The local Abdullah AM Khodari Sons has signed an estimated $207.8m contract with Saudi Arabia’s Housing Ministry for infrastructure works for housing developments in several locations around the kingdom.

The local contractor will provide infrastructure works at locations including Buraidah, Al-Rass, Al-Shammassia, Al-Badaye, Al-Shnan and Hail.

Saudi Arabia’s Housing Ministry was formed in 2011 to oversee the government’s housing programme, which includes building 500,000 new homes for Saudi nationals in the coming years to cope with increasing demand. It is estimated that Riyadh will require more than 1.5 million new homes by 2015 to avoid a major shortfall.

In late 2011, the ministry appointed US-based Parsons International to manage the first phase of the programme, which accounts for about 135,000 houses. In February, the ministry received bids from contractors for the scheme to build 2,000 residential units for the Prince Fawad housing development in Jeddah.