In the northwestern border of Saudi Arabia, NEOM, an unprecedented urban concept, is emerging from the desert.
NEOM is not only an attempt at urban construction, but also a global exploration of innovation, business and sustainable lifestyle.
In this vast land, countless architectural miracles are being born, and the presence of Chinese enterprises has also left a deep imprint on this hot land.
From electricity** to infrastructure construction, from green energy to mechanical and electrical equipment, Chinese technology and Chinese wisdom are intertwining and resonating with Saudi Arabia's grand vision, painting a magnificent picture of the city of the future.
In this NEOM, which is full of infinite possibilities, Chinese enterprises are demonstrating to the world China's leading position in the fields of global construction, new energy and smart cities with their outstanding strength and technological innovation capabilities.
This article is the 93rd article in the series of "Saudi Business Economy" of the Arab-Chinese Industrial Research Institute, which provides an in-depth introduction to the industrial policies, laws and regulations, industrial trends, market demand, competitive landscape and potential transaction opportunities in the fields of investment, engineering construction and engineering construction between China and the Arab States.
Introduction. Saudi Arabia's futuristic metropolis dreams neom
In Tabuk province in northwestern Saudi Arabia, an ambitious project called NEOM is quietly changing the way cities are perceived.
NEOM is not only a city, but also a vision that represents a global hub for innovation, business and sustainable living. Its goal is ambitious: to push the boundaries of all known boundaries of urban design and technology.
The scale of NEOM is astounding. The 26,500sq km project is larger than Belgium and almost the size of the US states of Vermont and New Hampshire combined. Within this vast expanse, NEOM has been carefully subdivided into multiple zones with different emphases.
The Line takes center stage with its 170-kilometre linear design, which revolutionizes the traditional concept of the city and is built for a walkable and zero-carbon lifestyle.
Neom Bay, on the other hand, is a planned port city and industrial hub that will become an important hub connecting the world. Oxagon focuses on advanced manufacturing and research, and is committed to promoting technological innovation and industrial development. In addition, there are tourist destinations such as Trojena and Sindalah, all of which are attracting global attention with their unique charm and positioning.
NEOM is closely linked to Saudi Vision 2030, which shares ambitious goals of economic diversification, innovative technology, sustainable development, and improved livability and human capital.
These two ambitious plans reinforce each other: the reforms and investments of Vision 2030 provide strong support for NEOM, and NEOM's success is a strong testament to Saudi Arabia's transformation, further attracting investment in innovation and sustainable development.
However, the funding needed to make this vision a reality is enormous. While the initial target of $500 billion was set, it remains fraught with challenges due to changing project scopes and financing strategies.
Currently, funding comes mainly from NEOM Investments** (NIF), which was set up in Saudi Arabia to attract private investors. In addition, NEOM plans to raise capital through a potential initial public offering (IPO) and partnerships with international companies to secure additional investment.
When it came to construction, NEOM faced a number of challenges. The expanse of the geographical scope, the huge need for infrastructure, the complexity of logistics and labor management, and the difficulty of implementing green building practices at scale are all challenges. However, NEOM has already made impressive progress, particularly on the core infrastructure of The Line, Oxagon and the initial residential community, which is already showing the prototype of the city of the future.
More importantly, NEOM not only presents the grand vision of the future city for Saudi Arabia and the world, but also presents huge business opportunities for Chinese construction companies, building materials manufacturers, new energy equipment manufacturers such as photovoltaic and wind power, and solution providers such as smart homes.
For Chinese companies, participating in NEOM projects can not only obtain considerable economic benefits, but also demonstrate their strength and technological innovation capabilities on the international stage, further promoting China's leading position in the fields of global construction, new energy and smart cities.
PowerChina helps Saudi Arabia build the line skyscraper
In Saudi Arabia's grand vision, an unprecedented architectural marvel is emerging in the desert – the centerpiece of the $500 billion NEOM project, the Mirror Line, a super-skyscraper. This building will not only break several world records, but also herald a radical change in the urban lifestyle of the future.
The Line is a futuristic and structurally advanced building. It is not a single high-rise building in the traditional sense, but a 500-metre-high megastructure that stretches parallel to each other and spans a vast area of 120 kilometres. These two buildings are like two giant dragons, lying across the magnificent landscape of deserts, coasts and mountains, showing a majesty and shock that has never been seen before.
As one of the world's leading engineering and construction companies, PowerChina has been deeply involved in this historic project since August 2022. They were responsible for piling the foundation of the Mirror Line supertall tower, which was a technically difficult and precise task.
With rich experience and excellent technical strength, PowerChina's team has successfully completed the project including diameter 15 meters and 2Drilling of 5-meter cast-in-place piles, fabrication and installation of reinforcement cages, concrete pouring and many other complex tasks.
Sungrow helps Saudi Arabia build NEOM, the world's largest green hydrogen plant
Omagon is building a landmark project in the NEOM region, the NEOM Green Hydrogen Project (NHHC). This ambitious goal is the culmination of a joint venture between ACWA Power, Larsen & Toubro (L&T) and NEOM to build the world's largest green hydrogen plant, which is expected to be ready for large-scale production of green ammonia in 2026.
NHHC is big and far-reaching. The construction of the plant will use renewable energy sources such as solar energy to produce hydrogen, a non-polluting, efficient and renewable energy source that is essential for reducing greenhouse gas emissions and driving the global energy transition.
L&T played a key role in this project. As the appointed contractor and system integrator for the entire facility, L&T entered into an Engineering, Procurement and Construction (EPC) agreement with NHGC. This agreement ensures the smooth progress and high-quality completion of the project.
Sungrow, as a world-renowned manufacturer of inverters and energy storage systems, has also made important contributions to this historic project. In August 2023, Sungrow signed a contract with L&T to provide an inverter skid-mounted solution for the NEOM green hydrogen project. These solutions will be deployed in 22 GWAC photovoltaic (PV) solar power plants provide stable and reliable power for the production of green hydrogen.
Sungrow has also partnered with L&T to provide a 400MWh energy storage system for green hydrogen projects. This system not only improves energy efficiency, but also provides an important guarantee for the long-term stable operation of the project. Through these collaborations, Sungrow has become a key subcontractor for L&T in the NEOM green hydrogen project, contributing Chinese wisdom and strength to promote the global energy transition and achieve the Sustainable Development Goals.
Envision Energy helps Saudi NEOM build the world's largest green hydrogen plant with wind power
In the construction of the NGHC green hydrogen plant, in addition to Sungrow's photovoltaic power, Envision Energy's wind power also plays an important role. It can be said that the green background of the energy of the NGHC green hydrogen plant comes from Chinese manufacturers.
In June 2023, Envision Energy signed a major agreement with L&T for a large-scale Oxagon plant in the NEOM region of Saudi Arabia**167 GW of wind turbines. This move marks the achievement of the plant's ambitious goal of being powered entirely by renewable energy sources and becoming a model for green energy applications.
Under the agreement, Envision Energy will supply and install the advanced 171-65MW wind turbine. These wind turbines not only represent the current industry-leading level, but are also expected to be fully operational in 2026, providing a strong energy guarantee for the stable operation of the Oxagon plant. It is worth mentioning that on November 7, 2023, the first major wind turbines have successfully arrived at NEOM Green Hydrogen's site, an important milestone that means that the project has entered the substantial construction phase.
As a global net-zero technology partner, Envision Energy's role goes far beyond wind turbines. The company will also provide a full suite of system solutions, including energy storage, digital grids, and the integration of power to X (P2X) technology. This all-round service demonstrates Envision Energy's deep expertise and comprehensive strength in the field of new energy infrastructure.
NEOM Green Hydrogen's large-scale plant project is an outstanding example of the green energy transition on a global scale. The plant will integrate up to 4GW of solar and wind energy, with the goal of producing up to 600 tonnes of carbon-free hydrogen per day by the end of 2026, providing clean energy to the global market in the form of green ammonia. This not only reflects Saudi Arabia's ambitions in the renewable energy sector, but also underscores Envision Energy's important position as a leading global provider of green technologies.
China State Construction Group joined hands with FCC Group to undertake the construction of key tunnels for the NEOM project in Saudi Arabia
In 2022, shortly after Saudi Arabia unveiled its ambitious NEOM Future City plans, a high-profile transport infrastructure project was unveiled – a powerful consortium of China State Construction Group (CSCEC) and Spain's FCC Group and local partner Shibh Al-Jazira Contracting Company (SAJCO) won the contract for the construction of a key tunnel in the NEOM project. This contract demonstrates the outstanding strength of Chinese construction enterprises on the international stage.
The tunnel construction project aims to provide safe, fast and convenient transportation for people and goods in the NEOM area, which is of great significance for promoting regional economic development and strengthening internal and external links. The construction of tunnels requires not only high technical standards and precise construction, but also full consideration of environmental protection and sustainable development requirements. To this end, the consortium plans to effectively treat the excavated rocks for reuse in tunnel lining and other projects, thus minimizing the impact on the surrounding environment.
FCC Group has extensive experience in the field of tunnel construction worldwide. The construction area has covered more than 700 kilometers of tunnels, including various projects such as roads, railways, and urban water supply. The cooperation with CSCEC and SAJCO reflects the strategic achievements of CSCEC in expanding and deepening cooperation in overseas markets.
China Railway Construction Saudi Arabia NEOM New Future City Tunnel Branch Tunnel Project has made a major breakthrough
In January 2024, China Railway Construction International Group (CRCC) held a grand celebration ceremony for the completion and handover of the tunnel branch tunnel with the project owner and supervisor at the site of the "THE LINE" project of NEOM New Future City in Saudi Arabia. This important moment marks the completion and handover of the western Baohao Cave contracted by China Railway Construction, and the project has made a breakthrough in major node tasks in stages.
As the key pilot project of "The Line", the main project of Saudi Arabia's new future city, the tunnel branch tunnel project consists of two construction packages in the east and west, with a total of 6 tunnels. The completion of these tunnels will provide the necessary construction access for the subsequent excavation of 26 kilometers of main tunnels, which is of great significance for the advancement of the entire project.
The No. 3 branch tunnel handed over this time is the longest branch tunnel in the western package, with a total length of 1,996 meters in a single hole, which is the key control project of the western package of the project. During the construction process, the CRCC team overcame multiple challenges such as complex geological conditions and high technical requirements to ensure the safe and efficient tunneling of the tunnel.
Up to now, the project has successfully delivered 5 tunnels on schedule, with a cumulative footage of more than 8,400 meters. This remarkable achievement not only demonstrates the professional strength and technical level of CRCC, but also establishes a good image for Chinese enterprises in the field of overseas infrastructure construction.
As the project progresses, the remaining longest tunnel on the entire line, Branch Tunnel 4, is expected to be delivered in May this year. At that time, China Railway Construction will once again prove its outstanding ability in the field of tunnel construction to the world with practical actions.
SUMEC provided generator sets for NEOM New Future City in Saudi Arabia to help local construction
In January 2024, SUMEC Group Corporation (SUMEC), a subsidiary of SINOMACH, once again demonstrated its outstanding strength on the international stage by successfully signing a contract for the NEOM New Future City project in Saudi Arabia, which will provide multiple sets of high-efficiency diesel generator sets. This important contract not only highlights SUMEC's expertise in customized solutions, but also its pioneering efforts in the local environment.
The generator set provided by SUMEC is the main power supply of the NEOM project, which guarantees the construction power in the early stage of factory construction** and provides a solid guarantee for the smooth progress of the project. After the completion of the plant, they will continue to provide continuous power support for production and manufacturing, injecting continuous impetus into the long-term operation and development of the NEOM project.
In view of the local high temperature and high humidity environment characteristics of Saudi Arabia, SUMEC has carefully designed the products. Its generator sets are equipped with professional features such as superior heat dissipation, dehumidification, corrosion resistance and low noise levels to ensure efficient and long-term operation in harsh conditions up to 55 degrees Celsius. In addition, according to the mobile use needs of the construction site, SUMEC also customized the flatbed trailer unit scheme to achieve convenient movement and further improve the practicability and flexibility of the unit.
Sany Heavy Industry Equipment Demonstrates Excellent Performance in the NEOM Project in Saudi Arabia
In Saudi Arabia's grand construction project NEOM, a fleet of yellow-painted construction machinery from China's Sany Heavy Industry stands out. Since joining the fleet of Saudi construction contractor giants in November 2021, the 10 Sany Heavy Industry equipment have worked continuously for more than 1,000 hours under extreme conditions of high temperatures and sandstorms, and remarkably, they have maintained an excellent record of zero failures.
This achievement not only proves the reliability and durability of Sany Heavy Industry equipment in harsh environments, but also wins the reputation of Made in China in the international market. The recognition of Sany Heavy Industry equipment in the Saudi market is not accidental, but based on its excellent performance and excellent service. Since the beginning of 2022, Sany has become a best-selling brand in the Saudi market, and the outstanding performance of its equipment on the construction site has established a good reputation for the brand.
Up to now, Sany has deployed more than 1,672 pieces of equipment at the NEOM project site, covering cranes, excavators, loaders, dump trucks, pump trucks and other types. These facilities work together in their respective roles to advance this world-class construction project. With the continuous influx of intent orders, it is expected that more Sany Heavy Industry equipment will join the ranks.
In order to ensure the normal operation of the equipment and the smooth progress of the construction progress, Sany Heavy Industry has set up a professional service team composed of more than 50 engineers on site. They are located on various construction sites, providing quick response and professional technical support to ensure that every piece of equipment can be restored to its best working condition in the shortest possible time.
The scale and requirements of the NEOM project provide unprecedented business opportunities for Chinese machinery and equipment manufacturers, including Sany Heavy Industry. It is estimated that tens of thousands of engineering equipment will be required for the entire project. This means that the market prospects of Chinese brands such as Sany Heavy Industry in Saudi Arabia and even the Middle East will be broader.
Conclusion
From NEOM's grand vision to The Line's vision of a futuristic city, from Mirror Line's superscrapers to the world's largest green hydrogen plant, to tunnel construction and power**, Saudi Arabia is turning its northwest desert into an innovative and vibrant futuristic metropolis with the help of Chinese companies.
These projects not only demonstrate the in-depth cooperation between China and Saudi Arabia in the fields of economic and trade cooperation, technological innovation and sustainable development, but also highlight the leading position of Chinese enterprises in the field of global infrastructure construction.
Chinese companies such as PowerChina, Sungrow, Envision Energy, China State Construction Group, China Railway Construction, SUMEC Group and Sany Heavy Industry Co., Ltd. have provided a full range of support and services for the NEOM project with their excellent technical strength, rich experience and excellent project management capabilities.
They are the cornerstone of the city of the future in the desert, setting a new benchmark for the green energy transition and sustainable development in Saudi Arabia and around the world.
At the same time, these projects also bring huge business opportunities for Chinese enterprises. They have not only achieved considerable economic benefits, but also demonstrated the strength and technological innovation capabilities of Chinese enterprises on the international stage, further promoting China's leading position in the fields of global construction, new energy and smart cities.
Looking forward to the future, with the in-depth promotion of the NEOM project and the participation of more Chinese enterprises, we have reason to believe that this futuristic metropolis in the desert will become a new model of China-Saudi Arabia friendship and cooperation, providing new ideas and directions for the future development of human society.
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