Ashoka Buildcon JV Secures SAR 717M Construction Contract in Saudi Arabia

Ashoka Buildcon Limited has announced that its wholly owned subsidiary in the Kingdom of Saudi Arabia, Ashoka Buildcon Limited for Contracting, has received a Letter of Acceptance from Diriyah Company. The acceptance pertains to a joint venture bid with BEC Arabia Contracting Co. for the main construction works of Diriyah II, specifically for one hotel. The total accepted bid price for the project is SAR 717,086,344, excluding VAT.

The financial terms of the project indicate that Ashoka Buildcon holds a 49% stake in the joint venture. This translates to a share of SAR 351,372,309, which is approximately INR 846 crore, based on the exchange rate of INR 1 = SAR 24.088 as of February 5, 2026. The project is structured as a lumpsum construction contract, with the bid price excluding VAT.

The scope of the project involves the main construction works for Diriyah II, with Ashoka Buildcon and its joint venture partner, BEC Arabia, acting as the delivery partner for one hotel. The project is part of the larger development efforts by Diriyah Company, which is a state-owned entity under the Public Investment Fund of Saudi Arabia. The joint venture will provide comprehensive construction services, leveraging BEC Arabia’s expertise in large-scale infrastructure and civil construction projects.

The project is an international contract awarded by Diriyah Company, a significant entity in Saudi Arabia’s development landscape. The contract does not fall under related party transactions, and there is no promoter or promoter group interest in the awarding entity. The trading window for designated persons and their immediate relatives will remain closed until 48 hours after the disclosure of this information.

The timeline for the project execution is set at 27 months from the effective date of February 5, 2026. This timeline outlines the period within which the joint venture is expected to complete the construction works for the hotel under the Diriyah II project.

BEC Arabia Contracting Co. is a privately-held company known for providing turnkey construction solutions. It specializes in delivering large-scale infrastructure, civil construction, electromechanical works, landscaping, and integrated engineering services across the region.

Ashoka Buildcon Limited is a prominent infrastructure development company in India, focusing on highway and bridge construction, power transmission, and distribution projects. The company is committed to expanding its international footprint through strategic partnerships and joint ventures in key markets.