Saudi Arabia has announced that work is progressing well on the first city being developed as part of its $500 billion Neom project in the north-western part of the Kingdom.

In a report by the Saudi Press Agency, the chief executive officer of the Spanish group, Agency, said that Neom will inaugurate several basic infrastructure facilities by the end of the year.

Citing Antoni Vives, the report said that the Barcelona-based firm helps cities, regional and national governments, companies and organisations to address urban challenges and improve people’s well-being and quality of life. It has worked on projects all around the globe, he added.

In September last year, the Neom project began environmental, geological and archaeological surveys to ensure that the execution of any future construction would be well-planned and sustainable, the report added.

Neom comprises of 16 economic sectors that offer investors from around the world major economic opportunities, the report said.

Vives said that Saudi Arabia has confirmed the establishment of a city development in Neom, which will span 45,000km and be completed in 2020. This follows the project’s board approving the masterplan for the project in mid-January, he added.