The government of Saudi Arabia has started to award contracts to local construction companies to build five palaces for the king, crown prince, and other senior royals in NEOM, a 26,500 square kilometer business zone in the northwest of the country, Reuters-affiliated website Zawya reports.

Binladin Group, Saudi’s biggest construction company, was contracted to build one of the palaces despite the recent detention of some of its owners in a crackdown on corruption, in a sign that it retains the government’s support.

The palaces are among the first contracts awarded for NEOM and will be located on the Red Sea coast about 150 kilometerss west of the city of Tabuk. Banks have begun to offer funds to developers of the palaces.

Reuters showed in a project design luxurious modern and traditional Moroccan-style buildings featuring Islamic designs and colorful ceramic tiles.

Helipads, a golf course, and a marina will be established in the complex of palaces.

Mohammed Bin Salman, the Saudi crown prince, announced the government’s plans for the development of NEOM, at an international investment conference in Riyadh last October.

NEOM has its own legislation and judicial system tailored to attract international investors. It will focus on advanced industries and services such as energy and water, biotechnology, tourism food, and advanced manufacturing.

Public and private investment in NEOM is expected to reach USD 500 bn.