South Korea's unlisted Hanwha Engineering & Construction said in a statement on Thursday it had won a $7.25 billion order from Iraq to build a new town in the country.

The company will build 100,000 houses in the town, near the Iraqi capital Baghdad.

Under the contract signed with the government's National Investment Commission, Hanwha Engineering and Construction Corp will be in charge of engineering, procurement and construction for the project.

Construction will take seven years, said the firm.