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RIYADH: US aircraft manufacturer Boeing has inked an agreement with ������Ƶ to explore partnerships and investments in the advanced air mobility sector.

A  memorandum of understanding was signed in Washington, D.C. by a delegation from the Kingdom’s civil aviation sector, led by Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, according to a press statement. 

Strengthening the aviation sector is one of the crucial goals outlined in ������Ƶ’s Vision 2030 agenda, as the Kingdom is trying to position itself as a global hub of business and tourism by the end of this decade. 

������Ƶ’s National Tourism Strategy aims to attract 150 million annual visitors by 2030, while also increasing the sector’s contribution to the Kingdom’s gross domestic product to more than 10 percent. 

Commenting on the MoU with Boeing, Sulaiman Al-Muhaimidi, GACA’s executive vice president for Aviation Safety and Environmental Sustainability, said: “This partnership with Boeing reflects GACA’s commitment to creating safer, smarter skies through advanced air mobility innovation. The effort further cements ������Ƶ at the forefront of the future of aviation.” 

During the visit, the Saudi delegation visited the Federal Aviation Administration and the headquarters of Boeing in Washington, as well as the Dreamliner facility in Charleston, South Carolina, where the company builds the 787 Dreamliner. 

The authority added that collaboration opportunities in civil aviation, aircraft manufacturing and maintenance services, sustainability, and advanced technologies initiatives were among the many topics discussed during the visit to the US. 

GACA added that the visit also aimed to enhance cooperation with the US in knowledge exchange, technology transfer, and localization of the aviation industry, in line with the Kingdom’s goal of becoming “a global industrial and logistics hub in aviation as part of its economic diversification.” 

������Ƶ’s National Aviation Strategy targets doubling passenger capacity to 330 million annually from over 250 global destinations and increasing cargo handling to 4.5 million tonnes by 2030. 

“By engaging with global aviation regulators and manufacturers, GACA is supporting Vision 2030 objectives to strengthen ������Ƶ’s role as a hub connecting three continents, delivering greater connectivity and travel experiences for the Kingdom’s passengers,” said Al-Duailej. 

He added: “With new Saudi airlines being launched, record aircraft orders, and a focus on innovation and sustainability, the visit highlights the unprecedented opportunities being created by the Kingdom and underscores the strong Saudi–US aviation partnership.” 

������Ƶ’s Riyadh Air, the second flag carrier of the Kingdom, is expected to commence its operations by this year. 

Announced in 2023 by Crown Prince Mohammed bin Salman, Riyadh Air is expected to contribute over $20 billion to the non-oil gross domestic product and create more than 200,000 direct and indirect jobs. 

In June, the airline’s CEO, Tony Douglas, told Bloomberg that it plans to launch a new international destination every two months once operations begin, as it prepares to take delivery of its first Boeing 787 Dreamliner. 

The carrier currently has four Boeing 787 Dreamliners in different stages of assembly at Boeing’s facility in Charleston, South Carolina.

In addition, Riyadh Air announced at the Paris Air Show in June that it will purchase up to 50 Airbus A350 long-range aircraft, with deliveries expected to start in 2030.

RIYADH: The UAE’s construction output is projected to reach $130.8 billion by 2029, a 22 percent increase from 2024, as state-led projects drive growth, according to a new analysis. 

In its latest report, global consulting firm Knight Frank estimated output at $107.2 billion in 2024, with expansion forecast at about 4 percent annually.  

The rise in construction output reflects a broader trend across the Gulf Cooperation Council, where countries are steadily diversifying their economies and reducing reliance on crude revenues. 

A July Knight Frank report projected ������Ƶ’s construction output to hit $191 billion by 2029, up 29 percent from 2024, on the back of giga-projects, housing demand, and office development. 

Commenting on the latest report, Faisal Durrani, partner, head of research of Knight Frank in the Middle East and North Africa, said: “The UAE construction industry is in a period of robust growth and transformation, driven by economic diversification, tourism and strategic infrastructure investments, particularly in housing, transport and smart cities.”  

According to the report, construction accounts for 62 percent of the UAE’s future project pipeline, ahead of transport at 12 percent, power at 7 percent, and water at 5 percent.  

Within construction, mixed-use schemes account for 42 percent, followed by residential real estate at 28 percent, data centers at 9 percent, and hospitality projects at 4 percent. 

The sector supports key national and emirate-level strategies, including “We the UAE 2031,” Dubai’s D33 agenda, the 2040 Urban Master Plan, and Abu Dhabi’s Vision 2030. 

“Abu Dhabi and Dubai dominate the UAE market, accounting for 85 percent of the total value of contracts awarded between 2020 and August 2025 – $151 billion in Abu Dhabi and $129.9 billion in Dubai,” added Durrani.  

In the second quarter of 2025, residential construction costs ranged from 4,200 dirhams ($1,144) per sq. meter for standard villas to 11,000 dirhams for high-end villas, while apartments averaged 4,300 dirhams, according to the Knight Frank report. 

The cost of constructing commercial buildings in the first half of this year ranged from 5,500 dirhams to 7,300 dirhams per square meter. 

Dubai led momentum, with 75 percent of its contract activity concentrated in construction. Oil and gas projects accounted for only 3 percent of awards, highlighting the emirate’s economic diversification.  

Upcoming developments include Palm Jebel Ali, The Oasis by Emaar, and Marsa Al Arab, as well as Therme Dubai, Naia Island, and DAMAC Lagoons’ Venice community, alongside expansions at Dubai Hills Estate. The emirate is also extending its metro system by 15 km with the Blue Line by 2029. 

“Continuous strategic economic development is reshaping Dubai’s commercial real estate landscape and the latest construction output figures reflect the strong fundamentals of the market,” said Moataz Mosallam, partner – Project & Development Services, MENA at Knight Frank.  

He said Dubai’s population is expected to rise from 3.4 million in 2020 to 5.8 million by 2040 under the Urban Masterplan, driving residential growth. He noted that about 8.2 million sq. feet of office space is due by 2028, but demand is likely to outstrip supply, keeping construction activity strong. 

In Abu Dhabi, construction made up 23 percent of awarded contracts, trailing oil and gas at 40 percent. The emirate is pursuing major infrastructure projects under its Economic Vision 2030, including a 150-km high-speed rail link to Dubai due by 2030 and a planned 131-km metro system. 

Major projects include a 150-km high-speed rail link to Dubai, expected to be operational by 2030, and the planned 131-km Abu Dhabi Metro, aimed at supporting the city’s growing population. 

“Some 890 residential units were delivered in Abu Dhabi in the first half of 2025, and approximately 33,074 are under construction and scheduled for delivery by 2029. Apartments are expected to comprise 71 percent of this future supply pipeline,” said Mosallam.  

Office supply is also set to surge, with nearly 175,000 sq. meters scheduled for 2027, following 51,000 sq. meters in 2025 and 43,000 sq. meters in 2026.