Diriyah Company has awarded a $2.13 billion (SAR 8 billion) joint-venture construction contract to build four luxury hotels and the Royal Diriyah Equestrian & Polo Club in Wadi Safar, marking a significant milestone in the development of the historic region northwest of Riyadh. The contract, the largest single award by Diriyah Company to date, was signed at a ceremony in Diriyah between company officials and representatives from Urbacon Saudi Co. and Al Bawani Co. Ltd.
Context and Background
The Wadi Safar masterplan is a key component of the wider Diriyah development, a giga-project under Saudi Arabia’s Vision 2030 that aims to transform the birthplace of the Kingdom into a global cultural and tourism destination. This latest contract follows the announcement earlier this month of a more than $2.07 billion (SAR 7.8 billion) agreement to build the Northern District, demonstrating the accelerating pace of construction across the project.
Key Details
The joint-venture contractors, Urbacon Saudi Co. and Al Bawani Co. Ltd, will begin construction shortly on four world-class hotels—Aman, Six Senses, The Chedi, and Faena—alongside the prestigious Royal Diriyah Equestrian & Polo Club. Diriyah Company Group Chief Executive Jerry Inzerillo stated, “This contract marks another major step in accelerating our exciting development plans for the Wadi Safar masterplan… We are delighted to have two of Saudi Arabia’s leading construction firms on board.” The hotels are among more than 40 planned across Diriyah and Wadi Safar, while the equestrian club aims to build on the Kingdom’s rich equine heritage. Wadi Safar is also home to the Greg Norman-designed championship signature golf course and Royal Diriyah Golf Club.
Implications and Impact
The award represents a strategic push to position Diriyah as a premier destination for luxury tourism and cultural experiences, attracting visitors from across the Kingdom, the region, and the world. Urbacon Saudi Co. President Ramez Al Khayyat noted, “We are eager to begin our work on this project of global impact in the stunning Wadi Safar, a worldwide landmark destination.” AlBawani Co. Ltd Chief Executive Fakher Al-Shawaf highlighted the project’s focus on luxury, cultural heritage, and improving quality of life. The contract also implements Diriyah Company’s new delivery partnership procurement strategy, which fosters collaboration with main contractors, SMEs, manufacturers, and suppliers to ensure efficient execution.
Vision 2030 Alignment
This development aligns directly with Vision 2030’s goals of diversifying the Saudi economy, boosting tourism, and preserving cultural heritage. By creating world-class hospitality and leisure infrastructure, Diriyah Company is helping to transform the Kingdom into a global destination, supporting job creation, economic growth, and the enhancement of quality of life for citizens and visitors alike. Further details on the hotels are expected in the coming months.
20 Questions
Q1. What is the total value of the contract announced by Diriyah Company?
A1. The contract is valued at $2.13 billion, equivalent to SAR 8 billion, making it the largest single contract awarded by Diriyah Company to date.
Q2. Which companies are the joint-venture contractors for this project?
A2. The joint-venture contractors are Urbacon Saudi Co. and Al Bawani Co. Ltd, two leading Saudi construction firms.
Q3. What is the purpose of the contract?
A3. The contract covers the construction of four luxury hotels and the Royal Diriyah Equestrian & Polo Club as part of the Wadi Safar masterplan.
Q4. Which luxury hotel brands are included in the development?
A4. The hotels are Aman, Six Senses, The Chedi, and Faena, all world-class brands known for their luxury offerings.
Q5. Where is the Wadi Safar masterplan located?
A5. Wadi Safar is located northwest of Riyadh, within the historic Diriyah region that is being developed as a cultural and tourism destination.
Q6. When was the contract officially signed?
A6. The contract was officially signed at a ceremony held in Diriyah on July 24, 2024.
Q7. Who is the Group Chief Executive of Diriyah Company?
A7. The Group Chief Executive of Diriyah Company is Jerry Inzerillo.
Q8. How many hotels are planned across Diriyah and Wadi Safar masterplans?
A8. More than 40 hotels are planned across both the Diriyah and Wadi Safar masterplans.
Q9. What is the Royal Diriyah Equestrian & Polo Club intended to achieve?
A9. The club aims to create a center of regional excellence and build on the heritage of the Arabian horse and Saudi equine traditions.
Q10. What other major development is happening in Wadi Safar?
A10. Wadi Safar is also the location for the Greg Norman-designed championship signature golf course and Royal Diriyah Golf Club.
Q11. How does this contract compare to previous awards by Diriyah Company?
A11. It is the largest single contract awarded by Diriyah Company to date, surpassing a $2.07 billion contract for the Northern District announced earlier in July 2024.
Q12. What is the delivery partnership procurement strategy?
A12. It is an approach that fosters collaboration among Diriyah, main contractors, SMEs, manufacturers, and suppliers for efficient project execution.
Q13. Who is the President of Urbacon Saudi Co.?
A13. The President of Urbacon Saudi Co. is Ramez Al Khayyat.
Q14. Who is the Chief Executive of Al Bawani Co. Ltd?
A14. The Chief Executive of Al Bawani Co. Ltd is Fakher Al-Shawaf.
Q15. How does this project align with Saudi Vision 2030?
A15. It supports Vision 2030 by diversifying the economy, boosting tourism, preserving heritage, and improving quality of life.
Q16. What is the significance of the Wadi Safar masterplan?
A16. It is a key component of the Diriyah development, which aims to transform the birthplace of Saudi Arabia into a global destination.
Q17. Who are the target visitors for the hotels and club?
A17. The facilities are designed to attract visitors from across the Kingdom, the region, and the world.
Q18. What is the role of SMEs in the contract strategy?
A18. The delivery partnership strategy includes collaboration with SMEs to ensure efficient and effective project execution.
Q19. When will further details about the hotels be announced?
A19. Diriyah Company has stated that further details of the hotels will be announced in the coming months.
Q20. What is the overall goal of Diriyah Company’s development efforts?
A20. The goal is to deliver world-class luxury experiences, create a global cultural tourism destination, and support Saudi Arabia’s long-term vision for growth.
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