The Saudi Arabian government has started awarding contracts for the development of the NEOM business zone, asking local construction companies to build five palaces in the area, according to Reuters.
According to the report, the palaces for the king, crown prince and other senior royals, to be located on the Red Sea coast about 150 kilometres (95 miles) west of the city of Tabuk, are among the first contracts awarded for NEOM, said the sources who declined to be named as an official announcement has not yet been made.
In October last year, Crown Prince Mohammed bin Salman announced plans to build the 26,500 square km (10,230 square mile) megacity. Officials said public and private investment in the area was eventually expected to total $500 billion.
The palaces for the king, crown prince and other senior royals, to be located on the Red Sea coast about 150 kilometres (95 miles) west of the city of Tabuk, are among the first contracts awarded for NEOM, said the sources who declined to be named as an official announcement has not yet been made.
Saudi Binladin Group has been mandated to build one of the palaces in a sign that it retains the government’s support despite the recent detention of some of its owners in a crackdown on corruption, the sources said.
Binladin chairman Bakr Bin Laden and several family members were held alongside scores of princes, senior officials and businessmen in the purge, which was announced in November.
Last month, Binladin said some owners of the firm might transfer part of their stakes to the state in a financial settlement of allegations against them, and most or all of the family members have now been released. A Binladin spokesman could not be reached for comment.
Banks have started offering financing facilities to builders of the palaces, one source said. The sources said they could not confirm the cost of the buildings.
NEOM is planned to develop industries such as energy and water, biotechnology, food, advanced manufacturing and entertainment in a 26,500 square kilometre zone with its own laws and judicial system.
Some companies, including Japan’s Softbank, have said they are prepared to invest in NEOM, but major, concrete business investments have not yet been announced.
