NEOM workers’ residence project is taking shape as the Saudi-based company awarded a $746 million contract for its implementation. The contract award was noted by China Construction Integrated Building Company (CSCEC). They noted their key brand, Homagic had secured the deal and was to deliver 12,000 permanent worker accommodation units. Moreover, this is all in line with Phase II of NEOM’s construction workforce housing programme. The award marks one of the largest single modular integrated construction (MIC) contracts ever signed in the Middle East.
It also reinforces Homagic’s growing presence in the Kingdom’s giga-project ecosystem. Various Vision 2030 projects such as NEOM, The Red Sea Global and Qiddiya are expected to need a massive workforce. Projections note that a peak workforce of over 1.8 million workers will be needed by 2028 according to Knight Frank. Traditional site-built dormitories have repeatedly failed to keep pace, suffering from chronic delays, cost overruns, and variable quality.
Project Factsheet
Project Name: NEOM Workers’ Residence – Phase II
Contract Value: $746 million
Contractor: China Construction Integrated Building Co. (CSCEC) via Homagic
Key Development Statistics
- Units to be Delivered: 12,000 permanent worker accommodation units
- Construction Method: Modular Integrated Construction (MIC)
- Project Scale: One of the largest MIC contracts in Middle East history
Strategic Significance
- Supports workforce demand for Vision 2030 giga-projects
- Also reinforces Homagic’s presence in Saudi construction ecosystem
- Address the delays and quality issues associated with traditional site-built dormitories.
Phase II Requirements
- Compulsory 50-year structural certification
- Full compliance with LEED Gold / Estidama Pearl
- Zero-carbon operational standards
Implementation Progress
- Foundation work underway at Oxagon and The Line worker zones
- Phase I delivered 90% off-site fabrication, cutting time by 45%
- Off-site construction reduces on-site waste by up to 80%
The Scope of Implementation on NEOM Workers’ Residence Project
The NEOM workers’ residence project is one expected to address the issue of traditional site-built dormitories. Modular construction addresses this as a viable and the fastest-growing solution to the problem in the Kingdom. Phase I of NEOM’s worker cities demonstrated that 90% off-site fabrication can cut delivery time by 45% and reduce on-site waste by up to 80%. The project was completed in 2023–2024 by a mix of regional and international modular providers. However, Phase II raises the bar as all units must achieve permanent 50-year structural certification.
Furthermore, they must adhere to full LEED Gold/Estidama Pearl compliance and zero-carbon operation status. NEOM Executive Director for Construction Eng. Mohammed Al-Shehri said Foundation work has already begun at Oxagon and The Line worker city zones. He noted these remarks as he awarded the key contract. “Homagic’s Phase I performance exceeded our expectations on quality, speed, and worker welfare. Awarding Phase II to the same proven system ensures continuity while meeting our escalated sustainability targets,” he noted. Backed by CSCEC, the world’s largest EPC contractor, Homagic operates eight digital factories in China with a combined annual capacity exceeding 100,000 MiC units following 2025 expansions.
