Egypt's OCI unit wins $552 million Saudi stadium deal: Source

Reuters, Monday 19 Sep 2011

Contract for a 60,000-seat stadium in Jeddah has been won by Six Construct, owned by a joint venture between Egypt's largest listed firm and a Belgian building group

 A unit of Egypt's Orascom Construction Industries (OCI) won a 2.07 billion Saudi riyal (US$552 million) contract to design and build a major sports stadium in Saudi Arabia's Jeddah, a source close to the deal said on Monday.

The contract for a 60,000-seat stadium at the King Abdullah Sports City was awarded to Six Construct -- which is fully owned by BESIX Group, itself a 50-50 joint venture between OCI and Belgian construction group Besix -- in partnership with Al-Muhaidib Contracting Company.

The source told Reuters Six Construct with local company Al-Muhaidib had bid for the project against at least five other groups, confirming a report carried by the London-based Middle East Economic Digest (MEED).

The King Abdullah Sports City, to be named after King Abdullah bin Abdulaziz al-Saud, is planned to cover an area of 9 sq km, north of Jeddah.

Oil firm Saudi Aramco was given the task of developing the scheme on behalf of the government in 2009. It has since tendered road building and enabling works for the project.

OCI, Egypt's biggest listed firm, posted a 15 per cent rise in second-quarter net profit and has said it expected construction orders to grow this year as governments in the Middle East try to create jobs by boosting infrastructure spending.

OCI shares closed 1.3 per cent higher, while the benchmark index gained 1.9 per cent.

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