Saudi Gazette report

TABUK – The NEOM company on Tuesday started construction works of residential complexes dedicated to housing of project workers. The first phase of the project will house 30,000 workers who will be moving to the NEOM zone to build different areas of the project.

The ceremony of launching the construction works was held in the presence of NEOM Chief Executive Nadhmi Al-Nasr; Chairman of Al-Tamimi Group Tariq Al-Tamimi; and Chairman and CEO of Saudi Arabian Trading & Construction Co. Malik Antabi. Antabi’s company won contracts for the construction of the residential complexes.

Al-Nasr has directed the project developers to focus on local content and increase the amount of inputs and products made in Saudi Arabia in support of the local economy and in line with the Kingdom’s intention to increase the proportion of local content in major projects, in line with the directives of the Board of Directors headed by Crown Prince Muhammad Bin Salman. He also directed the companies to create jobs for the people of the NEOM area, pledging at the same time to support these companies in all possible ways to achieve this goal, as human development is an important pillar of the giant project.

The contracts awarded on Sept. 8 allow the two national companies to operate the housing for 10 years. This is considered the first investment opportunity listed by the $500 billion megacity.

NEOM has awarded contracts to finance, build and operate its Construction Village to these companies. The village is set to house 30,000 workers who will move to the site to develop various areas of the NEOM project. It will later expand to house more than 100,000 workers, NEOM said in a statement earlier this month. “The awarding of these contracts is another milestone in our journey to turn the NEOM dream into a reality,” Al-Nasr said in the statement.

The residential area will provide workers with a lifestyle aimed at creating a healthy working environment in line with NEOM’s objectives. “We were keen to provide high life quality for whoever moves to work and live there and provide an investment opportunity for developers in line with NEOM’s objectives to attract investors.”

Al-Tamimi Group will build two residential areas inside the village with a housing capacity of 10,000 residents each, while Saudi Arabian Trading & Construction Company (SATCO) will build a third one with the same capacity. The two developers will operate the village for 10 years.

The Crown Prince had earlier announced that the first town in NEOM would be ready by 2020, and every town would be complete by 2025. “We are planning to build these housing projects for the people who will build NEOM with the highest standards of quality and to set a benchmark for all future projects,” said Tariq Al-Tamimi. NEOM currently has $500 billion in planned financial support from the Public Investment Fund (PIF). It is expected to be an eco-friendly project with state-of-the-art technology. The residential area is an extension of other logistics facilities to facilitate the movement of construction workers to the project site.