Riyadh Metro Project Excavation Work Set to Begin Following SR722.1 Million Deal
In an exciting development, excavation work on three components of the Riyadh metro project is poised to kick off after the signing of a lucrative SR722.1 million ($192.5 million) deal between Saudi Real Estate Co., also known as Al Akaria, and Diriyah Gate.
Details of the Contract
The work will focus on areas known as Metro-Box Central, Metro-Box South, and Metro-Box East, with the contract lasting for 1,276 days, as confirmed by the real estate company in a statement to Tadawul.
Financial Impact and Related Parties
The financial impact of the contract is expected to be seen in the first quarter of 2024, with the Public Investment Fund being a related party. The agreement was awarded to one of Al Akaria’s subsidiaries, Saudi Real Estate Infrastructure Co., also known as Binyah, on Dec. 20, 2023.
Additional Deals and Financial Results
In addition to the metro project contract, Al Akaria also signed a SR159.6 million deal with Saudi Real Estate Construction Co., also known as Tamear, for the Tilal Al Riyadh mixed-use project in Al-Malqa District. The company recently reported a net profit of SR67.6 million for the period ending Dec. 31, 2023.
Future Plans with Marriott International
Looking ahead, Al Akaria has partnered with Marriott International to introduce a new luxury hotel in Riyadh under the Autograph Collection brand. Construction is expected to begin in 2025, with the hotel welcoming guests by 2028.
Commitment to Tourism and Hospitality
This move underscores Al Akaria’s dedication to enhancing tourism and hospitality in Riyadh, in line with the Vision 2030 goals of creating attractive destinations for residents and visitors. The new hotel will contribute to Saudi Arabia’s efforts to strengthen its position as an international tourist destination.
Development of a Mixed-Use Destination
Furthermore, the new hotel will play a key role in the development of a mixed-use destination, featuring commercial facilities, restaurants, and entertainment areas, adding to the appeal of the overall project.