The Saudi National Housing Company (NHC) has signed a cooperation agreement with China’s CITIC Construction to establish an industrial city and logistics zones for building materials in Saudi Arabia.
The project will comprise 12 factories to secure supply chains for residential projects, reported the Saudi Press Agency (SPA). The Saudi Minister of Municipal, Rural Affairs and Housing Majed bin Abdullah Al-Hogail signed the agreement during an official visit to China. NHC was represented by its CEO, Mohammed bin Saleh Albuty.
According to NHC, the cooperation agreement with CITIC Construction aligns with NHC’s efforts to secure supply chains for its residential projects, and ensure their implementation on schedule with high quality. The agreement aims to attract 12 of the largest building materials factories and benefit from Chinese experience.
Furthermore, some local factories will join to enhance operations and attract the best service providers to the company’s various sectors and other projects, in accordance with the highest international standards.
The company added that the agreement will contribute to optimizing the economic and developmental effect of the real estate sector in the Kingdom, and promoting residential projects and improving their quality.
It will also enhance the national transformation in the construction sector through these industrial cities and logistics zones that will serve the Chinese factories in localizing the building materials industry.
These facilities will enable the expansion of small and medium local factories, and will help in providing direct production lines for the company’s projects. In addition, they will develop the local industry of building materials, providing more opportunities in the sector and creating more jobs.
The agreement aims to raise the quality of housing unit products in construction projects. It serves as an extension of the comprehensive strategic partnership agreement between Saudi Arabia and China, signed in December 2022 during the Chinese President’s visit to the Kingdom. It includes an action plan to activate the provisions of a memorandum of cooperation between both countries in the housing field.
