Feasibility of tourism facilities in heritage area, Al Doho

Feasibility of tourism facilities in heritage area, Urban Renewal Masterplan for Riyadh's Al Doho Quarter

 Al Doho: image sourced from http://www.shankland-cox.com

SGS undertook a feasibility study for the development of tourism and related facilities as part of the urban renewal of Al Doho quarter in Riyadh, capital city of Saudi Arabia. The Al Doho area is the original heart of Riyadh with extensive mud-brick buildings that, in many instances, had fallen into a significant state of disrepair. It is one of the most significant heritage areas in Riyadh but it suffered from significant socio-economic disadvantage.

The main objective of the study was to prepare a master plan for the conservation, enhancement and redevelopment of Al Doho, which would respect the important heritage value of the area. SGS's role in this project was to evaluate the feasibility of proposed redevelopments including a hotel, a craft centre with exhibition gallery and shops, a family restaurant and restoration of residences and development of apartments.

The feasibility analysis produced a Net Present Value (NPV) and Internal Rate of Return (IRR) for the overall redevelopment and for each component. The analysis also provided an estimate of the subsidies (if any) required in the initial stages to achieve a NPV of zero. These subsidies represent the investment required by the government to achieve the broader, non-financial benefits related to heritage protection and improved conditions for the existing community that would flow from the redevelopment. SGS was subcontracted to Shankland Cox for this project.