Saudi Arabia’s gigaproject developer Diriyah Company has awarded an estimated SR8bn ($2bn) contract to construct assets in the Wadi Safar development of the Diriyah project in Riyadh.

The contract was awarded to the joint venture of local firm Albawani and Qatari contractor Urbacon Trading & Contracting.

The joint venture will develop assets including:

• The Aman Wadi Safar hotel and residences
• A Six Senses hotel
• A Chedi hotel and residences
• A Faena hotel and residences
• The Royal Diriyah Equestrian & Polo Club (excluding enabling works)
• The North and South Fairways retail facilities and a mosque
• The Grove retail facilities, mosque and clinics

Last week, MEED exclusively reported that Diriyah Company was preparing to award the contract.

Wadi Safar is one of the original projects announced by Diriyah Company as part of the Diriyah project.

It is a mixed-use development featuring residential buildings, farm plots, hotels, branded hotel villas, a golf course, an equestrian and polo club, and other leisure and entertainment facilities.

In May, the president of Diriyah Company said he expects the company to award contracts worth SR30bn-SR35bn ($8bn-$9bn) this year for its Diriyah project.

“We have awarded about SR53bn-worth of contract awards so far, and this year we will award about SR30bn-SR35bn of contracts to achieve our targets,” Mohammad Saad, Diriyah Company president, told the MEED Saudi Giga Projects event in Riyadh.

Regarding the project delivery challenges facing most gigaprojects, Saad said: “Diriyah has devised a superblock strategy where we combine assets for a particular development, and we have seen a positive response from contractors.”

Earlier in July, Diriyah Company awarded a construction contract valued at over $2bn to the joint venture of El-Seif Engineering Contracting and Beijing-based China State Construction Engineering Corporation to construct the Northern District of the Diriyah development.

In a statement, Diriyah Company said that construction work is due to start in the third quarter of this year.

The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it spans 14 square kilometres and combines 300 years of history, culture and heritage with hospitality facilities.

Once complete, Diriyah will have the capacity to house 100,000 residents and visitors.