A collaboration agreement has been signed by the National Housing Company (NHC) of Saudi Arabia and CITIC Construction, a well-known Chinese construction company. The collaboration intends to create an industrial metropolis with 12 new enterprises and specific building material logistics zones in Saudi Arabia.

Majed bin Abdullah Al-Hogail, the Saudi Arabian Minister of Municipal, Rural Affairs, and Housing, signed the deal while on an official visit to China.

The event, which represents a turning point in Saudi-Chinese relations, was observed by Mohammed bin Saleh Albuty, CEO of NHC.

In order to guarantee prompt and excellent completion of NHC's residential projects, the partnership is intended to safeguard and stabilise the supply chains involved.

As per NHC, this endeavour will use the extensive knowledge of Chinese manufacturing and integrate 12 prominent building material specialised facilities.

The integration of many local firms and the raising of operational standards to meet international standards are expected to support the local industry.

Maximising the economic and developmental effects inside the Kingdom's real estate sector is the goal of the new industrial city and the logistical zones that surround it.

NHC hopes to improve the effectiveness and calibre of residential projects and encourage a change in the building industry at the national level by cultivating a cooperation with CITIC building.

These facilities are purposefully built to assist Chinese firms in localising Saudi Arabia's building materials market.

They will facilitate direct production lines for NHC's projects, offer crucial growth prospects for medium-sized and small local companies, and encourage further development in the local building materials industry, resulting in the creation of additional job opportunities.

Additionally, the initiative is in line with the larger strategic alliance between Saudi Arabia and China, which was reaffirmed in December 2022 when the Chinese President visited Saudi Arabia. A prior memorandum of cooperation between the two countries in the housing industry was built upon by this agreement's action plan, which aims to improve overall construction standards and the quality of housing units