Diriyah Company Announces Record-Breaking Construction Contract Exceeding $2 Billion to Develop Northern Mixed-Use District

• Joint Venture contractors are El Seif Engineering Contracting Co. Ltd (ESEC), one of the region’s largest construction firms based in Saudi, and China State Construction Engineering Corporation Limited (CSCEC), the world’s biggest construction firm.
• Contract for Northern District Construction largest awarded to date by Diriyah Company
• New mixed-use district in northern area of Diriyah to include educational institutions, cultural venues, offices, and luxury hotel.

DIRIYAH, Saudi Arabia – 10 July, 2024 – Diriyah Company has announced the creation of a major new mixed-use district in the north of Diriyah, the joint venture Northern District Construction Contract that is valued at over $2 billion USD (SAR 7.8 billion) to build advanced educational institutions, cultural venues, modern offices, and a luxury hotel.

It is the largest single contract awarded by the Diriyah Company to date, and the joint venture contractors are El Seif Engineering Contracting Co. Ltd (ESEC) and China State Construction Engineering Corporation Limited (CSCEC). Construction work is set to commence from Q3 2024 for what will be a major flagship project within the Diriyah development area.

Contracts for the work on the Northern District Construction Contract have been officially signed between Ahmed Al Bassam, CEO of El Seif Engineering Contracting, Chuanhai Wei, Vice President of China State Construction Engineering Corporation Middle East, CEO of China State Construction Engineering Corporation KSA Branch, and Diriyah Company Group CEO Jerry Inzerillo.

The size and scale of the contract demonstrates the rapid acceleration of work to build Diriyah, The City of Earth, and is a testament to Diriyah Company’s drive to deliver projects of global scale and magnitude. The contract is one of the largest that has been awarded in Saudi Arabia in 2024.

Diriyah Company Group CEO Jerry Inzerillo said: “We are thrilled to announce the award of this major contract to build the exciting mixed-used district in the north of Diriyah. This 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.

“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.

“The agreement with the China State Construction Engineering Company is a further example of the ever-closer economic ties and constructive business partnerships that are being built between Saudi Arabia and China.”

The contract is also the first major implementation of Diriyah Company’s new delivery partnership procurement strategy, an approach that fosters a collaborative environment among Diriyah and its main contractors, SMEs, manufacturers, and suppliers, ensuring efficient and effective project execution.

This approach promises to redefine industry standards and foster sustainable growth in the construction sector, aiming to streamline the construction phase with emphasis on Diriyah’s role in the Kingdom’s Vision 2030.

Ahmed Al Bassam, CEO of El Seif Engineering Contracting Co. Ltd, said: “We are enormously proud to have the opportunity to continue our successful partnership with the Diriyah Company and to be entrusted with a project of such importance in developing some of the highest profile assets within the Diriyah development area.” 

Chuanhai Wei, Vice President of China State Construction Engineering Corporation Middle East, CEO of China State Construction Engineering Corporation KSA Branch, added: “This contract marks another landmark opportunity for CSCEC to work once again with our partners at El Seif Engineering Contracting Company and the Diriyah Company in building an extraordinary new city on the outskirts of Riyadh. We are delighted to be working on such a large-scale and ambitious project once more.”

The ESEC and CSCEC joint venture is the latest project the two companies have been awarded by Diriyah, with major infrastructure work already commencing on the development site. This includes building road tunnels and the world’s largest ever single concrete pour of 6100 cubic meters as part of construction foundation work. This relates to an earlier $1.8 billion (SAR 6.65 billion) contract awarded in June 2021.

The Diriyah Company is excited to soon unveil the diverse array of buildings and institutions being developed within the new mixed-use district. This landmark project promises to blend innovation and tradition, offering a vibrant community space that will enhance the quality of life for residents and visitors alike.

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About Diriyah

Diriyah, Saudi Arabia's premier historical, cultural, and lifestyle destination, is a key component of Saudi Arabia's 2030 Vision. A short 15-minute drive from Riyadh's city center, this 14-square-kilometer development holds historical significance as the birthplace of the Kingdom of Saudi Arabia, dating back to 1727. Currently being developed by Diriyah Company, Diriyah is undergoing a transformation into an authentic Najdi-style mixed-use urban community. Diriyah's centerpiece is At-Turaif, the UNESCO World Heritage Site inscribed in 2010, showcasing the ancient adobe capital city of the First Saudi State, dating back to 1766.

Upon completion, Diriyah will host 100,000 residents, workers, students, and visitors, offering a diverse range of cultural, entertainment, retail, hospitality, educational, and residential spaces. The first of those spaces include Bujairi Terrace, Riyadh’s new premium dining hub with over 20 global and local restaurants and cafes that enjoy uninterrupted views of At-Turaif. Bab Samhan, a Luxury Collection Hotel is the first hospitality offering in Diriyah, with providing a tranquil experience with panoramic views of Wadi Hanifah. Diriyah’s development provides a dynamic environment that celebrates Saudi Arabia's rich cultural history.

About Diriyah Company

Diriyah Company was established in 2023 and joined the Public Investment Fund’s (PIF) portfolio of giga projects. The Company is responsible for developing the Diriyah project, the birthplace of the Kingdom of Saudi Arabia and its foremost historical, cultural and lifestyle destination. A dynamic mixed-use developer, Diriyah Company is redefining urban planning to develop Diriyah, “The City Of Earth”, while adhering to the highest design, development, and preservation standards. The company ensures Diriyah’s cultural landmarks are complemented by world-class retail offerings, fine-dining experiences and leading hospitality brands.

As a PIF company, its mission focuses on opportunities in development, hospitality, investment, retail and office leasing, along with strategic asset management, underscoring the commitment to ensuring successful business outcomes and sustainable growth under the strategic direction of Vision 2030. The Diriyah Company actively forges long-term partnerships to realize its vision of establishing Diriyah as one of the world's greatest gathering places.

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