$5.6 billion.. "NEOM" attracts investments to house its employees

The Saudi “NEOM” company announced, on Tuesday, the completion of contracts with investors for the first phase of the expansion of its residential communities, with a value of more than 21 billion riyals ($ 5.6 billion).

Infrastructure project

NEOM said in a statement on its website that this social infrastructure project aims to accommodate the growing workforce in NEOM, as the agreements include the construction of 10 housing complexes that will accommodate 95,000 workers in the various NEOM projects by the end of the first phase.

These residential complexes that have been agreed upon will be temporary, and will be built sustainably as modular units that can be reused for other functions.

  Basic services

The new complexes will provide basic services, such as health care clinics and fire stations, in addition to many recreational facilities, such as multi-purpose sports fields, cricket, tennis, volleyball, basketball, swimming pools, and various recreational facilities.

Winning companies

The winning companies for the first phase contracts include a number of Saudi companies, including: Al-Fanar International Development, Al-Mutlaq Real Estate Investment (AREIC), and Nesma Holding, while Tamasuk Holding Company participates in the project through two partners: Al-Majal Al-Arabi Group and the Saudi Arabian Trading and Construction Company (STC).

$ 327 billion

"NEOM" is a giant project located on the Red Sea, in northwestern Saudi Arabia, and aims to build commercial and tourist destinations and residential complexes, and the investments of the first phase amount to 1.2 trillion riyals ($ 327 billion).

The kingdom aims for the city's population to reach one million people by 2030, with that to rise to 9 million in 2045.

In its statement today, "NEOM" said that the temporary housing complexes for workers are an important step to achieve its goals and complete its projects during the announced time period. Where it is currently building its main projects, such as "The Line", "Trogna", "Oxagon", "Sendala" Island, and existing infrastructure projects, with rapid and successive developments.

“NEOM” added that the agreements for the first phase of the residential complexes project, which were signed, pave the way for increasing the participation of the private sector in the development of infrastructure projects in "NEOM".

The scope of the agreements will cover the design, financing, construction, operation and maintenance of the residential complexes.

It is expected that the second phase of the temporary residential complexes project will be offered for awarding in the coming months, while making sure to prepare a list of pre-qualified companies, and assessing the interest of potential investors to win the projects of the new phase.