meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia launches 200 PPP projects

6 April 2023

Saudi Arabia has announced a Privatisation & PPP (P&PPP) pipeline that includes 200 projects across 17 sectors.

This new P&PPP pipeline aims to attract local and international investors and ensure their readiness to participate in the schemes tendered to the market.

The initiative comes as the kingdom strives to increase the attractiveness of its economy and raise the private sector's contribution to GDP.

Minister of Finance and chairman of the Board of the National Centre for Privatisation & PPP (NCP), Mohammed al-Jadaan, said the list of projects aligns with the aims of Vision 2030, reinforces the strength of public-private partnerships (PPPs) and will contribute to attracting new international investments.

The pipeline of projects for each sector will be available for investors through the NCP portal.

Information about the first 140 projects has already been published, and more projects are expected soon.

Four PPP airports projects

In line with Saudi Arabia's aviation strategy to increase the country’s annual passenger handling capacity to 330 million by 2030, the kingdom has announced plans to tender four airports under the P&PPP pipeline: Abha International airport, Taif International airport, Hail International airport and Prince Naif International airport in Al-Qassim.

The Ministry of Transport & Logistics Services will procure the schemes.

The launch dates for the PPP tenders were not specified. However, MEED reported in July 2022 that through NCP, Saudi Arabia’s Matarat Holding Company was expected to start the procurement process to develop airport PPP projects in 2023.

In the initial plan, the Abha and Taif airport PPPs were scheduled to be tendered in the first half of 2023, while the Hail and Qassim airport projects were to be potentially tendered in the second half of 2023.

The P&PPP pipeline list includes:

Abha International airport

The existing Abha International airport is operating above capacity with 4.4 million passengers annually against the originally designed capacity of 1.5 million. The targeted capacity for the new airport is 8.5 million passengers a year by 2030 and 13 million passengers by 2053. The contract type is the build-transfer-operate (BTO) model and the project duration is 30 years.

Taif International airport

The capacity of the current Taif International airport is 600,000 passengers. The targeted capacity of the new airport is 4 million passengers by 2030 and 7.4 million passengers by 2053. The project will be developed under the design-build-finance-operate-maintain (DBFOM) concession; its duration is 30 years.

Hail International airport

This project aims to develop the airport and service facilities following the standards approved by the International Civil Aviation Organisation (ICAO). The targeted airport capacity increase is 3 million passengers a year. The contract type, duration and launch details are not specified.

Prince Naif International airport in Al-Qassim

The scheme involves developing the airport in Al-Qassim in line with ICAO standards and increasing its capacity to 5.3 million passengers annually. The contract type, duration and launch details are not specified.

The Taif, Hail and Al-Qassim airport schemes were previously tendered and awarded as PPP projects using a BTO model.

Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two consortiums in 2017. A team of Tukey’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.

A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.

These projects then stalled following the restructuring of the kingdom’s aviation sector.

Saudi Arabia has already privatised airports including the $1.2bn Prince Mohammed bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.

Four PPP highways schemes

The kingdom has also announced plans to tender four highway schemes under the P&PPP pipeline. The following schemes will be procured by the Ministry of Transport & Logistic Services:

  • The 136-kilometre Asir-Jizan highway will include six intersections, 18km of bridges and a 9km-long tunnel network. The project starts at Al-Farah in Asir and extends to the Red Sea through Jizan. The contract type is DFBOM, and the project duration is 30 years. The launch date is not specified.

     
  • The 570km Jeddah-Jizan highway will comprise 43 intersections, 11 wildlife crossings and 29 bridges. The project scope includes converting the current 280km of double lanes into three lanes. The contract model is not specified; the project duration is 30 years.

     
  • The 447km Yanbu-Jubail highway will contain 17 intersections, 14 wildlife crossings, four bridges, one tunnel and 18 service areas. Construction work on a 39km section towards the Al-Zulfi area has been completed. The contract model, duration and launch date are not specified.

     
  • The Jeddah-Makkah road spans a length of 64km. It consists of seven interchanges and four camel crossings. The construction is under way for 51km of the road and is being carried out in three phases. The construction works for phase four are yet to begin. The construction cost for phase four of the road will be funded by the government, similar to the ongoing construction works for phases one to three. The proposed scope of work is for the operation and maintenance of the Jeddah-Makkah road, and developing and operating motorway service areas. The contract's duration and the tender's launch date are not specified.
Other planned PPP projects

Saudi Arabia has also announced plans to tender seven PPP desalination projects.

The independent water projects (IWPs) represent an aggregate desalination capacity of 2.8 million cubic metres a day (cm/d). Owned by the Ministry of Environment, Water & Agriculture, the IWPs will be procured under 25-year build-own-operate (BOO) contracts.

The first project, Ras al-Khair 2 with a capacity of 600,000 cm/d, will be launched in February 2024.

This will be followed by the launch of another IWP, the 400,000 cm/d Ras al-Khair 3, in April 2024.

In March 2025, the kingdom plans to launch the Tabuk IWP with a capacity of 400,000 cm/d. The Alshuqaiq 4 IWP is set for launch in July 2025, with a capacity of 400,000 cm/d.

These schemes will be followed by the Rabigh 5 IWP, with a capacity of 400,000 cm/d, to be launched in April 2027, and the Rayis 2 IWP, with a capacity of 300,000 cm/d, set for launch in July 2035.

Finally, the Jizan IWP is set to have a capacity of 300,000 cm/d. Its launch date is not yet disclosed.

In addition, the kingdom plans to tender six wastewater treatment projects starting in 2024. The five independent sewage treatment plants (ISTPs), one small sewage treatment plant (SSTP) and collection network will treat wastewater for reuse in non-agricultural municipal and industrial applications.

The five ISTPs represent an aggregate wastewater treatment capacity of 650,000 cm/d.

The Ministry of Environment, Water & Agriculture will procure the projects under build-own-operate-transfer (BOOT) models.

Other projects to be tendered under the P&PPP pipeline include several medical centres, health centres, hospitals, educational buildings, schools, colleges, universities, strategic water reservoirs, marine services schemes, land ports and power stations.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10739699/main.jpg
Eva Levesque

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

Click here to register
Exclusive from Meed
Related Articles
  • Regional rail industry emerges

    8 December 2025

    Commentary
    Colin Foreman
    Editor

    Read the December issue of MEED Business Review

    The GCC is experiencing a fundamental shift in its approach to rail infrastructure, as it moves from standalone projects to a self-sustaining regional industry. The transition is evident as local, national and regional projects advance across the region.

    The first wave of metro systems, in Dubai, Doha, and most recently, Riyadh, have reported stronger-than-expected ridership and demonstrated the viability of mass transit in the Gulf.

    Extensions to those networks are planned or under way, including Dubai’s Blue and Gold lines and Riyadh’s Line 2, alongside planned metros elsewhere such as Muscat and Bahrain.

    Projects are also planned and already being delivered at the national level. The UAE’s Etihad Rail and Saudi Arabian Railways are leading most of these efforts. The region’s first cross-border project is also progressing with the Hafeet Rail scheme linking the UAE and Oman.

    Other cross-border schemes are planned, including high speed links connecting Riyadh with Doha and Kuwait City, and rail links for Bahrain across causeways to Saudi Arabia and Qatar. The ultimate ambition is a GCC Rail network – a project that was reinvigorated by the Al-Ula accords in 2021.

    Sustained, simultaneous activity across the GCC is fostering the development of an indigenous regional rail industry. Rather than being executed as isolated endeavours, projects are creating ongoing demand for expertise, personnel and resources within the region.

    Project delivery capability will be complemented by the establishment of crucial ancillary services, including fabrication and servicing facilities.

    These operations will shift the GCC from a lucrative market for international contractors to a regional hub for the rail industry, capable of servicing and sustaining its growing network.

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

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213797/main.gif
    Colin Foreman
  • Aldar and Mubadala plan $16bn financial district expansion

    8 December 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, and local developer Aldar have established a joint venture to deliver an expansion of the financial district on Al-Maryah Island with a gross development value of AED60bn-plus ($16bn-plus).

    The development will be built on the undeveloped land bank on the north side of Al-Maryah Island, covering about 500,000 square metres (sq m), and will support the next phase of growth for Abu Dhabi Global Market (ADGM).

    The masterplan encompasses 1.5 million sq m of new office, residential, retail and hospitality floor space.

    In an official statement, the firms said that the core objective of the project is to support the continued expansion of ADGM, Abu Dhabi’s international financial centre. ADGM now has more than 11,000 active licences registered in the free zone and is among the fastest-growing financial hubs globally.

    "Nearly 40,000 people are already based within the district, and demand for space remains strong," the statement added.

    The Al-Maryah Island expansion will add over 450,000 sq m of Grade A office space, doubling the island’s current office inventory.

    The expansion will add over 3,000 residences on the waterfront.

    The next phase will also add a further 40,000 sq m of retail and dining spaces.

    A central feature of the expansion is the Al-Maryah Waterfront enhancement project. This will include a bay fountain capable of water displays up to 75 metres high, forming the focal point of a reconfigured waterfront with additional dining, leisure and event spaces designed to complement existing assets on the island.

    Three new bridges are proposed to link the north side of Al-Maryah Island with Reem Island and the Abu Dhabi mainland, reducing travel time to Saadiyat Island to under 10 minutes.

    The enabling works on these projects are due to begin in 2026.

    The new joint venture is owned 60% by Aldar and 40% by Mubadala.

    "The two organisations are close to completing the legal work on a retail joint venture that will own and operate several of Abu Dhabi’s leading retail destinations, including The Galleria Al-Maryah Island, Yas Mall and the planned Saadiyat Grove Mall," the statement added.

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

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213568/main.jpg
    Yasir Iqbal
  • Visa agrees to support digital payments in Syria

    5 December 2025

    Visa and the Central Bank of Syria have agreed on a strategic roadmap that will allow the US-based card and digital payments company to begin operations in Syria and support the development of a modern digital payments system.

    Under the agreement, Visa will work with licensed Syrian financial institutions under a phased plan to establish a secure foundation for digital payments.

    The early stages will involve Visa supporting the central bank in issuing Europay, Mastercard and Visa (EMV)-compliant payment cards and enabling tokenised digital wallets – bringing the country in line with internationally interoperable standards.

    Visa will also provide access to its platforms, including near-field communication (NFC) and QR-based payments, invest in local capacity building and support local entrepreneurs seeking to develop solutions leveraging Visa’s global platform.

    “A reliable and transparent payment system is the bedrock of economic recovery and a catalyst that builds the confidence required for broader investment to flow into the country,” noted Visa’s senior VP for the Levant, Leila Serhan. “This partnership is about choosing a path where Syria can leapfrog decades of legacy infrastructure development and immediately adopt the secure, open platforms that power modern commerce.”

    The move marks one of the most significant steps yet in Syria’s slow and uneven return to the formal global financial system and carries implications that reach beyond just payments technology.

    It lays the groundwork for overturning more than a decade of financial isolation in which Syria has operated largely outside global banking and settlement networks.

    Visa’s entry will not erase all existing barriers – as many restrictions remain in force and will continue to shape what is practically possible – but its support signals a reopening of channels that could smooth Syria’s reintegration into financial networks.

    The involvement of the US-based payments provider is also a further tacit sign of the US government’s enthusiastic bear hug of the new post-Assad Syrian government under President Ahmed Al-Sharaa.

    For investors assessing long-term opportunities, the presence of a globally recognised payments operator will provide reassurance that Syria’s financial system is returning to international norms, and the security and transparency that comes with it.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15207198/main3225.gif
    MEED Editorial
  • Meraas announces next phase of Nad Al-Sheba Gardens

    5 December 2025

    Dubai-based real estate developer Meraas Holding, which is part of Dubai Holding, has announced the eleventh and final phase of its Nad Al-Sheba Gardens residential community in Dubai.

    It includes the development of 210 new villas and townhouses and a school, which will be located at the northwest corner of the development.

    The latest announcement follows Meraas awarding a AED690m ($188m) contract for the construction of the fourth phase of the Nad Al-Sheba Gardens community in May, as MEED reported.

    The contract was awarded to local firm Bhatia General Contracting.

    The scope of the contract covers the construction of 92 townhouses, 96 villas and two pool houses.

    The contract award came after Dubai-based investment company Shamal Holding awarded an estimated AED80m ($21m) contract to UK-based McLaren Construction last year for the Nad Al-Sheba Gardens mall.

    The project covers the construction and interior fit-out of a two-storey mall, covering an area of approximately 12,600 square metres.

    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.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206904/main.jpg
    Yasir Iqbal
  • Frontrunner emerges for Riyadh-Qassim IWTP

    5 December 2025

     

    Saudi Arabia’s Vision Invest has emerged as frontrunner for the contract to develop the Riyadh-Qassim independent water transmission pipeline (IWTP) project, according to sources.

    State water offtaker Saudi Water Partnership Company (SWPC) is preparing to award the contract for the IWTP "in the coming weeks", the sources told MEED.

    The project, valued at about $2bn, will have a transmission capacity of 685,000 cubic metres a day. It will include a pipeline length of 859 kilometres (km) and a total storage capacity of 1.59 million cubic metres.

    In September, MEED reported that bids had been submitted by two consortiums and one individual company.

    The first consortium comprises Saudi firms Al-Jomaih Energy & Water, Al-Khorayef Water & Power Technologies, AlBawani Capital and Buhur for Investment Company.

    The second consortium comprises Bahrain/Saudi Arabia-based Lamar Holding, the UAE's Etihad Water & Electricity (Ewec) and China’s Shaanxi Construction Installation Group.

    The third bid was submitted by Saudi Arabia's Vision Invest.

    It is understood that financial and technical bids have now been opened and Vision Invest is likely to be awarded the deal.

    The Riyadh-based investment and development company made a "very aggressive" offer, one source told MEED.

    In November, the firm announced it had sold a 10% stake in Saudi Arabia-based Miahona as part of a strategy to reallocate capital "towards new and diversified investments".

    The company did not disclose which projects the capital might be reallocated towards.

    As MEED recently reported, Vision Invest is also bidding for two major packages under Dubai's $22bn tunnels programme in a consortium with France's Suez Water Company.

    The Riyadh-Qassim transmission project is the third IWTP contract to be tendered by SWPC since 2022.   

    The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which was awarded to a team of Riyadh-based companies comprising Al-Jomaih Energy & Water, Nesma Group and Buhur for Investment Company.

    Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model.

    Commercial operations are expected to commence in the first quarter of 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206609/main.jpg
    Mark Dowdall