Fastbrick Robotics shares have soared after the company entered into a Memorandum of Understanding with Saudi Arabia earlier this week to build new homes in that country.

Yesterday its shares were trading at $0.27 – a rise of more than 54%.

The agreement relates to a potential project to build a minimum of 50,000 new homes by 2022 using Fastbrick's Hadrian X construction robots.

The 50,000 new homes are part of a massive construction project by the Kingdom, which is aiming to build 1.5 million new homes by 2022. A construction project of this magnitude would require around 100 Hadrian X robots.

The company has previously suggested that its robots will sell for about $2 million each.

Saudi Arabia’s housing shortage is being fuelled by a high demand for housing, growing population and increased labour costs.

Fastbrick has positioned itself to help solve the problem.

Hadrian X is a globally patented 3D robotic bricklaying system and marks the transition to dynamically stabilised robots operating outdoors in uncontrolled environments.

Based on its current share price and approximately 970.5 million shares Fastbrick Robotics has a market capitalisation of $262 million.