NEOM, a mega project being built from the ground up as a living laboratory in in northwest Saudi Arabia on the Red Sea, has announced that it has finalised contracts with investors for the first phase of its residential communities’ expansion, a social infrastructure project that will house the region’s growing workforce.
The agreement amounts to a total value of over SR21 billion ($5.6 billion), making it one of the largest international public-private partnerships for accommodation, the developer said.
The preferred bidders for the first phase of the residential communities consist of leading Saudi Arabian companies, Alfanar Global Development, Almutlaq Real Estate Investment Company (AREIC), Nesma holding Co, and Tamasuk involved via two separate partners: Al Majal Al Arabi Group Company and the Saudi Arabian Trading and Construction Company (SATCO).
Nadhmi Al-Nasr, Chief Executive Officer at NEOM, said: “NEOM has selected some of the leading companies in Saudi Arabia as partners in delivering and operating temporary communities with world-leading services and infrastructure. The newly formed partnerships mark an important milestone for the region and is a testament to the capabilities of our team and partners who rapidly achieved financial close on a record amount.”
The agreement paves the way for more private sector participation in the development of NEOM’s infrastructure. The second phase of the temporary residential project is expected to be issued to the market in the coming months. In addition to contract awards, NEOM is reviewing interest from investors with plans to shortlist pre-qualified participants from now.
One of the strategic ambitions for the giga-project has been to attract additional investors to be part of the vision and become an active steward of NEOM’s commercial assets. The multi-billion-riyal investment is further proof of the scale of the project for Saudi Arabia. It will also have a direct economic impact on the region, helping to develop local competency, advance the use of sustainable solutions in construction, and allow for local job creation, NEOM said.
Several of NEOM’s core developments are ramping up, including The Line, Trojena, Oxagon, and Sindalah, as infrastructure unfolds across the vast region. This latest public-private partnership is a vital step in bringing larger plans online to their agreed timescales. The scope for this agreement will cover elements of design, finance, build, operations, and maintenance of the housing communities.
Sabah Al Mutlaq, Vice Chairman of Alfanar, said: “We are elated to partner with NEOM on this multi-nodal infrastructure project, and to contribute to NEOM’s vision of disrupting the conventional approach to urban living. This is in line with our commitment to deliver high-quality solutions in a sustainable manner."
Mohammed Al Balwi, Chairman of Tamasuk, said: “We are immensely proud to be NEOM’s infrastructure partners. Together with Almajal and SATCO, we are committed to delivering the infrastructure that will facilitate the wider and rapid development of NEOM.”
Faisal Al Turki, President of Nesma Co., said: “At Nesma we have built our reputation by undertaking and executing challenging, critical, and important projects. We look forward to working with the teams at all levels for the realization of this project and the wider NEOM vision.”
Tariq al Mutlaq, Chairman of AREIC, said: “We are delighted to witness the growth of the compelling region of NEOM. The rapid development of their initiatives that support Vision 2030 are in line with our mission for the sustainable development of the Kingdom.”
The agreement will see an additional 10 communities established across NEOM, adding capacity for 95,000 more occupants once the first phase of the project is completed.
The temporary accommodations, needed during the construction period of NEOM, are built sustainably as relocatable modular units which can be repurposed once the communities are no longer needed.
Additional to essential services, communities will also include a wide range of lifestyle facilities, such as multi-purpose sports fields, cricket ovals, tennis courts, volleyball courts, basketball courts, swimming pools and entertainment venues. – TradeArabia News Service