Homagic Awarded Phase II Contract to Supply 12,000 Permanent Worker Accommodation Units at Saudi Arabia’s NEOM

Shenzhen, Guangdong Nov 20, 2025 – China Construction Integrated Building Co., Ltd. (CSCEC), operating under its Homagic brand, has secured a contract valued at SAR 2.8 billion (approximately $746 million) to supply 12,000 permanent worker accommodation units for Phase II of NEOM’s construction workforce housing initiative. This award represents one of the largest single modular integrated construction (MiC) contracts ever inked in the Middle East, solidifying Homagic’s expanding influence within the Kingdom’s extensive giga-project landscape.

The Middle East’s Construction Boom and the Urgent Requirement for Scalable, High-Quality Worker Housing

Saudi Arabia is currently experiencing an unprecedented construction expansion. Projections from Knight Frank’s 2025 KSA Construction Market Report indicate that Vision 2030 projects—including NEOM, The Red Sea Global, Qiddiya, and Diriyah Gate—are expected to demand a peak workforce exceeding 1.8 million by 2028. Traditional on-site dormitory construction has consistently fallen short, plagued by significant delays, cost overruns, and inconsistent quality.

Modular construction has emerged as the Kingdom’s most rapidly expanding solution. The Saudi modular building market is projected to expand from $4.1 billion in 2024 to $9.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.6% (ResearchAndMarkets, 2025). This growth is primarily driven by:

• Government directives from the Ministry of Municipal, Rural Affairs and Housing (MOMRAH) for worker housing with a 50-year lifespan.
• NEOM’s specific need for net-zero carbon construction camps.
• Labor welfare reforms mandating air-conditioned, en-suite rooms equipped with Wi-Fi and recreational amenities.
• A critical timeline, as NEOM’s Spine and Oxagon districts alone require over 200,000 beds by 2029.

Phase I of NEOM’s worker cities, completed between 2023 and 2024 by various regional and international modular providers, demonstrated that 90% off-site fabrication can reduce delivery times by 45% and minimize on-site waste by up to 80%. Phase II introduces more stringent requirements: all new units must achieve permanent 50-year structural certification, full LEED Gold/ESTIDAMA Pearl compliance, and operate with zero-carbon emissions.

Homagic: Delivering Permanent, Zero-Carbon Worker Cities at Industrial Scale

Backed by CSCEC—the world’s largest EPC contractor and ranked #13 on the Fortune Global 500—Homagic operates eight digital factories across China. Following planned expansions in 2025, these facilities will boast a combined annual capacity exceeding 100,000 MiC units. The company’s Light Gauge Steel (LGS) and hybrid Concrete-Steel MiC (CMC) systems have a proven track record in extreme environments, from the 10-day construction of hospitals in Wuhan to 90-day hutong renewal initiatives in Beijing.

• Structure: A hybrid CMC system that merges the durability of a concrete core with the speed of light-gauge steel.
• Lifespan: Certified for a 50-year permanent lifespan, meeting both MOMRAH and ICC-ES standards.
• Unit size: En-suite rooms spanning 24-32 m², complete with built-in furniture, HVAC systems, and smart controls.
• Energy: Powered entirely by solar micro-grids with battery storage, achieving an operational carbon footprint below 3 kg CO/m²/year.
• Factory completion: 92% off-site completion, including pre-installed MEP (mechanical, electrical, plumbing), finishes, and furniture.
• Delivery schedule: The initial 3,000 units are slated for Q3 2026, with all 12,000 units scheduled for completion by Q4 2027.
• Recyclability: 95% of materials are recoverable at the end of the units’ lifecycle.

Each four-story cluster is engineered for rapid deployment in desert conditions: modules arrive fully fitted, are lifted onto simple strip foundations, and interconnected within 72 hours per building.

Strategic Advantages That Secured the Tender

• Proven desert performance – Homagic’s earlier 8,000-unit Phase I pilot at The Line (2024) reported no heat-related issues and 41% less energy consumption compared to regional benchmarks.
• CIMC-MBS technical partnership – Enables seamless integration of leading global steel modular patents with CSCEC’s renowned concrete expertise.
• In-Kingdom value – A commitment to shift 35% of manufacturing operations to a new facility in Dammam by 2028, creating 1,200 direct Saudi employment opportunities.
• Bankability – The 50-year durability classification allows the units to be refinanced as permanent real estate assets post-construction, significantly lowering lifecycle costs for NEOM.

Early Site Progress and Client Remarks

Foundation work has already commenced in the Oxagon and The Line worker city zones. Eng. Mohammed Al-Shehri, NEOM’s Executive Director for Construction, commented:

“Homagic’s Phase I performance surpassed our expectations concerning quality, speed, and worker welfare. Awarding Phase II to the same trusted system guarantees continuity while enabling us to achieve our elevated sustainability objectives.”

Looking Ahead

This 12,000-unit contract establishes Homagic as the largest single provider of modular accommodation across all Vision 2030 giga-projects. The company has also been shortlisted for upcoming worker housing provisions at Qiddiya (18,000 beds) and Red Sea Global (Phase III, 9,000 beds).

As Saudi Arabia advances towards its goal of 70% in-Kingdom modular adoption by 2030, Homagic’s combination of industrial scale from China and permanent-building certification is setting a new benchmark for the region.

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