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Rafal-Citic JV to set up $3.2bn industrial complex in Riyadh

RIYADH, December 12, 2022

Saudi-based Rafal Real Estate Development has announced that its joint venture with Citic Construction, a subsidiary of China’s state-owned conglomerate Citic group, has reached an agreement with National Housing Company for the construction of an industrial complex in Riyadh.
The complex offers fully integrated supply chains – ranging from advanced green pre-cast to modular housing solutions in addition to related industries spanning electro-mechanical installation and other finishing materials – that are essential for the construction of scalable social housing projects within the shortest time schedule.
As per the deal, Saudi National Housing Company will extend its support to the JV by providing a strategic location for the facilities serving the newly-planned masterplans in the North-East of Riyadh.
It will also provide a land block bank serving 20,000 homes for the first phase of the project.
The estimated capex of the complex and construction of the houses will be over SR12 billion ($3.2 billion), said a top official.
Citic Construction Chairman Chen Xiaojia said: “We are pleased to participate in the development of the Saudi construction industry and will mobilize all the relevant resources, along with Rafal, the strong local partner, to have a good invest-build-operate service for the a/m complex with the latest technology and to complete the construction of the 20,000 homes at the earliest possible time, meeting the urgent demands of the local people.”
He emphasized that the official visit of Chinese President Xi will surely further strengthen the political-diplomatic and economic relationship between China and Arabic nations.
Rafal CEO Elias Abou Samra said  the joint venture is aimed at boosting production to serve the Saudi market with a fully integrated solution that would achieve higher scalability, environmental sustainability, and cost efficiency.
“The project shall create jobs, provide training and support the local ecosystem to achieve the local content objectives ultimately,” he added.
Construction works is expected to begin in Q3 next year and the production and operations are targeted for January 2024.-TradeArabia News Service


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