– The National Housing Company (NHC) in Saudi Arabia is preparing to launch a limited tender, inviting Egyptian construction firms to bid on USD 200 billion worth of housing and infrastructure projects across the kingdom.

– The NHC recently held discussions with 16 Egyptian companies and the Egyptian Housing Ministry, focusing on large infrastructure projects in Makkah, Tabuk, and Jazan, and assessing the companies’ track records in handling such projects.

– To support these projects, discussions are ongoing about establishing a risk fund at the Saudi central bank to facilitate the issuance of guarantees for participating companies, alongside increasing issuance commissions to encourage bank involvement.

The National Housing Company (NHC) plans to initiate a selective tender for Egyptian construction firms to bid on USD 200 billion worth of housing and infrastructure projects within Saudi Arabia.

Currently, Saudi Arabia has approximately USD 103.1 billion in ongoing building projects, with around 900 of these projects, valued at a total of USD 50 billion, actively under construction.

Earlier this week, the NHC held discussions with 16 local firms and the Egyptian Housing Ministry to introduce this initiative, which encompasses infrastructure projects in Makkah, Tabuk, and Jazan, according to EnterpriseAM Egypt.

Key Egyptian construction companies such as Orascom Construction, Hassan Allam Construction, Arab Contractors, Petrojet, Nasr General Contracting, and Alshams for Contracting were involved in these discussions.

The meeting reportedly focused on the companies’ past performance in executing large-scale infrastructure projects and their capability to fulfill contractual obligations.

There are ongoing talks to establish a risk fund at the central bank to support the issuance of guarantees for these companies. Additionally, the NHC has suggested raising the issuance commission to encourage banks to facilitate this process.

Saudi Arabia’s real estate sector is facing challenges in meeting demand as the country’s population continues to grow. The proportion of expatriates is expected to increase to 50% from the current 42% by 2030, according to S&P Global. Supply remains constrained, particularly in Riyadh and Jeddah, driving up inflation and rent prices.

The Central Bank of Egypt has not yet authorized banks to issue letters of guarantee in USD or SAR, a critical step for Egyptian companies to enter the Saudi market and secure foreign currency, according to sources.