Diriyah Company awards $1bn contract for KSU relocation

Diriyah Company has awarded a US$1.13bn (SAR 4.225 billion) construction contract to relocate King Saud University’s (KSU) existing utilities and administration offices, as part of the ongoing development of the Diriyah masterplan.

The contract has been granted to a joint venture between China Railway Construction Corporation Limited Saudi Branch and China Railway Construction Group Central Plain Construction Co. Ltd (CRCCSA & CRCGCPC).

“We are delighted to announce this major contract to support King Saud University, whose campus adjoins the Diriyah development area,” said Jerry Inzerillo, group CEO of Diriyah Company. “This agreement marks yet another important step in aligning our efforts to advance educational and infrastructural excellence in the Kingdom. We are proud to support one of the Kingdom’s leading academic institutions in delivering enhanced infrastructure services that will benefit both its students and the broader university community.”

Li ChongYang, chairman of China Railway Construction International Group Co., commented, “We are honoured to collaborate with Diriyah Company on this significant and unique development. This contract reflects our commitment to delivering world-class infrastructure with the highest standards of quality and efficiency. We look forward to contributing to the success of this iconic project and supporting the continued growth of King Saud University.”

The contract covers the design, construction and relocation of the university’s utilities and administration facilities.

Expectations for the future

This includes a new district cooling plant, water storage systems, a sewage treatment plant, LPG/SNG plant, diesel transfer pumping station, utility tunnels, irrigation water storage, office buildings, warehouses, and maintenance workshops.

Diriyah Company is also planning additional assets within the same area in future development phases.

The deal adds to a growing list of major contracts awarded by Diriyah Company, as the 14 sq km "City of Earth" continues to progress.

With this latest award, total contracts signed in 2025 now exceed US$2.9bn.

A flagship project supported by the Public Investment Fund, Diriyah is set to transform into a mixed-use urban hub, offering housing for nearly 100,000 residents, significant office space for professionals in technology, media, arts, and education, and is expected to generate approximately 178,000 jobs.

The development aims to attract close to 50 million visitors annually and contribute around US$18.6bn (SAR 70 billion) directly to Saudi Arabia’s GDP.