Saudi companies win contracts for workers’ housing in NEOM

Contracts have been awarded to two national companies to build, finance and operate three residential complexes, in one of the first investment opportunities offered to construction companies to work on the NEOM project. (Courtesy of NEOM)
Updated 09 September 2019

Saudi companies win contracts for workers’ housing in NEOM

  • Contracts have been awarded to two national companies
  • The contract allows the companies to operate the housing for 10 years

RIYADH: Saudi authorities have started building accommodation in certain areas in NEOM that will house workers helping to build the new megacity.
Contracts have been awarded to two national companies to build, finance and operate three residential complexes, in one of the first investment opportunities offered to construction companies to work on the NEOM project.
Two Saudi companies, Al-Tamimi Group and Saudi Arabian Trading & Construction Co. (SATCO) won contracts for the construction of the complexes, with a capacity to house 30,000 workers.
The contract allows the companies to operate the housing for 10 years.
The areas will be part of a “Construction Village,” which NEOM plans to expand to accommodate more than 100,000 workers, the statement said. NEOM did not say how much the contracts were worth.
“The awarding of these contracts is another milestone in our journey to turn the NEOM dream into a reality,” NEOM chief executive Nadhmi Al-Nasr said. A project of this scale “requires manpower to settle there for years to come,” Al-Nasr said.
The $500 billion NEOM project will be developed over an area of 26,500 km2 in the north-west of the Kingdom.
It aims to be one of the pillars of the Kingdom’s economic transformation.


S&P downgrades trio of Dubai developers as pandemic hits property and retail

Updated 10 July 2020

S&P downgrades trio of Dubai developers as pandemic hits property and retail

  • Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices

RIYADH: The credit ratings of three Dubai property companies were downgraded by S&P as the coronavirus pandemic hits confidence in the retail and real estate sectors.
S&P Global Ratings reduced the credit ratings for the real estate developer Emaar Properties as well as Emaar Malls to +BB from -BBB with a negative forward outlook, adding that it sees a “weakening across all its business segments” in 2020. S&P also cut its rating for DIFC Investments to +BB from -BBB, while keeping a stable outlook.
Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices, heaping pressure on governments, companies and employees.
The ratings agency expects the emirate’s economy to shrink by 11 percent this year
“The supply-demand imbalance in the realty sector appears to have been exacerbated by the pandemic. We now expect to see international demand for Dubai’s property to be subdued, and the fall in residential prices to be steeper than we had expected, lingering well into 2021” S&P reported.
Despite easing restrictions and the opening of the economy, S&P said that overall macroeconomic conditions remained challenging.
Global travel restrictions and social distancing constraints “significantly weigh on Dubai’s tourism and hospitality sectors” the rating agency reported.
Still, Dubai’s tourism chief was upbeat on the emirate’s prospects when international tourism resumes.
“Once we do get to the other side, as we start to talk about next year and later on, we see very much a quick uptick. Because once things normalize, people will go back to travel again,” Helal Al-Marri, director general of Dubai’s Department of Tourism and Commerce Marketing told AFP in an interview.