Saudi Arabia Commissions $1.1 Billion of Homes in Seven Cities

Saudi Arabia’s housing ministry commissioned 4 billion riyals ($1.1 billion) of housing projects in seven cities including Jeddah, Dammam and Tabuk as part of King Abdullah’s initiative to construct 500,000 homes.

The Dammam contract, valued at 1.1 billion riyals, is the biggest of eight given out by the ministry, the ministry said in a statement today. Saudi builder Al Yamama Trading & Contracting Co. and Mapa Insaat ve Ticaret AS of Turkey won the contract for that city.

Seven other companies won orders for the other six cities. Kuwait’s Abdulmohsen Al Kharafi & Sons Trading & Contracting Co. will build infrastructure in al-Qatif city.

The projects include infrastructure and construction works for 40,000 housing units, the ministry said on Aug 18. The housing, designed to accommodate 250,000 people, will be completed in 18 to 24 months, Housing Minister Shuwaish Al-Duwaihi said in the statement.

The world’s largest oil exporter needs 2 million new homes by 2014 to keep up with a population that’s quadrupled over 40 years. In 2011, King Abdullah promised to spend 250 billion riyals on new homes as a wave of revolutions toppled leaders from Morocco to Yemen.

Before it's here, it's on the Bloomberg Terminal.