Diriyah Company Market Research Report

Background

Diriyah Company, established in 2022, is a pivotal entity in Saudi Arabia's cultural and tourism sector. Tasked with transforming the historic region of Diriyah into a global cultural and touristic hub, the company aligns with Saudi Arabia's Vision 2030, aiming to diversify the nation's economy and reduce its reliance on oil. Diriyah, founded in 1727 by Imam Muhammad bin Saud, was the first capital of the Saudi state and holds significant historical and cultural value. The At-Turaif district within Diriyah is a UNESCO World Heritage Site, underscoring its global importance.

Key Strategic Focus

Diriyah Company's strategic focus encompasses:

• Cultural Preservation and Promotion: Restoring and showcasing Diriyah's rich heritage, particularly the At-Turaif district, to both local and international audiences.

• Tourism Development: Establishing Diriyah as a premier global destination by developing luxury hotels, residences, and cultural attractions.

• Sustainable Urban Planning: Implementing eco-friendly and culturally authentic urban development strategies, integrating digital infrastructure and advanced end-user services.

• Economic Diversification: Contributing to Saudi Arabia's Vision 2030 by creating new economic sectors, fostering growth, and offering investment opportunities across various industries.

Financials and Funding

Diriyah Company is a subsidiary of the Public Investment Fund (PIF) of Saudi Arabia, which manages assets exceeding $620 billion. The development budget for the Diriyah region until 2030 is estimated at SAR 236 billion, covering an area of approximately 14 square kilometers. The project is expected to create 178,000 direct jobs and contribute SAR 70 billion directly to the national gross domestic product by the end of the decade.

Pipeline Development

Key projects under Diriyah Company's development include:

• Luxury Hotels: Construction of 38 luxury hotels, including brands like Aman, Oberoi, Six Senses, The Ritz-Carlton, Rosewood Hotels & Resorts, and a Marriott-operated Luxury Collection property.

• Residential Units: Development of 34,000 residential units, including branded residences such as Armani Residences Diriyah, Raffles Residences Diriyah, and The Ritz-Carlton Residences.

• Cultural and Commercial Centers: Establishment of Diriyah Square, a modern destination inspired by Najdi culture, hosting approximately 550 local, regional, and international brands.

• Educational Institutions: Development of multiple educational institutions to serve the future population of Diriyah.

Technological Platform and Innovation

Diriyah Company integrates sustainability into every stage of its planning, design, construction, and operation. The first phase of its masterplan has been awarded platinum-level precertification for the Leadership in Energy and Environmental Design (LEED) accreditation by the United States Green Building Council.

Leadership Team

• Chairman of the Board: HRH Prince Mohammed bin Salman bin Abdulaziz Al-Saud

• Group Chief Executive Officer: Jerry Inzerillo

• Board Members:

• H.H. Bader bin Abdullah bin Farhan Al Saud

• H.H. Prince Dr. Abdulaziz bin Mohammed bin Ayyaf

• H.E. Mr. Ahmed bin Aqeel Alkhateeb

• H.E. Dr. Fahad bin Abdullah Al-Semmari

• H.E. Eng. Ibrahim bin Mohammed Alsultan

• H.E. Fahd bin Abdulmohsen Alrasheed

• Mr. Aiman bin Mohammed Almudaifer

• Mr. Saad bin Abdulaziz AlKroud

Competitor Profile

Market Insights and Dynamics

The global cultural and heritage tourism market is experiencing significant growth, driven by increasing interest in historical and cultural experiences. Saudi Arabia's Vision 2030 aims to increase the contribution of the tourism sector to the kingdom's economy to 10% by 2030, up from 3% in 2019.

Competitor Analysis

Diriyah Company's primary competitors include other Saudi giga-projects such as NEOM, Qiddiya, and the Red Sea Project, all aiming to transform the kingdom's tourism and cultural landscape. Internationally, Diriyah competes with established cultural destinations in Europe and Asia.

Strategic Collaborations and Partnerships

Diriyah Company has formed significant partnerships to enhance its offerings:

• Armani Residences Diriyah: Collaboration with Italian design house Armani to launch 15 limited-edition residences featuring bespoke interiors curated by Giorgio Armani.

• Luxury Hotel Brands: Partnerships with renowned hotel brands such as Aman, Oberoi, Six Senses, The Ritz-Carlton, Rosewood Hotels & Resorts, and Marriott's Luxury Collection to develop luxury hospitality offerings.

Operational Insights

Diriyah Company's strategic considerations include:

• Cultural Authenticity: Ensuring developments reflect and preserve the rich Najdi heritage of Diriyah.

• Sustainability: Implementing eco-friendly practices across all projects to minimize environmental impact.

• Economic Impact: Contributing significantly to Saudi Arabia's GDP and job creation in line with Vision 2030 objectives.

Strategic Opportunities and Future Directions

Diriyah Company's future directions include:

• IPO Consideration: Evaluating an initial public offering on the Tadawul stock exchange by early 2027.

• Expansion of Cultural Offerings: Developing additional museums, theaters, and cultural centers to attract a diverse range of visitors.

• Enhanced Connectivity: Improving transportation links to Diriyah to facilitate increased visitor numbers.

Contact Information

• Website: Diriyah Company

• Operating Hours: 10am to 5pm