Giga-projects

Saudi infrastructure provider signs on for The Rig giga-project

August 21, 2024, 12:55 PM

The Rig infrastructure Saudi giga-projects — A concept image of The Rig. Analysts said the outlandish giga-project could cost more than $2 billion

Project may cost over $2bn
‘Firm commitment’ by IMI
2027 target date

Saudi adventure tourism project The Rig has contracted a local company to develop the infrastructure for one of the kingdom’s more outlandish giga-projects.

The Public Investment Fund (PIF) company said International Maritime Industries (IMI) had formally agreed to provide maritime logistics and infrastructure for the project, which has an ambitious target date of 2027.

The Rig involves two floating entertainment centres on oil rig platforms off Saudi Arabia’s east coast.

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They will include three hotels with over 800 rooms, restaurants, and 70 attractions including a 6,000-person multi-purpose arena that could accommodate dance raves and an adventure park described as offering “extreme sports”.

IMI’s CEO Abdullah Al-Ghamdi’s recent visit to the site was described in a statement issued by The Rig as a “firm commitment” to work starting on the project.

Lower than expected oil prices and low foreign direct investment have put pressure on PIF to find the cash for giga-projects and dozens of other initiatives as part of its $1.25 trillion portfolio. The fund had 168 subsidiaries at the end of 2023, mostly local.

Saudi Arabia’s top economic body recently reviewed the progress of the economic reforms, including the huge tourist and entertainment projects, raising speculation of changes.

The kingdom is pushing for tourism to cover 10 percent of GDP by 2030. While around half of 27 million visitors in 2023 were pilgrims, the country has focused on affluent adventure and wellness tourism in locations such as AlUla and Red Sea Global.

While no public price tag has been put on The Rig, project analysts estimate it at over $2 billion – cheap by comparison with the $500 billion price tag on Neom or $63 billion for the Diriyah district in Riyadh.