Hanwha Engineering & Construction Signs MOU to Build 100,000 Housing Units in Saudi Arabia in Consortium with Daewoo E&C
- Saudi housing minister visits Korea, indicating strong drive for project
- Synergy expected from Hanwha's know-how in overseas new city construction, Daewoo's expertise in housing construction, and Saudi SAPAC's local network
- Hanwha positioned to win additional contracts as Saudi Arabia draws up plans for 1.5 million housing units
[March 24, 2016] Hanwha Engineering and Construction (Hanwha E&C) and Daewoo E&C signed a MOU for a large-scale housing construction project in Saudi Arabia on March 24th at the JW Marriott Hotel in Seoul, in a ceremony attended by Saudi Arabia's Minister of Housing Majed Al-Hogail, Korea's Minister of Land, Infrastructure and Transport Kang Ho-in, CEO of Daewoo E&C Park Young-sik and President & CEO of Hanwha E&C Choi Kwang-ho. A consortium formed by the two Korean construction companies will build 100,000 housing units over the next ten years.
Initiated and funded by the Ministry of Housing of Saudi Arabia, the project will create the 38㎢ &Dahiyat Alfursan New City& approximately 14km east of Riyadh, the capital. The new metropolis, with 100,000 housing units planned for construction over the next ten years together with the necessary urban infrastructure, will ultimately take shape as a high-tech new urban center with a population of over 600,000. The project is estimated to be worth up to $20 billion, and while the ultimate scale of the project is still being finalized with the design of the new city, it is forecasted to be the largest overseas construction project order in Korea's history.
Construction will be carried out by a consortium formed by Hanwha E&C, Daewoo E&C and SAPAC (Saudi Pan Kingdom for Trading, Ind. & Contracting), a large Saudi construction firm.
Saudi Arabia announces plans for 1.5 million housing units over the next seven years and Hanwha E&C secures a favorable position to win the construction project
Saudi Arabia's population of approximately 30 million (as of 2014) has been increasing at a rate of 1.5% annually, and the capital city of Riyadh is home to over 6 million people. However, housing ownership remains low at 60% despite the rising influx of people into the nation's large cities, straining the housing situation.
In response, the Saudi government created a new Ministry of Housing and announced a plan in January of 2016 to supply 1.5 million residential units over the next seven years, placing Hanwha in an advantageous position to win a significant share of subsequent large-scale housing and infrastructure construction projects.
Minister of Housing Majed Al-Hogail, who heads the Saudi government agency overseeing the project, visited Korea to attend the MOU signing as a testament to the strong commitment of his government to the Dahiyat Alfursan project.
Overseas construction expertise of Hanwha and Daewoo expected to create strong synergy with SAPAC's local network
Currently, Hanwha E&C is successfully carrying out the $10.1 billion Bismayah New City project in Iraq. Daewoo E&C is engaged in a number of large-scale housing construction projects around the world, including Trump World Tower in New York as well as the Star lake New City project in Hanoi and the Boughzoul New City project in Algeria. The expertise and long experience of the two Korean companies is expected to create a powerful synergy with the extensive local network of SAPAC, a large Saudi Arabian construction firm.
President & CEO of Hanwha E&C Choi Kwang-ho stated, "The Dahiyat Alfursan project will be our second successful large-scale overseas city construction project following the Bismayah New City project in Iraq, cementing our position as the global leader in new city development and enabling us to continuously expand our presence in potential high-growth markets in the Middle East and Southeast Asia."
Dahiyat Alfursan New City Project Overview
|Project name||Dahiyat Alfursan Project|
|Project lead||Ministry of Housing, Saudi Arabia|
|Project details||· Design and construction of 100,000 residential units including apartments,
town houses and condominiums
· New City infrastructure
|Project structure||Hanwha E&C ∙ Daewoo E&C Consortium (Hanwha-Daewoo-SAPAC)|
|Location||Alfursan region, 35km north of central Riyadh|
Hanwha Engineering & Construction
Hanwha E&C has been rapidly growing into a global player at an annual average growth rate of 20 percent since 2002 by leveraging its extensive experiences from many of its past construction projects and by applying its new and most effective technologies. Our competitiveness is internationally recognized; we ranked 72nd on the list of the top global contractors (with construction revenues of more than USD 521 billion) in Engineering News Record in 2014, the international publication called the “bible of the construction industry.”
For more information, visit: www.hwenc.com
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a “FORTUNE Global 500” company. Hanwha Group has 56 domestic affiliates and 249 global networks in three major sectors: manufacturing and construction, finance, and services and leisure. With more than 60 years track record of industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from chemicals & materials, aerospace & mechatronics, total solar energy solutions, and global construction. The finance network, covering insurance, asset management and securities, is the second largest non-bank financial group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses.
For more information, visit: www.hanwha.com
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