Residential housing and skyscrapers stand on the city skyline in Riyadh. A South Korean constructor that jointly won a $20bn housing deal with Saudi Arabia said
yesterday it was confident the project would go ahead despite the impact of slumping oil prices on the Gulf nation’s coffers. Under the deal, a three-party consortium will build 100,000 housing units and related infrastructure for a new town near the capital Riyadh over the next 10 years. The consortium includes two South Korean firms, Daewoo Engineering & Construction and Hanwha Engineering & Construction, along with local construction firm Saudi Pan Kingdom. Share prices of Daewoo and Hanwha have declined on the Seoul stock market in recent days, amid questions as to whether the oil-rich kingdom would be able to fund the massive project given the current oil price squeeze. But Daewoo Construction spokeswoman Hong Soo-Jin said the company was “fully confident” the project—the biggest-ever overseas construction deal won by South Korea—would be realised.
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