The National Housing Company (NHC) of Saudi Arabia has recently inked a pact with CITIC Construction, a Chinese firm, to create an industrial city and establish logistics zones dedicated to building materials within the kingdom.
This monumental agreement was solidified during the visit of Saudi Arabia’s Municipal, Rural Affairs and Housing Minister Majed bin Abdullah Al-Hogail to China. NHC’s chief, Mohammed bin Saleh Albuty, was also present for the signing.
The partnership is a strategic move by NHC to bolster the supply chain for its housing projects, aiming to guarantee both the quality and timely completion of its residential developments.
Under the terms of the deal, 12 factories that specialize in building materials will be constructed. This initiative will harness Chinese expertise and also incorporate local factories to elevate business standards in the region.
The collaboration seeks to attract leading service providers to work with the company, its subsidiaries, and other projects in various sectors.
NHC anticipates that this agreement will significantly propel the economic and developmental influence of the real estate sector in Saudi Arabia. It is expected to enhance the quality of housing projects, contribute to the country’s national transformation in the construction arena through these industrial cities and logistics zones.
Moreover, the joint effort between NHC and CITIC Construction is set to foster the growth of small and medium-sized factories in Saudi Arabia, establish direct production lines for NHC’s projects, spur local industrial development, and generate numerous employment opportunities within the construction industry.
This agreement is a continuation of the strategic partnership between Saudi Arabia and China, which was further cemented during the Chinese President’s visit to Saudi in December 2022.
In a related development, NHC previously formed a strategic partnership with Urbas Middle East Real Estate Company, a branch of the Spanish Urbas group. This partnership is focused on constructing 589 residential units that encompass an area of about 150,000m², with a projected value of roughly SR1bn.