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 main index closes in red at 10,947 

Updated 19 February 2026
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Closing Bell: Saudi main index closes in red at 10,947 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25. 

The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated. 

The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71. 

The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated. 

The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34. 

Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51. 

On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39. 

National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50. 

On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co. 

In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.  

Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.  

Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.  

The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said. 

The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.