The newly inaugurated $25 billion Riyadh Metro is set to have a significant impact on Saudi Arabia’s economy. Carrying 3.6 million passengers daily in Saudi Arabia, the grand-scale project has emerged as a game-changer for sustainable urban travel, facilitating seamless mobility between different parts of the country, including business districts.
The project, highlighted as the world’s biggest driverless metro, marks a significant milestone in the Kingdom’s ambition toward its strategic Vision 2030 and its aspirations toward becoming a global manufacturing and industrial hub.
What does the multi-billion dollar project bring to the Kingdom’s economy, and how does it surpass the global standards of grand-scale projects? Find out in this article.
Riyadh Metro Network Accelerates Economic Impact
The implementation of the Riyadh Metro is part of a broader approach to urban infrastructure development and planning that aligns with national goals to achieve the co-benefits of transforming urban mobility while maintaining the desired economic growth outcomes.
It is estimated that the project will yield a direct return of SAR 3.5, both directly and indirectly, through fuel savings and operational activities. The total cost of the project stood at SAR 93.75 ($25 billion)—based on this premise, the economic dividends are expected to amount to add up to SAR 281.25 billion.
The idea of the Metro was born out of a need to decrease the vehicular load on Riyadh’s roads in light of rapid urbanization and a projected population growth of 9.6 million by 2030. The urgency arises as Riyadh continues to be a global hub for sectors including construction, finance, and entertainment.
For many multinational corporations (MNCs), establishing a regional headquarters (RQ) in Riyadh functions as a foundational step that facilitates access to unique, once-in-a-lifetime investment and partnership opportunities and positions the business for strategic growth and expansion.
In fact, the Kingdom is currently home to RHQs for over 540 MNCs. The vibrancy of the city’s business landscape has amply demonstrated the need for continued expansion of the Riyadh Metro to reduce travel time and increase productivity; this ensures that the project remains a viable long-term investment, creating a ripple effect that contributes positively to the economy.
The introduction of the metro demonstrates the Kingdom’s capabilities to undertake grand-scale projects with remarkable efficiency and precision in execution.
To put things in perspective, the Sydney Metro, Australia’s biggest rail system, spanning 113 kilometers, took 23 years to complete. It recently opened its doors to the public. Albeit bigger in scale with a combined length of 176 kilometers, the Riyadh Metro was implemented only over 11 years.
Riyadh Metro: Unlocking Saudi’s Green Economy and Sustainable Growth
The benefits of the Riyadh Metro go far beyond convenience. The $25 billion project catalyzes a holistic macro and socioeconomic transformation, laying the groundwork for sustained industrial growth and bringing about a multitude of benefits.
For one, widespread metro will play an important role in reducing urban motor vehicle emissions. Projections indicate that the Riyadh Metro will decrease daily car trips by approximately 250,000, translating to a reduction of around 400,000 liters of petrol consumption each day.
This directly plays into the Kingdom’s broader environmental goals of cutting down carbon emissions by 278 million tons annually by 2030. Sustainable principles are integrated into all aspects of the flagship project, from the construction of stations to the operation of trains.
For context, the metro stations are powered by renewable energy. The entire project itself runs on clean energy. Beyond the green economy, one beneficiary sector is real estate. The improved connectivity will catalyze the establishment of new commercial and residential areas.
The accessibility provided by metro stations will help expand the industrial portfolio of the capital city by encouraging mixed-use developments around key stations and fostering transit-oriented development (TOD).
With an operational network of 176 kilometers across 85 stations, the Riyadh Metro is considered the world’s longest driverless metro. The implementation of the Riyadh Metro has not only demonstrated Saudi Arabia’s capability to undertake large-scale infrastructure projects but also provided a blueprint for sustainable metro systems globally.
With plans afoot to expand this project, Saudi Arabia is set to attract a greater influx of foreign businesses bringing their innovative solutions. Earlier in December, it was announced that the Metro will undergo a €20 billion expansion in partnership with French companies.