NEOM secures SAR 21 bln investments to build workforce residential communities

After signing the contracts 

NEOM announced today that it has finalized contracts with investors for the first phase of its residential communities’ expansion, a social infrastructure project that will house the region’s growing workforce, adding that the agreement amounts to a total value of over SAR 21 billion, according to a statement.

The agreement will see an additional 10 communities established across NEOM, adding capacity for 95,000 more occupants once the first phase of the project is completed. The temporary accommodations, needed during the construction period of NEOM, are built sustainably as relocatable modular units which can be repurposed once the communities are no longer needed.

Additional to essential services, communities will also include a wide range of lifestyle facilities, such as multi-purpose sports fields, cricket ovals, tennis courts, volleyball courts, basketball courts, swimming pools and entertainment venues, NEOM said.

It also indicated that the preferred bidders for the first phase of the residential communities consist of leading Saudi Arabian companies, Alfanar Global Development, Almutlaq Real Estate Investment Company (AREIC), Nesma holding Co., and Tamasuk involved via two separate partners: Al Majal Al Arabi Group Company and the Saudi Arabian Trading and Construction Company (SATCO).

The agreement paves the way for more private sector participation in the development of NEOM’s infrastructure. The second phase of the temporary residential project is expected to be issued to the market in the coming months. In addition to contract awards, NEOM is reviewing interest from investors with plans to shortlist pre-qualified participants from now.

NEOM also said that this latest public-private partnership is a vital step in bringing larger plans online to their agreed timescales, while several of NEOM’s core developments are ramping up, including THE LINE, Trojena, Oxagon, and Sindalah.