Korea-led consortium inks $20bn Saudi housing dealby Ashleigh McGinley on Mar 28, 2016
A consortium including Korean group Hanwha Engineering & Construction has inked a $20bn deal to build 100,000 homes in Saudi Arabia, it has been reported.
The consortium, which also includes Korea's Daewood Engineering & Construction and Saudi construction firm Saudi Pan Kingdom for Trading, Industry & Contracting (Sapac) signed a memorandum of understanding with Saudi Arabia's Ministry of Housing to build the new city development project close to Riyadh International Airport.
The singing of the MoU took place in Seoul, according to English language daily Korea Herald as cited by Arabian Business.
The development will reportedly represent the largest ever project that a Korean builder has clinched from a foreign country, Hanwha said in a statement.
A Hanwha spokesman said: “We will supply 100,000 houses and city infrastructure in Alfursan near the Riyadh International Airport and this will be a landmark deal for Korea’s overseas construction history in terms of the size.”
“It is too early to tell the details of the deal, but the consortium expects to push for the mega project with a stable financing source, backed by the Saudi government.
“The company has sought the deal, which will be helpful to cement its reputation as a global city developer in the Middle East, following the ongoing Bismayah new city project in Iraq."