Investment Worth SAR21 Bln to Rapidly Develop Workforce Residential Communities at NEOM

NEOM announced that it has finalized contracts with investors for the first phase of its residential communities’ expansion. (SPA)
NEOM announced that it has finalized contracts with investors for the first phase of its residential communities’ expansion. (SPA)
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Investment Worth SAR21 Bln to Rapidly Develop Workforce Residential Communities at NEOM

NEOM announced that it has finalized contracts with investors for the first phase of its residential communities’ expansion. (SPA)
NEOM announced that it has finalized contracts with investors for the first phase of its residential communities’ expansion. (SPA)

NEOM announced on Tuesday that it has finalized contracts with investors for the first phase of its residential communities’ expansion, a social infrastructure project that will house the region’s growing workforce. The agreement amounts to a total value of over SAR 21 billion, making it one of the largest international public-private partnerships for accommodation.

The preferred bidders for the first phase of the residential communities consist of leading Saudi Arabian companies, Alfanar Global Development, Almutlaq Real Estate Investment Company (AREIC), Nesma holding Co., and Tamasuk involved via two separate partners: Al Majal Al Arabi Group Company and the Saudi Arabian Trading and Construction Company (SATCO).

Chief Executive Officer at NEOM Nadhmi Al-Nasr said: “NEOM has selected some of the leading companies in the Kingdom of Saudi Arabia as partners in delivering and operating temporary communities with world-leading services and infrastructure. The newly formed partnerships mark an important milestone for the region and is a testament to the capabilities of our team and partners who rapidly achieved financial close on a record amount.”

The agreement paves the way for more private sector participation in the development of NEOM’s infrastructure. The second phase of the temporary residential project is expected to be issued to the market in the coming months. In addition to contract awards, NEOM is reviewing interest from investors with plans to shortlist pre-qualified participants from now.

One of the strategic ambitions for the giga-project has been to attract additional investors to be part of the vision and become an active steward of NEOM’s commercial assets. The multi-billion-riyal investment is further proof of the scale of the project for Saudi Arabia. It will also have a direct economic impact on the region, helping to develop local competency, advance the use of sustainable solutions in construction, and allow for local job creation.

Several of NEOM’s core developments are ramping up, including THE LINE, Trojena, Oxagon, and Sindalah, as infrastructure unfolds across the vast region. This latest public-private partnership is a vital step in bringing larger plans online to their agreed timescales. The scope for this agreement will cover elements of design, finance, build, operations, and maintenance of the housing communities.

Vice Chairman of Alfanar Sabah Al Mutlaq said: “We are elated to partner with NEOM on this multi-nodal infrastructure project, and to contribute to NEOM’s vision of disrupting the conventional approach to urban living. This is in line with our commitment to deliver high-quality solutions in a sustainable manner."

Chairman of Tamasuk Mohammed Al Balwi said: “We are immensely proud to be NEOM’s infrastructure partners. Together with Almajal and SATCO, we are committed to delivering the infrastructure that will facilitate the wider and rapid development of NEOM.”

President of Nesma Co. Faisal Al Turki said: “We look forward to working with the teams at all levels for the realization of this project and the wider NEOM vision.”

Chairman of AREIC Tariq al Mutlaq said: “We are delighted to witness the growth of the compelling region of NEOM. The rapid development of their initiatives that support the Saudi Vision 2030 are in line with our mission for the sustainable development of the Kingdom.”

The agreement will see an additional 10 communities established across NEOM, adding capacity for 95,000 more occupants once the first phase of the project is completed. The temporary accommodations, needed during the construction period of NEOM, are built sustainably as relocatable modular units which can be repurposed once the communities are no longer needed.

Additional to essential services, communities will also include a wide range of lifestyle facilities, such as multi-purpose sports fields, cricket ovals, tennis courts, volleyball courts, basketball courts, swimming pools and entertainment venues.



Russia Hikes Import Tariffs for Consumer Goods from 'Unfriendly Countries'

A Russian national tricolor flag flutters on a tourist boat as another boat passes by along the Moskva river in central Moscow on July 18, 2024. (Photo by Natalia KOLESNIKOVA / AFP)
A Russian national tricolor flag flutters on a tourist boat as another boat passes by along the Moskva river in central Moscow on July 18, 2024. (Photo by Natalia KOLESNIKOVA / AFP)
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Russia Hikes Import Tariffs for Consumer Goods from 'Unfriendly Countries'

A Russian national tricolor flag flutters on a tourist boat as another boat passes by along the Moskva river in central Moscow on July 18, 2024. (Photo by Natalia KOLESNIKOVA / AFP)
A Russian national tricolor flag flutters on a tourist boat as another boat passes by along the Moskva river in central Moscow on July 18, 2024. (Photo by Natalia KOLESNIKOVA / AFP)

Russia increased imports tariffs for consumer goods, including candies, biscuits and shampoo, produced in countries that support sanctions against Moscow, according to a government order published late on Friday.

Russian imports from nations that imposed sanctions against Moscow over its military conflict with Ukraine slumped in 2022.

Some Western producers stopped selling to Russia, but Moscow has found roundabout ways to keep goods coming, including a grey imports scheme, and plenty of foreign goods remain on store shelves.

According to the order, the tariffs for perfume, cosmetics and shampoo from Poland, for example, will amount to 35% of the customs value. Duties for wallpapers from Lithuania, Latvia and Estonia will rise to 50%.

The new tariffs will be in place until and including Dec. 31 2024 and take effect seven days after publication.