Red Sea Company project awards top $8bn

09 August 2022
Saudi Arabia-based businesses have won over 70 per cent of the contracts

Saudi Arabia's The Red Sea Development Company (TRSDC) has awarded over 1,250 contracts worth more than SR30bn ($8bn) across its megaproject developments in the kingdom.

According to the Investment Highlights Q2 2022 report by the Ministry of Investment, over SR25bn ($6.66bn) worth of contracts have been awarded on the Red Sea project alone.

"What has made things particularly interesting is that phase one is already more than 50 per cent complete and several key assets are fully operational, including a four-star management hotel, on-site offices, and the largest landscape nursery in the region," TRSDC's CEO John Pagano said in the IHL report.

TRSDC is overseeing the Amaala and Red Sea projects, which form an integral part of the Saudi Vision 2030 programme.

Over 70 per cent of contracts on both projects have been awarded to Saudi Arabia-based businesses, in sectors including construction, hospitality, transport and smart tech. Pagano said TRSDC is seeing "strong private sector confidence and a willingness to invest in our projects". 

Most recently, TRSDC signed a SR1.5bn ($399.6m) joint venture agreement with the local Almutlaq Real Estate Investment Co (Areic) to develop the Jumeirah the Red Sea resort on Red Sea's Shura island.

According to data from MEED Projects, nearly $750m worth of TRSDC projects are currently in the bidding stage, while more than $8bn are under design and study. 

On completion of its projects, TRSDC is projected to contribute an estimated SR33bn ($8.8bn) to the kingdom's economy, as well as provide 120,000 direct, indirect and induced jobs.

TRSDC is a closed joint-stock company wholly owned by Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund (PIF).

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