Saudi’s Sakani starts two projects, provides 8,083 housing units

The Obhur Park project will provide 8,000 apartment units, while the Mogan Village project will offer 83 villa units

Saudi Arabia’s Ministry of Housing-led Sakani programme has launched two under-construction housing projects in the Jeddah governorate, in partnership with the private sector, which will provide 8,083 housing units to eligible citizens.

This raises the number of projects under construction to 14 in the Makkah’s Al-Mukarramah region, which will provide a total of approximately 63,000 housing units.

The initiative is in line with kingdom’s vision to help Saudi families find and own homes through simple and affordable electronic procedures, with immediate entitlement without waiting.

The Sakani programme has called on Saudi nationals wishing to own property in the Jeddah governorate to visit the Sakani website; view the details of the units; and book the residential units electronically, or call the unified call centre (199-090) for inquiries about the two projects.

The Obhur Park project – which is located in the northern part of the Jeddah governorate at the intersection of King Saud and Prince Abdullah Al-Faisal Street – will provide 8,000 apartment-type residential units under construction, on a total area exceeding 1,145km2.

The built-up area of the residential units will range from 125m2 to 256m2, with total price of the units starting from $108,000 (SAR406,000) and monthly instalments starting at $360 (SAR1,355).

The Mogan Village project – which is also located in the northern part of Jeddah on a total area of ​​28,300m2 – will include 83 villa-type residential units under construction, with prices starting from $253,000 (SAR950,160), and monthly instalments starting at $843 (SAR3,167)

The projects will be characterised by the integration of infrastructure and services such as electricity, water, and sewage, as well as sidewalks, lighting, a torrential drainage system, and the availability of services and public facilities.

Saudi Arabia’s Ministry of Housing aims to increase residential ownership among its citizens to 70% by 2030. More than 57 housing projects at various stages of construction are being developed in various regions of the kingdom, according to the state-run Saudi Press Agency.

The Sakani programme provides Saudi nationals with access to residential plots, self-construction residential housing, prefabricated housing units, and under construction housing units, among other options.

Source: www.constructionweekonline.com

Giant Projects in Saudi Arabia Unaffected by Coronavirus

A joint Saudi-US report expected smooth flow of giant projects in Saudi Arabia, despite the challenges imposed by the coronavirus outbreak and the implications of falling oil prices in global markets.

According to the report, published by the US-Saudi Arabian Business Council (USSABC) and a copy of which was obtained by Asharq Al-Awsat, the volume of construction contracts awarded in the past year amounted to 197.1 billion riyals ($ 52 billion).

More so, the Red Sea Development Company is bent on raising the value of the contracts it is awarding to more than double in 2020, from 2.3 billion riyals ($ 613 million) in 2019 to 6.8 billion riyals ($ 1.8 billion) in 2020.

The report also added that the Qiddiya Investment Company recently disclosed plans to accelerate its activities to meet the big opening date scheduled in 2023. This comes with spending estimated at about 19 billion riyals ($ 5 billion). The initial statement of the 2020 budget expected the doubling of spending in 2020 compared to 2019.

The construction sector’s contribution to GDP is another sign of the sector’s revival. In real terms, the construction sector grew by 1.28 percent quarter-on-quarter in the second quarter and by an impressive 4.4 percent year-on-year. As the awarded contracts enter the implementation phase coupled with the Ministry of Finance’s expectation that mega projects will double in 2020, the construction sector will return to being a significant contributor to the Kingdom’s economy.

Despite the major challenges, the USSABC index showed that contract awards were ready to continue moving above the 200-point threshold during the year 2020.

“The value of contracts awarded during the year 2019 witnessed a remarkable increase after years of spending cuts,” USSABC Economist Albaraa al-Wazeer told Asharq Al-Awsat, noting that despite the slight slowdown in awarding contracts during the fourth quarter of 2019, the focus on improving the infrastructure in the Kingdom, and the accompanying boost in private sector participation, the total value of awarded contracts was recorded at 197.1 billion riyals ($ 52.6 billion), the highest annual value since 2015.

Source: www.aawsat.com

Saudi’s construction deals soar to record $52.6bln in 2019

Value of awarded contracts highest in four years, up 95% over a year earlier

The construction sector in Saudi Arabia staged a strong rebound during 2019 as the government unveiled a series of reforms, with awarded contracts for numerous projects hitting their highest value in four years.

Approximately 197.1 billion Saudi riyals ($52.6 billion) in deals were awarded last year, the highest amount since 2015 and marking an impressive 95 percent increase over 2018, according to the US-Saudi Business Council.

Real estate firms emerged as a clear winner, bagging numerous deals throughout 2019, followed by those in the oil and gas sector.

As of the fourth quarter of 2019, the real estate sector captured approximately 12.1 billion riyals ($3.2 billion) in contracts, the majority of which (94 percent) are for the construction of residential projects.

The oil and gas sector recorded the second-highest value of awarded contracts during the same period, with 7.7 billion riyals ($2 billion) in deals.

The water sector landed the third spot, with approximately 6.3 billion riyals ($1.7 billion) in contracts.

According to the US-Saudi Business Council, the numerous initiatives and reforms in the kingdom fueled the growth in the construction sector last year.

“The kingdom’s drive to enhance both physical and social infrastructure capabilities through numerous vision realisation programmes was evident this past year,” the council said.

“These positive developments, which came to fruition in 2019, are expected to expand in the coming years to achieve the kingdom’s medium to long-term Vision 2030 targets,” it added.

Saudi Arabia has recently unveiled a series of reforms and initiatives in line with its economic diversification agenda and objective to open up the market to foreign investors.

Among the largest deal closed last year was the construction of more than 21,000 homes on a 1.41 million-square-metre site in Jeddah, which was awarded by the Ministry of Housing to Laseef Alfajar

The ministry also awarded last year the construction of a housing complex in Riyadh, which will consist of more than 5,000 townhouses and close to 600 apartments, as well as 14 mosques, eight schools and over a dozen gardens in Riyadh.

Source: www.zawya.com

Malaysia’s Eversendai wins $116m worth contracts in Saudi, Morocco

In Saudi Arabia the company won a contract for a facility control centre and an administrative building project

Malaysian contractor Eversendai Corporation Berhad has secured $116m worth of contracts for projects in the Middle East including in Saudi Arabia, Morocco, and other countries.

With the addition of the new contract wins, the company’s outstanding construction order book totalled to all-time high of $631.1m.

According to Eversendai, in Saudi Arabia the company won a contract for a facility control centre and an administrative building project for a “well-known” metro station. Meanwhile, in Morocco the contract was awarded for a 55-storey commercial tower project.

Speaking about the contract wins, executive chairman and group managing director of Eversendai Corporation Berhad, Tan Sri A K Nathan, said: “Our entry into North Africa is another testament of sustaining our fundamental values and capitalising on long established client relationships in delivering projects without compromise.”

According information published on its website, the company was awarded a contract for the a suspension bridge project in King Abdullah Financial District (KAFD) in Saudi Arabia in September 2019.

Source: www.constructionweekonline.com

Saudi’s ACWA Power Signs $2.5bn Deals To Strengthen Uzbekistan’s Energy

The agreements include a 25-year Power Purchase Agreement (PPA) and Investment Agreement – with a total investment value of US$1.2 billion – for the development/construction/operation of a 1500 MW Combined Cycle Gas-Turbine (CCGT) power plant

ACWA Power has announced the signing of three new strategic agreements, potentially worth up to $2.5bn, with The Ministry of Energy of Uzbekistan to amplify power generation and develop technical expertise.

The agreements include a 25-year Power Purchase Agreement (PPA) and Investment Agreement – with a total investment value of US$1.2 billion – for the development/construction/operation of a 1500 MW Combined Cycle Gas-Turbine (CCGT) power plant

The deal also includes an Implementation Agreement worth US$550 million-US$1.1 billion for the building of wind power plants with a capacity of 500-1000 MW

It also includes a Memorandum of Understanding (MOU) for the development of a training centre to enhance technical skills of Uzbek students and professionals

The 1500 MW CCGT power plant shall contribute to Uzbekistan’s fast track ambitious plan to attract foreign direct investment in essential key sectors and the implementation of its energy diversification strategy.

The project will be located in Shirin City in the Sirdarya region and will be developed as a ‘Build, Own, Operate, Transfer’ projects. ACWA Power will take the lead in constructing, engineering, operating and maintaining the plant.

The project has an estimated aggregate worth of US$1.2 billion. The PPA has a 25-year duration, with JSC National Electric Grids of Uzbekistan acting as the sole off-taker. The CCGT plant’s efficiency rate will be in excess of 60% – saving almost twice the natural gas currently used for electricity production. The Investment Agreement for this project is signed with the Ministry of Investment and Foreign Trade.

An implementation agreement worth US$550 million-US$1.1 billion has also been signed with the Ministry of Energy to utilise Uzbekistan’s natural renewable energy sources. The agreement envisages the development, financing, construction, operation and maintenance of a 500-1000 MW wind farm.

The third agreement is an MoU between the Ministry of Energy of Uzbekistan, Air Products & Chemicals and ACWA Power.

This agreement entails training programs to bolster the technical expertise of students and professionals at one or more colleges in Uzbekistan. It will equip potential talent with the tools and knowledge to gradually support a local supply chain for the utilities and chemicals sectors in Uzbekistan.

The agreements reflect Uzbekistan’s growing role in the global energy market, its commitment to energy security and use of the latest technologies. It also demonstrates Uzbekistan is becoming an attractive destination for foreign investors.

“With infrastructure development key to our economic progress, we want the best international expertise to support our ambitious energy goals. We have chosen ACWA Power to be the government’s partner in upscaling Uzbekistan’s energy generation capacity because of their exceptional track record in delivering results,” said Abdulla Aripov, Prime Minister of Uzbekistan.

“Our collaboration with ACWA Power will enable the government to benefit from the strong private sector participation which we believe is vital for Uzbekistan’s ongoing transformation and growth. We look forward to working with ACWA Power and building on this partnership in the future,” Aripov elaborated.

Minister of Energy of Uzbekistan, Alisher Sultanov said: “These newly agreed power projects represent a historic milestone for Uzbekistan and support our mission to strengthen energy security through self-sufficient power sources. ACWA Power’s focus on smart, energy efficient technologies will provide more than 2000 MW of added power and enable us to achieve a more sustainable, secure and affordable energy ecosystem for our country.”

ACWA Power Chairman, Mohammad Abunayyan said: “With our relentless pursuit to align with the pillars of the Saudi Vision 2030 and contribute effectively to achieving its aspirations and goals, we are moving forward on our path of global growth through expanding our geographical footprint and presence in the central Asia. The market in this part of the world is thriving with economic activity that will stimulate private sector investment and participation in the energy sector.

“With our proven track record as a global leader in the sectors of power generation and water desalination, with in-depth knowledge and expertise, we are proud to have been granted this opportunity to build strategic partnerships with the Uzbek government. Our partnership will deepen the friendly economic relations between the Kingdom of Saudi Arabia and the Republic of Uzbekistan, and will allow us to utilize our capabilities to unlock the tremendous growth potential of the energy sector in Uzbekistan.”

Abunayyan noted that the signing of the three agreements with the Uzbek government highlights the pivotal role of the Saudi private sector in the Saudi economy and in fortifying the base of Saudi investments abroad as well as fruitful economic relations between Saudi Arabia and friendly countries.

Abunayyan concluded that the agreements inked with the Uzbek government will contribute to creating job opportunities, developing community and achieving a sustainable future for the country.

Source: www.utilities-me.com

Saudi ministry opens 25,000 housing units for reservation

The under-construction units in the 12 residential projects cost between $66,600 (SAR250,000) and $200,000 (SAR750,000)

Saudi Arabia’s Ministry of Housing has announced that 25,000 under-construction housing units, distributed as part of 12 projects, are now available for reservations.

The initiative is in line with the ministry’s integrated services in the northern and southern regions of the capital city of Riyadh, which are being implemented by qualified real estate developers.

According to the state-run Saudi Press Agency, Saudi citizens can benefit from the initiative by electronically selecting and inspecting the unit’s on the Sakani website, or by visiting a comprehensive residential centre, which permits beneficiaries to complete all procedures from choosing the unit to signing the contract.

The average premium or monthly fee for these units is approximately $400 (SAR1500) riyals, while the prices of the units range from $66,600 (SAR250,000) to $200,000 (SAR750,000).

The under-construction housing units in the 12 residential projects include apartments, villas, and townhouses, with varying designs and prices.

The projects will also provide a residential environment, including cultural, recreational, and sports facilities.

Source: www.constructionweekonline.com

Saudi Arabia awards trade licence to hyperloop developer Virgin

New Ministry of Investment awards licence award after deal to conduct the world’s first hyperloop study on a national level in Saudi Arabia

Saudi Arabia’s newly established Ministry of Investment has presented Virgin Hyperloop One with a trade licence, marking a significant milestone for the California-based developer of futuristic transport technology.

The award was made at the US-Saudi Arabia Business Forum in Washington DC organised by the Ministry, Invest Saudi, the US Chamber of Commerce and the US Commercial Service.

The issuing of the trade licence follows a recent announcement with the Ministry of Transport and the Public Transport Authority in Saudi Arabia to conduct the world’s first hyperloop study on a national level.

Under the agreement, Virgin Hyperloop One will examine viable routes, expected demand, anticipated costs and explore socio-economic impacts.

Dr Majed Al-Qasabi, Minister of Commerce and Media, presented the licence to Tim Wilkinson, executive director, Strategy and Growth at Virgin Hyperloop One in the presence of Princess Reema bint Bandar Al Saud, Ambassador of Saudi Arabia to the United States.

Wilkinson said: “Receiving the trade licence from the Ministry of Investment… marks a significant stepping stone in our commitment to Saudi Arabia. From here we intend to establish a permanent presence that would better enable us to invest in resources in the region and run our local operations.

“The move marks important progress towards the commercialisation of hyperloop technology and could propel the country to the forefront of hyperloop development worldwide.”

Last year, King Abdullah Economic City (KAEC) and Virgin Hyperloop One unveiled results of a study to create a Virgin Hyperloop One Centre of Excellence, which would include an integrated test track, and explored the feasibility of creating a manufacturing center and operating facility.

The findings highlighted the potential to create more than 124,000 high-tech local jobs while driving an estimated $4 billion increase in Saudi Arabia’s GDP by 2030.

Source: www.arabianbusiness.com

Construction begins at the Dammam West ISTP

Construction begins at the first Independent Sewage Treatment Plant Project (ISTP) in the Kingdom of Saudi Arabia in Dammam West. The Notice to Proceed (NTP) allowing the contractors to mobilise and start construction on site has been issued following the execution of relevant project and finance documents by the banking group and the consortium developing the project led by the Metito Group and comprising the companies; “Metito”, “Mowah”, and “Orascom Construction” (the Consortium).

The plant has a designed capacity of 350,000 cubic meters per day and an initial capacity of 200,000 cubic meters per day and will serve the western region of Dammam. The project is the first ISTP to be awarded by the Saudi Water Partnership Company to investors under a Build- Own- Operate-Transfer (BOOT) model and plays an integral part of the plan set by the Ministry to tender similar projects to the investors in different regions across the Kingdom. This is in line with the Kingdom’s “Vision 2030” and the wider initiatives approved by the Cabinet of Ministers to further encourage private sector participation in economic development initiatives.

Rami Ghandour, Metito Managing Director commented: “The Dammam ISTP is a true testament of the Kingdom’s progressive and visionary leadership and a great example of their support to further involving private sector in lifeline mega infrastructural projects. Together with the support from the Saudi Water Partnership Company and the National Water Company, we will develop a project in world-class quality using the most efficient solutions and advanced technology that will guarantee sustainable optimized operations and service excellence. We will develop a working model for other similar projects in the Kingdom and further afield”, added Rami Ghandour.

Sami Alrayes, Mowah Chairman and CEO said: “Today is a milestone for the Saudi PPP sewage programme with the start of construction works in the Dammam West ISTP. Contractors are commencing mobilization and conducting site preparation, surveying, clearing, levelling and fencing confirming the commitment of Dammam West Company for Water in speeding the start of construction works in one of the first projects under this program.”

Osama Bishai, Chief Executive Officer of Orascom Construction, commented, “We are pleased with the financing milestones achieved on this project, paving the way for the start of construction. Orascom Construction’s experience, especially in the water sector, will be key to facilitate the successful execution of Dammam West ISTP. We are excited to play an integral role in this program and look forward to continue collaborating with SWPC and National Water Company.”

Source: www.cbnme.com

Saudi ministry to complete 4,600 units in Riyadh’s Al-Jawan suburb

Saudi Arabia’s Ministry of Housing has announced that 44% of its housing project in the Al-Jawan suburb, located to the north of Riyadh, has been reserved.

The ministry has also confirmed that the suburb will witness the completion of approximately 4,600 units during 2020, which will be prepared for its beneficiaries.

The Al-Jawan suburb is considered a major residential suburb by the Ministry of Housing, as it is located on an area of ​​approximately 10km2, and represents one of the largest housing and development projects that Riyadh is witnessing.

It is located along the Prince Faisal bin Bandar Road, near the King Khalid International Airport and the Princess Nourah Bint Abdul Rahman University, according to the state-run Saudi Press Agency.

The area is also characterised by easy access via King Salman Road and Dammam Road, as well as the integration of its infrastructure, including from water, electricity, and sanitation.

The Ministry of Housing plans to provide more than 20,000 housing units, including apartments, villas, and townhouses, through eight projects implemented by the private sector.

Seven of these projects are available for electronic reservation for Saudi beneficiaries. The projects can accommodate more than 100,000 Saudi citizens.

The Ministry of Housing aims to create a modern society that enables Saudi families to access education, health, shopping, entertainment, and sports with ease and safety.

Source: www.constructionweekonline.com

Saudi’s SEVEN reveals plans to expand entertainment offerings

SEVEN has a “structured development plan to build 20 entertainment destinations, 50 cinemas, and two theme parks”

The Saudi Entertainment Ventures Company (SEVEN) – which is a fully owned subsidiary of the sovereign Public Investment Fund (PIF), and is mandated to invest, develop, and operate entertainment destinations in Saudi Arabia – has revealed plans to expand its network with the construction of additional entertainment complexes in prime locations across the kingdom.

SEVEN will develop entertainment complexes in Jeddah, Makkah, Madinah, Taif, Yanbu, Al-Kharj, Buraydah, Abha & Khamis, the port city of Jazan, Tabuk, Al Hamra, Al Nahda, among other locations in Saudi Arabia.

In addition, SEVEN will bring waterfront attractions to the Dammam and Al Khobar regions.

Each complex will feature varied entertainment choices including cinemas, play areas, rides, F&B offerings, attractions and more.

Speaking at the Saudi Contractors Authority’s Future Project Forum in Riyadh, the chairman of SEVEN, Abdullah Al Dawood, said that the company is building the entertainment ecosystem of the kingdom, having already opened the first cinema in Saudi Arabia in 35 years.

Al Dawood said: “We have a clearly structured development plan to build 20 entertainment destinations, 50 cinemas, and two large theme parks in prime locations across the kingdom.

“We are committed to realising the goals of Saudi Vision 2030 to accelerate the creation of world-class entertainment assets in the kingdom that support economic diversification, create new jobs, and contribute to socio-economic progress. Our complexes will position the kingdom as an entertainment, culture and tourism hub of the region,” he added.

SEVEN has also invited business partners and vendors to join its step forward in shaping the entertainment landscape of the kingdom.

The final names, themes, components, and features of the various entertainment complexes will be revealed in due course.

Source: www.constructionweekonline.com

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