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AECOM signs strategic partnership agreement with the Royal Commission for AlUla
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
partnership
Rhea-AI Summary
AECOM (NYSE: ACM) has signed a strategic partnership with the Royal Commission for AlUla to accelerate the $15-billion Phase 1 development in AlUla, Saudi Arabia, focusing on infrastructure, hospitality, and social development. This agreement marks a significant step from planning to implementation, set for completion by 2035. AECOM will enhance local community opportunities, having already trained 400 residents. This contract's value will be included in AECOM's reported backlog in Q1 fiscal 2022, aligning with its commitment to sustainable development.
Positive
Partnership with RCU expected to enhance investment opportunities from 2022 onwards.
The $15-billion contract contributes significantly to AECOM's revenue stream.
Focus on sustainability aligns with market trends towards responsible development.
Negative
Potential economic downturns and market volatility could impact project timelines and profitability.
The cyclical nature of AECOM’s business may expose it to revenue fluctuations.
AECOM’s program management team will implement Phase 1 of the $15-billion masterplan encompassing key development projects for infrastructure, hospitality, arts and culture, and social and community development
DALLAS--(BUSINESS WIRE)--
AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, has signed a strategic partnership agreement with the Royal Commission for AlUla (RCU) that will further accelerate the regeneration of AlUla, a city located in northwest Saudi Arabia, as it moves from the planning stage to implementation following the launch of its masterplan in April 2021.
The agreement sets out a comprehensive development timeline based around three phases that lead up to 2035 with AECOM’s program management team implementing the $15-billion Phase 1 development in AlUla’s core 20 kilometer historical area. This incorporates social, economic and sustainability projects in five unique hubs with a focus on infrastructure, hospitality, arts and culture, and social and community development.
“AlUla is one of the world’s largest and most complex development programs, home to more than 30,000 sites of historical significance, and we are proud to help realize the city's vision for the future,” said Lara Poloni, AECOM’s president. “In partnership with RCU, we look forward to leveraging our global program management and technical expertise to deliver a sustainable legacy that transforms AlUla for generations to come.”
Through the partnership, AECOM will accelerate business and investment opportunities from 2022 onwards and demonstrate the pace of progress to revitalize AlUla as a responsible, sustainable and community-inclusive destination.
“This new long-term strategic partnership with AECOM is critical to realizing our ambition of creating a global benchmark for sustainable tourism,” said Amr AlMadani, RCU’s chief executive officer. “As we establish AlUla as an exciting business hub servicing the northwest Arabia region, we require world-class partners such as AECOM who share our desire to benefit the people of AlUla while creating unforgettable experiences for visitors.”
Creating opportunities for the local community is a core aspect of AlUla’s development plan and AECOM’s approach. AECOM has already invested in training 400 AlUla residents to achieve professional vocational qualifications and will provide additional professional skills development and knowledge transfer opportunities both for residents and those relocating to AlUla for work.
“We are excited to provide a range of integrated services across the entire AlUla program,” said Drew Jeter, chief executive of AECOM’s global Program Management business. “Our services will include program management to integrate all workstreams and major initiatives across RCU to implement the AlUla vision and outcomes, as well as a project delivery office that will work with RCU to implement best practices and delivery from design to construction and operation.”
AECOM will also establish a Lead Design Office responsible for all infrastructure design activities from setting standards, delivering the digital ecosystem, leading innovation, managing designers, delivering scopes and supporting the realization of a carbon-neutral strategy and circular economy. Further, asset and facilities management will be provided for the project lifecycle along with the benchmarking and development of smart city plans and projects. The value of AECOM’s contract is expected to be included in its reported backlog in the first quarter of fiscal 2022.
AECOM and RCU share a common commitment to sustainability. AlUla’s Sustainability Charter, which sets the priorities and approach to transform AlUla in a resilient and sustainable manner, aligns with AECOM’s Sustainable Legacies strategy, which ensures the work the company does in partnership with clients leaves a positive impact for years to come. These commitments will guide AECOM’s efforts on AlUla on everything from capacity building opportunities with the local community to responsible protection and development of AlUla’s heritage and environment.
About AECOM AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical expertise and innovation, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $13.2 billion in fiscal year 2020. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.
About the Royal Commission for AlUla The Royal Commission for AlUla (RCU) was established by royal decree in July 2017 to preserve and develop AlUla, a region of outstanding natural and cultural significance in north-west Saudi Arabia. RCU’s long-term plan outlines a responsible, sustainable, and sensitive approach to urban and economic development, that preserves the area’s natural and historic heritage, while establishing AlUla as a desirable location to live, work, and visit. This encompasses a broad range of initiatives across archaeology, tourism, culture, education, and the arts, reflecting a commitment to meeting the economic diversification, local community empowerment, and heritage preservation priorities of the Kingdom of Saudi Arabia’s Vision 2030 programme.
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; impacts caused by the coronavirus and the related economic instability and market volatility, including the reaction of governments to the coronavirus, including any prolonged period of travel, commercial or other similar restrictions, the delay in commencement, or temporary or permanent halting of construction, infrastructure or other projects, requirements that we remove our employees or personnel from the field for their protection, and delays or reductions in planned initiatives by our governmental or commercial clients or potential clients; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; high leverage and potential inability to service our debt and guarantees; exposure to Brexit; exposure to political and economic risks in different countries; currency exchange rate fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; AECOM Capital real estate development projects; managing pension cost; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the Power transaction and other recent acquisitions and divestitures, including the risk that the expected benefits of such transactions or any contingent purchase price will not be realized within the expected time frame, in full or at all; the risk that costs of restructuring transactions and other costs incurred in connection with recent acquisitions and divestitures will exceed our estimates or otherwise adversely affect our business or operations; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.
