Arab News, Wednesday, Jun 07, 2023 | Thul-Qidah 18, 1444
NEOM secures $5.6bn to develop 1st phase of residential communities for workforce
Saudi Arabia:
Developmental work is fast gaining pace at Saudi Arabia’s futuristic city NEOM
as the giga-project finalized contracts worth SR21 billion ($5.6 billion) to
build the first phase of residential communities for the workforce.
In one of the world’s largest public-private
partnership deals for social infrastructure, NEOM signed up some of the leading
Saudi developers to build 10 communities across the smart city that will
accommodate an additional 95,000 occupants upon completion of the first phase.
According to a press release, the preferred
bidders who will invest in developing this first-phase residential project
include Alfanar Global Development, Almutlaq Real Estate Investment Co., Nesma
Holding Co. and Tamasuk Holding Co.
Tamasuk Holding Co. will be investing in the
project through two separate partners — Al Majal Al Arabi Group Co. and the
Saudi Arabian Trade and Construction Co.
The deal goes well with the $500 billion project’s
plan for more private sector participation in developing the city’s
infrastructure.
“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,” said Nadhmi Al-Nasr, CEO of
NEOM.
He added: “The newly formed partnerships mark an
important milestone for the region and are a testament to the capabilities of
our team and partners who rapidly achieved financial close on a record amount.”
The project owner revealed that the temporary
residential projects, used by the workforce during the construction period of
NEOM, will be built sustainably, using relocatable modular units which can be
repurposed once the communities are no longer needed.
These residential communities will also include a
wide range of lifestyle facilities, including swimming pools, entertainment
venues, multi-purpose sports fields, cricket ovals and outdoor courts for other
sports.
“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,” said
Sabah Al-Mutlaq, vice chairman of Alfanar Global Development.
NEOM said the second phase of the temporary
residential project is expected to be issued to the market in the coming months
as it is reviewing interest from investors with plans to shortlist pre-qualified
participants from now.
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.”
The gig-project is being developed to attract
additional investors for its commercial assets. With the signing of the
multibillion-riyal investment, NEOM looks to achieve the project’sgoal of having
a direct economic impact on the region through developing local competency and
creating jobs while advancing the use of sustainable solutions in construction.