Completed infrastructure and open assets are making it easier to attract private developers and foreign investors to Saudi Arabia's gigaprojects, said speakers at MEED's Shaping Mega Projects conference in Riyadh on 28 September.

Dale Chadwick, acting chief executive officer of King Salman Park Foundation, said investor appetite had grown as construction advanced. The foundation has received 23 expressions of interest from private developers, and Chadwick said that number was increasing.

"What the private sector is looking for in terms of investment is surety of what we're doing," he said. "As soon as a private developer comes in and sees what we're doing, they're blown away. The closer we get to completion, the greater the appetite."

He said interest from foreign direct investors was also rising, and that a deal the foundation expects to award soon involves foreign investment.

The foundation times its private asset awards to follow infrastructure and landscaping works. "They don't have to take the leap of faith that we are going to execute on our side of the equation," said Chadwick. "They can see it."

Partnership model

Mohamed Saad, president of DevCo at Diriyah Company, said investors wanted a relationship rather than a transaction.

"The first thing they're looking for is partners," he said. "They're looking for master developers who act as true partners to them."

Saad said master developers acted as the catalyst, investing in infrastructure and anchor assets before the private sector joins. He said investors also wanted healthy supply and demand, and a market able to absorb commercial assets in phases.

He said Diriyah had prioritised delivery over publicity. "People want to see to believe," said Saad. "We are delivering on the ground, and when people come and visit, they're pleasantly surprised."

Chadwick said developers also wanted flexibility, with some seeking more height or a different mix of uses. "We ourselves have a plan, but in order to make that more attractive, we have to be prepared to make adjustments as well," he said.

Ben Edwards, group head of cost, commercial and procurement at Red Sea Global, said the operating track record of The Red Sea and Amaala was now its strongest pitch to investors.

"We've gone past the field of dreams approach of 'if you build it, they will come'," he said. "We've built it now. The tourists are coming."

Edwards said Red Sea Global was at various stages of negotiation on several joint venture opportunities for future projects.

The developer's utilities public-private partnership (PPP) at The Red Sea is fully operational. Its Amaala equivalent is in final testing and commissioning and is due to be operational before the end of the year. Edwards expects the model to spread.

"I'm sure the PPP market will continue to expand into the different infrastructure sectors here, and then lead into other sectors, from schools to hospitals," he said.

He added that Red Sea Global's environmental credentials were a selling point for investors.