Morocco leads Maghreb energy transition
11 July 2023
More on Morocco’s power and water sector:
> Morocco seeks firms for 400MW pumped storage contract
> Morocco extends Casablanca water PPP deadline
> US firm plans 2MW Morocco hydrogen project
> China's Tinci plans $280m Morocco lithium-ion plant
> Xlinks to seek construction partners
> Morocco signs $6.4bn electric battery and storage deal
> Morocco tenders 900MW power plant contract
Morocco is among the list of Maghreb countries that have seen few deals awarded in the power generation sector over the past 12 to 24 months.
The last contract awards it recorded were in April 2022 for the 333MW first phase of the Noor 2 solar photovoltaic (PV) project.
The Moroccan Agency for Sustainable Energy (Masen) and Morocco’s Energy Transition & Sustainable Development Ministry awarded six packages of this tranche to three independent power producer (IPP) developers: Voltalia Maroc, Enel Green Power Morocco and the UAE-based Amea Power.
Xlinks scheme
The country, however, could emerge from the doldrums with key projects such as the $18bn Xlinks on the horizon, enabling it to hold on to its status as the regional leader in renewable energy.
The Morocco-UK power project entails building 10,500MW solar and wind farms in Morocco’s Guelmim-Oued Noun region and sending 3,600MW a day of energy exclusively to the UK via four 3,800-kilometre high-voltage, direct current (HVDC) cables.
MEED understands the first phase of the surveys for the project is complete, with geophysical and geotechnical surveys expected to finish this year and next year.
The HVDC pipeline will pass through Spain, Portugal and France, where permitting processes are being undertaken. Financing sources could include export credit agencies, multilateral development agencies and commercial or investment banks.
Morocco aims to source up to 52 per cent of its energy – up from the current 32 per cent – from renewable sources and reduce greenhouse gas emissions by 45.5 per cent by 2030
Earlier this year, Xlinks completed an early development funding round that included a $30.7m investment from Abu Dhabi National Energy Company (Taqa) and $6.23m from London-headquartered Octopus Energy Group.
The UK-based startup is expected to seek interest from original equipment manufacturers and construction partners soon. This will be followed by seeking interest from financial advisers for the project.
Low-carbon molecules
Morocco aims to source up to 52 per cent of its energy – up from the current 32 per cent – from renewable sources and reduce greenhouse gas emissions by 45.5 per cent by 2030.
Thanks to the country’s strategic location and favourable legislative framework, this ambition is drawing investors focused on green hydrogen and derivatives production.
In April, a team led by China Energy International Construction Group signed a memorandum of cooperation to develop a green hydrogen project in a coastal area in southern Morocco.
The planned project involves constructing an integrated green hydrogen-based ammonia production facility. It will require a solar PV power generation plant with a capacity of 2GW and a wind power plant with a capacity of 4GW.
These plants will supply power to an electrolysis plant that can produce 320,000 tonnes of green hydrogen annually, which will then be processed to produce 1.4 million tonnes of green ammonia annually.
Energy China International Construction Group has partnered with Saudi Arabia’s Ajlan & Brothers Company and the local firm Gaia Energy Company for the project.
Amun project
It is the second high-profile green hydrogen project announced for the North African country since April 2022, when Serbia-headquartered renewables developer and investor CWP Global appointed US firm Bechtel to support developing large-scale green hydrogen and ammonia facilities in the country.
The Amun green hydrogen project, which CWP Global plans to develop in Morocco, is understood to require 15GW of renewable energy and has an estimated budget of between $18bn and $20bn.
Along with these projects – which could take several years to implement – several green hydrogen pilot projects are also under way in Morocco.
Africa-focused transitional energy group Chariot, the Mohammed VI Polytechnic University and UK-based hydrogen electrolyser developer Oort Energy are planning several small projects using a polymer electrolyte membrane electrolyser system patented by Oort.
The three parties will run initial proof of concept projects while evaluating the feasibility of implementing large-scale green hydrogen and ammonia production.
One of the pilot projects is intended to be hosted at the research and development unit at state-owned fertiliser producer OCP Group’s facilities in Jorf Lasfar.
US-headquartered Verde Hydrogen also plans to develop and commission a 2MW green hydrogen electrolyser plant project in Morocco, which it expects to complete next year.
Electric vehicle components
Recent developments also point to Morocco potentially becoming a global hotspot for the electric vehicles supply chain.
In July this year, China’s Guangzhou Tinci Materials Technology announced plans to build a lithium-ion battery materials plant in the country. The project capitalises on Morocco’s ample phosphorite ore resources.
The firm’s Singapore unit is expected to invest as much as $280m to set up a project company in the North African country to produce lithium-ion battery materials that can be exported to Europe.
In late May, the Moroccan government and Chinese-European company Gotion High-Tech also signed a preliminary agreement to establish a factory to produce electric car batteries and energy storage systems in the country.
The project is estimated to cost MD65bn ($6.3bn). The planned facility will have the potential to “create a comprehensive battery production solution” with a capacity of 100GW a year.
Morocco’s minister-delegate in charge of investment, convergence and evaluation of public policies, Mohcine Jazouli, said the factory “will not only contribute to Morocco’s renewable energy and electric transport sector, but also solidify its reputation as an automotive industry powerhouse”.
Traditional energy
Meanwhile, along with its intense drive towards clean energy, Rabat is also making progress on traditional energy projects. The National Office of Electricity & Drinking Water (Onee) last awarded a thermal power plant deal in 2017. So it was a surprise when Onee recently tendered a five-year contract to build and operate an open-cycle 900MW thermal power plant in the country.
To be located along the M18 station point of the Maghreb-to-Europe gas pipeline, the proposed power generation plant will use dual-fuel gas turbines, with diesel fuel as a backup. Onee expects to receive bids for the contract by 5 September.
In addition, the procurement process is under way for a major seawater reverse osmosis (SWRO) desalination plant in Grand Casablanca, which has a design capacity of 548,000 cubic metres a day.
The build-operate-transfer contract is for 30 years, including a three-year construction period and 27 years of operation and management.
Making amends
To its credit, however, Morocco’s sustainable campaign has extended to other sectors that have traditionally used carbon-intensive processes and technologies.
The Washington-based International Finance Corporation (IFC) and OCP Group recently signed a €100m ($111m) green loan to build four solar plants to power OCP’s Morocco operations.
The four solar plants, with a combined capacity of 202MW, will be located in the mining towns of Benguerir and Khouribga, home to Morocco’s largest phosphate reserves.
As captive power plants, they will supply clean energy directly to OCP’s operations. The project is part of OCP’s $13bn green investment programme, which aims to increase its green fertiliser production and transition its operations to green energy by 2030.
More on Libya and Tunisia’s power and water sectors:
> Libya awards $1.3bn power plant contract
> Italy and Tunisia start $1bn Elmed prequalifications
> Acciona and Swicorp to develop 75MW wind project
> Suez signs $221m Tunisia wastewater PPP deal
> Tunisia tenders 1GW of solar IPP contracts
Libya and Tunisia
Earlier this year, the state-owned General Electricity Company of Libya (Gecol) awarded a joint venture of Qatar-based construction company Urbacon for Trading & Contracting and Egypt’s ElSewedy Electric an engineering, procurement and construction contract for a 1,044MW gas-fired power plant in Libya.
The contract is valued at €1.19bn ($1.29bn). The project is expected to be completed in 26 months and comprises six gas turbines from Germany’s Siemens Energy. The emergency power plant project is located in Zliten.
The power plant is expected to help address the endemic electricity shortage in the country. However, it does little to reduce Libya’s carbon emissions. At under 10MW, the country has the lowest renewable energy installed capacity in the Middle East and North Africa (Mena) region, against a total capacity of 11,000MW as of 2021, according to International Renewable Energy Agency data.
Tunisia, where renewable sources account for at least 8 per cent of its power generation capacity, has also made minor progress over the past few months.
A team of Spain’s Acciona and Saudi investment group Swicorp have partnered to develop a 75MW wind farm in Chenini in Tunisia’s Tataouine governorate.
The Spanish-Saudi team is understood to have agreed to the technical and financial terms of the project, as well as the land lease for installing 14 wind turbines in Djebel Dahar, located 80 kilometres from Djerba.
Each wind turbine will have a capacity of 6MW. The project will require an estimated investment of TD500m ($164m).
Tunisia’s wind potential is estimated at 8,000MW, according to its wind atlas and a study published in 2021 by the German international cooperation agency Giz.
In January this year, the African Development Bank Group approved a $27m and €10m ($10.67m) loan package to co-finance the construction of a 100MW solar power plant in Kairouan, Tunisia.
The approval covers $10m and another €10m from the bank, and a $17m concessional financing from the Sustainable Energy Fund for Africa, a special multi-donor fund managed by the bank.
Additional financing will come from the IFC, the World Bank Group and the Clean Technology Fund (CTF).
The 100MW Kairouan project was part of the first round of solar schemes under Tunisia’s concession regime, launched through an international tender by the Ministry of Industry, SMEs & Cooperatives in 2018.
A consortium formed by Dubai-headquartered Amea Power and TBEA Xinjiang New Energy Company won the contract to develop the scheme in December 2019.
The project is located in El-Metbassta, in the Kairouan North region, about 150km south of the capital, Tunis.
More on Algeria’s power and water sectors:
> Sonatrach seeks solar PV consultants
> Cosider tenders desalination contract
> Sonelgaz tenders 2GW solar schemes
> Wetico wins Algeria water desalination contracts
Algeria
Despite a highly tentative approach to adopting low-carbon energy, there are some promising projects in Algeria.
In March, state-owned utility Sonelgaz invited companies to bid for the contract to build 15 solar plants in the country with a combined capacity of 2,000MW.
The solar projects will be built in 11 locations across the North African state.
The locations and capacities of the proposed solar power plants include:
- Bechar (Abadla): 80MW
- Bechar (Kenadsa): 120MW
- Msila (Batmete): 220MW
- Bordj Bou Arreridj (Ras al-Oued): 80MW
- Batna (Merouana): 80MW
- Laghouat: 200MW
- Ghardaia (Guerrara): 80MW
- Tiaret (Frenda): 80MW
- El-Oued (Nakhla): 200MW
- El-Oued (Taleb Larbi): 80MW
- Touggort: 130MW
- Mghaier: 220MW
- Biskra (Leghrous): 200MW
- Biskra (Tolga): 80MW
- Biskra (Khenguet Sidi Nadji): 150MW
In December 2022, Algeria’s Energy Transition & Renewable Energies Ministry (Shaems) also launched a tender to deploy 1,000MW of solar capacity. However, the status of the tender is unclear as of mid-2023.
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UAE and Turkiye ties deepen
4 July 2025
Commentary
Colin Foreman
EditorRead the July issue of MEED Business Review
The growing trade volumes between the UAE and Turkiye involve a mix of competition and collaboration across various sectors.
One area of competition is aviation. Turkish Airlines has emerged as a major global player over the past 20 years, with its network now covering more countries than any other airline.
Turkiye’s aviation sector entered a new era in 2019 when Istanbul Grand airport opened. The first phase has the capacity to handle 90 million passengers a year, and the plan is for the capacity to reach 200 million once later phases are completed.
The airport’s globally strategic location combined with its large and expandable capacity will give Turkiye’s aviation
sector an edge over its competitors in the Gulf over the next decade as construction starts on major airports, including Dubai and Riyadh.While competition is evident, Turkish Airlines insists there is enough room for it and the Gulf airlines to grow as the centre of gravity for global aviation shifts from west to east.
On a macro level, the UAE and Turkiye are complementary economies
Beyond aviation, the trade relationship encompasses a wide range of sectors, including defence, logistics and construction. Over the past two years, Turkish contractors have secured significant contracts in the UAE. Turkish construction companies are now exporting the experience they have gained on projects in Turkiye to the UAE, as major government- backed infrastructure projects that include airports and railways move into tendering.
At the same time, UAE investments in Turkiye’s energy and financial sectors are growing, with notable examples including Emirates NBD’s investment in DenizBank and International Holding Company’s investment in Kalyon Energy.
These investments show that on a macro level, the UAE and Turkiye are complementary economies, with each holding a different mix of resources, capital and expertise. The strategic location of both countries amplifies the business case for trade even further.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14201376/main.gif -
Building on UAE-Turkiye trade
4 July 2025
This package on UAE-Turkiye relations also includes:
> UAE-Turkiye trade gains momentum
> Turkiye’s Kalyon goes global
> UAE-Turkiye financial links strengthen
> Turkish Airlines plans further growth
The UAE-Turkiye Comprehensive Economic Partnership Agreement (Cepa) that came into effect in September 2023 has already exceeded expectations.
Non-oil trade between the UAE and Turkiye grew by 11.5% in 2024, reaching a total of $40.5bn. This milestone surpasses a target of the Cepa three years earlier than planned. As a result, Turkiye is now the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021.
Trade between the UAE and Turkiye is growing strongly, with both countries increasingly viewed as strategic hubs for accessing broader markets.
The growth story builds on already established business links between the two countries.
“UAE-based companies and funds are already very active in Turkiye,” says Burak Daglioglu, president of the investment and finance office of the Presidency of the Republic of Turkiye.
“Firms like DP World and others in private equity and venture capital are playing a key role.”
Strengthening ties
Since the Cepa was signed in 2023, bilateral investment has accelerated, with Turkish companies also expanding into the UAE.
“That’s the mark of a healthy relationship,” he says. “When it’s balanced and bilateral, it’s more sustainable.”
He adds that companies in both countries see the other not just as a market, but as a hub. “UAE firms use Turkiye to access Europe and Central Asia; Turkish firms use the UAE to reach Asia and Africa. This creates a complementary strategy for both sides.”
In the energy sector, the focus is on renewables, with UAE firms eyeing major solar and wind projects in Turkiye. “We have huge potential in renewables, and there are ongoing talks with UAE investors,” says Daglioglu.
In technology, Turkiye is emerging as a regional player in artificial intelligence (AI), financial technology (fintech), and healthcare technology.
“Our infrastructure is increasingly AI-ready,” he says. “We have data centres, renewable power sources and connectivity.
“We also have a robust startup ecosystem, with early-stage funding rising from under $100m a decade ago to over $1bn today.”
Defence is another key area of cooperation. “There are some ongoing projects in the defence sector between Turkiye and the UAE,” Daglioglu says. “It’s better not to name names at this stage, but it’s a promising area.”
Venture capital (VC) is also playing an important role in promoting regional innovation. “Ten years ago, the startup scene was nascent. Now, it’s a cornerstone of our investment strategy. Dubai, as a regional VC hub, has been instrumental.”
To support this growth, Turkiye has developed local VC legislation and attracted international funds, including those from Saudi Arabia, UAE family offices and corporate investors. A joint UAE-Turkiye technology fund worth $300m is also nearing finalisation.
“It’s not just about exits anymore. Turkish startups are scaling regionally and globally, with Dubai often serving as their capital and client gateway.”
Turkiye is also a major industrial hub and, with a population of 85 million, has extensive human resources. “We have the talent, the infrastructure and the resilience,” he says.
“From automotive and mobility to chemicals and energy storage, we are expanding our industrial base.”
We have huge potential in renewables, and there are ongoing talks with UAE investors
Looking ahead
Turkiye’s trade with the UAE and the rest of the GCC could be enhanced even further with the Development Road project, which is a 1,200-kilometre highway and railway linking Iraq’s southern Faw Port to Europe through Turkiye.
“The Development Road will not happen overnight – it’s a long-term, complex undertaking,” Daglioglu says. “But its impact will be global. Reducing shipping lead times between Asia and Europe by up to a week is hugely significant in today’s fast-moving markets.”
Designed to connect the Gulf to Europe through Turkiye, the Development Road includes a high-speed rail network for both cargo and passengers, as well as a parallel motorway.
For Daglioglu, the Development Road corridor offers Turkiye, the UAE and the GCC states another platform for economic diversification.
“This is more than a transport project, it’s a regional realignment,” he says.
“It will unlock a flow of goods, people, capital and data. Fibre infrastructure can run alongside the rail and motorway, creating a dual-purpose corridor that will support our AI and digital economy ambitions.”
Historically, Turkiye has been well integrated with northern markets in Europe. Due to years of conflict in Iraq and Syria, however, its southern connectivity has lagged.
The Development Road, along with recent discussions to reopen direct links with Syria, offers opportunities for southern expansion.
“We have invested heavily in northern logistics. Now, it’s time to strengthen our southern corridor,” Daglioglu says. “The Development Road could finally make direct access to the GCC markets a reality.”
The corridor could also open up new avenues for digital infrastructure, such as subsea cables and terrestrial fibre,
further linking the region’s digital economies.“This could be the basis for a digital Silk Road, supporting everything from AI to fintech.”
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Firms submit Diriyahâs Radisson Red superblock prequalifications
4 July 2025
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Saudi gigaproject developer Diriyah Company has received prequalification statements from firms interested in constructing the upcoming Radisson Red superblock in the second phase of the Diriyah Gate development (DG2).
The prequalification notice was issued on 11 June, and submissions were made on 22 June.
The Radisson Red superblock consists of a hotel, residential apartments, retail facilities, commercial office spaces and a park.
The project is situated in the Boulevard East district, between King Khalid Road and the Grand Boulevard in Diriyah.
The project is the latest in a series of other superblocks that are expected to be floated to the market this year, including the Waldorf Astoria superblock, Edition superblock and Pendry superblock.
Diriyah tendered a contract in April to build the new iconic museum in the DG2 area.
The same month, MEED exclusively reported that the client had awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Saud University (KSU) project located in DG2.
The contract was awarded to the joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.
Also in April, MEED reported that the company had awarded an estimated SR5bn ($1.3bn) construction deal to build the Royal Diriyah Opera House.
The contract 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.
Tendering activity is also progressing on several other major schemes at Diriyah, including the King Khalid Road project, which passes through the development. The client received bids from firms in the second week of April for the main construction works on this project.
The client is also expected to finalise the contract award shortly for the Arena Block assets in the Boulevard Southwest section in the DG2 area.
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.
The company awarded several significant contracts last year, including three contracts worth over SR21bn ($5.5bn). These included an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.
In July last year, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.
Then in December, Diriyah Company awarded an estimated SR5.8bn ($1.5bn) contract to local firm Nesma & Partners for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.
Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye’s Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14200629/main.jpg -
Court rules against Petrofac restructuring plans
4 July 2025
An appeals court in the UK has upheld an appeal against Petrofac’s restructuring plans, increasing uncertainty about the UK-based engineering company’s future.
The appeal was brought by Italy’s Saipem and South Korea’s Samsung E&A.
The ruling against the restructuring plans comes less than two months after Petrofac received formal approval from the High Court of England & Wales to implement its restructuring plan.
Petrofac previously said that its restructuring plan would unlock $355m in new funding for its operations.
Petrofac said on 1 July that the appeal was upheld “on narrow grounds associated with the terms of the 'new money' financing and the evidence provided in support of it”, that had previously been accepted by the High Court.
The company said that all other grounds of appeal were unsuccessful.
It added that it was “carefully studying” the detailed judgment and would discuss with key stakeholders its implications and potential routes forward.
The company’s shares were suspended from trading on the UK stock exchange at the end of April due to Petrofac’s failure to publish its 2024 financial results on time.
Wood Group, another UK-based engineering company that is active in the Middle East and North Africa region, also saw its shares suspended on the same day, for the same reason.
In January this year, Petrofac announced that it had reached a binding agreement with its creditors.
Petrofac has been struggling with financial problems since its share price collapsed in December 2023.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14200679/main.jpg -
King Salman airport sets July deadline for fourth runway bids
4 July 2025
King Salman International Airport Development Company (KSIADC) has allowed firms until 8 July to bid for the design-and-build of the fourth runway at King Salman International airport (KSIA) in Riyadh.
The tender was floated on 17 April. The previous bid submission deadline was 17 June.
It is understood that the third and fourth runways will add to the two existing runways at Riyadh’s King Khalid International airport, which will eventually become part of KSIA.
KSIADC, which is backed by Saudi Arabia’s Public Investment Fund, prequalified firms in September last year for the main engineering, procurement and construction packages; early and enabling works; specialist systems and integration; specialist systems, materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; local content; and environmental, social and governance and other services.
The entire scheme is divided into eight assets. These are:
- Iconic Terminal
- Terminal 6
- Private aviation terminal
- Central runway and temporary apron
- Hangars
- Landside transport
- Cargo buildings
- Real estate
In August last year, KSIADC confirmed it had signed up several architectural and design firms for the various elements of the project.
UK-based Foster+Partners will design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.
US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.
UK-based engineering firm Mace was appointed as the project’s delivery partner, and local firm Nera was awarded the airspace design consultancy contract.
Project scale
The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.
Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation (Gaca), aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14200608/main.jpg