The Saudi Arabian National Real Estate Authority, in conjunction with the National Center for Privatization and Public Private Partnership, announced the pre qualification results of the Riyadh Quality Valley large-scale comprehensive development project. Eight companies and consortia successfully broke through and obtained the bidding tickets. This urban renewal project, located on the former site of the headquarters of the Saudi Organization for Standards, Metrology and Quality, covers an area of over 191000 square meters. It adopts a design build finance operation maintenance transfer full chain PPP model, with a construction period of 3 years and a franchise period of 32 years. It is a landmark project for Saudi Arabia to revitalize state-owned assets and leverage social capital to participate in public asset development and operation. It deeply echoes Saudi Arabia's 2030 vision and national transformation plan. With the announcement of the shortlist, this long-term project, which has attracted much attention from the Middle East infrastructure and real estate investment circles, has officially moved from the pre qualification stage to the core stage of bidding and awarding.

Independent enterprises and consortia compete against each other

Among the eight shortlisted entities, independent enterprises occupy three seats, namely Ayuni Investment Contracting Company, Motor International Holdings, and Tanami Holdings, all of which are strong local developers and investment institutions in Saudi Arabia. The remaining five seats are part of the consortium lineup, with Abdulrahman Sadd Al Rashid and his son company joining forces with Shatbunyan Real Estate Investment Company and Al Rashid Real Estate Company to form a bidding team; Agidan Real Estate Development Company and Euler Real Estate Development Company have formed an alliance; AREIC, together with Tianqiao Company and Bawadi Holdings Group, will fight together; Xiyazha Real Estate Development Company, together with Ahmed Mohammed Al Saif Father Son Trade and Investment Company, Beitmawarid Engineering Company, and Asset and Facility Management Company, forms a four in one consortium; Sumo International Investment Company has partnered with Buna Holdings and Buna Gulf Engineering Company to form a joint team. The shortlisted entities include top real estate developers, investment institutions, engineering contractors, and infrastructure operators, with diverse capital and professional capabilities intertwined, and the competitive landscape is beginning to emerge.

32 year franchise anchoring full cycle responsibility

The project adopts a public-private partnership model for promotion, implementing a full chain operation structure of design, construction, financing, operation, maintenance, and handover. The construction period is 3 years, and the franchise contract period is as long as 32 years. The social capital side needs to simultaneously undertake the construction and commercial operation of operational assets, as well as the construction and operation of government office facilities, to ensure the normal operation of government services and support future functional expansion. The supporting projects are included in the scope of social capital responsibilities, including the construction of shared service facilities such as mosques, parking facilities, landscape greening, internal roads, public open spaces, and pedestrian walkways. Under the premise of complying with current regulations and obtaining necessary approvals, social capital can flexibly optimize asset portfolio plans and reserve flexible space for commercial operations. After the expiration of the franchise period, all completed facilities will be transferred to the project management department as a whole. Keywords: Middle East news and information, infrastructure, comprehensive functional area

Revitalize state-owned assets and anchor sustainable development

The Quality Valley project is positioned as a new landmark of a composite city that integrates government office, business office, commercial retail, and supporting services. Its core goal is to revitalize state-owned assets and improve their utilization efficiency, guiding social capital to deeply participate in the development and operation of public assets. The project is not only an important carrier for upgrading the quality of Riyadh's urban space, but also carries Saudi Arabia's strategic intention to optimize public expenditure efficiency and achieve sustainable financial development, striving to build a sustainable balance between public service guarantees and commercial returns. The eight entities have passed the pre qualification review this time, marking a substantial step towards the formal bidding and final award stage of this long-term PPP project. The subsequent bidding direction will continue to attract attention from the regional infrastructure and investment markets.Editor/Gao Xue