Drake & Scull wins SR469m 'Smart City' contract

The Saudi market's dynamics are different, says DSI's Tabari.

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Drake & Scull International PJSC has won an AED460 million contract for Riyadh’s Information Technology and Communications Centre (ITCC) project, the company disclosed on Wednesday.

The MEP giant will be undertaking the project in a joint-venture with Al Zamil Group, one of the largest conglomerates in the Kingdom of Saudi Arabia that includes lines in glass and steel.

The contract was awarded by Rayadah Investment Company, the investment arm of the Saudi government’s Public Pensions Agency (PPA).It takes the value of contracts won by DSI this year to AED2 billion.

Khaldoun Tabari, DSI CEO said the dynamics of the Saudi market were different to the rest of the GCC. “We had to ensure that we adapted our practices to meet the strict requirements of the Kingdom’s construction industry, which can be very challenging,” he said.

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“Following the recent win of DAMAC Jawharah Tower for SR450 million and now the ITCC project, we can proceed in the knowledge that our efforts in the Kingdom are starting to pay off and we are on the right track for further development within KSA.”

ITCC is the Kingdom’s first ‘Smart City’, a SR6 billion project that, when completed, will offer widespread broadband services, the latest in voice and video communication platforms and high-level data security and will operate on a huge optic-fibre cable network designed to give the fastest speeds and accommodate next generation technologies for years to come.

The project will span 776,000m² and will include four 20-storey towers, two business technology incubator buildings, a sports club, a clinic, a hotel, a convention centre, a technical college and government service buildings.

MEP work on the project has already begun and will be completed in two years. This will include the supply, installation, testing and commissioning of: air conditioning, ventilation, plumbing and drainage, automatic fire fighting, transformers, cabling, and small power and lighting systems among other services.

DSI will work to achieve the basic Leadership in Energy and Environmental Design (LEED) certification in conjunction with the main contractors, through the use of grey water recycling, low energy lighting, low energy air conditioning and, most importantly, reduction in solar gain.

Earlier this week DSI’s new construction arm in Saudi Arabia – DSC KSA – won a SR450 million contract to build the Jawharah Tower in Jeddah.

DSI’s stock closed down 1.12% yesterday on the Dubai Financial Markets index to closed at 80 fils per share. The stock has lost a fifth of its value since the beginning of April, though had rallied earlier this week.