Korean construction firms boost Saudi Arabia presence with megaprojects

RIYADH – South Korean firms are accelerating their efforts to win construction projects from Saudi Arabia as the Middle East’s largest economy is awarding megaproject contracts in earnest.

Korea’s Ssangyong Engineering & Construction Co. is set to undergo Saudi Arabia's King Salman Park project pre-qualification (PQ) process, an assessment of prospective contractors’ capabilities ahead of the main bid.

The $23 billion project is to build the world’s largest urban public park, covering 160,000 square kilometers, in the Saudi Arabian capital of Riyadh.

Ssangyong E&C is said to have a very good chance to pass the PQ process and join the main bid, thanks to its years-long relationship with George Tanasijevich, chief of King Salman Park Foundation.

Tanasijevich has long served as president and CEO of Marina Bay Sands, which awarded the Singapore-based upscale hotel Marina Bay Sands project to Ssangyong E&C. The Korean firm completed construction of the three-tower hotel in 2010.

During a press conference in Riyadh on Nov. 9, Tanasijevich said he highly appreciates Ssangyong’s achievements including Marina Bay Sands, and hopes that more Korean companies will join such global large-scale real estate projects.

Other Korean construction firms are expanding their presence in the Middle Eastern country.

HanmiGlobal Co., a Korean construction project management company, won a $34 million order in July from Diriyah Gate Development Authority, which is chaired by Saudi Arabian Crown Prince Mohammed bin Salman. The deal is part of a $20 billion megaproject to build a luxury residential complex in Saudi Arabia.

The overall project is to construct a complex of houses, hospitals, shopping centers and resort facilities in Diriyah, a town 20 km west of Riyadh.

Last month, Samsung C&T Corp., the construction arm of Samsung Group, completed building Tadawul Tower, the headquarters of the Saudi Stock Exchange. The 42-story landmark is located in the King Abdullah Financial District of Riyadh.

While many financial building projects have been halted in the middle of construction, Samsung was responsible from the beginning to the end of the skyscraper project and is highly recognized in Saudi Arabia's construction market, a Tadawul official said.

Write to Eun-Jung Kim at kej@hankyung.com
Jihyun Kim edited this article.