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Saudi Arabia's Smart Accommodation for Residential Complexes Company (Sarcc) has signed an agreement with Riyadh-based Mawref Company to develop a 12,000-bed worker accommodation project in North Riyadh.

The project will cover about 120,000 square metres (sq m), with a total built-up area of 150,000 sq m.

The development is expected to cost over SR669m ($178m), with the first phase slated for completion in 2029.

Sarcc is backed by the Public Investment Fund (PIF), the Saudi sovereign wealth vehicle.

The agreement follows Sarcc signing another agreement in September last year with privately-owned local firm Tamimi Global Company to explore collaboration in developing worker accommodation facilities in the kingdom.

The PIF launched Sarcc in October 2024 with the aim of developing and operating staff housing and accommodation assets in the kingdom.

Sarcc will develop and operate the staff accommodation facilities at major construction projects in Saudi Arabia.

The company will seek opportunities to invest in the sector to strengthen staff housing standards. Sarcc will also look to engage the private sector by enabling investment and partnership opportunities in sectors including construction, catering, transportation and retail.