Nesma Latest News

Nesma Co. and CJ Logistics have announced the signing of a memorandum of understanding (MOU). Signed at CJ Logistic’s headquarters in Seoul's Jongno district, the agreement will see both companies actively exploring joint business opportunities and prioritizing each other in the pursuit of new ventures in Saudi Arabia.

CJ Logistics is currently establishing a Global Distribution Center in the Middle East, expected to be operational next year, to manage international shipments for the online retailer iHerb. Kang Byung-koo, the head of CJ Logistics’ Global Business Division, expressed optimism about the partnership, saying that through cooperation with Nesma Co., they aim to expand their influence in the Middle Eastern logistics market.

The PPA is for the Al Henakiyah project and will buy electricity at the competitive price of 0.0168420 USD p/kwh (6.31575 halalas). At a capacity of 1100 MW, this solar PV plant can power over 190,000 residential units annually.
The project is part of the National Renewable Energy program, an important component of Vision 2030 aiming to have renewable energy make up 50% of the country’s power mix, support a sustainable economy and reduce carbon dioxide emissions.

On November 2nd, 2023, Nesma Infrastructure and Technology (NIT) signed a major strategic package with the Saudi Electricity Company (SEC) valued at over SAR 1.3 billion to construct and deliver 16 high-voltage transmission substations to support the ongoing rapid development in the eastern region of the Kingdom.

The scope of work for these fast-track contracts includes the engineering, procurement, construction, testing & commissioning and energization of the transmission substations along with their connection to the Saudi Arabian national grid, with an approximate delivery of 16 months.The substations will be built on a lump sum turnkey basis under the Network Reinforcement Program for Big Cities to benefit existing cities in the eastern region and facilitate their future growth.

Nesma Infrastructure & Technology (NIT) has won two additional contracts with the Saudi Electricity Company valued at over SAR 210 million to support the expansion of Makkah’s housing projects and to establish a link in the north of the Al Madinah Al-Munawwarah Province.

The scope of work on this lump sum turnkey project includes the engineering, procurement, construction, testing and commissioning of the transmission substation along with its connection to the national electrical grid through an underground cable. The project is to be delivered in approximately 16 months.

The latest contract for Nesma Security is to provide security at the AlWadi project in the Abha Valley, one of Saudi Arabia’s newest giga-projects. The two-year contract will employ 70 Saudi security guards. AlWadi, the flagship project born from the Kingdom’s Aseer Development strategy in the “Arabian Highlands,” is expected to contribute over SAR 19 billion to the economy and create thousands of Saudi jobs. Informed by the local architectural style and cultural heritage, the development aligns with Saudi Arabia’s National Tourism Strategy and will feature luxury hotels, modern housing options, waterfront parks and entertainment all with a focus on sustainability.

The Makkah Bus project, being fulfilled by Modern Bus, has conducted a successful trial period which began in 2022 and concluded this month. During the trial period, 100 million riders benefited from the new, modern bus service which runs throughout Makkah with over 400 buses, along 12 routes and 438 bus stops. Beginning November 1st, 2023, under the slogan, “Together on the Path,” Modern Bus is launching its regular service in Makkah with affordable tickets costing four riyals at the regular price and special priced tickets available for various customer groups. Tickets can be purchased through the app, on the website, or from ticket vending machines available throughout the city.

Namma Cargo announced the groundbreaking of the SAR 200M iHerb Distribution Center project which it won in partnership with CJ Logistics. Construction is expected to be completed by March 2024, with a soft opening planned for May 2024. Located near King Khaled Internat’l Airport in Riyadh, the project consists of a 29,880 m2 lot to support 15,682 m2 of construction consisting of a main building, utility building and guard house. The team at Namma Cargo have expressed their appreciation for CJ Logistics along with their subsidiary CJ ICM and gratitude for support from the Matarat team and project lead GACA. The project is an important link in the Kingdom’s goal to be a leader in advanced supply chain logistics.

Nesma Infrastructure & Technology (NIT) has won additional projects with the Saudi Electricity Co. to design, build and commission two transmission substations along with the corresponding overhead transmission lines and connection to the grid. The projects, worth around SAR 800M, have a 20-month delivery schedule. The projects are located in a mountainous region of NEOM called Trojena which is anticipated to be a world-class destination offering the Gulf’s only outdoor skiing venue in addition to year-round adventure sports, activities, shopping, dining and entertainment. Trojena’s altitude ranges between 1500 and 2600 meters offering a cooler climate year round. Trojena is part of the Kingdom’s push to create distinctive tourist destinations and international scientific hubs.

Nesma Renewable Energy has achieved a new milestone by successfully bidding, as part of a consortium with EDF Renewables and Abu Dhabi Future Energy Co. (Masdar), in the fourth round of the Ministry of Energy’s renewable energy procurement program. The Nesma-EDF Renewables-Masdar consortium has been announced as the first-place bidder for the 1.1 GW Al Henakiyah solar PV project. The request for proposals came from the Saudi Power Procurement Co. (SPPC) which is the principal buyer for all power generated from independent power producers (IPPs) in the Kingdom of Saudi Arabia.

This photovoltaic project will be constructed in Al Henakiyah, in the Al Madinah Province and has a project value exceeding SAR three billion. The consortium is now entering the financial close phase, following which the two-year construction phase will commence. The solar plant will be operated by the consortium under a 25-year power purchase agreement with SPPC. This project is part of the key Vision 2030 goal to have 50% of the Kingdom’s energy demand met by renewable energy.

Play Cinema is setting the stage to open multiple cinemas throughout the Kingdom. Most recently, the company has signed a memorandum of understanding with Kinan International Real Estate Development Co. to operate 12 cinema auditoriums in Al Dana Mall, Yanbu and Al Alia Mall, Madinah under a 20-year contract. The cinemas will cover a total of 6,000 square meters. An additional six venues have already been secured in various locations, each with five or six auditoriums in a cinema of approximately 2500 square meters. The first Play Cinema, which will have five screens, is expected to open in early 2024 at Amwaj Mall in Al Khobar.

On July 20, 2023, Nesma Infrastructure & Technology (NIT) signed with the Saudi Electricity Company (SEC) several strategic contracts, valued at over SAR one billion, to support various Vision 2030 development projects across the Kingdom including the Diriyah Development, Riyadh Development and the Holy Mosque in Madinah.

The scope of work of the contracts covers the engineering, procurement, construction, testing, commissioning and energization of a high-voltage transmission substation including underground cable works along with the connection to the Saudi national grid.

These lump sum turnkey contracts have an approximate delivery schedule of 16 - 18 months.

ln line with Vision 2030, these contracts aim to increase the SEC’s grid network capacity across the Kingdom in order to enhance the public’s
quality of life.

On August 6, 2023, Nesma Infrastructure & Technology signed with the Saudi Authority for Industrial Cities and Technology Zones (MODON) two new strategic contracts valued at over SAR 200 million, to support the rapid expansion of their industrial cities in Hafar Al-Batin and Khamis Mushait in the Kingdom’s eastern and southern provinces.

The lump sum turnkey contracts include the engineering, procurement, construction, testing, commissioning and energization of the transmission substation along with its connection, through the Saudi Electricity Company, to the national grid. The project is scheduled for delivery in approximately 28 months.

Nesma United Industries’ Technical Systems Division (TSD) will implement multiple, recently-awarded EPC contracts for security systems.

SABIC awarded TSD with three of the contracts covering nine sites at Saudi Kayan, United, GAS Jubail, Al Razi, Ibn Sina, Ibn Zahr, GAS Yanbu, SAB Tank and Yanpet for a total contract value of SAR 445 million.

The scope of work comprises engineering, procurement, construction, testing and commissioning to bring existing security and non-security systems into compliance with HCIS SEC and applicable SAF 2017 directives. The work covers buildings, gatehouses, security control rooms, fences, lights, telecommunication, electrical, access roads and utilities the project kick-off meeting was held on June 19th & 20th at the Movenpick in Al Khobar.

An additional project for TSD came from the Saline Water Conversion Corporation (SWCC).

The HCIS Security Compliance Integrator & Marine Interface Project requires the implementation of an integrated security solution to protect perimeter and inside areas from any hostile intrusion at desalination plants and reservoirs located at Yanbu, Haql, Rabigh, Duba, Omluj, Al Laith, Qunfudhah, Farasan, Al Wajh, Masturah, Rabigh and Thuwal.

This Nesma United Industries (NUI) TSD project valued at SAR 245 million requires engineering, procurement, construction, testing & commissioning to bring existing security facilities including security systems, gatehouses, security control rooms, fences, marine barrier, lights, telecommunication, electrical, access roads and utilities into compliance with HCIS SEC and applicable SAF 2017 directives.

In addition to the SABIC and SWCC projects, NUI TSD has also been awarded information & communication tech/extra low voltage (ICT/ELV) packages for the prestigious Red Sea Amaala projects at the Rosewood Resort & Residences and the Red Sea Marine Life Institute (RSMLI.) The project, valued at SAR 85 million, involves the engineering, procurement, installation, testing, commissioning and handover of a security system, passive & active communication systems, telecommunications, fire detection and alarm systems, public address systems, audio-visual system, guest room management system, intercom systems, building technology systems and a structured cabling system.

Spread over 395,000 square meters, the Rosewood Amaala is a luxury wellness eco-resort offering Red Sea views from its location on the cliffs. RSMLI is a multipurpose facility serving both as a marine research institute focusing on the Red Sea environment and also as a unique tourism destination.

Nesma Security has been awarded a contract to provide security services for assets and roads for the Diriyah Gate company (DG) in Riyadh. The contract is a framework agreement with DG for two years and will require over 600 Saudi security staff professionals at various levels. The project value is expected to exceed SAR 140 million.

Nesma Security has won a site-security operator contract for the Amaala Triple Bay development. The three-year contract, awarded by Red Sea Global, is worth around SAR 30 million and will employ 60 Saudis. Amaala Triple Bay is an ultra luxury wellness spa and development designed for active jetsetters looking for a resort that centers on art, health and meditation.   

Nesma Infrastructure & Technology (NIT) has won two contracts from the Saudi Electricity Company (SEC) for the construction of the Hamdaniyah 110/13.8 kV and the Buhaiyrat 110/13.8kV substations valued at around SAR 230 million. The scope of work for each contract includes the engineering, procurement, construction, commissioning and energization of the high-voltage transmission substation along with its connection to the Saudi national grid on a lump sum turnkey basis with an approximate delivery schedule of 16 months for both contracts. ln line with Vision 2030, these two projects aim to increase the SEC’s grid network capacity in the city of Jeddah under the “SEC’s Network Reinforcement Program for Big Cities” which contributes to improving residents’ quality of life.

The scope of work for this project covers receiving cargo at various ports, customs clearance and delivery to the Riyadh distribution (fulfillment) center for storage, in addition to automated sorting and packing for the final delivery to customers not only within the Kingdom but also within other countries in the GCC and the Middle East. The project, developed under the auspices of GACA, is valued at around SAR 200M for the development, engineering and construction portion and will yield approximately SAR 150M in annual revenue.