Abu Dhabi, UAESaturday 16 November 2019

Saudi Arabia's Neom signs deals with contractors for construction village

Al Tamimi Group and Satco will build accommodation for up to 30,000 workers

Neom chief executive Nadhmi Al-Nasr (left) signs contracts for the city's new construction village with Al-Tamimi Group and SATCO. Courtesy Neom
Neom chief executive Nadhmi Al-Nasr (left) signs contracts for the city's new construction village with Al-Tamimi Group and SATCO. Courtesy Neom

The company responsible for delivering Saudi Arabia’s $500 billion high tech city, Neom, awarded contracts to two companies to develop, finance and build a construction village that will accommodate up to 30,000 workers who will build the futuristic city.

Dammam-based Al Tamimi Group will develop two residential areas - each of which will have a capacity to house about 10,000 workers. Saudi Arabian Trading & Construction Company, Satco, will build a third village with the same capacity. The companies will operate the villages for a 10-year period.

“The awarding of these contracts is another milestone in our journey to turn the Neom dream into a reality,” said Nadhmi Al Nasr, chief executive of Neom. “Building a giga-project the size of Neom is a great challenge that requires manpower to settle there for years to come and we are keen on creating the best environment for those who will work and live there,” he added.

Neom is the flagship project of Saudi Arabia’s post-oil diversification plan known as Vision 2030 that seeks to reduce the kingdom's reliance on hydrocarbons. The zone is located in north-western Saudi Arabia and is set to include territory from the Egyptian and Jordanian borders, spanning a total area of 26,500 square kilometers. It is being built on a site that is more than 35 times the size of Singapore and will contain over 450km of coastline.

Neom will house areas dedicated to future technologies in sixteen sectors including biotech, food, manufacturing and technology, among others. Neom's contribution to the kingdom’s GDP is projected to reach at least $100 billion by 2030.

The project is being managed by Saudi Arabia’s Public Investment Fund and seeks private sector investment from companies around the world.

The construction village will contain green areas with orchards, vegetable plots and ornamental gardens, as well as sports facilities including cricket and soccer pitches, gyms, and courts for tennis and basketball, among other facilities.

Updated: September 9, 2019 10:07 AM

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