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Mon 19 Sep 2011 08:48 PM

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Orascom unit wins $552m Saudi stadium deal

Six Construct beats five other bidders to net deal for 60,000-seat Sports City stadium

Orascom unit wins $552m Saudi stadium deal
TO GO WITH AFP STORY BY FAISAL BAATOUT: A construction worker digs at a building site while in the background numerous cranes are positioned around high-rise ?apartment buildings under development in the Qatari capital Doha, 01 October 2007. Qatar ?is enjoying dramatic economic growth on the back of surging gas revenues, but the Gulf ?state is battling an increasingly high rate of inflation led by high housing costs, officials ?and analysts say. Around 2,000 housing units were under construction in 2007 and ?another 6,000 should be ready by 2009. AFP PHOTO/KARIM JAAFAR (Photo credit should read KARIM JAAFAR/AFP/Getty Images)

A unit of Egypt's Orascom Construction Industries (OCI) won a SR2.07bn ($552m) contract to design and build a major sports stadium in Saudi Arabia's Jeddah, a source close to the deal said on Monday.

The contract for a 60,000-seat stadium at the King Abdullah Sports City was awarded to Six Construct - which is fully owned by Besix Group, itself a 50-50 joint venture between OCI and Belgian construction group Besix - in partnership with Al-Muhaidib Contracting Company.

The source said Six Construct with local company Al-Muhaidib had bid for the project against at least five other groups, confirming a report carried by the Middle East Economic Digest (MEED).

The King Abdullah Sports City, to be named after King Abdullah bin Abdulaziz al-Saud, is planned to cover an area of 9 sq km, north of Jeddah.

Oil firm Saudi Aramco was given the task of developing the scheme on behalf of the government in 2009. It has since tendered road building and enabling works for the project.

OCI, Egypt's biggest listed firm, posted a 15 percent rise in second-quarter net profit and has said it expected construction orders to grow this year as governments in the Middle East try to create jobs by boosting infrastructure spending.

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