Saudi’s Binyah Signs $192.5 Million Contract with Diriyah Gate Development Authority

Saudi’s Binyah Signs $192.5 Million Contract with Diriyah Gate Development Authority

Saudi Real Estate Co.’s subsidiary Binyah has awarded a contract worth SAR 722.1 million by the Diriyah Gate Development Authority. This project involves excavating Metro-Box Central, Metro-Box South, and Metro-Box East. Excavating consists of clearing land, digging trenches, and preparing the sites for the construction of the metro stations. Binyah specializes in infrastructure development, and Al-Akaria owns 60% of the company.

The excavation will begin soon, and the contract is valid for 1,276 days. The project’s financial impact is expecting in the first quarter of 2024. The Public Investment Fund, a government entity, is a related party to the contract award. Its involvement ensures the project’s alignment with the Kingdom’s development goals and adds to its credibility.

Binyah’s expertise includes constructing roads, streets, sidewalks, road accessories, bridges, tunnels, and extensions of oil and gas pipelines. It also includes establishing stations and main water distribution lines and creating sewage stations and projects. Moreover, Binyah develops sewer networks and pumps, constructs port docks and marine facilities, and demolishes and removes buildings. However, Binyah is also involving in site preparation activities, including excavation, levelling, and network installations.

This contract concerns the excavation works for Metro-Box Central, Metro-Box South, and Metro-Box East. Excavation work on these three components of the Riyadh metro project will begin following the signing of an SR722.1 million deal between Saudi Real Estate Co., also known as Al Akaria and Diriyah Gate Development Authority.

Al Akaria has strategically expanded its portfolio with an SR159.6 million deal with Tamar. This deal involves executing civil, structural, architectural, and electromechanical works for the Tilal Al Riyadh mixed-use project in Al-Malqa District. The project, spanning an implementation period of 22 months, is set to significantly contribute to Al Akaria’s financial performance starting from the second quarter. Notably, the company has ensured transparency by stating that no related parties are involved in this transaction, further enhancing investor confidence.

Last month, the company announced its Dec. 31, 2023 financial results, reporting a net profit of SR67.6 million. This figure represents a 38.82 per cent decrease compared to the SR110.5 million recorded the previous year. The decrease is primarily because the company is actively addressing the issue to ensure sustainable growth in the future.

In February, Al Akaria signed an agreement with Marriott International to introduce a new 280-key luxury hotel. According to a statement, the deal will bring the Autograph Collection brand to the Saudi capital, paving the way for the new hotel’s opening. Construction will commence in 2025, and upon its completion, the hotel anticipates welcoming visitors by 2028.

Overall, Binyah’s contract award and Al Akaria’s recent deals reflect the company’s commitment to infrastructure development and promoting tourism and hospitality in Riyadh. These goals align with the Kingdom’s Vision 2030 of creating appealing destinations for residents and visitors.