Contract awarded for work on Avenues Khobar project

Shomol Holding

Kuwaiti developer Mabanee has awarded a construction contract worth SAR3.66 billion ($976 million) for the first phase of The Avenues Khobar, a mixed-use project in Saudi Arabia.

The contract was won by a joint venture between Saudi’s AlKifah Contracting Company and Kuwait’s Al Ahmadiah Contracting and the work will be completed in three years, Mabanee said in a statement published on the Boursa Kuwait.

The mixed-use project, covering an area of 197,673 square metres in the Eastern Province, includes a commercial complex, entertainment spaces, towers including hotels, residential apartments, offices, medical facilities and multi-purpose halls.

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The Avenues Khobar has a gross leasable area of more than 168,000 sq m.

The project is being developed by Shomoul Holding, a joint venture between Saudi Al Fozan Holding Company and Mabanee.

A combined $110 billion worth of construction contracts are expected to be awarded in the GCC this year, according to Middle East data provider Meed Projects’ 2023 outlook. Saudi Arabia will account for more than half of the total.

The Royal Institution of Chartered Surveyors in May named Saudi Arabia as one of the world’s most active markets during Q1 2023, with 12-month workload expectations remaining “very strong” and profit margin forecasts “positive”.