A new metropolis is rising from the desert sands an hour north of Riyadh, representing a more than 100 billion riyal ($27 billion) investment by Saudi Arabia. Known as Khuzam, the development is a cornerstone of the kingdom's strategy to address housing affordability and attract foreign investment, featuring thousands of single-family homes that resemble American suburban communities.
Key Takeaways
- A new city named Khuzam is under construction north of Riyadh with an investment exceeding $27 billion (100 billion riyals).
- The project's primary goals are to provide affordable housing and open the real estate market to international buyers.
- Khuzam is a key component of Crown Prince Mohammed bin Salman's broader economic diversification plan.
- The development's design, featuring thousands of single-family homes, is reminiscent of American suburban landscapes.
A New City Emerges from the Desert
Driving north from the bustling center of Riyadh, the landscape gradually transforms. The familiar sand dunes begin to recede, replaced by the structured grid of a new city taking shape. This is Khuzam, an ambitious project that stretches across the horizon.
The development is one of the largest of its kind in the region, with a total investment value of over 100 billion Saudi riyals, equivalent to approximately $27 billion. The project is designed to create a complete urban environment from scratch, with a focus on single-family homes that cater to a modern lifestyle.
Observers have noted the distinct architectural style, which mirrors the layout and feel of suburban communities commonly found in the United States. This design choice appears deliberate, aimed at creating a familiar and appealing environment for both local and international residents.
A Strategic Location
Situated about an hour's drive from the capital, Khuzam's location is strategic. It offers a solution to the urban density of Riyadh while remaining connected to its economic hub. This placement is critical for its success as a residential and investment destination.
Tackling a Global Housing Challenge
The core mission behind Khuzam is to address the pressing issue of housing affordability. This is a challenge not unique to Saudi Arabia; major cities from New York to Sydney are grappling with rising property prices that place homeownership out of reach for many.
By developing a large-scale, master-planned community, the government aims to increase the housing supply significantly. The intention is to stabilize market prices and provide more accessible options for a growing population. This initiative is a direct response to domestic demand for affordable, quality housing.
The project represents a fundamental shift in Saudi Arabia's approach to urban development and real estate. It moves beyond simply building houses to creating integrated communities designed for long-term sustainability and growth.
Attracting International Investment
Khuzam is not just a domestic housing solution; it is also a clear signal to the global investment community. The project is part of a wider effort led by Crown Prince Mohammed bin Salman to open up and diversify the Saudi economy.
By welcoming foreign investors and property buyers, the kingdom is seeking to bolster its non-oil economy and create new revenue streams. This move is a significant step in liberalizing a real estate market that has traditionally been more restricted.
Economic Diversification Goals
This real estate initiative aligns with the broader goals of Saudi Vision 2030, which aims to reduce the kingdom's dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism.
The success of Khuzam in attracting overseas capital could serve as a blueprint for future developments. It tests the appetite of international investors for Saudi real estate and could pave the way for further market reforms.
The Future of Saudi Urban Living
As construction continues, Khuzam offers a glimpse into the future of urban living in Saudi Arabia. The emphasis on planned communities, green spaces, and modern amenities is designed to appeal to a new generation of homeowners.
The development is more than just a collection of houses; it is an attempt to build a self-contained city. This includes the necessary infrastructure for schools, healthcare facilities, retail centers, and recreational areas, creating a holistic living environment.
The project's scale and ambition are immense. Its completion will not only reshape the physical landscape north of Riyadh but could also fundamentally alter the dynamics of the country's real estate market for years to come.
