NEOM awards $2bn contract to join OXAGON with The Line  

The Line, which began construction in January 2021, will eventually house 1 million people (File)
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Updated 04 May 2023
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NEOM awards $2bn contract to join OXAGON with The Line  

RIYADH: Saudi Arabia’s $500 billion giga-project NEOM has awarded a $2 billion contract for the construction of the Connector South rail line that will link its industrial city OXAGON with The Line development.   

A joint venture of Italy-based Webuild and Riyadh-headquartered Shibh Al-Jazira Contracting, known as Sajco, will undertake the transportation project.   

The road will extend south from The Line to NEOM City Station, passing through NEOM Bay Mansions, NEOM Bay Airport, all the way to OXAGON.  

A 75 km railway line will be constructed as part of the project, the Middle East Economic Digest reported.   

The infrastructure corridor will consist of earthworks, 14 viaducts, seven roads and nine rail underpasses.   

Additionally, it will include 152 pipe and box culverts, a freight line, as well as infrastructure maintenance depots and associated facilities.⁠⁠⁠⁠⁠⁠⁠  

In May 2022, NEOM issued the tender for the contract to complete construction work on an infrastructure corridor.   

The deadline for this contract, which was repeatedly altered, was originally set for Sept. 1 when NEOM released the offer.      

The Line railway system and the NEOM Industrial City Connector have been assigned an independent safety assessor, AuditSafe, an Egis subsidiary, and its partner Certifer.   ⁠⁠⁠⁠⁠⁠⁠   

Furthermore, NEOM has requested selected companies to submit proposals by June 12 for the building of tunnels that will act as the railway link joining the NEOM Connector with the Spine.   ⁠⁠⁠⁠⁠⁠⁠  

Contractors are also submitting bids for The Line’s cut-and-cover tunnel segments. ⁠⁠⁠⁠⁠⁠⁠   

Also known as NEOM Industrial City, OXAGON was formally launched in November 2021. It will be built around the Duba seaport in the southwest corner of NEOM and will include onshore elements and floating structures offshore.  

The industrial city project aims to promote sustainable energy, autonomous mobility, water innovation, sustainable food production and health and well-being.   

The development also targets technology and digital manufacturing, including telecommunications, space technology and robotics as well as modern construction methods.  

The Line, which began construction in January 2021, will eventually house 1 million people. The 170 km-long development is set to be a ring of well-linked neighborhoods free of automobiles and highways.       

The building work plans include the construction of residential communities along the rail and infrastructure corridor as well as a network of interconnected, mirror-like high-rise skyscrapers.   ⁠⁠⁠⁠⁠⁠⁠  

The Line, OXAGON and the outdoor ski resort, Trojena, are all subprojects of NEOM, which aims to achieve exceptional standards of living, thriving businesses and reinventing conservation, in line with Saudi Vision 2030. 


Education spending surges 251% as students return from autumn break: SAMA

Updated 12 December 2025
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Education spending surges 251% as students return from autumn break: SAMA

RIYADH: Education spending in Saudi Arabia surged 251.3 percent in the week ending Dec. 6, reflecting the sharp uptick in purchases as students returned from the autumn break.

According to the latest data from the Saudi Central Bank, expenditure in the sector reached SR218.73 million ($58.2 million), with the number of transactions increasing by 61 percent to 233,000.

Despite this surge, overall point-of-sale spending fell 4.3 percent to SR14.45 billion, while the number of transactions dipped 1.7 percent to 236.18 million week on week.

The week saw mixed changes between the sectors. Spending on freight transport, postal and courier services saw the second-biggest uptick at 33.3 percent to SR60.93 million, followed by medical services, which saw an 8.1 percent increase to SR505.35 million.

Expenditure on apparel and clothing saw a decrease of 16.3 percent, followed by a 2 percent reduction in spending on telecommunication.

Jewelry outlays witnessed an 8.1 percent decline to reach SR325.90 million. Data revealed decreases across many other sectors, led by hotels, which saw the largest dip at 24.5 percent to reach SR335.98 million. 

Spending on car rentals in the Kingdom fell by 12.6 percent, while airlines saw a 3.7 percent increase to SR46.28 million.

Expenditure on food and beverages saw a 1.7 percent increase to SR2.35 billion, claiming the largest share of the POS. Restaurants and cafes retained the second position despite a 12.6 percent dip to SR1.66 billion.

Saudi Arabia’s key urban centers mirrored the national decline. Riyadh, which accounted for the largest share of total POS spending, saw a 3.9 percent dip to SR4.89 billion, down from SR5.08 billion the previous week.

The number of transactions in the capital settled at 74.16 million, down 1.4 percent week on week.

In Jeddah, transaction values decreased by 5.9 percent to SR1.91 billion, while Dammam reported a 0.8 percent surge to SR713.71 million.

POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia. 

The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives. 

The growth of digital payment technologies aligns with the Kingdom’s Vision 2030 objectives, promoting electronic transactions and contributing to the nation’s broader digital economy.