China State Construction Engineering Corporation Limited (CSCEC) recently inked a major development contract worth $2 billion to build a new mixed-use district north of the ancient town of Diriyah, near the Saudi Arabian capital Riyadh.

The joint venture between CSCEC and leading Saudi conglomerate El Seif Engineering Contracting Co (ESEC) was signed by ESEC CEO Ahmed Al Bassam, CSCEC Saudi Arabia Branch CEO Wei Chuanhai, and Diriyah Company Group CEO Jerry Inzerillo on July 10.

Diriyah, often referred to as “The City of Earth”, is a 14-square-kilometer development and is envisioned to be a premier historical, cultural, and lifestyle destination. It holds historical significance as the birthplace of Saudi Arabia, dating back to the First Saudi State in 1727

The contract is among the largest awarded in Saudi Arabia this year and would enable the building of advanced educational institutions, cultural venues, modern offices, and a luxury hotel.

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Construction work will begin in the third quarter of this year for what is expected to be a major flagship project within the Diriyah development area. The completion date is set to be announced in due course.

The Diriyah Company’s Inzerillo called it “a major milestone in our master planning process”, adding that the scale of the joint venture demonstrates the increasing speed and momentum of their plans for building “The City of Earth” project.

“The agreement with CSCEC is a further example of the ever-closer economic ties and constructive business partnerships being built between Saudi Arabia and China,” said Inzerillo in a press release.

Diriyah, often referred to as “The City of Earth”, is a 14-square-kilometer development and is envisioned to be a premier historical, cultural, and lifestyle destination. It holds historical significance as the birthplace of Saudi Arabia, dating back to the First Saudi State in 1727.

Upon completion, Diriyah will host 100,000 residents, workers, students, and visitors, offering wide-ranging cultural, entertainment, retail, hospitality, educational, and residential spaces.

The first of those spaces include Bujairi Terrace, Riyadh’s premium dining hub with over 20 global and local restaurants and cafes that enjoy uninterrupted views of At-Turaif and is now open. Bab Samhan, a luxury collection hotel expected to open later this year, is the first hospitality offering in Diriyah, providing a tranquil experience, with panoramic views of Wadi Hanifah.

The new mixed-use district being built will be one of the many districts that will make up the city of Diriyah.

Diriyah is being transformed into an authentic Najdi-style (central Saudi Arabian region) mixed-use urban community with its centerpiece at At-Turaif, the original home of the Saudi Royal Family that became a UNESCO World Heritage Site in 2010.

CSCEC’s other projects in the Middle East include Kuwait University and the Central Bank of Kuwait, as well as several in the United Arab Emirates such as Abu Dhabi International Airport and Dubai’s Viceroy Palm Jumeirah hotel  

Al Bassam of ESEC said the firm was “enormously proud to continue our strategic partnership with the Diriyah Company” for the mixed-use development project and “to be entrusted with a project of such importance in developing some of the highest profile assets within the Diriyah development area”.  

Wei of CSCEC said that the contract marked another landmark opportunity for his firm to again work with their strategic partners at ESEC and the Diriyah Company to build “an extraordinary new city on the outskirts of Riyadh”.

CSCEC’s other projects in the Middle East include Kuwait University and the Central Bank of Kuwait, as well as several in the United Arab Emirates such as Abu Dhabi International Airport and Dubai’s Viceroy Palm Jumeirah hotel.

The new ESEC-CSCEC joint venture is the latest project awarded to the firms by the Diriyah Company.

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This newly announced contract is also the first implementation of the Diriyah Company’s new delivery partnership procurement strategy — an approach that fosters a collaborative environment and ensures effective project execution.

The strategy also aims to redefine industry standards, foster sustainable growth in the construction sector, and streamline the construction phase, emphasizing Diriyah’s role in Saudi Arabia’s Vision 2030.

Introduced in 2016 by Saudi Crown Prince Mohammed bin Salman Al Saud, Vision 2030 is the country’s grand economic diversification plan to move away from its reliance on oil.

Contact the writer at jan@chinadailyapac.com