Contract award nears for Diriyah’s King Khalid Road

13 October 2025

 

Saudi gigaproject developer Diriyah Company is preparing to award the contract for the main construction works on King Khalid Road, which passes through the Diriyah project in Riyadh.

MEED understands that bid evaluation is in its final stages and that the contract award is imminent.

The estimated SR4bn ($1bn) project involves constructing three interchanges to connect King Khalid Road with the Northern and Western ring roads.

Diriyah Company issued the project’s tender notice on 3 November last year.

In April, MEED exclusively reported that Diriyah Company had received proposals from contractors for the main construction works on the King Khalid Road project.

In August last year, MEED reported that Diriyah Company had begun clarification talks with bidders who submitted prequalification documents for the project.

Construction of the Western Ring Road tunnel was completed in late 2023. The Western Ring Road links Diriyah to one of Riyadh’s major highways at Exit 38.

The tunnel spans 435 metres and features eight lanes across both southbound and northbound directions.

It was inaugurated in January 2024.

Diriyah gigaproject

The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

To date, the company has awarded several main construction contracts worth over SR18bn ($5bn). 

Just days after Webuild announced that it had won the $600m contract for package three of the Diriyah Square project, Beijing-headquartered China Harbour Engineering Company won a SR5.7bn ($1.5bn) contract to build the Arena Block assets in the Boulevard Southwest section of the second phase of the Diriyah Gate development (DG2).

In April, Diriyah awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Saud University project located in DG2. The contract was awarded to a joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

Earlier in the same month, a SR5.1bn ($1.3bn) construction deal was awarded to a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting to build the Royal Diriyah Opera House.

Also in April, a consortium of Saudi Arabia-based contractors Almajal Alarabi and Man Construction won an estimated SR915m ($244m) contract to build King Salman Grand Mosque in Diriyah.

Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.


MEED’s October 2025 special report on Saudi Arabia includes:

> COMMENT: Riyadh strives for sustainable growth
> GOVERNMENT: Riyadh confronts rising regional chaos
> ECONOMY: Riyadh looks to adjust investment approach
> BANKING: New funding sources solve Saudi liquidity challenge
> OIL & GAS: Aramco turns attention to strategic projects
> GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
> POWER: Saudi Arabia accelerates power transformation
> WATER: Transmission projects drive Saudi water sector growth
> CONSTRUCTION: Saudi construction pivots from gigaprojects to events
> TRANSPORT: Infrastructure takes centre stage in Saudi strategy
> DATABANK: Saudi Arabia maintains growth momentum

To see previous issues of MEED Business Review, please click here
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Yasir Iqbal
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