NEOM has finalised contracts with investors for the first phase of its residential communities' expansion. The agreement is worth over SR21 billion and is an impressive contribution to the mega project in northwest Saudi Arabia. This makes it one of the largest international public-private partnerships for accommodation.
Leading Saudi Arabian companies are the preferred bidders for the first phase. These include companies like Alfanar Global Development, Almutlaq Real Estate Investment Company (AREIC), Nesma Holding Co, Al Majal Al Arabi Group Company, and the Saudi Arabian Trading and Construction Company (SATCO).
A KEY MILESTONE IN NEOM’S DEVELOPMENTS
NEOM's CEO, Nadhmi Al-Nasr, stated that partnering with these companies is a key milestone. It expresses the capabilities of NEOM's team and the ambitions it has. The agreement also opens doors for increased private sector involvement in NEOM's infrastructure development.
NEOM'S VISION AND ECONOMIC IMPACT
NEOM aims to attract extra investors to support its vision and contribute to Saudi Arabia's economic growth. The investment will help foster local expertise, promote sustainable construction solutions, and generate job opportunities. These aspects will all have a direct economic impact on the region.
PROGRESS IN CORE DEVELOPMENTS
NEOM's core developments are progressing as infrastructure unfolds across the region. These include works on The Line, Trojena, Oxagon, and Sindalah Island. So, this public-private partnership is a crucial step in implementing larger plans within the agreed timescales. This partnership covers the design, finance, construction, operations, and maintenance of the housing communities.
EXPANSION OF COMMUNITIES
The agreement involves the building of 10 extra communities in NEOM. These extra communities will provide space for 95,000 more occupants upon completion of the first phase. These sustainable temporary accommodations are relocatable modular units. So they will be repurposed when no longer needed.
Despite the temporary nature of these communities, their services will extend far beyond essential services. There will be a range of lifestyle facilities, including sports fields, cricket ovals, tennis courts, volleyball courts, basketball courts, swimming pools, and entertainment venues.
OVERALL PROSPECTS OF THE RESIDENTIAL INVESTMENTS
NEOM's achievement in securing significant residential investments marks a key milestone in the development of the mega project. With the support of leading Saudi Arabian companies, NEOM is well on its way to achieving its vision of creating a sustainable living city in Saudi Arabia. The project's progress will not only contribute to economic growth but also advance the region's infrastructure and promote job creation.