Neom to tender $8bn community housing PPP deal

31 January 2024
Neom finalised the $5.6bn first wave of its community villages PPP project in June last year


Register for MEED's guest programme 

Saudi Arabia’s Neom is preparing to issue the request for proposals (RFP) for a contract to develop the second wave of its public-private partnership (PPP) housing deals for worker accommodation.

According to a source familiar with the project, the second-wave community village scheme will include up to 20 villages, each comprising about 10,000 accommodation units.

MEED understands the budget for each village could be $400m-$450m, which means the overall project could be worth over $8bn. Each village has a built-up area of 240,000 square metres.

Neom finalised the SR21bn ($5.6bn) first wave of its community villages PPP project in June last year.

The preferred bidders for the first phase of its residential communities include local companies Alfanar Global Development, Almutlaq Real Estate Investment Company, Nesma Holding Company and Tamasuk, which is involved through two separate partners, Al Majal Al Arabi Group Company and Saudi Arabian Trading & Construction Company (Satco).

The agreements involve building ten more communities across Neom, adding capacity for 95,000 more occupants once the project’s first phase is completed.

The temporary accommodation needed during Neom’s construction period is being built sustainably as relocatable modular units that can be repurposed once the communities are no longer required.

The communities will include amenities such as multi-purpose sports fields, cricket ovals, tennis courts, volleyball courts, basketball courts, swimming pools and entertainment venues.

The project’s facilities and management contract is for five years, expiring in 2030, excluding the construction period, as MEED previously reported.

UK-headquartered consultancy Deloitte and US firm Aecom are advising the client on the housing PPP transactions.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.