Diriyah Company Announces Record-Breaking Construction Contract Exceeding 2 Billion to Develop Northern Mixed-Use District

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

It is the largest single contract awarded by the Diriyah Company to date, and the joint venture contractors are 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.

Contracts for the work on the Northern District Construction Contract have been officially signed between Ahmed Al Bassam, CEO of El Seif Engineering Contracting, Chuanhai Wei, CEO of China State Construction Engineering Corporation Limited KSA Branch, and Diriyah Company Group CEO Jerry Inzerillo.

The size and scale of the contract demonstrates the rapid acceleration of work to build Diriyah, The City of Earth, and is a testament to Diriyah Company’s drive to deliver projects of global scale and magnitude. The contract is one of the largest that has been awarded in Saudi Arabia in 2024.

Diriyah Company Group CEO Jerry 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.”

The contract is also 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, aiming to streamline the construction phase with emphasis on Diriyah’s role in the Kingdom’s Vision 2030.

Ahmed Al Bassam, CEO of ESEC, 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.” 

Chuanhai Wei, CEO of China State Construction Engineering Corporation Limited KSA Branch, added: “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.”

The ESEC and CSCEC joint venture is the latest project the two companies have been awarded by Diriyah, with major infrastructure work already commencing on the development site. This includes building road tunnels and the world’s largest ever single concrete pour of 6100 cubic meters as part of construction foundation work. This relates to an earlier $1.8 billion USD (SAR 6.65 billion) contract awarded in June 2021.

The Diriyah Company is excited to soon unveil the diverse array of buildings and institutions being developed within the new mixed-use district. This landmark project promises to blend innovation and tradition, offering a vibrant community space that will enhance the quality of life for residents and visitors alike.