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Contracts For Saudi’s Ambitious Red Sea Project Surpass $2 billion

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Despite the challenges of 2020, Saudi Arabia continues the drive towards its Vision 2030 goal of modernizing the Kingdom.

In the past few years, The Kingdom of Saudi Arabia has rolled out over 5,000 major construction projects at a total cost approaching $1 trillion. But few have grabbed the attention quite like the Red Sea Project.

Announced in 2017, the Kingdom’s flagship international tourism project will span a staggering 28,000 km2 across islands, beaches, deserts, mountains, and volcanic areas. When completed, the destination will attract over one million tourists from around the world each year, adding nearly $6 billion annually to the Saudi economy.

The project is being overseen by The Red Sea Development Company (TRSDC), which recently announced the value of contracts awarded for the project had surpassed the $2 billion mark. This has occurred despite the challenging global economic conditions that have stemmed as a result of the COVID-19 pandemic.

Speaking after the announcement, TRSDC CEO John Pagano stated: “This significant landmark underscores the scale of our project and the remarkable progress made to create the destination of the future.”

Currently, work on the flagship project is accelerating rapidly, with the focus on completing the vast transport infrastructure. Around 80km of highways, roads, and junctions are under construction, which includes a crossing connecting the project’s main hub, Shurayrah Island, with the Saudi mainland. A series of jetties are also being developed.

Work is also underway on both the Coastal Village, a brand new town that will house the 14,000 staff who will run daily operations at the completed destination, and the Construction Village, vast housing for 10,000 construction workers. Interestingly, the Coastal Village is using Saudi-made prefabricated housing, with the first units already assembled and on-site.

To date, 500 contracts have been awarded to firms from around the world. One of the key achievements of the project has been its support for the Saudi construction industry and the local economy. Of the $2 billion worth of contracts awarded to date, 70% has gone to Saudi-based construction businesses.

As the megaproject continues to progress, support for the Saudi construction sector is a trend the TRSDC has pledged will continue. The Red Sea Project will continue to create exciting opportunities for the nation’s construction sector during the years to come.

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