AI-driven solutions to empower IT teams with simplicity, and automation, including Cisco AI Canvas, an industry-first generative user interface for real-time collaboration between network and security operations teams, and the Cisco AI Assistant, which provides conversational control across the Cisco suite. Data Centers for the age of AI: Cisco unveiled continued innovation in its compute and network solutions for datacenters to support agentic AI, which places a premium on network bandwidth, latency, and power efficiency. To help drive adoption of AI solutions to strengthen the power grid, Cisco is joining the EPRI Open Power AI Consortium. Security for the age of AI: Robust security has never been more critical, as enterprises navigate the complexity of a growing number of applications, a highly distributed and mobile workforce, and sophisticated AI-driven threats. Cisco is introducing innovations across its Hybrid Mesh Firewall and Universal Zero Trust Network Access (ZTNA) offerings; announced two new Firewalls, the 6100 series and 200 series. Digital Resilience at the Core: Several AI innovations, including enhanced capabilities in Splunk Observability Cloud and Splunk AppDynamics, along with deeper integrations between Cisco and Splunk solutions, are helping customers gain greater visibility into network health and performance. Key updates include a bidirectional integration between Splunk Observability, Cisco ThousandEyes Assurance and Cisco Enterprise Networks, enabling more resilient, insight-driven digital operations. Unified Management for the age of AI: The company is previewing Cisco Cloud Control, a new unified management platform spanning Cisco's networking, security, and observability portfolios. Cisco Cloud Control will offer a cohesive experience anchored by AI native tools like Cisco AI Canvas, and the Cisco AI Assistant.
