The following is a summary of all announcements from the past month regarding investment deals, partnerships, and other commercial news between U.S. and Saudi companies.
Aerospace and Defense
Saudi Arabia has agreed on a $37 billion deal with U.S. firm Boeing, which will see the company manufacture up to 121 aircraft to help launch the Kingdom’s new airline. The deal will see Boeing 787 Dreamliner planes with General Electric engines delivered to Saudi Arabia, with 72 of them set for Riyadh Air, the new carrier announced by Saudi Crown Prince H.R.H. Mohammed bin Salman.
Construction & Real Estate
Saudi Arabia’s $500 billion giga-project NEOM has signed an agreement with Marriott International Inc. to open three hotels in Sindalah, NEOM’s first luxury island. The deal includes the establishment of the Kingdom’s first Autograph Collection Hotel property by Marriott as well as two Luxury Collection properties that are expected to open in 2024.
AECOM, one of the U.S.’ largest infrastructure consulting firms, announced that it has been awarded a multi-year contract to provide project management consultancy services for NEOM International Airport in the northwestern region of Saudi Arabia. AECOM’s scope will include project management for master planning, design, and construction services, through to testing, commissioning, operational readiness, activation, and transition.
Hill International Awarded Contract to Provide Project Management Support for the Dahiyat Al-Fursan Development
Hill International (Middle East) Ltd. announced today it was selected by the National Housing Company of Saudi Arabia to provide Project Management Consultation support for the new landmark city of Dahiyat Al-Fursan. Located eastside of Riyadh Airport, work on Al-Fursan is underway and will ultimately develop some 35 million square meters 50,000 units of suburban homes, apartments, townhouses, educational facilities, commercial buildings, and related infrastructure, along with dedicated green spaces.
The Medical City at King Saud University in Riyadh signed a memorandum of understanding with the U.S.-based Houston Methodist Hospital, which includes collaboration on the development and implementation of projects related to quality and patient safety and the provision of clinical, administrative, and educational services.
Oil & Petrochemicals
Saudi Aramco completed the acquisition of the Valvoline Global Operations, the global products business of New-York listed Valvoline Inc., through one of its wholly owned subsidiaries at $2.65 billion. Aramco will now own the Valvoline brand with respect to the products business, while Valvoline will own the Valvoline brand with respect to its retail services business.
Saudi Aramco has awarded U.S.-based National Energy Services Reunited Corporation (NESR) a contract for provision of long-form well testing services. The scope of work on the contract requires NESR to provide advanced cased-hole and perforation services in addition to other services it currently provides to Aramco.
U.S.-based Forum Energy Technologies (FET) has won a $25 million contract for providing the design and engineering services as well as supply of four electrostatic desalter systems for an onshore project at the Safaniyah oil field in Saudi Arabia. Under the deal, the desalter systems will utilize FET’s Edge desalting technology, ForuMix high efficiency multiphase mixer technology, and in-house manufacturing capabilities at its Saudi facility.
U.S.-based law firm Squire Patton Boggs said that it has signed a cooperation agreement with a Saudi Arabia law office as it prepares to take advantage of new regulations for foreign law firms in the kingdom. The firm said it was partnering with The Law Office of Looaye M. Al-Akkas, a 10-lawyer practice located in Riyadh. Al-Akkas will become a partner at Squire Patton Boggs.