The supply of building materials in Saudi Arabia is poised to surge following a strategic agreement inked between the National Housing Co. (NHC) and a distinguished Chinese construction enterprise.
The pact with China’s CITIC Construction Group is intended to launch an industrial city along with logistic zones for building materials. This development will encompass 12 specialized factories, aiming to fortify the supply chains for NHC’s various housing ventures.
Mohammad Albuty, the Chief Executive Officer of NHC, sealed the deal amidst the official trip of Saudi Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, to China.
According to NHC’s announcement, the collaboration with the Chinese construction titan is part of a broader strategy to secure supply chains for its housing projects, guaranteeing their punctual delivery and superior quality.
The Saudi firm elaborated that the agreement involves the establishment of 12 factories dedicated to the production of building materials, leveraging Chinese expertise and engaging local factories to elevate business standards.
The deal also seeks to attract leading service providers across diverse sectors for the company, its affiliates, and other initiatives.
Furthermore, the partnership is expected to amplify the economic and developmental contribution of the real estate market in the Kingdom, improve housing project standards, and accelerate the national transformation in the construction industry through these industrial cities and logistic zones.
The collaboration is set to facilitate the expansion of small and medium-sized factories in the Kingdom, create direct production lines for the company’s projects, and spur the advancement of the domestic industry. It is also anticipated to generate significant employment opportunities in the sector.
Lastly, this agreement is viewed as a reinforcement of the comprehensive strategic relationship between Saudi Arabia and China, which was solidified during the Chinese president’s visit to the Kingdom in December 2022.