The contract is for 240 villas, to be built in two phases of 200 and 40 villas respectively. There will be three types of villas, measuring between 400 and 500 square metres.
The project is known as the Al-Basateen Residential suburb and will house employees working at the industrial sites of the Royal Commission for Jubail & Yanbu and Saudi Basic Industries Corporation (Sabic).
A separate contract covering the infrastructure of the site will be awarded separately. In total the work is worth SR350m ($93m).
A decision on the contractor is expected within the next month. The local Al-Redwan Contracting Company is one of the firms to have bid for the work.
The local Kinan International Real Estate Development Company, the real estate arm of the Savola Group, is the client.
The project duration is 21 months.