Saudi Red Sea Development Inks Deal to Build Workers’ Residential Village

The Red Sea Development Company two companies contracts for the construction of a residential village for workers at the destination. (Red Sea Development Company Chief)
The Red Sea Development Company two companies contracts for the construction of a residential village for workers at the destination. (Red Sea Development Company Chief)
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Saudi Red Sea Development Inks Deal to Build Workers’ Residential Village

The Red Sea Development Company two companies contracts for the construction of a residential village for workers at the destination. (Red Sea Development Company Chief)
The Red Sea Development Company two companies contracts for the construction of a residential village for workers at the destination. (Red Sea Development Company Chief)

The Red Sea Development Company (TRSDC) awarded UAE-based ARCCO-Speedhouse and Saudi al-Majal al-Arabi Group contracts for the construction of a residential village for workers at the destination.

Each will construct 5,000 units over the next ten months to house the initial 10,000 construction workers working on the site. The workers’ village will be further developed to house additional 25,000 construction workers later this year.

TRSDC CEO John Pagano explained that a healthy, happy workforce is key to the delivery of the destination in line with the sustainable development approach.

Pagano asserted the company’s belief that both ARCCO-Speedhouse and al-Majal al-Arabi share these values.

“Together we will ensure that accommodation facilities for construction workers on the Red Sea Project define a new standard of excellence for residential accommodation for constructors on large scale projects across the region.”

The companies will use pre-fabricated and modular construction to reduce delivery time, enhance quality, limit the number of workers on-site and minimize the environmental impact of construction, in line with TRSDC’s sustainability goals.

Red Sea Development will maintain operational control of the construction village once completed, ensuring that the facility is managed in adherence to the highest living standards.

All construction workers at the site will be housed in the village, whether employed directly by company or by contractors.

TRSDC Chief Project Delivery Officer, Ian Williamson explained that the design of the village focuses on creating a community feel, intended to enhance the welfare and quality of life of the workers who will live there.

“By requiring that all construction workers are housed in accommodation built and managed by TRSDC, we are making every effort to ensure that we become the benchmark for construction worker accommodation in the region and in the industry as whole.”

Al-Majal al-Arabi CEO Mazen al-Zahrani noted that the company looks forward to working with the Red Sea management team to deliver this project in line with the timelines and environmental standards required.

Zahrani asserted that al-Majal al-Arabi is committed to the Red Sea Project and to executing Saudi Arabia’s transformative Vision 2030.

“This project is unique and will be a pillar for the Kingdom, with its entertainment facilities, sports fields, health centers and service offerings, and we are delighted to part of the team bringing it to life.”

Al-Raeel Engineering Construction and Development Co. (ARCCO) Vice Chairman J.K. Yoon explained that the partnership between ARCCO and Speedhouse combines the scale and flexibility of the ARCCO portfolio with Speedhouse’ extensive experience in pre-fabricated and off-site construction to form a partnership ideally suited to deliver this ambitious project.

“We look forward to creating a facility that will redefine worker accommodation in the region’s construction industry.”

The construction village will feature residential buildings positioned to form neighborhoods around a centralized area that will be equipped with a range of recreational facilities including cricket pitches, volleyball and basketball courts, football pitches, a gym and cinema.

It will have its own dedicated medical facilities, including an emergency care center, a laboratory and a dispensing pharmacy.

Medical services will be provided through a centralized operator and delivered by a full complement of doctors and nurses operating in line with Saudi and international standards.

Construction at the Red Sea Project has been underway since the first quarter of 2019, with a one million square meter nursery being established to support landscaping, marine infrastructure, including causeways, a bridge and jetties to facilitate the movement of machinery, materials and workers.



Google to Pay Musk $920 Million a Month for AI Computing Capacity

The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
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Google to Pay Musk $920 Million a Month for AI Computing Capacity

The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)

SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company $920 million per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing.

The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models.

The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then, AFP reported.

The agreement runs through June 2029, implying total payments of roughly $30 billion over the life of the contract.

The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month.

The facilities were originally built to power Musk's rival AI venture, xAI.

SpaceX's IPO filing revealed that xAI last year posted an operating loss of $6.4 billion on total revenue of $3.2 billion.

"This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP.

The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice."

The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at $1.8 trillion.

That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars.


Rosneft: US Companies Benefit from Strait of Hormuz Closure

Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
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Rosneft: US Companies Benefit from Strait of Hormuz Closure

Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).

Rosneft Chief Executive Igor Sechin said on Saturday that US energy companies were the main beneficiaries of the closure of the Strait of Hormuz but warned that continued tensions in the artery for one fifth of the world's crude would undermine long-term demand for oil.

Iran blockaded the Strait, the main route for about a fifth of world oil supplies and other vital goods including fertilisers, after the United States and Israel attacked Iran and killed Supreme Leader Ali Khamenei in February. The US has blockaded Iranian ports.

Sechin, a close ally of President Vladimir Putin and one of the most influential men in Russia's energy sector, cast the US actions as an attempt to change the fundamental contours of the global energy markets to suit US interests, but added that the strategic risks had not been fully assessed.

"The closure of the Strait of Hormuz is an attempt to reshape global energy market regulations to benefit the United States. The measures taken to block the strait were aimed at Iran, but backfired on the entire world. The strategic risks were underestimated," Sechin said at the St. Petersburg International Economic Forum.

"The main beneficiaries, of course, were American companies, which gained non-competitive advantages and the ability to secure high-cost supplies," he said.

"Continued tension in the Strait of Hormuz for a long time undermines the long-term demand for oil. It may also trigger another surge of interest in alternative energy."

If the Strait opens in the near future, then the oil price will be at $95 to $96 per barrel by the end of the year, and in a year it will drop to $80 to $85, and by the second half of 2027 there will be a return to market fundamentals, he said.


First Two of Riyadh Air’s Custom-Built 787-9 Dreamliners Arrive in Saudi Arabia

The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
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First Two of Riyadh Air’s Custom-Built 787-9 Dreamliners Arrive in Saudi Arabia

The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)

Riyadh Air, Saudi Arabia’s new national carrier and a company wholly owned by the Public Investment Fund (PIF), has announced the arrival of its first two custom-built Boeing 787-9 Dreamliners at King Khalid International Airport in Riyadh.

The aircraft arrived in tandem on Friday at approximately 10 a.m. local time, receiving a water cannon salute upon touchdown.

The aircraft – using the call signs Riyadh 1 and Riyadh 2 and registered as HZ-RXAA and HZ-RXAB – are the first of Riyadh Air’s 72 state-of-the-art Dreamliners.

Their arrival marks the commencement of the carrier's broader strategy to expand its fleet to more than 180 narrow-body and wide-body aircraft.

Leveraging Saudi Arabia’s strategic location at the crossroads of Asia, Africa, and Europe, Riyadh Air aims to connect the capital to over 100 global destinations by 2030, with plans to fly to nearly 20 destinations by the end of this year.

Commenting on the arrival, Riyadh Air CEO Tony Douglas said: “To see our very first custom-built Dreamliners touch down in Riyadh is a truly historic moment for us, and a momentous day for Saudi aviation as part of Vision 2030. I could not be more excited or more confident about the future and the legacy we are creating.”

“Not only are we building an airline, we are opening a new gateway to the world from the heart of the Kingdom. We are absolutely ready and excited to welcome the world to Riyadh,” he added.