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. 


Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness

Updated 30 December 2025
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Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness

RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.

The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.

Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).

Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.

National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.

Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.

On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.

Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.

In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.