Saudi's New Murabba Development Inks Deal With Tourism Fund To Develop World’s Largest Downtown

Saudi's New Murabba Development Inks Deal With Tourism Fund To Develop World’s Largest Downtown

Public Investment Fund's (PIF) New Murabba Development Company signed a memorandum of agreement with Saudi Arabia’s Tourism Development Fund to create the world’s largest downtown in Riyadh, according to a statement released Friday.

Terms of the deal

The two entities will work closely to create New Murabba, which they described as a “modern, most advanced, transformative downtown experience in the world” that will serve as a model for future urban development and contribute towards Riyadh’s evolution, in line with Saudi’s Vision 2030.

As part of the agreement, the Saudi tourism fund will provide direct financing opportunities in collaboration with its network of partners and contracted investors, which solidifies New Murabba Development’s access to the Tourism Development Fund’s expertise, networks and investment capabilities.

The project aims to transform Saudi Arabia into a leading investment destination and enhance Riyadh’s status on the global stage as one of the commercial and financial capitals of the world. It also aims to make the place a go-to tourism and hospitality hotspot distinguished by a thriving tech ecosystem, an enabling business environment and a diverse and welcoming society.

Crucial quote

“Our goal is to make New Murabba a truly exceptional place to live, work, play, and visit,” Michael Dyke, New Murabba Development CEO, said in a statement.

Centerpiece

Dyke said the Mukaab, a proposed architectural project to build a 400-meter in height cube-shaped skyscraper in Riyadh, will serve as the centerpiece of the New Murabba downtown.

Established in 2022, the New Murabba Development Company is wholly owned by the kingdom’s sovereign wealth fund PIF, with its board of directors chaired by Crown Prince Mohammed bin Salman.

Non-oil sector

Saudi Arabia will continue to focus on boosting its non-oil economy, Minister of Economy and Planning Faisal Alibrahim said at the 2022 Davos conference.

In October 2021, Saudi’s crown prince pledged to eliminate carbon emissions within the country by 2060. One of the country’s plans to reduce planet-warming emissions is to introduce more electric vehicles on its roads by 2030.

Revenues from the energy sector still make up a major chunk of the Gulf state's economy, but having EV assembly plants and battery factories is already a big step toward diversifying its income. The International Monetary Fund (IMF) had earlier cautioned oil-producing nations in the region against relying too much on the commodity’s price boom.