Neom secures $5.6bn to expand workforce housing 

Neom

Saudi Arabia’s smart city developer Neom has secured more than SAR21 billion ($5.6 billion) in financing to start work on the first phase of residential housing for its workforce through a public-private partnership. 

The preferred bidders in the first phase include local contractors such as Alfanar Global Development, Almutlaq Real Estate Investment Company, Nesma Holding Company, and Tamasuk’s two separate partners – Al Majal Al Arabi Group Company and Saudi Arabian Trading and Construction Company.

The scope of the agreements covers the design, finance, build, operations and maintenance of the housing communities, Neom said in a statement.

The deals will result in an additional 10 communities being established across the mega-city, adding capacity for 95,000 inhabitants once the project’s first phase is completed.

The temporary modular units for housing can be relocated and repurposed once the construction works are completed. 

The agreement opens the doors for more private sector participation in developing Neom’s infrastructure. The second phase of the temporary residential project is likely to be issued in the coming months. 

In addition, Neom is reviewing interest from investors with plans to shortlist pre-qualified participants. No further details were given.

The developer added that work on several core developments is ramping up, including The Line, Trojena, Oxagon, and Sindalah.

Neom said last month that more than SAR7.5 billion ($2 billion) has so far been invested in a new port at the $500 billion smart city, with plans to open a new terminal in 2025.

Located on the Red Sea at the crossroads of global trading routes, the port will be a critical enabler for Neom and a catalyst for broader economic development in the region, said Neom CEO Nadhmi Al Nasr.