NEOM secures $5.6bn for initial phase of workforce residential communities.
Developmental work is rapidly progressing at NEOM, Saudi Arabia’s futuristic city, as the giga-project finalizes contracts worth $5.6 billion to construct the first phase of residential communities for the workforce.
In one of the largest public-private partnership deals for social infrastructure, the city has enlisted prominent Saudi developers to build 10 communities across the smart city, which will accommodate an additional 95,000 occupants upon the completion of the first phase.
Notable companies involved in this initial phase of the residential project include Alfanar Global Development, Almutlaq Real Estate Investment Co., Nesma Holding Co., and Tamasuk Holding Co., as announced in a press release.
Tamasuk Holding Co. will invest in the project through two separate partners, Al Majal Al Arabi Group Co. and the Saudi Arabian Trade and Construction Co.
This agreement aligns with the city’s plan to increase private sector involvement in the city’s infrastructure development, which is part of the $500 billion project.
Nadhmi Al-Nasr, CEO of NEOM, expressed his satisfaction with the selection of leading Saudi companies as partners in delivering and operating temporary communities with world-class services and infrastructure. He described the partnerships as a significant milestone and a testament to the capabilities of the NEOM team and its partners, who achieved financial close on a record-breaking amount.
NEOM revealed that the temporary residential projects, utilized by the workforce during the construction phase of NEOM, will be built sustainably using relocatable modular units that can be repurposed once the communities are no longer needed.
These residential communities will feature a wide range of lifestyle facilities, including swimming pools, entertainment venues, multi-purpose sports fields, cricket ovals, and outdoor courts for various sports.
Sabah Al-Mutlaq, Vice Chairman of Alfanar Global Development, expressed excitement about partnering with NEOM on this transformative infrastructure project, emphasizing their commitment to delivering high-quality solutions in a sustainable manner.
NEOM announced that the second phase of the temporary residential project is expected to be introduced to the market in the coming months. The project is currently reviewing investor interest and plans to shortlist pre-qualified participants.
