The Elephant in the room: The Operational Maturity Dilemma in Saudi Arabia’s Giga-Projects (but not limited to)

The Elephant in the Room

Saudi Arabia’s Saudi Vision 2030 reform program represents one of the most ambitious economic and social transformations in modern history, aiming to pivot the Kingdom away from hydrocarbon reliance toward a technology-driven, knowledge-based economy (Al-Roubaie, 2025; Kiani, 2026). At the heart of this blueprint are the “giga-projects” (colossal developments like NEOM , The Red Sea , and Qiddiya | القدية ) which serve as the physical manifestations of this national pivot.

For the first decade of Vision 2030, global attention naturally focused on the engineering, construction, and financing feats required to bring these concepts to life. However, as the milestone year of 2030 approaches, the central challenge has, or ought to, fundamentally shift. The ultimate metric of success is no longer whether the Kingdom can build these futuristic marvels, but whether it can operate them efficiently.

This transition exposes a critical pivot point: are Saudi giga-projects operationally mature, or is there an operational readiness gap threatening long-term sustainability?

Defining Operational Maturity in Mega/Giga Projects

Operational maturity in the context of large-scale projects refers to the institutional capacity to seamlessly transition an asset from the EPC (Engineering, Procurement, and Construction) phase to the O&M (Operations and Maintenance) phase.

Historically, #Mega-Projects worldwide suffer from a “construction bias,” where teams optimize for delivery speed, budgets, and engineering milestones, while treating operations as a distant afterthought. For smart cities or luxury, sustainable tourism destinations, operational maturity requires a harmonious integration of asset management, digital infrastructure, regulatory agility, and human capital readiness.

The key takeaway is simple: operations must be embedded early, even before concept and design, to ensure that what is being built has a realistic, sustainable purpose beyond architectural ambition.

A Fundamental Equation: Operational Maturity vs. Operational Immaturity

There is evidence of both operational maturity and immaturity across Saudi Arabia’s giga-project landscape.

For example, NEOM and The Red Sea Project have adopted early-stage ORAT (Operational Readiness, Activation, and Transition) frameworks, embedding operational considerations into inception phases. This ensures operators have a seat at the design table, reducing design and MEP inefficiencies that would otherwise compromise long-term maintenance and service quality. However, the extent to which these frameworks are consistently and fully implemented remains an open question.

Saudi Arabia’s positioning at the forefront of emerging technologies and AI further strengthens this equation. Predictive maintenance, data-driven operations, and early warning systems significantly enhance operational readiness and technical resilience.

A major structural advantage is also institutional and policy agility. Operational maturity requires supportive regulatory frameworks, particularly during transformational phases. Saudi Arabia has demonstrated considerable flexibility by establishing special economic zones, introducing distinct legal jurisdictions, and creating dedicated entities such as the Saudi Tourism Authority | الهيئة السعودية للسياحة to streamline post-construction operations, among others.

On the other side of the equation lies a human capital bottleneck. The scale and complexity of these projects have outpaced the local labor market’s operational capabilities. Operating smart cities, green hydrogen facilities, and hyper-luxury resorts requires highly specialized skill sets across all operational layers. This challenge is further amplified in unprecedented contexts such as NEOM , where there is no direct global precedent at comparable scale.

In addition, contractual and organizational fragmentation remains a risk factor. Disconnected processes between program management, construction teams, and operational entities can create inefficiencies that threaten overall project coherence.

Finally, supply chain and logistics present significant challenges, particularly in remote and environmentally demanding locations, even where they have been partially addressed.

Clarifying a Common Misconception: What “Operations” Really Means

At this point, it is important to address a common misconception about the term “operations.”

Operations in any organization are not limited to day-to-day activities. It is not only maintenance (Facility Management), not only logistics and procurement (Supply Chain), and certainly not just front-of-house or back-office functions.

By definition, operations encompass the entire organizational system from marketing, market research, and strategy execution, to finance, HR, production, hospitality, facilities management, supply chain, and support functions.

In short, operations represent the functional core of any organization, and in many cases, they precede its formal establishment.

Some refer to this as strategy, others as executive management, but in practice it is best understood as operations management.

A Fragmented Maturity Landscape

From this perspective, Saudi Arabia’s giga-project ecosystem can be seen as a fragmented maturity model: some components are advanced, others are in transition, and a few are still emerging.

In summary:

• Strategy & Governance (macro): Mature

• Technology: Mature

• Human Capital: In Transition

• Supply Chain: In Transition

• Investments: In Transition

• Strategy (micro): Developing

• Marketing: Nascent / Not yet fully established

Closing Perspective

Saudi Arabia is undergoing a once-in-a-century transformation across multiple dimensions.

It is investing not only financial capital for return on investment, but also pursuing deep structural, social, and economic change to establish itself as a global player across multiple sectors.

If we consider these efforts as a broader form of “investment,” then the following conceptual framework applies:

Investment Life-Cycle

The space between the two lines represents the current state of the investment. Depending on the specific project, its position may be closer to either end of the spectrum.

What is certain is that the full value of these investments has not yet been realized.