Red Sea International signs $14mln deal for Saudi's NEOM megacity

Project related to accommodation, offices for senior staff at the site

  
An Asian labourer works at the construction site of a building in Riyadh, Saudi Arabia August 2, 2016. Image used for illustrative purpose.

An Asian labourer works at the construction site of a building in Riyadh, Saudi Arabia August 2, 2016. Image used for illustrative purpose.

REUTERS/Faisal Al Nasser

Saudi Arabia-based Red Sea International has signed a multi-million-dollar contract with NEOM Company, which is building a $500 billion high-tech development that includes tourism and sport facilities on the Red Sea

The deal, valued at 53 million Saudi riyals ($14 million), will cover the facility management, operations and maintenance services for the accommodation, offices and all supporting building amenities for the senior employees of NEOM Industrial City Project.

The three-year contract is extendable for additional cost, the company said in a statement to the Saudi Stock Exchange (Tadawul).

The impact of the new deal will be reflected in the financial statements over the period beginning from the first quarter of 2021 to the fourth quarter of 2023.

The $500 billion NEOM project is part of the Vision 2030 plan of Crown Prince Mohammed bin Salman that seeks to generate foreign investments and employment opportunities.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Construction