Bids Submitted for $1.1 Billion Riyadh Mixed Use Development, Thee Erth, in Al Yasmin

Contractors have submitted bids for the estimated SR4.2 billion, $1.1 billion, main construction package for Thee Erth, a high end mixed use project in Riyadh’s Al Yasmin district. The scheme includes a Raffles hotel, Sofitel branded serviced residences, and an MGallery villas resort alongside offices, apartments, and retail space. Foster and Partners is the architect, and Accor has been lined up to operate the hospitality components.

The Importance of Thee Erth in Riyadh's Construction Landscape

The construction landscape in Riyadh is witnessing multifaceted transformations owing to substantial investments in infrastructure, residential projects, and hospitality services, by both local and international stakeholders. Thee Erth is a prime example, capturing the essence of mixed-use development with a spatial footprint of 60,000 square meters.

Artistic expression: High angle view of Thee Erth mixed-use site, showcasing its extensive footprint.

This multi-faceted project includes a luxurious 230-key Raffles hotel, a 250-key Sofitel serviced residence, and a 60-villa MGallery resort. Such diversification in offerings is crucial to meeting the growing demand for both business and leisure accommodations within a rapidly urbanizing environment. By presenting a mix of hotels, residential apartments, office spaces, and retail outlets, Thee Erth is set to redefine the neighborhood and enhance the overall livability in Riyadh.

One cannot underestimate the long-term benefits of mixed-use developments. These projects often result in vibrant communities where residents and visitors alike can live, work, and play. The creation of spaces that facilitate interaction among different user groups promotes economic activity, which in turn fuels demand and bolsters property values.

Project snapshot

• Location, Al Yasmin, Riyadh

• Budget, about SR4.2 billion, $1.1 billion

• Components, 230 key Raffles hotel, 250 key Sofitel residences, 60 villa MGallery resort, offices, apartments, retail

• Plot size, about 60,000 square metres

• Status, bid deadline in September, bids now submitted

Conceptual design rendering of Thee Erth, capturing its modern architectural flare and integration into the community.

How Thee Erth Will Impact Local Industries

As the construction of Thee Erth kicks off, numerous local industries stand to benefit. Construction firms will experience increased demand for materials like concrete, steel, and glass, opening new avenues for suppliers and manufacturers.

Additionally, the project will create various direct and indirect employment opportunities. Skilled laborers, engineers, architects, and project managers will be required to bring this ambitious project to fruition. The economic ripple effect will inevitably support local businesses, from material sourcing to hotel management.

The operational management of Thee Erth will be undertaken by Accor, a renowned global hotel group. This collaboration underscores the high standards of hospitality that the project aspires to achieve. Local service providers in hospitality and tourism sectors can expect to see an influx of clientele, further revitalizing the local economy.

Delivery partners and stakeholders

• Developer, Erth Real Estate, Riyadh based

• Architect, Foster and Partners, UK

• Hotel operator, Accor for Raffles and Sofitel

• Prospective main contractors, prequalified Saudi and international EPCs for high rise and hospitality builds

Eye-level view of a vibrant city skyline, representing the ambitious urban landscape of Riyadh.

Construction scope

• Multiple towers over a shared podium with high end façades and MEP

• Luxury fit out for hotel and branded residences

• Podium retail, structured parking, and landscape works

• District cooling and smart building systems

Timeline

• Tender released in May 2025, new deadline set for 21 September 2025

• Technical and commercial evaluations under way Q4 2025

• Contract award targeted late 2025 or early 2026

• Construction period expected at about 36 months

Strategic importance

Thee Erth adds premium hospitality and mixed use capacity to northern Riyadh and reflects sustained investor confidence in the capital’s real estate pipeline. With Vision 2030 driving demand, high specification projects continue to attract international designers and operators.

Construction opportunities

• Superstructure and façade packages

• High end MEP and low current systems

• Interior fit out for luxury hospitality and residential

• Project management with mixed use and branded hospitality experience

Writer’s opinion

With bids in, Thee Erth is poised to be one of Riyadh’s headline urban projects. The combination of top tier brands, a blue chip architect, and a prime address will make this a competitive award and a strong benchmark for quality in the city’s next wave of mixed use schemes. Firms that can pair delivery speed with immaculate finishes and reliable stakeholder coordination will have the edge.