The Public Investment Fund-backed company, which was established last year, said that the excavation works will be carried out in 6.3 square kilometers out of the total 14-square-kilometer development area on the outskirts of Riyadh.

Diriyah (Image: Diriyah Gate Development Authority)

It added that more than 600 heavy machines will be deployed on-site to carry out the work and provide a foundation for the development of projects including the Royal Diriyah Opera House and the 20,000-seat Diriyah Arena.

Diriyah said the excavation works would 鈥渆mbrace circular economy principles, crushing and repurposing materials from the excavation site for uses such as road bases, landscaping, and backfill, based on international sustainability guidelines.鈥�

The news comes as just the latest contract award at the planned US$63.2 billion Saudi tourism destination which is earmarked to include 42 hotels, more than 100 restaurants, nine museums and more than 30,000 homes when it is completed in 2030.

In July Diriyah company awarded a US$2.08 billion contract to a joint venture including China State Construction Engineering and Saudi-based El Saif Engineering Contracting to build educational institutions, cultural venues and a luxury hotel in the Northern District.

And in November it awarded a US$1.55 billion to a joint venture between Nesma & Partners Contracting and MAN Enterprise Al-Saudia to build the Qurain Cultural District.

According to Reuters, deals worth nearly US$1 billion have also been agreed with an Italian developer and a French company.

When complete, Diriyah Company says it hopes that 50 million tourists a year will visit Diriyah and nearby Wadi Safar.