From blueprint to impact: three challenges and opportunities in implementing a sustainability portfolio for Saudi Arabia’s mega-projects

Originally published in Construction Week Saudi in April 2025.

Sustainability is at the heart of Saudi Arabia’s mega-projects, which are pivotal to the nation’s Vision 2030 agenda. This ambitious plan aims to diversify the economy, enhance environmental stewardship, and promote social progress. Projects like NEOM, the Red Sea Development, and Qiddiya are not only massive in scale but also pioneers in balancing urban growth with resource conservation to combat ecological degradation and climate risks. How can these projects seamlessly weave sustainability strategies into their portfolios? What challenges might they face along the way, and what exciting opportunities await them?

The integration of Environmental, Social, and Governance (ESG) principles serves as a strategic cornerstone for these projects, directly addressing national priorities under Vision 2030 and the Public Investment Fund (PIF) sustainability requirements. So, let's look at each of these elements.

Environmentally, these projects leverage zero-carbon energy systems, such as NEOM’s solar-powered grids, and circular economy frameworks, accelerating Saudi Arabia’s 2060 net zero targets. Socially, ESG mandates to prioritise inclusive growth through local workforce development, like Diriyah’s heritage conservation programs, and community-driven urban planning, ensuring equitable access to opportunities. Governance wise, transparent sustainability metrics and compliance with global standards such as the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement de-risk investments and position Saudi Arabia as a trusted partner for multinational corporations and green financiers. By institutionalising ESG as operational pillars, these projects transcend short-term gains, creating a blueprint for globally scalable sustainable development that balances hyper-modernisation with ecological stewardship and societal equity. This alignment transforms Saudi mega-projects into global benchmarks, reinforcing the Kingdom’s leadership in redefining growth paradigms for the 21st century.

Beyond compliance: strategic integration of ESG frameworks

Based on my own experience, integration of ESG frameworks requires comprehensive sustainability assessments spanning 1-2 years, evaluating baseline conditions through data-driven audits, lifecycle analyses, reduction roadmaps, and stakeholder engagement. For example, environmental strategies might prioritise renewable energy adoption and carbon footprint reduction, while social initiatives could focus on community empowerment and cultural preservation. Governance ensures transparency through compliance with international standards and adaptive policy frameworks. By harmonising these elements, developers can create resilient and future-ready developments that balance economic growth with planetary and societal health.

Overcoming barriers: from assets and masterplans to a corporate level

Integrating sustainability into different business levels is not an easy thing to do. In fact, addressing sustainability—especially at a masterplan or corporate level—presents unique challenges that can include technical implementation, alignment with local and international standards, and thorough integration within existing organisational levels.

The first challenge: crafting and integrating effective technical plans

The first question that comes to mind is how to craft an effective technical plan while mapping and integrating each technical element into a cohesive strategy while keeping alert to geographical and cultural conditions. Developers must conduct a comprehensive study that seamlessly integrates that into their business operations and aligns with their objectives and targets.

Since the sustainability portfolio encompasses various technical areas, synergy mapping and understanding the interconnections between these areas is crucial to prevent duplication of the work streams and ensure efficient collaboration. This requires in-depth knowledge and experience, leading to a streamlined implementation process.

In addition to that, an effective sustainability plan must take into consideration the specific geographical and cultural conditions of the project site. This involves conducting thorough assessments to understand local dynamics, ensuring that strategies are both relevant and effective.

The second challenge: aligning technical plans with national and international standards

This brings us to the second question which is how to align these technical plans with both national and international standards. A deep understanding of the local market and its regulatory landscape is essential. In Saudi Arabia, there is a strong commitment to transforming the economy, infrastructure, and regulations in line with Vision 2030. The PIF plays a pivotal role in driving this transformation.

Exposure to international standards and guidelines is also crucial, especially given the ambitious goals of positioning the sustainability of these projects on a global scale. By adhering to international best practices, Saudi Arabia can ensure that its mega-projects meet local requirements and achieve global recognition for their sustainability efforts.

The third challenge: setting transformable KPIs

Ultimately, we need to establish transformable Key Performance Indicators (KPIs) that unify objectives from asset-building levels to community master plans, and ultimately to corporate sustainability. To successfully achieve that we need to ensure a top-down communication channel which will serve to convey sustainable targets from top management to the entire organisation, ensuring alignment with organisational goals and commitment to sustainability. Next, it is important to translate these targets into measurable KPIs to monitor progress and ensure accountability. Finally, it becomes about absorbing the different technical team dynamics. In other words, establishing a sustainable technical team that stays informed about recent trends and updates in technical processes, adapting to evolving sustainability practices.

The integration of ESG principles into Saudi Arabia’s mega-projects is not just a compliance requirement but a strategic imperative that aligns with Vision 2030. By embedding sustainability into the core of these projects, Saudi Arabia can achieve economic diversification, environmental stewardship, and social progress. The challenges of technical implementation, alignment with standards, and effective communication can be overcome through comprehensive planning, synergy mapping, and a commitment to continuous improvement.