meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi construction pivots from gigaprojects to events

10 September 2025

 

Saudi Arabia’s construction sector is undergoing a transition in 2025, shifting from the gigaproject era that dominated market activity between 2020 and 2024 to a new phase focused on delivering high-profile international events.

As the market pivots, it has entered a quieter phase compared to the previous three years. As of the end of August, the total value of construction contract awards stood at $15.5bn, according to regional projects tracker MEED Projects, which is significantly below the annual totals recorded since 2021. 

The market had grown significantly during the gigaprojects era, from $19.2bn in 2021 to $29.9bn in 2022, and then to $33.1bn in 2023, before peaking at $36bn in 2024. By comparison, the year-to-date figure for 2025 suggests that unless activity accelerates in the final quarter, the full year total is likely to end well below the highs of the past three years.

Historically, the current levels are still above the sector’s trough years between 2016 and 2020, when awards typically hovered around $10bn-$13bn, but they signal a cooling from the exceptional momentum of the early 2020s.

Construction priorities

The slowdown in 2025 reflects the transition in market priorities as event-driven programmes come into focus. Saudi Arabia has won a series of major events that will drive the construction agenda over the coming decade.

First is the 2027 AFC Asian Cup, which will be hosted at various locations across the kingdom. Next is the Asian Winter Games at Neom’s Trojena in 2029, although recent reports suggest the event may be postponed to 2033, with China or South Korea potentially stepping in to host in 2029.

In 2030, Riyadh will host the World Expo, and in 2034, Saudi Arabia is set to host both the Fifa World Cup and the Asian Games.

Saudi Arabia secured the rights to host these events across a three-year period from 2022 to 2024, and since then, attention has turned to delivering the projects needed to ensure that these events are a success. 

Looking ahead, more stadium construction contracts will be tendered, along with other building projects that will provide hotel and commercial space to support the events

Stadium development

The most recent example of this shifting focus came in early September, when MEED reported that Qiddiya Investment Company (QIC) had started the procurement process for an estimated SR7bn ($1.8bn) contract to develop the National Athletics Stadium.

Located within the Qiddiya Sports Park cluster and scheduled for completion by 2030, the project is an ambitious undertaking. It will cover an area of approximately 182,000 square metres and is being benchmarked against the design of the London Olympic Stadium.

The athletics stadium follows progress on other event-related schemes, including the appointment of contractors for football stadiums in Qiddiya, Riyadh, Al-Khobar and Jeddah, as well as major infrastructure and building contracts for work at Trojena.

Looking ahead, more stadium construction contracts will be tendered, along with other building projects that will provide hotel and commercial space to support the events. Meanwhile, construction contracts worth an estimated $7bn are expected to be tendered for the Expo site.

Infrastructure expansion

Additional infrastructure projects will also be required. King Khalid International airport needs to be upgraded, and tendering has begun for major construction packages that will transform the existing airport into a much larger facility known as King Salman International airport. The Riyadh metro network will also be upgraded.

Gigaprojects plateau

The focus on event-driven development comes as the gigaproject programme cools. According to MEED Projects, the five official gigaprojects have not generated the growth in contract awards that was initially expected when they were first launched.

Over the past three years, the total value of contract awards across the five official gigaprojects has remained largely flat, with $15.9bn of contract awards in 2023, $18.2bn of awards in 2024 and $9.3bn by the end of August 2025. 

According to MEED Projects, the most active gigaproject developer in 2025 in terms of contract awards has been Diriyah with a total of $4.9bn, which is over half of the total for the year so far. Roshn has awarded $1.7bn of contracts, Neom $1.4bn, Qiddiya $1.2bn and Red Sea Global $100m.

While the pace of contract awards on the gigaprojects has failed to grow, projects continue to be delivered. This is most apparent at the Red Sea Project, where a series of hotel and resort launches have taken place, including Sheybarah Island, featuring its distinctive metal orbs that sit above the water. 

Broader transformation

Although construction progress has not met expectations, the gigaproject programme has already achieved many of its broader ambitions. Ambitious project launches have altered global perceptions of Saudi Arabia, as it positions itself as a modern, welcoming society eager to play an active role on the world stage.

This has contributed to Saudi Arabia’s economic objectives outlined in the Vision 2030 national strategy, which was launched in 2016. The 2024 annual report, released earlier this year, disclosed that 93% of the key performance indicators for the kingdom’s Vision Realisation Programme and national strategy had either been fully achieved or were on track as of 2024.

Major international events will elevate Saudi Arabia’s aspirations to another level, and the construction sector will play a crucial role in delivering the buildings and infrastructure necessary to make those events a success.

Infrastructure takes centre stage in Saudi strategy

https://image.digitalinsightresearch.in/uploads/NewsArticle/14642517/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Dubai extends bid deadlines for key drainage projects

    31 October 2025

    Dubai Municipality has extended the bid submission deadlines for two key drainage projects under the $8bn Tasreef programme to develop, rehabilitate and expand Dubai’s stormwater drainage network.

    The first project, listed as TF-05-C1, involves a stormwater drainage system in Jebel Ali and the surrounding areas.

    The new deadline is 10 November, a source close to the project told MEED.

    The project covers approximately 27 kilometres of stormwater network and will serve major transport routes, including Sheikh Zayed Road and Al-Jamayel Road.

    The bid submission date for the tender, was initially 2 October before being extended to 30 October.

    The second project, listed under TF-11-C1,  is for the development of a stormwater pond, evacuation line and pumping station.

    The project includes a comprehensive stormwater drainage system, featuring a tunnel ranging from three to four metres in diameter along Dubai–Al Ain Road and the D54.

    The new deadline is 4 November.

    The bid submission date for the tender, was initially 25 September.

    The schemes are being procured by the municipality’s Sewerage and Recycled Water Projects Department as part of the Tasreef programme.

    In October, Dubai Municipality awarded contracts for two other major projects under the initiative.

    Local firm DeTech Contracting won the main contract for the construction of a stormwater drainage system on Sheikh Mohammed Bin Zayed Road and Al-Yalayis Road in Dubai.

    The municipality alos awarded a contract to Greece/Lebanon-based Archirodon for the construction of the Resilient Future Flow Outfall project. 

    The $25m project involves the construction of a 4-kilometre subsea pipeline with a 2-metre diameter and a discharge capacity of 9 cubic metres a second.

    The Tasreef masterplan that will serve key areas across the emirate, including Nad Al-Hamar, the vicinity of Dubai International airport, Garhoud, Rashidiya, Al-Quoz, Zabeel, Al-Wasl, Jumeirah and Al-Badaa. The initiative aims to expand Dubai’s rainwater drainage capacity by 700% by 2033.

    DeTech Consulting previously won the $136m contract to upgrade the West Deira stormwater system.

    This project was the first of the five planned Tasreef projects to enter construction, earlier this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14993856/main.jpg
    Mark Dowdall
  • Gas demand reshapes priorities

    31 October 2025

    Commentary
    Colin Foreman
    Editor

    Read the November issue of MEED Business Review

    Gas has increasingly been regarded as a crucial transition fuel over the past decade as governments race to cut carbon emissions and meet climate pledges – including the Paris Agreement’s aim to keep warming well below 2°C and pursue efforts to limit it to 1.5°C.

    Those commitments have driven the demand for liquefied natural gas (LNG) globally and this has reshaped investment priorities across the region, with Qatar, Oman and the UAE eyeing future export growth.

    QatarEnergy’s North Field expansion is the largest investment. The estimated $40bn programme will push Qatar’s LNG output towards 142 million tonnes a year by the end of this decade, almost doubling its present position and consolidating its role as a market anchor.

    Abu Dhabi is also committed to expanding its capacity. Its downstream strategies include a major greenfield LNG terminal at Ruwais, due to enter service in 2028 with two 4.8 million t/y trains adding 9.6 million t/y to the UAE’s export capability.

    These programmes are keeping contractors busy. Over the past five years, more than $44bn of LNG-related contracts have been awarded in the region – which is more than eight times the $5.3bn recorded in the previous five year period.

    At the same time, there are ample opportunities for contractors as other countries in the region build import infrastructure. Projects are already under way in Kuwait, Iraq, Jordan, Egypt, Algeria and Morocco – and more are expected.

    With base load concerns remaining for many countries when it comes to completely switching to renewables, gas is expected to be a fuel of choice for the decades to come. The investments made in production capacity mean the region will play a pivotal role in delivering the world’s energy needs.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14992876/main.gif
    Colin Foreman
  • Dubai evaluates Al-Maktoum airport substructure bids

    31 October 2025

     

    Dubai Aviation Engineering Projects (DAEP) is evaluating the bids it received from contractors on 15 September for substructure works for the first phase of the expansion of Al-Maktoum International airport.

    “The bid evaluation is ongoing and the project is expected to be awarded by the end of this year,” sources close to the project told MEED.

    MEED understands that the bidders include:

    • Alec (local)
    • China Civil Engineering Construction Corporation (China)
    • China State Construction Engineering Corporation (China)
    • China Harbour Engineering Company (China)
    • Dutco Construction (local)
    • Innovo (local)
    • Limak / PowerChina (Turkiye/China)
    • Shapoorji Pallonji (India)
    • Webuild / Tristar (Italy/local)

    According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000-square-metre facility with an annual capacity of 45 million passengers.

    It will be the second of three terminals at Al-Maktoum International airport, linked to the airside by a 14-station automated people-mover (APM) system.

    In August, MEED exclusively reported that DAEP had received bids from firms to build the APM at Al-Maktoum airport. 

    The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Construction progress

    Construction on the first phase has already begun. In May, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based Tristar E&C.

    While speaking to the press on the sidelines of the Airport Show in Dubai in May, Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation, said the government of Dubai will award more packages this year, including for the APM and baggage handling systems.

    “Several other packages are expected to be tendered this year, including the terminal substructure, 132kV substations and district cooling plants,” Al-Zaffin said.

    Construction works on the project’s first phase are expected to be completed by 2032.

    The government approved the updated designs and timelines for its largest construction project in April 2024.

    In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    The statement added that the project will create housing demand for 1 million people around the airport.

    In September last year, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultants on the expansion of Al-Maktoum airport.

    Project history

    The expansion of Al-Maktoum International, also known as Dubai World Central (DWC), is a long-standing project. It was officially launched in 2014, with a different design from the one approved in April 2024. At that time, it involved building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

    An initial phase, due to be completed in 2030, involved increasing the airport’s capacity to 130 million passengers a year. The development was to cover an area of 56 sq km.

    Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14991651/main.jpg
    Yasir Iqbal
  • Financial close reached for Jubail-Buraydah link

    31 October 2025

    Register for MEED’s 14-day trial access 

    Saudi Water Partnership Company (SWPC) has announced financial close for the Jubail-Buraydah independent water transmission pipeline (IWTP) project.

    Saudi Arabia’s second IWTP project will link Jubail in the kingdom’s Eastern Province and Buraydah in the Qassim region via a 587-kilometre (km) pipeline that can transmit 650,000 cubic metres a day (cm/d) of water.

    It will have a potable water storage capacity of 1.63 million cubic metres.

    The project will have a total cost of SR8.5bn ($2.2bn).

    A developer team comprising local companies Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company was named as the preferred bidder for the contract last year.

    The Aljomaih, Nesma and Buhur team had proposed to develop the project for SR3.59468 a cubic metre.

    SWPC signed a contract agreement to develop and operate the Jubail-Buraydah IWTP project in May.

    The project is being developed under a build-own-operate-transfer model with a 35-year concession period from the project’s commercial operation date. 

    Local content is expected to reach 45% during the construction phase and 70% during operations.

    Commercial operation is scheduled for the first quarter of 2029.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14991282/main.jpg
    Mark Dowdall
  • Libya oil project expected to progress despite Petrofac collapse

    31 October 2025

     

    Register for MEED’s 14-day trial access 

    The tender process for Libya’s 6J North Gialo oil field development project is expected to progress following Petrofac’s announcement that it has gone into administration, according to industry sources.

    UK-based Petrofac is one of just two companies that submitted bids for the project. The other is Egypt-based Petrojet.

    In September, MEED revealed that the bids had been submitted for the project and were under evaluation.

    The client on the project is Libya’s Waha Oil Company and Petrofac completed the front-end engineering and design (feed) for the project in 2020.

    Waha is a joint venture of Libya’s National Oil Corporation (NOC), France’s TotalEnergies and US-based ConocoPhillips.

    Commenting on the impact of Petrofac’s insolvency, one industry source said: “This has definitely increased uncertainty for the project.

    “It could potentially mean that this contract is retendered, but there is a lot of confidence that this tender will still go ahead in some form.

    “Waha Oil and Libya’s NOC have made it clear that this project is a priority and they want it to go ahead.

    “Progress is still expected on this tender, but it is possible that there will be more delays before this contract is awarded and signed.”

    The 6J North Gialo field development project is part of a series of tenders that are collectively expected to be worth $1bn.

    The three projects are:

    • NC98
    • Gialo 3
    • 6J North Gialo

    All three projects will develop Libyan reservoirs that have not yet been tapped.

    The 6J North Gialo project was the first to be tendered and it is expected to be followed by NC98, with the Gialo 3 project likely to be tendered last.

    Together, the projects are expected to double Waha’s production from about 300,000 barrels a day (b/d) of oil to 600,000 b/d. The Waha concession covers 13 million acres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14990491/main.png
    Wil Crisp