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 USD 2 billion (SR 7.8 billion) to build advanced educational institutions, cultural venues, modern offices and a luxury hotel.

Making the announcement through a Press Release, Diriyah said the project is the largest single contract it has awarded to date, with the joint-venture contractors being 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, the company said.

Diriyah said Ahmed Al Bassam, CEO, El Seif Engineering Contracting; Chuanhai Wei, CEO, China State Construction Engineering Corporation Limited (KSA Branch) and Jerry Inzerillo, CEO, Diriyah Company Group, signed the contract.

Diriyah said the size and scale of the contract demonstrates the rapid acceleration of work to build Diriyah, The City of Earth, delivering projects of global scale and magnitude.

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 CSCEC is a further example of the ever-closer economic ties and constructive business partnerships that are being built between Saudi Arabia and China.”

Diriyah said the contract is 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, streamlining the construction phase with emphasis on Diriyah’s role in the Kingdom’s Vision 2030, Diriyah said.

Al Bassam said, “We are enormously proud to continue our strategic 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 and, indeed, across the Kingdom.” 

Wei said: “This contract marks another landmark opportunity for CSCEC to work once again with our strategic 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.”

Diriyah said the ESEC and CSCEC joint venture is the latest project it has awarded the two companies, with major infrastructure work already commencing on the development site. Diriyah said the work includes building road tunnels and the world’s largest ever single concrete pour of 6,100 cubic metres, as part of construction foundation work. This, the company said, relates to an earlier USD 1.8 billion (SR 6.65 billion) contract awarded in June 2021.