Al Fanar plans $2.7bn investment in Neom's residential development
RIYADH, June 7, 2023
Alfanar Projects (formerly Alfanar construction) has announced plans to pump in SR10 billion ($2.7 billion) for the development of five residential communities coming up over a sprawling 4 million sq m area at NEOM, a mega project being built from the ground up as a living laboratory in northwest Saudi Arabia on the Red Sea.
A leading global project developer and provider of engineering, construction and technology solutions with roots in Saudi Arabia, Alfanar said its scope of work includes development, construction and operation of these residential communities within the Saudi futuristic city.
This Alfanar announcement comes following a string of agreements inked by NEOM with investors for the first phase of its residential communities’ expansion as well as a social infrastructure project that will house the region’s growing workforce.
The list of preferred bidders (apart from Alfanar) includes Almutlaq Real Estate Investment Company (AREIC), Nesma Holding and Tamasuk involved via two separate partners: Al Majal Al Arabi Group Company and Saudi Arabian Trading and Construction Company (Satco).
According to NEOM, these agreements are worth SR21 billion ($5.6 billion), thus making it one of the largest international public-private-partnerships (PPPs) for accommodation.
On completion, these housing communities will be able to accommodate more than 50,000 residents.
A major highlight of Alfanar's involvement in the project is the sustainability element - All the homes within the five communities will be built using sustainable modular construction methods.
The Saudi project developer said the communities will leverage advanced building and maintenance technologies to increase sustainability and livability, including computerized waste management facilities, wastewater reuse solutions, and captive solar power generation facilities.
NEOM Chief Executive Officer Nadhmi Al Nasr pointed out that it has selected some of the leading Saudi companies as partners in delivering and operating temporary communities with world-leading services and infrastructure.
"The newly formed partnerships mark an important milestone for the region and is a testament to the capabilities of our team and partners who rapidly achieved financial close on a record amount," he added.-TradeArabia News Service
