NEOM, Saudi Arabia’s ambitious giga-project and the venue for the 2029 Asian Winter Games, has signed SAR 21 billion (US$ 5.6 billion) of public-private partnerships to develop temporary ‘communities’ to accommodate workers during the first phase of development.

The preferred investors for the first phase of the residential communities included Saudi companies Alfanar Global Development, Almutlaq Real Estate Investment Company (AREIC), Nesma Holding Co., and Tamasuk in conjunction with partners, Al Majal Al Arabi Group Company, and the Saudi Arabian Trading and Construction Company (SATCO).

The agreement paves the way for more private sector participation in NEOM’s infrastructure development. The second phase of the temporary residential project is expected to be issued to the market in the coming months. The public company is currently reviewing interest from investors and plans to shortlist pre-qualified participants.

The newly formed partnerships mark an important milestone for the region and are a testament to the capabilities of our team and partners who rapidly achieve financial close on a record amount.

Nadhmi Al-Nasr, NEOM Chief Executive Officer, says, “NEOM has selected some of the leading companies in Saudi Arabia 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 are a testament to the capabilities of our team and partners who rapidly achieve financial close on a record amount.”

One of the strategic ambitions for the giga-project is to attract additional investors and become an active steward of NEOM’s commercial assets. Part of the Kingdom’s ‘Vision 2030‘ national development plan, the project is expected to have significant direct economic impact on Tabuk Province in northwestern Saudi Arabia, with the development recruiting and developing local talent, advancing sustainable solutions in construction, and facilitate local job creation.

Several of NEOM’s core developments, including THE LINE, Trojena, Oxagon, and Sindalah, are ramping up as infrastructure unfolds across the vast region. This latest public-private partnership is a vital step in bringing larger plans online to their agreed timescales. The scope of this agreement will cover elements of design, finance, build, operations, and maintenance of the housing communities.

Sabah Al Mutlaq, Vice Chairman of Alfanar, says, “We are elated to partner with NEOM on this multi-nodal infrastructure project and to contribute to NEOM’s vision of disrupting the conventional approach to urban living. This is in line with our commitment to delivering high-quality solutions in a sustainable manner.”

Mohammed Al Balwi, Chairman of Tamasuk, comments, “We are immensely proud to be NEOM’s infrastructure partners. Together with Almajal and SATCO, we are committed to delivering the infrastructure that will facilitate the wider and rapid development of NEOM.”

Faisal Al Turki, President of Nesma Co., adds, “At Nesma, we have built our reputation by undertaking and executing challenging, critical, and important projects. We look forward to working with the teams at all levels for the realisation of this project and the wider NEOM vision.”

Tariq al Mutlaq, Chairman of AREIC, says, “We are delighted to witness the growth of the compelling region of NEOM. The rapid development of their initiatives that support Vision 2030 is in line with our mission for the sustainable development of the Kingdom.”

The agreement will establish 10 additional communities across NEOM, adding capacity for 95,000 more occupants once the first phase of the project is completed. The temporary accommodation needed during the construction period of NEOM will be sustainable and support the relocation and repurposing of modular units once they are no longer required by construction communities.