Red Sea signs SAR 53 mln operations, maintenance services deal with NEOM

Red Sea International Co. signed, on Oct.12, a SAR 53 million contract with NEOM to provide facility management, operations and maintenance services for the residential/business complex.

The company said in a bourse filing that the contract will be implemented as per the terms announced on Oct.6, 2020.

According to the contract, Red Sea will provide facility management, operations and maintenance services for the accommodation and business units, including catering, housekeeping, laundry maintenance, medical, security and recreational services, and all supporting building amenities for the senior employees of the NOEM Industrial City project.

The duration of the contract is three years extendable for additional costs, the statement said, adding that there are no related parties to the deal.

The financial impact is represented in realizing revenue and profits over the period from Q1 2021 to Q4 2023.

According to data compiled by Argaam, Red Sea signed, on Oct. 6, a contract for the design, build and installation of accommodation units, offices and all supporting building amenities with NEOM for a total value of SAR 78 million.