Saudi ‘Feeding Frenzy Is Over’ for Architects
The AJ examines the effects of the slowdown in Saudi Arabia’s previously unstoppable and cash-intensive development pipeline.
Background on Saudi Arabia's Construction Boom
Just 18 months ago, The AJ questioned whether architects should consider working in Saudi Arabia. At that time, most major UK practices were either establishing local offices or deeply involved in planning large-scale projects, despite a few firms choosing to avoid commissions in the kingdom.
Recent Developments and Government Engagement
In October, Chancellor Rachel Reeves traveled to Riyadh to promote UK business interests, following the lead of previous Conservative governments that controversially supported stronger economic relations with Saudi Arabia.
Reasons Behind the Slowdown
- Falling oil prices
- Rapid expenditure on mega projects leading to financial reassessments
This has resulted in some major developments, including regions of the Neom project, slowing down. Projects are being scaled back, their timelines adjusted, and many are undergoing financial and strategic reviews.
Industry Response
The Financial Times declared, “The Glory Days are Over,” highlighting the decline in consultant hires as mega projects in Saudi Arabia falter.
The AJ continues to monitor these shifts, as the once booming sector faces new challenges.
Author’s Summary
The rapid growth of Saudi Arabia’s development sector has slowed significantly due to financial pressures and shifting priorities, affecting architects worldwide.