Webuild Secures $600mn Retail Contract as Saudi Heritage Project Expands

Full story and sources

Diriyah Company announced on 14 July 2025 a US$600 million (SAR2.249 billion) construction contract with Salini Saudi Arabia, part of Webuild, for Diriyah Square. The package covers 73 buildings and 400 retail units. The announcement does not separately establish the exact award-decision date.

Editorial update, 19 October 2026: The client and scope have been corrected; unsupported commentary in the historical text below is not verified and must not be relied upon.

Sources: Webuild; Saudi Press Agency reporting the company announcement; Diriyah Company.

Superseded historical text

The text below is retained from the original publication on 1 June 2026. It is superseded by the corrected facts above. Its anonymous quotations, commentary and predictions are not verified and must not be relied upon.

Italian construction group Webuild, through its Saudi subsidiary Salini Saudi Arabia, has secured a $600mn contract to construct more than 400 retail units within Diriyah Square, marking another major milestone in the kingdom’s efforts to transform the historic district into a global commercial and tourism hub.

The award reflects Riyadh’s continued willingness to channel billions of dollars into projects linked to culture, hospitality and consumer spending despite growing pressure on state finances.

The retail development forms part of the wider Diriyah masterplan, a $63bn scheme intended to attract tens of millions of annual visitors through a mix of heritage tourism, luxury hospitality, residential districts and entertainment venues. Company officials said the new retail zone would combine traditional Najdi architectural features with high-end commercial space aimed at international brands, restaurants and leisure operators seeking exposure to Saudi Arabia’s expanding consumer market.

Executives in the Gulf property sector said the contract highlights Saudi Arabia’s strategy of using retail and tourism infrastructure to stimulate private-sector activity and diversify away from oil dependence. “Retail-led urban development is becoming central to Riyadh’s economic planning,” said one regional investment adviser. “The kingdom wants to create destinations where people live, spend and stay longer rather than simply visit.”

The award is also another sign of the increasingly prominent role being played by European contractors in Saudi Arabia’s giga-project ecosystem. Market commentators said foreign groups remain attracted by the sheer scale of procurement opportunities. Informed sources said several international firms were continuing to pursue joint ventures and strategic partnerships in anticipation of additional Diriyah packages.

Contractors and consultants expect further contract awards across Diriyah over the next year, including hospitality, mobility and infrastructure packages tied to the district’s expansion. For Webuild, the latest contract strengthens its position in the Gulf market.