- NEOM secures multi-billion-riyal project investment with preferred investors
- Signs one of the largest social infrastructure public-private partnerships globally¹
- Once completed, new communities are expected to accommodate an additional 95,000 occupants
NEOM, Kingdom of Saudi Arabia – NEOM has announced that it has finalized contracts with investors for thefirst phase of its residential communities’ expansion, a social infrastructure project that will house the region’sgrowing workforce. The agreement amounts to a total value of over SAR 21 billion, making it one of the largestinternational public-private partnerships for accommodation².
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 involvedvia 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 hasselected some of the leading companies in Saudi Arabia as partners in delivering and operating temporary communitieswith world-leading services and infrastructure. The newly formed partnerships mark an important milestone for theregion and is a testament to the capabilities of our team and partners who rapidly achieved financial close on arecord amount.”
The agreement paves the way for more private sector participation in the development of NEOM’s infrastructure. Thesecond phase of the temporary residential project is expected to be issued to the market in the coming months. Inaddition to contract awards, NEOM is reviewing interest from investors with plans to shortlist pre-qualifiedparticipants from now.
The agreement paves the way for more private sector participation in the development of NEOM’s infrastructure. Thesecond phase of the temporary residential project is expected to be issued to the market in the coming months. Inaddition to contract awards, NEOM is reviewing interest from investors with plans to shortlist pre-qualifiedparticipants from now.
One of the strategic ambitions for the giga-project has been to attract additional investors to be part of the visionand become an active steward of NEOM’s commercial assets. The multi-billion-riyal investment is further proof of thescale of the project for Saudi Arabia. It will also have a direct economic impact on the region, helping to developlocal competency, advance the use of sustainable solutions in construction, and allow for local job creation.
Several of NEOM’s core developments are ramping up, including THE LINE, Trojena, Oxagon, and Sindalah, asinfrastructure unfolds across the vast region. This latest public-private partnership is a vital step in bringinglarger 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.
Al Mutlaq, Vice Chairman of Alfanar, said, “We are elated to partner with NEOM on this multi-nodalinfrastructure 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 immenselyproud to be NEOM’s infrastructure partners. Togetherwith Almajal and SATCO, we are committed to delivering the infrastructure that will facilitate the wider and rapiddevelopment 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 towitness 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 sustainabledevelopment of the Kingdom.”
The agreement will see an additional 10 communities established across NEOM, adding capacity for 95,000 moreoccupants 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.
- Source: Ijglobal.com. 2022. Transaction Data | IJGlobal - Infrastructure Journal and Project Finance Magazine
- Source: Ijglobal.com. 2022. Transaction Data | IJGlobal - Infrastructure Journal and Project Finance Magazine
