Red Sea International secures $58.6m contract for Jeddah hospital project

Red Sea International Company has been awarded a SAR220 million ($58.6 million) contract for the construction of a major healthcare facility in Jeddah, marking a significant addition to its project pipeline in the Kingdom’s healthcare and construction sectors.

The contract was secured by Red Sea International’s key subsidiary, Fundamental Installation for Electric Work Company, from Al Arab Hospital Company, the group said in a filing to the Saudi stock exchange Tadawul.

The project involves the development of a 19-storey hospital comprising two basement levels. The facility will be located on Corniche Road in the South Obhur district of Jeddah, a coastal area undergoing steady residential and commercial growth.

Key MEP contract for Jeddah hospital

Under the contract, Fundamental Installation will be responsible for the supply, installation, testing and commissioning of all mechanical, electrical and plumbing (MEP) works. The scope also includes screed works, internal partitions and a range of associated civil works, according to Red Sea International.

The company said the full scope of works is scheduled to be completed within 420 calendar days, underscoring the fast-track nature of the project.

Fundamental Installation is regarded as one of the leading standalone MEP contractors in the Kingdom and has delivered several large-scale projects across different sectors. The company specialises in providing integrated design, engineering and construction services, particularly for complex developments requiring coordinated building systems.

Red Sea International, a provider of specialised prefabricated and modular building solutions for real estate and industrial applications, said the hospital project is expected to have a positive financial impact in the near term.

The group stated that revenues and profits from the contract are anticipated to begin contributing to its financial performance from the first quarter of 2026.

The award comes as Saudi Arabia continues to expand healthcare infrastructure as part of wider development plans, with sustained investment in hospitals and medical facilities across major cities.