Meraas awards Madinat Jumeirah construction deal
30 May 2025Dubai-based real estate developer Meraas Holding, part of Dubai Holding, has awarded a AED300m ($82m) contract for the main construction works on Elara, which is Phase 7 of the Madinat Jumeirah Living masterplan in Dubai.
The contract was awarded to the local firm Al-Sahel Contracting Company.
Elara will feature three residential towers offering 234 apartments.
Construction is expected to start immediately, and the project is scheduled for completion by the end of 2026.
Earlier this month, Meraas awarded Bhatia General Contracting a contract to construct the fourth phase of the Nad Al-Sheba Gardens community in Dubai, worth AED690m ($188m).
The scope of the contract covers the construction of 92 townhouses, 96 villas and two pool houses.
In March, Meraas awarded Abu Dhabi-based Arabian Construction Company an estimated AED2bn contract ($544m) to build its Design Quarter residential project in Dubai Design District.
The development will comprise three buildings offering over 558 residential apartments. Construction is expected to be completed in 2027.
The UAE’s heightened real estate activity is in line with UK analytics firm GlobalData’s forecast that the construction industry in the country will register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects.
The residential construction sector is expected to record an annual average growth rate of 2.7% in 2025-28, supported by private investments in the residential housing sector, along with government initiatives to meet rising housing demand.
MEED’s May 2025 report on the UAE includes:
> COMMENT: UAE is poised to weather the storm
> GOVERNMENT & ECONOMY: UAE looks to economic longevity
> BANKING: UAE banks dig in for new era
> UPSTREAM: Adnoc in cruise control with oil and gas targets
> DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
> POWER: AI accelerates UAE power generation projects sector
> CONSTRUCTION: Dubai construction continues to lead region
> TRANSPORT: UAE accelerates its $60bn transport push
> DATABANK: UAE growth prospects head north
Exclusive from Meed
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Project manager confirmed for Riyadh Metro line 2 extension
21 August 2025
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Turner & Townsend to manage Abu Dhabi plant decommissioning
20 August 2025
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Abu Dhabi signs Sphere venue preconstruction agreement
20 August 2025
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Dubai tenders drainage upgrade on key highways
20 August 2025
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Forty-nine companies submit One-Stop Stations interest
20 August 2025
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Related Articles
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Project manager confirmed for Riyadh Metro line 2 extension Yasir Iqbal
21 August 2025
Riyadh Metro Transit Consultants (RMTC), a joint venture of the US-based firm Parsons and the French engineering firms Egis and Systra, has been confirmed as the project management and construction supervision consultant for the recently awarded Riyadh Metro Line 2 extension.
RMTC previously served as the project management and construction supervision consultant for lines 1, 2 and 3 of the Riyadh Metro scheme.
The Line 2 extension is 8.4 kilometres (km) long, of which 1.3km is elevated and 7.1km is underground. It includes five stations – two elevated and three underground.
The extension will run from the current Line 2 terminus at King Saud University (KSU), continuing to new stations at KSU Medical City, KSU West, Diriyah East, Diriyah Central – where it will interchange with the planned Line 7 – and finally Diriyah South.
In July, MEED exclusively reported that Saudi Arabia’s Royal Commission for Riyadh City (RCRC) had awarded an estimated $800m–$900m contract for the next phase of the Riyadh Metro project.
The contract was awarded to the Arriyadh New Mobility Consortium.
According to the consortium’s official website, its members include Italy’s Webuild, India’s Larsen & Toubro, local firm Nesma & Partners, Japan’s Hitachi, Italy’s Ansaldo STS, Canada’s Bombardier, Spain’s Idom and Australia’s WorleyParsons.
In 2013, the Arriyadh New Mobility Consortium secured the Line 3 contract for $5.21bn.
Line 3, also known as the Orange Line, runs east to west from Jeddah Road to the Second Eastern Ring Road, covering 41km.
Riyadh Metro
Riyadh Metro’s first phase features six lines with 84 stations.
The RCRC completed the phased rollout of the Riyadh Metro network with the launch of the Orange Line on 5 January.
In December last year, the RCRC started operating the Red Line and Green Line.
The Red Line, also known as Line 2, stretches 25.1km from the east of Riyadh to the west, via King Abdullah Road, connecting King Fahd Sports City and King Saud University. It has a total of 15 stations.
The Green Line, also known as Line 5, extends 13.3km from King Abdullah Road to the National Museum. With 12 stations, it serves several ministries and government agencies, including the Defence Ministry, the Finance Ministry and the Commerce Ministry, as well as other areas.
Earlier in December, the RCRC started operating the Blue Line (Line 1), Yellow Line (Line 4) and Purple Line (Line 6).
The Blue Line connects Olaya Street to Batha; the Yellow Line runs along King Khalid International Airport Road; while the Purple Line connects Abdul Rahman Bin Awf Road with Al-Sheikh Hassan Bin Hussain Road.
King Salman Bin Abdulaziz Al-Saud inaugurated the Riyadh Metro on 27 November last year.
The network spans 176km. Four of the stations have been designed by signature architects.
The metro is part of the Riyadh Public Transport Project, which encompasses metro and bus systems. The project aims to relieve traffic congestion.
The $23bn project was scheduled to open in 2018, but construction activity slowed due to disputes over prolongation and the disruption caused by the Covid-19 pandemic.
The RCRC awarded the main construction packages for the scheme on 28 July 2013.
In November 2022, the RCRC struck a deal with three contracting consortiums working on the Riyadh Metro scheme regarding the completion of the project’s remaining works.
The Fast consortium won lines 4, 5 and 6, reportedly valued at $7.82bn. The Bacs consortium was awarded lines 1 and 2 for $9.45bn, while Arriyadh New Mobility secured Line 3 for $5.21bn.
US firm Bechtel leads the Bacs consortium. Italian firm Ansaldo STS is the leader of the Arriyadh New Mobility group, and Spanish firm FCC Construccion heads the Fast consortium.
AtkinsRealis has delivered programme management and supervision services for the operations and maintenance of the Riyadh Metro scheme.
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Turner & Townsend to manage Abu Dhabi plant decommissioning Mark Dowdall
20 August 2025
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Turner & Townsend has been appointed by Taqa Transmission to provide programme management consultancy services for the retirement of a power-generating plant in Abu Dhabi.
The existing plant, located in the east of Abu Dhabi, has a capacity of 1,640MW and 1,200 megavolt-amperes reactive (MVAr), and is scheduled for decommissioning in 2029. An upgraded, energy-efficient plant will be developed in its place, with a focus on integrating solar and nuclear power into the network to support decarbonisation.
Turner & Townsend said in a statemet that it will establish a programme management office and provide strategic support to expand and facilitate the upgrade of the region’s power transmission and distribution infrastructure.
This work will enable the construction of new grid and switching stations and substations, cable corridors and cable works, capacitor banks and high-voltage overhead lines.
Earlier this month, the UK-based firm announced its appointment to provide project and cost management services for a hyperscale data centre project in Dubai.
The facility is being developed by Dubai-based Emirates Integrated Telecommunications Company (Du) on a 20,000-square-metre site in the emirate.
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Abu Dhabi signs Sphere venue preconstruction agreement Yasir Iqbal
20 August 2025
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Abu Dhabi’s Department of Culture & Tourism (DCT) and US-based Sphere Entertainment have finalised an agreement related to the construction, development and operation of the upcoming Sphere entertainment venue in Abu Dhabi.
According to a Securities & Exchange Commission filing dated 25 July, DCT and Sphere Entertainment signed a joint development and partnership agreement, as well as a pre-opening services agreement for the project.
According to the agreement, Sphere Entertainment has granted DCT the exclusive rights to build and operate the Sphere Abu Dhabi entertainment venue.
The agreement also allows DCT the right to build and operate additional Sphere venues in the Middle East and North Africa region for at least 10 years after the opening of the Sphere Abu Dhabi venue.
In October last year, DCT confirmed that it is working with US-based Sphere Entertainment to bring the world’s second Sphere performance venue to the emirate.
According to Sphere Entertainment, the Abu Dhabi Sphere will be the first in a series of venues with a similar form to the Las Vegas venue.
DCT will fund the construction, while Sphere Entertainment will provide services related to the venue’s development, construction and pre-opening.
“DCT will also pay Sphere Entertainment a franchise initiation fee for the right to build the venue, utilising Sphere Entertainment’s proprietary designs, technology and intellectual property,” the statement added.
The location and construction timelines have yet to be disclosed. According to the official statement, however, the venue is expected to be on a scale similar to the original 20,000-seater Sphere venue in Las Vegas.
The estimated $2.3bn Sphere venue in Las Vegas was first announced in 2018, and construction was completed in 2023.
US-based architectural firm Populous designed the venue and Aecom supported the construction works.
According to renderings posted on Sphere’s official account on social media platform X, the Abu Dhabi Sphere will have a glowing exoskeleton, similar to its Las Vegas predecessor.
Hello UAE, Hello @SphereAbuDhabi pic.twitter.com/AEcs66jlYa
— Sphere (@SphereVegas) October 16, 2024
Abu Dhabi Tourism Strategy 2030
Establishing a Sphere venue in Abu Dhabi supports the city’s Tourism Strategy 2030, which was approved in May last year. The strategy, led by DCT, will expand and strategically develop the city’s travel and tourism sector.
The strategy seeks to achieve a 7% year-on-year growth by increasing the number of visitors from 24 million in 2023 to 39.3 million by 2030.
The plan also aims to increase the tourism and travel sector’s contribution to the UAE’s GDP from about AED49bn ($13.3bn) in 2023 to AED90bn ($24.5bn) by 2030.
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Dubai tenders drainage upgrade on key highways Mark Dowdall
20 August 2025
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Dubai Municipality has issued a request for proposals (RFP) to construct a stormwater drainage system on Sheikh Mohammed Bin Zayed Road and Al-Yalayis Road.
The project is designed to improve drainage along two major transport routes, reducing the risk of flooding and maintaining traffic flow during heavy rainfall.
It covers civil; mechanical; electrical; instrumentation, control and automation; and pipeline works, including construction of stormwater drainage lines of various diameters.
The authority said the project will also include manholes, chambers, catch basins and vortex connections to existing networks. Non-disruptive pipeline installation methods are also specified.
Bidders must submit technical, commercial and qualification proposals via Dubai Municipality’s electronic supply portal by 25 August.
Evaluations will consider technical capabilities, company experience and the financial offer, the municipality said.
The RFP details microtunnelling works for pipes ranging from 200 milimetres to 4,000 milimetres in diameter. This includes excavation, shoring, access and reception pits; traffic management; site protection; and the testing of materials and completed works.
Contractors must also establish and maintain offices, equipment and vehicles for the supervising engineer’s staff throughout the project.
Meanwhile, the municipality has opened bidding for the supply, installation, testing and commissioning of a stormwater network at the Jebel Ali sewage treatment plant. Bidders are required to submit proposals by 3 September 2025.
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Forty-nine companies submit One-Stop Stations interest Yasir Iqbal
20 August 2025
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Forty-nine Saudi and international firms have expressed interest in a contract to develop the kingdom’s One-Stop Station project on a public-private partnership (PPP) basis.
The project is being jointly undertaken by Saudi Arabia’s National Centre for Privatisation & PPP (NCP), in collaboration with the Roads General Authority (RGA).
The project includes the development of facilities at several locations within the RGA’s 73,600-kilometre intercity road network.
The facilities include refuelling stations, commercial facilities, parking lots, driver rest areas, vehicle maintenance centres and other hospitality amenities.
The Saudi firms include:
- Albawani
- AlDrees Petroleum & Transport Services Company
- Algihaz Holding Company
- Alkifah Holding Company
- Alyamama Company for Trading & Contracting
- Alayuni Investment & Contracting Company
- Aljari Oil Station Company
- Alfahd Company
- Alfanar Company
- Almansouryah General Contracting Company
- Almusbah Telecom Company
- Almutlaq Real Estate Investment Company
- Alrawaf Company for Trading & Construction
- Annasban Group
- Asyad Holding Company
- Buhur for Investment
- Cayan Group
- Cooperative Society for Transport & Vehicles
- Darb Stations Company
- Elm Company
- Erada Advanced Projects
- Go Station for Petroleum Services
- Liter Trading Company
- Mada International Holding
- Mohrkey Company
- Mounes Mohamed Al-Shayeb for Civil Construction
- Naft Alsayar Company for Fuel
- Namaya International Investment Company
- National Transportation Solution Company Petromin
- Nesma Company
- Pankingdom Real Estate
- Petrogen
- Petroly
- Ports Projects Management & Development Company
- Red Sea International Company
- Roadsbaha
- Sasco
- Sevenplus
- Shibh Al-Jazira Contracting Company
- Sierra Asasat
- SkyBridge
- Zahrat AlSahra Trading & Contracting
The international firms are:
- Contrax International (UAE)
- EDECS (Egypt)
- IC Infrastructure (Turkiye)
- Lamar Holding (Bahrain)
- Meinhardt (Singapore)
- Ramky Infrastructure (India)
- Tamasuk Holding Company (US Minor Outlying Islands)
The project will be implemented under a 30-year design, build, finance, operate and maintain contract, and will be tendered in three waves, comprising six packages.
The first wave will include the initial package, while the second wave will encompass the second and third packages and the third wave will cover the remaining three packages.
NCP issued the expressions of interest notice on 8 July and the firms submitted their expressions of interest on 28 July.
Saudi PPP market
The value of PPP contracts in Saudi Arabia has risen sharply in the past two years as the government seeks to develop projects through the private sector and diversify funding sources.
According to data from regional projects tracker MEED Projects, the value of PPP concession contracts hit an all-time high of $28.2bn in 2023, equivalent to more than 23% of the total value of all project contracts awarded that year. Although this figure fell to 18.3% last year, it was still far higher than the historical average in the kingdom.
The figures are even starker when taking only government spending into account. The value of signed PPP contracts totalled more than a third of the value of government or government-related projects awarded in 2023 and more than a quarter in 2024. This is compared to an average of 15.6% in 2019 and 2022, and just 3.5% recorded in 2018.
Government contracts include awards made by ministries, municipalities and royal commissions, in addition to state-funded project clients such as Saudi Water Authority, the National Housing Company and Jeddah Airports Company. Subsidiaries of sovereign wealth vehicle the Public Investment Fund, such as Neom, the National Water Company and Rua Al-Madinah, are also included.
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