[Asia Economy Reporter Lee Seon-ae] Hyundai Engineering & Construction is showing a strong gain of over 9% during the afternoon trading session amid expectations of a visit to Korea by Crown Prince Mohammed bin Salman of Saudi Arabia. This is interpreted as optimism that domestic companies, including Hyundai Engineering & Construction, will have opportunities to participate in the 'NEOM City' project, the world's largest construction project currently underway in Saudi Arabia, valued at 650 trillion won.
As of 2:06 PM on the 10th, Hyundai Engineering & Construction is trading at 47,000 won, up 9.05% from the previous trading day.
According to related industries, the government is pushing to hold a Korea-Saudi Arabia summit around November. At this summit, the 'NEOM City' construction project worth 650 trillion won and a local nuclear power plant procurement project are expected to be major agenda items.
Expectations that domestic construction and nuclear power companies can participate have led to a buying spree in related stocks. Currently, leading global construction firms are participating in the NEOM City bidding, and domestically, Samsung C&T and Hyundai Engineering & Construction have formed a consortium and secured tunnel construction contracts.
NEOM City is a project led by Crown Prince bin Salman to build a city (NEOM City) on a 26,500 km² site near the Red Sea in the northwest, which is 44 times the size of Seoul. The total investment amount reaches 500 billion dollars (approximately 650 trillion won).
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