Gammon Group said it will commence work on a SR10.9bn ($2.9bn) new mega city project in Rabigh, Saudi Arabia, shortly.
The new mixed-use development will be situated on a 200ha plot owned by the former Rabigh Governor Mohammed Barakah Ismail Al-Ghaanami.
The 20 million m² project includes construction of a hospital, schools, residential villas, parks, playing areas, industrial areas, mosques and warehouses, as well as a petrochemical plant and a tyre factory.
Planned to be built in King Abdullah Economic City, the project will also feature a medical city with training facilities.
In 2012, Gammon and Al-Ghaanami signed a memorandum of understanding for the development of the project.
As per the deal, Gammon will design, finance and construct the new mega city project, which is expected to take nine years to complete.
Gammon chairman Mohammed Rafik said the project would create over 3,000 jobs.
Rabigh has various facilities such as a factory of Arabian Cement, an electricity station and Saudi Aramco’s refinery.
King Abdullah Economic City is part of Saudi Arabia’s $500bn investment programme to construct six new cities that exist as housing and commercial hubs for the country’s growing population.
The new centres are expected to accommodate around five million people by 2020.