The Kingdom’s sovereign wealth fund is spearheading the development of the project on the Red Sea coast and work has begun on the first phase, called NEOM Bay.
Monday 09, September 2019
Saudi Arabia has awarded to two Saudi firms contracts to build worker housing for its futuristic mega-city called NEOM, as plans for the $500 billion project move forward despite scepticism from investors, reported Bloomberg.
NEOM stated Tamimi Group and Saudi Arabian Trading & Construction Company won contracts to finance, build and operate three residential areas with capacity to house 30,000 people. The areas will be part of a so-called ‘Construction Village’ which NEOM later plans to expand to accommodate more than 100,000 residents.
Along with plans to sell shares in Saudi Aramco, NEOM is a centrepiece of Crown Prince Mohammed bin Salman’s Vision 2030 plan to end the kingdom’s dependence on crude and diversify the economy.
NEOM did not disclose how much the contracts were worth.
Nadhmi Al-Nasr, the Chief Executive Officer of NEOM, said, “The awarding of these contracts is another milestone in our journey to turn the NEOM dream into a reality, building a giga-project the size of NEOM is a great challenge that requires manpower to settle there for years to come.”
In January 2019, NEOM obtained approvals from authorities in Saudi Arabia to establish a closed joint-stock company.
The project is set to have new cities with extensive infrastructure that includes a network of airports, an advanced seaport as well as industrial areas and innovation centres to unlock the potential of a knowledge-based economy and range of world-class tourist destinations.