The National Housing Company (NHC) of Saudi Arabia has inked a pivotal agreement with China’s CITIC Construction. This collaboration is aimed at the creation of an industrial city alongside logistics areas dedicated to construction materials. The initiative will see the establishment of 12 factories within the Kingdom, a move designed to fortify the supply chains for residential development projects.
During the official tour of the Saudi Minister of Municipal, Rural Affairs and Housing, Majed bin Abdullah Al-Hogail, to China, the agreement was formalized. The signing ceremony featured NHC’s CEO, Mohammed bin Saleh Albuty, marking a significant step in the partnership between the two nations.
The NHC has highlighted that the agreement is a strategic move to ensure the on-schedule and high-quality completion of its housing ventures. It is anticipated that this project will draw in a dozen leading manufacturers specialized in building materials, deriving benefits from the Chinese expertise. Additionally, the collaboration will see local factories joining forces to elevate operational standards, entice top-tier service providers, and comply with the most stringent international protocols.
The company has expressed that this alliance will amplify the economic and developmental impacts within the Kingdom’s real estate domain, refining the caliber of residential projects. Not only will it bolster the national drive for innovation in the construction field through these industrial and logistics hubs, but it will also aid in the localizing of the building materials industry, with Chinese factories at the helm. This setup is poised to provide growth avenues for medium and small local factories, direct production lines for NHC projects, and overall advancement of the local building materials sector, generating an influx of new opportunities.
The essence of this agreement is to uplift the standard of housing units and construction work, reflecting the broader strategic partnership between Saudi Arabia and China. This partnership, solidified by the action plan signed during the Chinese President’s visit to Saudi Arabia in December 2022, is an extension of the bilateral cooperation in the housing arena.