A joint venture between two Chinese companies has won a $1.13 billion construction contract to relocate utilities and administration offices for Riyadh's King Saud University to Diriyah, an urban development project just outside the city and backed by the kingdom’s sovereign wealth fund.

What happened: The contract was awarded by the Diriyah Company to a joint venture between China Railway Construction Corporation Limited Saudi Branch and China Railway Construction Group Central Plain Construction Co. Ltd., according to a statement published by the Saudi Press Agency Tuesday.

According to SPA, the contract covers the design, construction and relocation of KSU utilities and administration offices as well as the construction of water storage and treatment facilities, fuel stations, a utility tunnel, office buildings, warehouses and maintenance workshops.

Why it matters: Located northwest of the capital Riyadh, Diriyah is an urban development project and UNESCO World Heritage Site backed by the Public Investment Fund that, once completed, will provide homes for nearly 100,000 residents and office space for tens of thousands of professionals in the technology, media, arts and education sectors. The Saudi government estimates the project will create 178,000 jobs, attract almost 50 million annual visits and contribute approximately $18.6 billion (70 billion Saudi riyals) directly to Saudi Arabia's gross domestic product. Diriyah is expected to be built by 2027.