Related Articles

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  Sabic registers net loss of $323m in first quarter Indrajit Sen

  16 May 2025

  Saudi Basic Industries Corporation (Sabic) has announced a net loss of $322.66m in the first quarter of 2025, citing a rise in operating costs and high feedstock costs.

  Sabic’s first-quarter financial result is, however, a 36% improvement compared to a net loss of $506.66m in the last quarter of 2024.

  Abdulrahman Al-Fageeh, Sabic’s CEO, also attributed the company’s first-quarter loss to the one-time costs related to business restructuring, which, he said, “will reflect positively on the company’s long-term financial results and contribute to controlling its expenses”.

  Al-Fageeh underscored the slowdown in the global economy and continued uncertainties that negatively affected markets, saying that these are some of the reasons for the decline in demand for petrochemical products.

  “The oversupply of petrochemicals continues to pressurise product prices and, in turn, profit margins,” he remarked.

  For the full year 2024, Sabic had announced a net income of $400m, becoming profitable after making a net loss of $739m in 2023, its first annual loss since 1996.

  In April, the company announced it had maintained its position as the second most valuable brand in the chemicals industry, with an increased brand value of $4.9bn.

  Meanwhile, Sabic’s parent company, Saudi Aramco, announced a net income of $26bn for the first quarter of 2025, a 4.6% decline compared to the same period last year.

  The Saudi energy giant attributed the drop in year-on-year profit to lower sales and higher operating costs as economic uncertainty hit crude oil markets.

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  Indrajit Sen
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  Kuwait seeks firms for 3.6GW Nuwaiseeb project Jennifer Aguinaldo

  16 May 2025

  Kuwait’s Electricity, Water & Renewable Energy Ministry (MEWRE) has invited firms to bid for a contract to provide consultancy services for an integrated water and power plant in Nuwaiseeb. 

  The work entails providing consultancy services for the supply, installation and maintenance of gas turbine units for the first phase of the 3,600MW Nuwaiseeb power generation plant.

  MEWRE expects to receive bids for the contract by 12 August, with an initial meeting date set for 11 June.

  The contract was tendered before, with two engineering firms submitting bids in 2022. The tender was subsequently cancelled.

  In 2022, MEED reported that the project was expected to be procured using an engineering, procurement and construction (EPC) contract.

  It is the third major integrated power and water generation scheme being planned in the Gulf state, in addition to the Al-Zour North 2 & 3 independent water and power producer (IWPP) and Al-Khiran 1 IWPP projects.

  MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), recently opened the financial envelope submitted by the lone bidder for the contract to develop and operate the Al-Zour North 2 & 3 IWPP.

  Phases two and three of the Al-Zour North project will have a power generation capacity of 2,700MW and a desalination capacity of 120 million imperial gallons a day (MIGD).

  A utility developer team comprising Saudi Arabia’s Acwa Power and the local Gulf Investment Company (GIC) submitted the lone bid for the contract.

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  Jennifer Aguinaldo
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  Hassan Allam eyes role in Saudi Arabia’s transformation Yasir Iqbal

  16 May 2025

  

   

  As Saudi Arabia undertakes a generational transformation under Vision 2030, regional players with deep engineering and construction expertise are emerging as critical enablers of this historic journey.

  Among them, Egypt-headquartered Hassan Allam Holding has rapidly expanded its footprint in the kingdom, leveraging a legacy that dates back over 85 years and a proven regional model built on operational excellence and sustainable growth.

  MEED spoke exclusively with Hassan Allam, CEO of Hassan Allam Holding, to discuss the firm’s role and future plans in the kingdom.

  Founded in 1936, Hassan Allam Holding’s vision in Saudi Arabia is rooted in delivering long-term value while maintaining a high-quality standard across diverse sectors.

  With a presence now in over 10 countries, the group brings cross-market expertise and resource optimisation to some of the kingdom’s most ambitious projects.

  “Saudi Arabia, given its scale, ambition and market maturity, plays a central role in our regional strategy,” Allam says.

  Deepening roots in the kingdom

  The company’s journey in Saudi Arabia began over 40 years ago, but its recent establishment of a regional headquarters in Riyadh marks a significant institutional shift.

  “This move has enabled us to engage more deeply with key stakeholders, navigate regulatory frameworks with greater efficiency and build strong local partnerships,” Allam explains.

  This embedded approach has allowed Hassan Allam to localise its supply chains, access talent pools more effectively and align closely with Saudi Arabia’s major development programmes.

  “The kingdom is not just another market – it is a strategic hub where Hassan Allam has made significant investments in capabilities, people and systems,” Allam adds.

  Contributing to Vision 2030

  Hassan Allam’s operations in Saudi Arabia fully align with Vision 2030’s objectives to diversify the economy, enhance quality of life and ensure sustainable development.

  “Our operations are structured to support national objectives through a diversified portfolio, leveraging our deep technical expertise and regional track record,” Allam says.

  Projects span a wide range of sectors, including infrastructure, transportation, hospitality, water treatment and environmental sustainability. Notable among these are several luxury hospitality developments in collaboration with Red Sea Global, such as the Four Seasons, Six Senses and Rosewood hotels at the Amaala destination. These projects exemplify the group’s commitment to delivering high-end, sustainable tourism offerings.

  Environmental initiatives are also a core part of the company’s portfolio. “In Neom, we are proud to contribute to the world’s largest coral reef restoration initiative in collaboration with Kaust,” Allam notes, highlighting a pioneering effort in marine conservation.

  Managing complexity at scale

  Executing gigaprojects on accelerated timelines requires agility, precision and scale, all of which are hallmarks of Hassan Allam’s approach in the kingdom. With over 50,000 professionals across the region, the group deploys integrated planning, early stakeholder engagement and digital project management to manage complex scopes.

  “Our track record includes delivering time-sensitive, high-impact projects like the luxury hospitality hotels in Amaala and the King Abdullah Financial District monorail,” Allam explains. Modular construction, strong supply chains and lean practices ensure that speed never comes at the expense of quality or safety.

  The company also made major investments in adopting construction technology across its Saudi projects. Through its dedicated technical and digital delivery department, which evolved from its building information modelling (BIM) department, founded in 2018, the company deploys technologies like 3D to 6D BIM, geographic information systems, laser scanning, drones, augmented reality/virtual reality, digital twins and artificial intelligence.

  “These technologies are applied from early tendering and design through construction, as-built documentation and handover,” Allam notes. The result is enhanced efficiency, cost control and real-time decision-making, key advantages in a market where time and precision are critical.

  “Our digital platforms also support real-time collaboration among stakeholders, improving decision-making and enabling proactive risk management,” Allam adds.

  Investing in local talent

  In line with Saudi Arabia’s workforce nationalisation agenda, Hassan Allam is deeply committed to developing local talent. “Our approach goes beyond compliance with Saudisation targets; it reflects a long-term investment in building a skilled, empowered and future-ready workforce,” Allam says.

  Its dedicated talent programme provides structured rotational assignments and mentorship for young Saudi professionals. Internship and cooperative training programmes offer hands-on project exposure, while ongoing annual training plans ensure continued growth for the broader workforce.

  Our approach goes beyond compliance with Saudisation targets; it reflects a long-term investment in building a skilled, empowered and future-ready workforce
  Hassan Allam, CEO of Hassan Allam Holding

  Navigating challenges with strategic vision

  Operating in Saudi Arabia does come with its complexities, from rapidly evolving regulations to high localisation standards. But the company views these as opportunities.

  “What sets Saudi Arabia apart from other GCC countries is the scale and structure of government support, particularly through the Public Investment Fund (PIF),” Allam notes.

  Through close collaboration with PIF, Hassan Allam has scaled up rapidly, mobilising over 3,600 employees across 15 ongoing projects in the kingdom.

  When entering joint ventures or bidding on gigaproject components, Hassan Allam maintains a cautious yet ambitious strategy.

  “We approach every joint venture and project bid with a measured, strategic mindset that weighs both opportunity and risk through comprehensive due diligence,” Allam says.

  The focus is on long-term value creation, working with reputable partners and adhering to stringent internal risk protocols. Already, the company has secured over 14 project awards in the kingdom, further solidifying Saudi Arabia’s importance in its regional portfolio.

  Looking ahead

  The next three to five years are expected to witness continued momentum in Saudi Arabia’s construction and infrastructure space, driven by sustained public investment and rising private sector engagement. Hassan Allam Holding is positioning itself to be a key player in this transformation.

  “Our strategic priorities will focus on expanding our local footprint, building strong and enduring partnerships, and advancing our digital and sustainability initiatives,” Allam outlines.

  With a legacy of engineering excellence and a future-focused approach, Hassan Allam Holding is set to play an integral role in shaping Saudi Arabia’s next chapter.

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  Yasir Iqbal
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  Lowest bidders emerge for Kuwait Al-Mutlaa City packages Yasir Iqbal

  16 May 2025

  Kuwait’s Public Authority for Housing Welfare (PAHW) has received bids for contracts covering construction works on two upcoming packages at its Al-Mutlaa City residential project.

  Based on the results of the bidding round announced by the PAHW, nine contractors have submitted bids for the N12 sector and eight firms for the N5 sector.

  The client issued two separate tenders in March, including the construction of public buildings and infrastructure works.

  The bidders and their prices for the N12 sector are:

  • The Contractor Trading & Contracting ($62m)
  • Wara Construction Company ($67m)
  • United Building Company ($67.7m)
  • Private General Trading & Contracting Company ($68m)
  • HOT Engineering & Construction ($68.1m)
  • Kuwait Industrial Centre Company ($69.8m)
  • Doha Group Trading & Contracting ($71m)
  • Combined Group Contracting ($76.6m)
  • Khalid Ali Al-Kharafi & Brothers ($76.9m)

  The bidders and their prices for the N5 sector are:

  • The Contractor Trading & Contracting ($62m)
  • Wara Construction Company ($67m)
  • United Building Company ($68m)
  • Private General Trading & Contracting Company ($68m)
  • Al-Dar Engineering & Construction Company ($69.5m)
  • Kuwait Industrial Centre Company ($69.9m)
  • Combined Group Contracting ($76.7m)
  • Khalid Ali Al-Kharafi & Brothers ($77.6m)

  MEED reported in April that PAHW had set 1 May as the deadline for tenders for the construction works on the two packages at the Al-Mutlaa City residential project.

  The project is a housing scheme located 38.3 kilometres northwest of the Kuwait metropolitan area.

  It covers approximately 104 square kilometres and is expected to house up to 400,000 people.

  The mixed-use development will include residential, social, commercial and light industrial areas.

  In March 2023, MEED reported that PAHW had appointed France-based Egis as a project management consultant for the Al-Mutlaa City development.

  Under the agreement, Egis is providing programme-level service management, construction logistics and interface management services.

  The scope of work also includes cost management, a digital programme management system and a project management information system for the scheme.

  Al-Mutlaa City is one of the largest housing infrastructure projects to be developed by the government as part of Kuwait’s Vision 2035.

  In April, MEED reported that Kuwait had approved the budget for more than 90 projects this year, with a capital spending of about KD1.7bn ($5.7bn).

  According to local media reports, the cabinet approved the project expenditure in its 2025-26 budget on 1 April.

  Data from regional projects tracker MEED Projects reveals that Kuwait awarded about $6bn of contracts for construction and infrastructure schemes last year.

  UK analytics firm GlobalData expects the Kuwaiti construction industry to grow at an annual average growth rate of 7.1% in 2025-28, supported by investments in renewable energy, transport and oil and gas projects, coupled with investments as part of the New Kuwait 2035 National Development Plan. Under this strategy, the government plans to invest KD350m ($1.1bn) to construct several sports projects in the country.

  The residential construction sector is expected to register an annual growth of 3.8% in 2025-28, supported by the government’s plan to build 65,500 housing units by 2029 through five projects.

  

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  Yasir Iqbal
• 
  Delivering priority event-driven projects in Saudi Arabia Yasir Iqbal

  16 May 2025

  

   

  As Saudi Arabia accelerates preparations to host a series of landmark global events, including the 2027 AFC Asian Cup, the 2029 Asian Winter Games in Trojena, Expo 2030 in Riyadh and the Fifa World Cup in 2034, momentum is building across the kingdom’s construction sector to chart out strategies to deliver event-driven projects.

  Earlier this week, MEED hosted a panel discussion on the sidelines of the MEED 2025 Saudi Gigaprojects summit in Riyadh that brought together senior stakeholders from fields including architecture, project management, ESG and contracting to address how to deliver event-driven construction schemes.

  The session explored how the kingdom can balance ambition with execution, manage complexity, and promote Saudi Arabia as a global hub for international sports and entertainment events.

  The consensus was that the success of these large-scale, complex projects depends on early, sustained and transparent collaboration between all stakeholders – from clients and designers to contractors, operators and regulators.

  You simply can’t deliver something as complex and time-sensitive as a stadium or expo venue if people are working in silos
  Chris Seymour, Mace

  Serious coordination is non-negotiable

  “Big projects live or die by early engagement,” said Chris Seymour, managing director – Middle East and Africa at Mace, a global consultancy involved in many of the region’s most ambitious schemes.

  “You simply can’t deliver something as complex and time-sensitive as a stadium or expo venue if people are working in silos. The earlier you bring the ecosystem together, the more agile and successful the project becomes.”

  Seymour highlighted that the challenge is not just scale, but the dynamic and high-pressure environment in which these projects operate.

  “Engagement on these megaprojects is difficult to create and maintain, especially when integrating new technologies or fast-tracking delivery. You need to pre-empt issues, adapt quickly and build trust early,” he said, citing hospitality projects as an example of early coordination leading to better performance.

  Delivering a venue such as the Prince Mohammed Bin Salman Stadium in Qiddiya demands intense, sustained collaboration across all project layers
  Fatemeh Hosseini, Populous

  Overcoming the delivery challenges of architecturally complex schemes

  Sports venues are not just functional buildings but are architectural statements designed to leave a lasting impression on the global stage, said Fatemeh Hosseini, associate at leading US-based architectural firm Populous, who spoke about the architectural ambition behind these developments.

  “These schemes are extremely large in scale, with highly complex design and engineering requirements,” she said.

  “Take the Prince Mohammed Bin Salman Stadium in Qiddiya – its architectural vision is bold, iconic and layered with advanced technology and fan experiences. Delivering such a venue demands intense, sustained collaboration across all project layers.”

  Hosseini noted that while Vision 2030 sets a clear ambition, translating that into buildable, operational venues in time for global events is an enormous challenge.

  “We need a shared vision and a collaborative delivery model from day one – not just between consultants and contractors, but with operators, planners and city authorities,” she added.

  Green buildings don’t just reduce carbon – they also command higher values, improve tenant appeal and future-proof assets
  Wesley Thomson, Knight Frank

  Sustainability as a strategic imperative

  Alongside design excellence and timely delivery, sustainability emerged as a critical theme in the panel discussion. Saudi Arabia’s commitment to environmental responsibility is growing, and mega-events provide an opportunity to demonstrate leadership in green building practices.

  “Sustainability is increasingly becoming a value driver in the built environment,” said Wesley Thomson, partner and head of ESG at UK-headquartered firm Knight Frank.

  “Green buildings don’t just reduce carbon – they also command higher values, improve tenant appeal and future-proof assets. If we get this right now, it’s a long-term win for Saudi Arabia.”

  However, Thomson stressed that the kingdom needs a more robust regulatory framework to meet sustainability goals across the project lifecycle.

  “There’s a real need to enhance and enforce green building codes and ESG reporting structures in the kingdom,” he said.

  “Coordination and communication on sustainability must be centralised, especially for large, time-critical projects that could easily miss the mark if not carefully managed.”

  When contractors are engaged early, they can feed real-world constraints and opportunities into the design process
  Michael Al-Kurdi, Albawani

  Early contractor involvement is key to success

  From a construction delivery perspective, one message rang loud and clear: contractors must be brought to the table early to avoid late-stage risks and costly redesigns.

  “When contractors are engaged early, they can feed real-world constraints and opportunities into the design process,” said Michael Al-Kurdi, business development and relationship manager at Albawani, one of Saudi Arabia’s leading construction firms.

  “Early contractor involvement (ECI) unlocks true collaboration and ensures harmony between vision and feasibility.”

  Al-Kurdi noted that early involvement allows contractors to prepare the supply chain more effectively and anticipate delivery risks well in advance.

  “It’s not just about feasibility – it’s about preparedness. These are huge, fast-moving projects, and the more aligned the stakeholders are from the outset, the smoother the execution phase will be.”

  The panellists agreed that Saudi Arabia has a rare opportunity to reshape its global image through these sporting and cultural mega-events. But with tight deadlines and high global expectations, success will hinge not only on design and engineering innovation but also on collaboration, coordination and clarity of vision.

  “We have an opportunity to lead the world – not just in the scale of what we’re building, but in how we build it,” Seymour said. 

  “That means doing things differently: being open, integrated and agile. If we can embed that mindset into every stadium, arena and event venue we build, we’ll not just meet the deadlines – we’ll set a new global benchmark.”

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  Yasir Iqbal