12 Jul 2024
RIYADH: Saudi heritage city Diriyah has awarded its largest single contract to date for the development of a district featuring educational institutions, cultural venues, and a luxury hotel.
The SR7.8 billion ($2 billion) deal was agreed with a joint venture of El Seif Engineering Contracting Co. and China State Construction Engineering Corp., with work on the area in the north of the city due to commence in the third quarter of the year.
Developing historical sites like Diriyah is crucial for Saudi Arabia as the Kingdom aims to diversify its economy by reducing its dependence on oil and focusing more on sectors like tourism.
Upon completion, the project will host 100,000 residents, workers, students, and visitors, offering a diverse range of cultural, entertainment, and retail, as well as hospitality, educational, and residential spaces.
Diriyah Co. Group CEO Jerry Inzerillo said: “This (contract) represents a major step in our accelerating development strategy and commitment to making Diriyah a place for the world to be able to learn, absorb culture, and experience a vibrant and welcoming visitor destination.”
He added: “The size and scale of this joint venture demonstrates the increasing speed and momentum of our plans for building The City of Earth and creating one of the world’s truly remarkable gathering places, and marks a major milestone in our master planning process.”
Moreover, the contract marks the first major implementation of Diriyah Co.’s new delivery partnership procurement strategy. This approach fosters a collaborative environment among Diriyah and its main contractors, small and medium enterprises, manufacturers, and suppliers, ensuring efficient and effective project execution.
Diriyah CEO further mentioned that the agreement with China State Construction Engineering Corp. exemplifies the growing economic ties and constructive business partnerships between Saudi Arabia and China.
Ahmed Al-Bassam, CEO of El Seif Engineering Contracting Co. welcomed the deal by saying: “We are enormously proud to continue our strategic partnership with the Diriyah Co. and to be entrusted with a project of such importance in developing some of the highest profile assets within the Diriyah development area, and indeed across the Kingdom.”
Diriyah is located on the outskirts of Riyadh, the Kingdom’s capital city, and is home to the UNESCO World Heritage Site of At-Turaif, the historic capital of the first Saudi state.
Amidst these developments in the Kingdom’s tourism sector, Inzerillo was appointed as a UN Tourism ambassador in April, joining an elite group including Lionel Messi, Giorgio Armani, and Plácido Domingo.