Kuwait's Mabanee has made a significant announcement that its Saudi subsidiary has secured contracts worth approximately $300 million (KWD 92 million) for the second phase of The Avenues Riyadh, according to a recent regulatory filing on Boursa Kuwait. The subsidiary has signed two major construction contracts for this phase. The first contract, valued at $171.8 million (KWD 53 million), has been awarded to Alghanim International Al Saudia for the construction of three towers. The second contract, worth $126.4 million (KWD 39 million), has been signed with Al-Ahmadia Contracting & Trading Company for the construction of two additional towers.
Mabanee has projected that the entire project will be completed within a 24 to 33-month timeframe from the commencement date. The financial impact of these contracts will be reflected in Mabanee's financial statements in alignment with the project's execution schedule. The Avenues Riyadh is a grand mixed-use development covering 390,000 square meters, with a total built-up area of 1,870,000 square meters. Strategically located in North Riyadh at the intersection of King Salman Road and King Fahad Road, the project is poised to open its doors in the first quarter of 2026. It is expected to be the largest commercial mall in the Middle East, featuring luxury and lifestyle hotels, residential apartments, and office spaces.
The estimated total cost of The Avenues Riyadh project stands at a whopping $4.6 billion (SAR 17.2 billion), underscoring the scale and ambition of this development. Saudi Arabia’s Vision 2030, aimed at economic diversification, has significantly boosted the kingdom’s construction and real estate sectors, reducing its reliance on oil and gas. Since the launch of the National Transformation Plan in 2016, the country has embarked on real estate and infrastructure projects worth an estimated $1.3 trillion. The sector experienced a 4% annual growth rate between 2023 and 2024, as highlighted by global property consultancy Knight Frank.
However, the total value of commissioned projects saw a year-on-year decline of $85 billion, amounting to $164 billion in 2024. Despite this, the pipeline of upcoming projects reached $249 billion, according to the latest Saudi Giga Projects Report released in September. Saudi Arabia's extensive $1.3 trillion real estate development plan includes over 1.05 million residential units, more than 362,000 hotel rooms, over 7.4 million square meters of retail space, and over 7.7 million square meters of office space, reflecting the country's ambitious growth trajectory.
