Riyadh: As the giga-project finalised contracts worth SR21 billion ($5.6 billion) to construct the first phase of residential communities for the workforce, development work at Saudi Arabia's futuristic city NEOM is quickly picking up speed.
Some of the top Saudi developers have been contracted by NEOM to build 10 communities throughout the smart city, which will have room for an additional 95,000 residents once the first phase of construction is finished. This project is one of the largest public-private partnership deals for social infrastructure in the history of the world.
According to a press release, Alfanar Global Development, Almutlaq Real Estate Investment Co., Nesma Holding Co., and Tamasuk Holding Co. are the preferred bidders who will contribute to the development of this first-phase residential project.
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Through two different partners, Al Majal Al Arabi Group Co. and the Saudi Arabian Trade and Construction Co., Tamasuk Holding Co. will invest in the project.
The agreement supports the $500 billion project's goal of increasing private sector involvement in building the city's infrastructure.
According to Nadhmi Al-Nasr, CEO of NEOM, "NEOM has chosen some of the top companies in Saudi Arabia as partners in delivering and operating temporary communities with cutting-edge services and infrastructure."
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The newly established partnerships, he continued, "mark an important turning point for the region and are a testament to the abilities of our team and partners who quickly achieved financial close on a record amount."
According to the project owner, NEOM's temporary housing projects for the workforce will be constructed sustainably using movable modular units that can be converted into other uses once the communities are no longer required.
Along with a variety of lifestyle amenities, these residential communities will also have outdoor courts for other sports as well as swimming pools, entertainment venues, and multipurpose sports fields.
"We are thrilled to collaborate with NEOM on this multi-nodal infrastructure project and to support NEOM's mission to challenge the status quo of urban living. According to Sabah Al-Mutlaq, vice chairman of Alfanar Global Development, "this is in line with our commitment to deliver high-quality solutions in a sustainable manner."
The second phase of the temporary housing project is anticipated to be released to the market in the upcoming months, according to NEOM, which is currently reviewing investor interest and intends to shortlist pre-qualified participants.
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Tamasuk chairman Mohammed Al-Balwi stated: "We are incredibly proud to be NEOM's infrastructure partners. We are committed to supplying the infrastructure necessary to enable the rapid and extensive development of NEOM along with Almajal and SATCO.
For its commercial assets, the giga-project is being developed to draw in more investors. With the signing of the multibillion-riyal investment, NEOM hopes to realise the project's objective of having a direct economic impact on the area by fostering local expertise, generating employment, and advancing the use of environmentally friendly building practises.