Saudi Arabian telecoms operator Mobily has signed a contract worth SR600m ($160m) with Emaar Economic City to deploy, operate, and maintain communication networks within King Abdullah Economic City.
The contract, which was signed for a period of 8 years, subject to extension, entails a SAR 600 million investment by Mobily to plan, deploy, maintain and operate the telecoms network within King Abdullah Economic City. The project will be funded through a combination of self-financing and banks finance, according to a statement on the Saud stock exchange website.
The project is expected to generate revenues of about SAR1.4 billion during the contract period.
As part of the deal, Mobily will deploy a fibre-optic network for telecoms services including broadband internet.
The company will also provide data centre and smart city services, such as IPTV, as well as Ethernet VPN (L2), IP VPN (L3) direct internet access (DIA), IP transit, Broad Band at Work, and Business Connect.
Mobily will also provide communications management services, which will reduce the time to install and manage telephone communications network for targeted companies in King Abdullah Economic City.
King Abdullah Economic City is the largest and one of the most important economic projects run by the private sector in the Middle East. It is an integrated city built on 180 km sq with a 38 km sq waterfront.
The city is going to be the largest among the four planned economic cities in the Saudi Arabia. A 14 sq km port is also included within the project to be among the top 20 containers port in the world. It is expected that the city will have 421 companies and nearly 115 thousand residential units, in addition to educational, medical and various vital facilities.
The contract was signed by Mobily CEO and MD, Khalid Al Kaf, and KAEC CEO and MD, Fahd bin Abdulmohsen Al-Rasheed, on Tuesday.