Buildings that are under construction in the city of Riyadh. AFP photo

SEOUL - South Korean builders who received housing construction agreements worth 20 billion US dollars, together with Saudi Arabia said on Monday it was confident the project would go forward despite the impact falling oil prices on the country's national budget in the Persian Gulf.

Under the agreement, a memorandum of understanding was signed in Seoul last week, the three associations parties will build 100 000 housing units and related infrastructure for the new town near the capital Riyadh in 10 next year.

The association includes the company's two South Korean firm Daewoo Engineering & Construction and Hanwha Engineering & Construction and a local construction company Saudi Pan Kingdom of Saudi Arabia.

Shares of Daewoo and Hanwha have fallen on the Seoul stock exchange in recent days amid There is a question about whether this oil-rich country could finance big projects if you look at the situation the current oil price levels.

But Hong Soo-jin, spokesman for Daewoo Construction, said the company is completely confident the project construction agreement outside the biggest ever received by South Korea to be achieved.

Ms. Hong said, noting that it is a major project led by Swedish King Haman King Salman bin Abdulaziz, who was crowned last year .

She said: 'Because this project is one of the policy priorities policies of many of our new leader see the project as the most trusted.

The project, which will be built a new city Dahiyat Alfursan is part of an effort to help ease the chronic housing shortage in Saudi Arabia, particularly in the city of Riyadh with a population of more than one.

According to Daewoo government of Saudi Arabia announced in January a plan to invest 400 billion million US dollars for the next 7 years to build 1.5 million housing units.