A bird’s-eye view of a mammoth project dubbed “The Qiddiya Project” in Saudi Arabia, to be implemented by Samsung C&T’s construction division. (Photo: Samsung C&T)

Under the stewardship of Samsung Electronics Vice Chairman Lee Jay-yong, Samsung Group is embarking on a mammoth project dubbed The Qiddiya Project,” which calls for an investment of 9 trillion won in the construction of infrastructure.

It is part the Saudi government’s “Vision 2030,” which is the country’s national economy reinventing program costing a combined $700 billion.

Starting with a 1 trillion won sport complex project, Samsung plans to expand its business portfolio in the area.

Samsung C&T officials said, Samsung C&T Crop. President Lee Young-ho signed an MOU with the Saudi side on the sidelines of the Future Investment Initiative at the Ritz-Calton Hotel in Riyadh, the capital of Saudi Arabia on Oct. 29.

The deal calls for Samsung C&T’s construction division’s participation in the construction of a project to build a sports stadium and swimming pools.

The value of the contract was not revealed, but the money is estimated at around 1 trillion won, business sources said.

The Korean business community sees Samsung Group’s latest deal as a “first salvo” of efforts to accelerate Vice Chairman Lee’s scheme to strengthen the group’s presence in the Middle East region as one of its core future business projects.

The Qiddiya Project is designed to build a supersize, multipurpose entertainment complex in a desert area some 45 km southwest of Riyadh. The construction of the Kingdom’s entertainment capital is designed to improve the quality of people’s lives and reinvigorated related industries.

The size of the site, covering 334 sq. km, is more than half of that of Seoul and 2.5 times bigger than the Disney World in Florida, the United States.

The complex will be filled with theme parks, water parks, speed parks, indoor ski resorts, and advanced other entertainment facilities.

It will boast 10,000-unit pensions and commercial districts. The first phase is to be completed by 2022, and the final phase project will be finished by 2035. Saudi Arabia aims to attract 17 million tourists annually by 2030.

Under the MOU, Samsung C&T’s construction division will participate in the project to build a stadium and pools, Samsung officials said. Samsung Heavy Industries, Samsung Engineering and core subsidiaries of Samsung C&T with EPC capabilities will likely collaborate on massive projects down the road, they said.

Earlier, Samsung C&T has won three major projects each costing 1 trillion won to 2 trillion won: the Riyadh subway, Riyadh and Qurayyah independent power projects (IPPs).

Samsung Electronics Vice Chairman Lee is known to have played a big part in winning Samsung C&T’s latest project. Lee has showed a keen interest in each Middle Eastern country’s bid to make another leap forward in an era of the 4th Industrial Revolution by stressing that the Middle East, seeking to implement post-oil projects in earnest, will serve as new business opportunities of the 21st Century.

Vice Chairman Lee visited Saudi Arabia to meet with Saudi Crown Prince Mohammad Bin Salman Al Saud on the Chuseok holiday in September. He was said to be accompanied by Samsung C&T executives and Samsung SDS President Hong Won-pyo.

Saudi Arabia has showed a keen interest in a process of constructing the Everland in Yongin, Gyeonggi-do, and the growth of its surrounding cities, and Samsung C&T has been highly evaluated for achieving the track record.

Earlier in June, Vice Chairman Lee also met with Saudi Crown Prince Mohammad Bin Salman Al Saud on state visit to Korea at Cheong Wa Dae and Seungjiwon, Samsung’s guest house, on a few occasions.

Samsung is expected to land more projects thanks to Vice Chairman Lee’s cozy relationship with Saudi Crown Prince Mohammad Bin Salman Al Saud.

The Saudi crown prince is working on the “Vision 2030,” the biggest-ever single project in the 21st Century. A massive $500 billion pool of money will be spent only for the construction of the future new city “NEOM,” dubbed as the Middle Eastern version of Silicon Valley in the United States.

Chances are high that Samsung Electronics, armed with state-of-the-art ICT capabilities such as 5G and AI, will venture into the NEOM project, so some experts see that the Qiddiya Project may lead to Samsung-initiated “2nd Middle East Construction Boom.” Samsung’s expanding its presence in the Middle East region will likely provide business opportunities for other Korean companies, according to some business experts’ predictions.