Firms prepare Riyadh government office PPP bids

10 December 2025

 

Firms are preparing to submit bids for a contract covering the construction of the Riyadh administrative office for Defence Ministry (MoD) personnel.

The clients have asked firms to submit their bids by 26 March 2026.

The MoD is developing the project in collaboration with Saudi Arabia's National Centre for Privatisation & PPP (NCP). 

The project will be implemented under a design, build, finance and maintain contract with a term of 27.5 years.

The administrative complex, located in the north of Riyadh, will cover about 52,793 square metres. It will accommodate 4,500 employees and provide 3,200 parking spaces.

In September, the NCP announced the prequalified bidders for the project. These include:

  • Tamasuk / Alghanim International (local/Kuwait)
  • Mota-Engil / Tatweer Buildings Company / Alternative Resources Investments (Portugal/local/UAE)
  • Albawani / Areic (local/local)
  • Bonyan Real Estate Investment / Artar (local/local)
  • FCC / IHCC (Spain/local)
  • Vision Invest (local)
  • Own Real Estate (local)
  • Alfanar (local)
  • Lamar Holding (local)
  • Alyamama (local)
  • El-Seif Engineering Contracting (local)
  • Al-Kifah Holding Company (local)
  • Alargan (Kuwait) 
  • Asyad (Oman)

The NCP and MoD started the expression of interest and request for qualification process for the project in May, as MEED reported.

According to an official statement, "the selected private-sector partner will be responsible for the design, construction and long-term maintenance of the facilities and supporting infrastructure, as well as coordination with stakeholders and obtaining all necessary permits".

The value of public-private partnership (PPP) contracts in Saudi Arabia has risen sharply over the past few years as the government seeks to develop projects through the private sector and diversify funding sources.

PPPs have been used in Saudi Arabia and the wider GCC region for over two decades, but have been mainly limited to power generation and water desalination plants, where the developer benefits from guaranteed take-or-pay power-purchase agreements that eliminate demand risk.

However, in the past three years, the government has successfully implemented PPPs in several new sectors, including education and healthcare, to finance, build and operate schools and hospitals. Forthcoming PPP projects include the estimated $2.5bn Asir-Jizan highway, which would be the first road concession in the GCC; the multibillion-dollar contract to develop the expansion of Abha International airport; and the Qiddiya high-speed rail scheme.

Outside the utilities sector, the NCP has more than 170 PPPs in the pipeline, covering long-term concession agreements in projects as diverse as municipal laboratories, television and radio tower infrastructure, court complexes and logistics zones.

As capital expenditure continues to increase, the NCP is expected to add dozens more PPPs to its future pipeline to relieve the state’s financial burden and to stimulate the private sector’s involvement in the local projects market.


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Yasir Iqbal
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