Samsung signs MOU with Saudi Arabia on entertainment city project

All News 10:31 October 30, 2019

SEOUL, Oct. 30 (Yonhap) -- South Korea's top conglomerate Samsung Group said Wednesday it will join a massive entertainment city development project in Saudi Arabia, with its affiliates taking part in various areas from construction to electronics.

Under an agreement with Qiddiya Investment Company (QIC), Samsung will collaborate with Saudi officials on the development of an entertainment hub in Qiddiya, 40 kilometers southwest of Riyadh. A memorandum of understanding (MOU) was signed by the two sides on Tuesday at the Future Investment Initiative in Riyadh.

Samsung C&T Corp., Samsung's construction unit, will build a sports complex, while Samsung Electronics Co. will become Qiddiya's primary technology sponsor. Samsung will also get co-branding and naming rights for some of Qiddiya's facilities.

Neither side revealed the value of the deal.

The signing of the MOU "demonstrates our commitment to achieving our dual goals of creating an unprecedented destination that enriches the lives of Saudi citizens while driving social and economic diversification within the Kingdom of Saudi Arabia," Michael Reininger, CEO of QIC, said in comments posted on the company's website.

Samsung C&T Senior Vice President Kim Wan-soo said Samsung is confident it can jointly deliver the most technologically advanced entertainment, sports and arts destination in the kingdom.

The project involves building theme parks, resorts, hotels and shopping malls on a 334-square-kilometer site -- about twice the size of Washington D.C.

The first phase of the project is expected to be finished by 2022, with final completion set for 2035.

In September, Samsung Electronics Vice Chairman Lee Jae-yong visited the kingdom for talks with Crown Prince Mohammed bin Salman of Saudi Arabia. Lee also inspected Samsung C&T's metro construction project in Riyadh.