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Contractors asked for best Diriyah Square offers

10 October 2025

 

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Saudi Arabia’s gigaproject developer Diriyah Company has invited contractors to submit their best and final offers for the contract to carry out construction works on a new package within the Diriyah Square project.

The contract scope covers finishing work and mechanical, electrical and plumbing (MEP) systems for several key assets in Diriyah Square.

These include:

  • Armani Hotel (69 keys)
  • Armani-branded Residences (15 units)
  • Baccarat Hotel (86 keys)
  • Baccarat-branded Residences (9 units)
  • Corinthia Hotel (86 keys)
  • Corinthia-branded Residences (10 units)
  • Fauchon Hotel (85 keys)
  • Orient Express Hotel (86 keys)
  • Offices
  • Imam Mohammed Bin Saud Grand Mosque

MEED understands the bidders include:

  • Nesma & Partners
  • Modern Building Leaders
  • Alec
  • UCC Holding

In July, MEED exclusively reported that Diriyah Company had received bids from contractors for the package.

Diriyah Square lies at the centre of the Diriyah project and will offer hospitality, residential, retail, leisure and entertainment facilities.

Diriyah has made significant progress on several packages of the Diriyah Square project. Italian contractor Webuild announced in July that it had won a $600m contract from Diriyah Company for package three of the project.

The package involves the finishing and MEP works on more than 70 buildings and public spaces within Diriyah Square. These assets cover a total area of about 365,000 square metres (sq m).

Webuild is also working on the underground multi-storey car park at Diriyah Square that will serve the mixed-use district. 

The car park will have a floor area of 1 million sq m, with underground roads and tunnels below Diriyah Square, and a capacity of 10,500 cars.

The parking facility will directly connect commuters to all of Diriyah’s destinations, including Wadi Hanifah, the Western Ring Road and a national motorway. It will be a key component of the City of Riyadh’s arterial road system.

In an official statement on its website, Webuild said construction of the car park is 55% complete.

Diriyah gigaproject

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

To date, the company has awarded several main construction contracts worth over SR18bn ($5bn). 

Just days after Webuild announced that it had won the $600m contract for package three of the Diriyah Square project, Beijing-headquartered China Harbour Engineering Company won a SR5.7bn ($1.5bn) contract to build the Arena Block assets in the Boulevard Southwest section of the second phase of the Diriyah Gate development (DG2).

In April, Diriyah awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Saud University project located in DG2. The contract was awarded to a joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

Earlier in the same month, a SR5.1bn ($1.3bn) construction deal was awarded to a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting to build the Royal Diriyah Opera House.

Also in April, a consortium of Saudi Arabia-based contractors Almajal Alarabi and Man Construction won an estimated SR915m ($244m) contract to build King Salman Grand Mosque in Diriyah.

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

MEED’s October 2025 special report on Saudi Arabia includes:

> COMMENT: Riyadh strives for sustainable growth
> GOVERNMENT: Riyadh confronts rising regional chaos
> ECONOMY: Riyadh looks to adjust investment approach
> BANKING: New funding sources solve Saudi liquidity challenge
> OIL & GAS: Aramco turns attention to strategic projects
> GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
> POWER: Saudi Arabia accelerates power transformation
> WATER: Transmission projects drive Saudi water sector growth
> CONSTRUCTION: Saudi construction pivots from gigaprojects to events
> TRANSPORT: Infrastructure takes centre stage in Saudi strategy
> DATABANK: Saudi Arabia maintains growth momentum

To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/14841925/main.jpg
Yasir Iqbal

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