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NEOM Kicks off Work on First Phase of Residential Complexes

Visitors watch a 3D presentation during an exhibition on NEOM in Riyadh, October 25. (Reuters)
Visitors watch a 3D presentation during an exhibition on NEOM in Riyadh, October 25. (Reuters)
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NEOM Kicks off Work on First Phase of Residential Complexes

Visitors watch a 3D presentation during an exhibition on NEOM in Riyadh, October 25. (Reuters)
Visitors watch a 3D presentation during an exhibition on NEOM in Riyadh, October 25. (Reuters)

The NEOM company on Tuesday started construction work on the first phase of residential complexes dedicated to project workers’ housing. The first phase will house 30,000 workers who will be moving to NEOM to develop different areas of the project.

Building work kicked off with the attendance of NEOM Chief Executive Nadhmi al-Nasr as well as heads of the two Saudi companies who won contracts for the construction of the complexes, Al-Tamimi Group and Saudi Arabian Trading & Construction Co. ( SATCO).

The contracts allow the companies to operate the housing for 10 years. This is considered the first investment opportunity listed by NEOM.

Nasr urged developers to focus on the local content and increase the quantity of manufactured products and inputs in Saudi Arabia in support of the local economy and in tandem with the Saudi approach to boost local content in giant projects.

This meets guidelines of NEOM board of directors, chaired by Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense.

NEOM Chief Executive demanded firms to create job opportunities to residents of NEOM, pledging to back these firms in all means to achieve human development.

The residential region consists of several complexes in which Al-Tamimi Group has contracts to build two residential complexes with each fitting to 10,000 workers, while SATCO would construct a similar complex with the same capacity.

The project workers’ housing would provide a life-pattern that seeks to prepare an adequate business environment that goes in tandem with the goals of NEOM and the best world practices.

NEOM is located in an area of about 26.5 thousand square kilometers in the north-west of the kingdom. The project would be a pillar of economic transformation within Saudi Vision 2030 to provide various income sources through NEOM economic sectors and real estate investments.

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US Mulls Plan to Disrupt Iran's Oil by Halting Vessels at Sea

The Liberian-flagged oil tanker Ice Energy transfers crude oil from the Iranian-flagged oil tanker Lana (former Pegas), off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo
The Liberian-flagged oil tanker Ice Energy transfers crude oil from the Iranian-flagged oil tanker Lana (former Pegas), off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo
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US Mulls Plan to Disrupt Iran's Oil by Halting Vessels at Sea

The Liberian-flagged oil tanker Ice Energy transfers crude oil from the Iranian-flagged oil tanker Lana (former Pegas), off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo
The Liberian-flagged oil tanker Ice Energy transfers crude oil from the Iranian-flagged oil tanker Lana (former Pegas), off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo

US President Donald Trump's administration is considering a plan to stop and inspect Iranian oil tankers at sea under an international accord aimed at countering the spread of weapons of mass destruction, sources familiar with the matter told Reuters.

Trump has vowed to restore a "maximum pressure" campaign to isolate Iran from the global economy and drive its oil exports to zero, in order to stop the country from obtaining a nuclear weapon.

Trump hit Iran with two waves of fresh sanctions in the first weeks of his second-term, targeting companies and the so-called shadow fleet of ageing oil tankers that sail without Western insurance and transport crude from sanctioned countries.

Those moves have largely been in line with the limited measures implemented during former President Joe Biden's administration, during which Iran succeeded in ramping up oil exports through complex smuggling networks.

Trump officials are now looking at ways for allied countries to stop and inspect ships sailing through critical chokepoints such as the Malacca Strait in Asia and other sea lanes, according to six sources who asked not to be named due to the sensitive subject.

That would delay delivery of crude to refiners. It could also expose parties involved in facilitating the trade to reputational damage and sanctions, the sources said.

"You don’t have to sink ships or arrest people to have that chilling effect that this is just not worth the risk," one of the sources said.

"The delay in delivery ... instills uncertainty in that illicit trade network."

The administration was examining whether inspections at sea could be conducted under the auspices of the Proliferation Security Initiative launched in 2003, which aims to prevent the trafficking of weapons of mass destruction.

The US drove that initiative, which has been signed by over 100 governments.

This mechanism could enable foreign governments to target Iran's oil shipments at Washington's request, one of the sources said, effectively delaying deliveries and hitting supply chains Tehran relies upon for revenue.

The National Security Council, which formulates policy in the White House, was looking into possible inspections at sea, two of the sources said.

It was unclear if Washington had yet approached any signatories to the Proliferation Security Initiative to test their willingness to cooperate with the proposal.

John Bolton, who was the US lead negotiator for the initiative when it was formed, told Reuters: "it would be fully justified" to use the initiative to slow down Iran oil exports. He noted that selling oil was "obviously critical to raise revenue for the government of Iran to conduct both its proliferation activities and support for terrorism."

Iranian President Masoud Pezeshkian told Iran's parliament on March 2 that Trump "has once again signed an order sanctioning many of our ships at sea, leaving them uncertain about how to unload their oil and gas cargo". He was referring to Trump's latest round of sanctions.