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Pakistani company secures $12.5 million Saudi construction deal

11:21 PM | 26 Sep, 2023
NESPAK
Source: NEOM

KARACHI – The National Engineering Services Pakistan (NESPAK) has secured a project worth SR46.5 million ($12.5 million) for Saudi Arabia’s visionary NEOM project.

A senior NESPAK representative confirmed on Tuesday that work on the project would commence “soon.”

Located in northwestern Saudi Arabia, NEOM is an economic zone that plans to house millions of people in the years to come. With an estimated budget surpassing $500 billion, Saudi Arabia hopes NEOM would symbolize architectural innovation and project global ambition.

The project is a key component of Saudi Crown Prince Mohammed bin Salman’s Vision 2030 — a strategic development framework aimed at diversifying the nation’s economy beyond oil. NEOM will also be home to the zero-carbon city known as “The Line,” which would extend over 170 km and be able to house a million residents in “carbon-positive urban developments powered by 100 percent clean energy.”

NESPAK signed the agreement to provide construction management services to the economic zone two weeks ago, says the company’s vice president of business development, Ahmad Said. He added that the project has a budget of SR46.5 million ($12.5 million), equivalent to Rs3.794 billion, adding that it was granted by the Saudi Electric Company (SEC) with a specific focus on NEOM’s energy sector.

“NESPAK will provide construction management services for Extra High Voltage (EHV), High Voltage (HV), and high-voltage direct current (HVDC) projects within various zones encompassing NEOM Bay, NEOM Mountain, and NEOM Phase II,” Said revealed, adding that work on the project was slated to begin “soon.”

“This is the first breakthrough and a very important development for the Pakistani company.”

In a statement issued last week, NESPAK underscored that winning the project served as a clear affirmation of the company’s “technical excellence and unwavering commitment.” It added that the milestone also symbolized a significant achievement for an Asian company in a region that has typically been controlled by European and Western enterprises.

According to NESPAK’s statement, NEOM’s grand designs span a wide range of regions, featuring a floating industrial complex, a global trade hub, opulent tourist resorts, and a cutting-edge linear city powered by sustainable renewable energy sources.

The Pakistani engineering company has maintained a significant presence in the Middle East, including the United Arab Emirates (UAE), Qatar, Nigeria, Yemen, Iraq, and has also maintained a foothold in Afghanistan. NESPAK made its initial foray into Saudi Arabia independently in 1978 by forming a joint venture with the Ar-Riyadh Development Authority.

In 1982, the company established its regional office in Riyadh and initiated collaborations with various Saudi enterprises, both in terms of business acquisition and offering consultancy services in the Kingdom. According to its website, NESPAK has successfully secured 126 projects valued at $22 billion in Saudi Arabia.

Pakistan and Saudi Arabia have enjoyed close defense, diplomatic, and trade relations for decades before setting up the Saudi-Pakistan Supreme Coordination Council two years ago to further bolster their ties and provide them with a strategic direction. With over 2.7 million Pakistani expatriates residing in Saudi Arabia, the Kingdom has also played a crucial role in facilitating remittances and oil supply to the South Asian state.

Daily Pakistan Global Web Desk

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PKR exchange rate to US dollar, Euro, Pound, Dirham, and Riyal - 13 April 2024 Forex Rates

Pakistani currency remains largely same against US dollar and other currencies in open market on April 13, 2024.

US Dollar rate in Pakistan

On Saturday, the US dollar was being quoted at 277.4 for buying and 280.65 for selling.

Euro was quoted at 299.95 for buying and 302.9 for selling while British Pound stands at 349.5 for buying, and 353 for selling.

UAE Dirham AED was at 75.45 and Saudi Riyal's new rates was at 73.30. 

Today’s currency exchange rates in Pakistan - 12 April 2024

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