meed-logo

line1 line2 line3
SIGN IN / REGISTER

Ten projects that will shape Dubai’s future

5 September 2023

 

Register for MEED's guest programme 

Dubai is back with major projects after several years of subdued activity following Expo 2020 and the Covid-19 pandemic.

Over the past year, plans have emerged for 10 projects across various sectors that will help shape the emirate’s development over the coming decade. 

Many of these projects have been planned for years. After stalling during the low-oil-price era of 2015-20, positive economic tailwinds mean many of these schemes are now being revisited by their owners and relaunched.

1. Tower at Creek Harbour

The most recent relaunch announcement came at the end of August, when Emaar Properties founder Mohammad Alabbar revealed plans to redesign and relaunch the Tower at Dubai Creek Harbour.

The design works are expected to be completed by the first quarter of 2024, and construction slated to begin in the second half of 2024.

Details of the redesigned tower have not been launched, but sources close to the project say it will be tall and feature high-end residential units. This reflects Dubai’s buoyant property market and will stand in sharp contrast to the original design that involved building a 1,000-metre-tall observation tower.

Construction on that project stalled in 2019 after work on the foundations was completed. Two bidders were competing for the estimated $5.5bn contract to build the tower. They were Beijing-based China State Construction Engineering Corporation and a joint venture of the local/Belgian Belhasa Six Construct and Tishman, which US-based Aecom owns.

Belhasa Six Construct completed the raft foundations for the tower in May 2018. France’s Soletanche Bachy finished the piling.

Spanish/Swiss architect and engineer Santiago Calatrava Valls was the main consultant on the project, with the local office of Aurecon, supported by the UK’s RMJM and Dubai-based DEC, acting as local engineer and architect of record. The project manager for the tower was US-based Parsons.

2. Dubai Metro Blue Line

The Dubai Creek Harbour development in Ras al-Khor will connect to Dubai’s Metro network via the planned Blue Line, which will serve as an extension to the existing Red and Green lines.

Dubai’s Roads & Transport Authority (RTA) is preparing to issue tender documents for the Blue Line.

The Green Line extension will commence from its current terminus at Creek station in the Jadaf area. It will cross over to the Dubai Creek Harbour development and continue through Ras al-Khor, International City, Dubai Silicon Oasis and Academic City, before concluding near the Desert Rose project. The line will have 11 stations.

The Red Line extension will connect its existing terminus in Rashidiya to Mirdif City Centre and continue through Mirdif and Warqaa, before joining the Green Line extension in International City.

The project was put on hold during the Covid-19 pandemic and reactivated in early 2022, when UK-based Atkins and Grimshaw, US-based Parsons and France’s Egis restarted design work.

The last metro project to be completed in Dubai was Route 2020, which connected the Red Line to the Dubai Expo site. The AED10.6bn ($2.9bn) contract to design and build the line was awarded to a consortium of Alstom, Spain’s Acciona and Turkiye’s Gulermak.

3. Deep Tunnels Portfolio

Another major infrastructure scheme is the Deep Tunnels Portfolio, which involves developing deep-gravity sewage tunnels and treatment plants across the emirate.

In August, Dubai Municipality began the process of appointing a project management consultant to oversee the scheme, which will be developed as a public-private partnership (PPP).

Two sets of deep tunnels will be constructed, terminating at two terminal pump stations at sewerage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta.

The scheme also includes recycled water distribution systems connected to the STPs.

Dubai’s Executive Council approved the project in June and said it would require an investment of about AED80bn ($22bn). It added that the project has been designed to serve the needs of the Dubai population for the next 100 years in alignment with the Dubai Economic Agenda D33 and Dubai Urban Plan 2040.

4. DWTC/Candy tower

Dubai World Trade Centre (DWTC) and UK-based Candy Capital have formed a joint venture to develop three towers in Dubai’s One Central commercial district.

The mixed-use towers will have two branded residences, two hotels and office space. The construction work involves building three towers. The two taller towers will be connected by a sky bridge containing one of the hotels.

Dubai-based Killa Design has been appointed as the architect for the project.

Candy Capital is a privately held family office established by British entrepreneur and businessman Nick Candy. His best-known property development is One Hyde Park in London, which he developed with his brother Christian. It comprises 86 apartments and three retail units and is considered one of the wealthiest residences in the world.

5. Al-Maktoum International airport

Dubai plans to restart the emirate’s largest construction project, the AED120bn ($33bn) expansion of Al-Maktoum International airport, also known as Dubai World Central (DWC). 

The expansion was officially launched in 2014. It involves building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year. An initial phase, which was due to be completed in 2030, aims to take the airport’s capacity to 130 million passengers a year.

Altogether, the development will cover an area of 56 square kilometres.

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.

Firms were competing for the estimated $2.7bn substructure contract for Concourse 1 and the West Terminal building – the largest contract tendered for the project.

The contract covers the delivery of more than 1.7 million square metres of connected basement footprint, housing the people-mover tunnels, baggage handling systems, ground services road network and other back-of-house technical and support facilities.

6. Palm Jebel Ali

Dubai released details of the new masterplan for Palm Jebel Ali, an artificial island located south of Jebel Ali Freezone, in June.

Double the size of Palm Jumeirah, Palm Jebel Ali will have 110 kilometres of shoreline and extensive green spaces. The development will feature over 80 hotels and resorts and a diverse range of entertainment and leisure facilities.

It includes seven connected islands, catering to approximately 35,000 families. The development also emphasises sustainability, with 30 per cent of public facilities powered by renewable energy.

MEED reported in January that local developer Nakheel had approached contractors to complete the reclamation works for Palm Jebel Ali.

As with Palm Jumeirah, it is estimated that it could take around 20 years for Palm Jebel Ali to reach its full development potential. Nakheel has previously secured AED17bn ($4.6bn) in funding to expedite the development of various projects, including the Dubai Islands and other waterfront schemes.

The upcoming dredging contract for Palm Jebel Ali is anticipated to involve 5-6 million cubic metres of material, contributing to the completion of the man-made offshore island.

While reclamation work for Palm Jebel Ali is mostly finished, the project was put on hold in 2009. Nakheel had made some progress with infrastructure development, including the construction of bridges on the island by Samsung C+T.

7. The Oasis by Emaar

Another major masterplanned development was launched by Emaar Properties in June. The $20bn Oasis by Emaar covers a total land area of more than 9.4 million square metres, close to Dubai Investments Park. The project involves building over 7,000 residential units along with water canals, lakes and parks. It will also include the development of a 150,000 sq m retail area.

8. The Island

Another project that has been restarted in recent years is The Island, which Wasl is developing.

Located off the coast of Umm Suqeim, near the Jumeirah public beach, it is expected to feature 1,400 hotel rooms and apartments, in addition to retail, food and beverage and entertainment options. The 10.5-hectare island will include properties featuring the MGM, Bellagio and Aria hotel brands.

The developer is close to appointing a contractor to build the development after bids were submitted earlier this year.

Tender documents for the contract were previously issued in 2020, when the project was being delivered with a consultancy team led by South Africa’s Mirage.

Germany’s Kling Consult is now the project manager.

9. Al-Habtoor Tower

The $1bn Al-Habtoor Tower project is located at Al-Habtoor City, next to Dubai Water Canal, on a 7,500 sq m plot. The tower, which the developer describes as one of the largest buildings in the world, will have three basement levels, a seven-storey podium and 73 floors of residences. The built-up area will be 350,000 sq m.

Its construction is technically challenging because the tower will be built above an existing parking basement that serves the already completed buildings at Al-Habtoor City.

Al-Habtoor had the option of demolishing the basement. Instead, it decided to employ a top-down approach to the construction that involves piling down through the basement, while at the same time starting construction above ground.

The top-down approach is expected to reduce the construction time by about one year, meaning the tower will be completed in 1,000 days or roughly three years.

China Railway 18th Bureau Group was appointed as the main contractor in May.

10. Dubai Pearl

After two aborted attempts, development is expected to start again at the Dubai Pearl site, located north of Dubai Media City close to the Palm Jumeirah.

The structures erected for the previous project have been demolished this year. Dubai Holding, which now owns the land, has held a design competition and is in the final stages of selecting the winning architect.

Local project management firm North 25 is overseeing the design competition.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11121967/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Abu Dhabi hopes bigger is better with Disney theme park

    8 May 2025

    Commentary
    Colin Foreman
    Editor

    Ever since Aldar Properties first launched the Yas Island project with its Yas Marina Circuit for the Abu Dhabi Grand Prix in 2006, Abu Dhabi has been steadily adding theme parks to the island’s roster of attractions. First, there was the Ferrari theme park, then came a water park, a Warner Bros theme park and, most recently, SeaWorld. 

    The theory with theme park development is bigger is better. 

    A destination needs a series of parks to create a critical mass to attract visitors who can stay and enjoy multiple parks in one visit. The example always cited is Florida, which is home to many of the world’s largest theme parks, including Disney World. 

    The theory gained particular traction in the region when Dubai Parks and Resorts opened. The company, which was public until it was acquired by Meraas in 2021, reported significant losses as it struggled to attract enough visitors.

    Although it opened with Legoland, Legoland Waterpark, Motiongate and Bollywood theme parks, insiders said that the problem with the development was that it did not have enough attractions to turn it into a successful theme park destination. 

    The financial performance of theme parks on Yas Island has not been publicly disclosed. While it is accepted that they have been more successful than their counterparts in Dubai, some say that the island still does not have the critical mass required to establish itself as a global destination for theme park visitors.


    Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island 

    Enter Disney

    Disney changes that. It is the largest brand in the theme park space and will be a major attraction, but with limited information released on the project so far, it is difficult to fully gauge how significant the project will be. 

    The official release said that the project will be developed and operated by Abu Dhabi developer Miral, adding that Disney’s in-house design and engineering unit, Walt Disney Imagineering, will lead creative design and operational oversight to provide a world-class experience. It did not give any details on the ownership of the project. 

    In Hong Kong, for example, a company, Hong Kong International Theme Parks, was established as a joint venture, with the Government of Hong Kong holding 57% and The Walt Disney Company holding 43%. 

    In Japan, the structure is different. The Tokyo Disney Resort is owned and operated by Oriental Land, and the company pays licences and royalties to The Walt Disney Company.

    In interviews following the launch announcement, Miral CEO Mohamed Abdalla Al-Zaabi confirmed the arrangement will be like Tokyo. 

    Waterfront location

    The official release for the Abu Dhabi launch also said that the project is on Yas Island, which only has limited areas of land to develop. The release also said that the land is waterfront, and imagery in the launch video shows the Abu Dhabi skyline in the background, suggesting the land is on the northern waterfront of Yas Island. 

    There is a substantial tract of undeveloped land on the north shore of the island, which measures about 13 square kilometres (sq km). This is larger than the 4 sq km site that Hong Kong Disneyland occupies, but much smaller than Disney World in Florida, which spans an area of 111 sq km – nearly five times the size of the whole of Yas Island and nearly double the size of Abu Dhabi Island.

    The hope is that Yas Island will become a leading global theme park destination and attract large numbers of visitors wanting a holiday with multiple theme park visits

    Exclusivity clause

    Another area of interest will be whether Abu Dhabi has an exclusivity agreement with Disney for the region. No exclusivity was mentioned at the launch, but in Hong Kong, the issue became contentious when Disney announced plans to build a park shortly after Disneyland Hong Kong opened. Local politicians criticised the Hong Kong government for not including an exclusivity clause in its deal with Disney. 

    Tourism gateway

    Like Hong Kong, Abu Dhabi is a smaller economy sitting next to a larger regional player. With Saudi Arabia’s ambitious Vision 2030 strategy and its existing roster of theme park developments at Qiddiya, which includes a Six Flags, a water park and a Dragon Ball Z theme park, developers in Riyadh would likely be keen to have a Disney theme park, too. 

    For now, with Disney on board in Abu Dhabi, the hope is that Yas Island will become a leading global theme park destination and attract large numbers of visitors wanting a holiday with multiple theme park visits.

    The potential is certainly there. During the project launch, Disney highlighted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to the largest global airline hub in the world, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

    If that potential is realised, then the bigger is better theory will be proved right. If the park’s performance disappoints, then it will suggest the region is not such a great destination for theme parks after all. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13840555/main.gif
    Colin Foreman
  • Firms bag $850m Qatar substation contracts

    8 May 2025

    Four local and international firms have won contracts for the construction of seven high-voltage substations in Qatar.

    State-backed Qatar General Electricity & Water Corporation (Kahramaa) signed the contracts, which have a total combined value of approximately QR3.1bn ($850m), with the following firms:

    • Elsewedy Cables Qatar Company (local/Egypt)
    • Voltage Engineering (local)
    • Best/Betas Consortium (Turkey)
    • Taihan Cable & Solution (South Korea)

    Kahramaa said the projects aim to “meet electrical network demand in light of the country's fast-growing …urban development”.

    The contracts include the provision and installation of underground cables and overhead lines extending around 212 kilometres to connect these substations.

    Qatari companies won the largest share, equivalent to 58.4% or QR1.8bn, of the total contract value.

    This reflects “our great confidence in the capabilities of the local private sector and its pivotal role in achieving our development vision and achieving Qatar National Vision 2030”, said Kahramaa president Abdulla Bin Ali Al-Theyab.

    Qatar Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, and senior executives from Kahramaa and the contracting firms signed the deals at a ceremony held in Doha.

    Al-Kaabi said the projects will help “ensure our networks' continued and sustainable ability to accommodate the unprecedented growth of the power sector and meet the increasing electricity demand”.

    Kahramaa said the contractors will undertake the construction of electrical substations and the connection of cables and overhead lines, as well as the development of some existing substations to increase their capacity.

    Qatar has been ramping up its power generation capacity in recent years.  

    Qatar's Emir, Sheikh Tamim Bin Hamad Al-Thani, inaugurated the Ras Laffan and Mesaieed solar photovoltaic (PV) power plants on 28 April.

    The two plants have a combined capacity of 875MW and will more than double Qatar’s solar energy production to 1,675MW.

    In February, Qatar Electricity & Water Company (QEWC) and Kahramaa signed a power-purchase agreement for a 511MW peak electricity generation plant at Ras Abu Fontas, which will have a total cost of approximately QR1.6bn. The peak power plant is scheduled to become operational by January 2027.

    A consortium led by South Korea's Doosan Enerbility, and that includes Beijing-headquartered PowerChina, will undertake the Ras Abu Fontas peak power plant's engineering, procurement and construction contract, with Germany's Siemens Energy supplying the plant's gas turbines.

    Photo credit: Kahramaa

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13838850/main.jpg
    Jennifer Aguinaldo
  • OQ to take interest in Oman renewable projects

    8 May 2025

    OQ Alternative Energy (OQAE), part of Oman’s state-backed energy group OQ, will be taking shares in Oman’s renewable energy independent power projects (IPP), starting with the Ibri 3 solar scheme.

    “The direction seems to be for OQ Alternative Energy to own up to 25% shares in the upcoming solar and wind IPP projects in the sultanate,” says a source familiar with the plans.

    Before this development, private developers and investors owned the total shares in such projects, similar to the existing structure in Saudi Arabia.

    With this policy change, Oman will now be more closely aligned with the existing project structure in the UAE, where either Abu Dhabi National Energy Company (Taqa), Abu Dhabi Future Energy Company (Masdar) or the state utility, Dubai Electricity & Water Authority (Dewa), owns stakes in these projects.

    However, OQAE’s planned 25% ownership share will be slightly lower than the typical 40% to 60% shares that Taqa, Masdar or Dewa owns in the UAE’s renewable energy IPP projects.

    Currently, OQAE owns a 51% share in three renewable energy projects being developed in partnership with France’s TotalEnergies for the state-backed firm, Petroleum Development Oman (PDO).

    The Riyah-1 and Riyah-2 wind power plants will be located in the Amin and West Nimr fields in southern Oman, while the North Solar project will be situated in northern Oman.

    Each plant will have a capacity of 100MW, Total Energies announced in December.

    PDO will purchase the electricity from the plants through long-term power-purchase agreements with the developer team, whose 49% shares are owned by TotalEnergies.

    OQAE is also part of Hyport Coordination Company, a consortium comprising Belgium’s Deme Concessions and BP Oman. The consortium plans to develop a green hydrogen project in Duqm that can produce more than 50 tonnes a year of green hydrogen in its first phase by 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13838800/main.jpg
    Jennifer Aguinaldo
  • Data centres churn investments

    8 May 2025

     

    Global investment firm KKR appointed retired US Army general and former Central Intelligence Agency director David Petraeus as chairman of its Middle East operations in mid-April.

    The move is indicative of the region’s importance as a destination for the firm’s future investments, and capitalises on the strength of the relationships Petraeus has forged with Gulf country leaders during his years as a top US military strategist.

    KKR’s most recent commitment in the region entails acquiring a stake in UAE-based Gulf Data Hub (GDH), which operates seven data centres in the UAE and Saudi Arabia. The UAE firm plans to build additional data centre facilities in Kuwait, Qatar, Bahrain and Oman, and KKR has committed to support its $5bn expansion plan.

    “[Petraeus' appointment] is a good move on their part. It reinforces the region’s growing status and importance as a data centre investment destination, due to a significant interest in artificial intelligence (AI) deployments,” says a senior executive with an international data centre operator.

    KKR’s prior investments in the region include a partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, and acquiring a portfolio of commercial aircraft from Abu Dhabi’s Etihad Airways in 2020.

    The private equity firm’s investment in GDH, however, shows only part of the picture as far as the rapidly evolving data centre investment landscape is concerned.

    In March, Abu Dhabi-based critical infrastructure-focused sovereign investor ADQ and US-headquartered power developer Energy Capital Partners agreed to establish a 50:50 partnership to build new power generation and energy infrastructure that will serve the long-term needs of data centres and industrial clusters in the US and selected other international markets.

    The two firms plan to make total capital investments of more than $25bn across 25GW-worth of projects. The combined initial capital contribution from the partners is expected to amount to $5bn.

    That announcement came a day after UAE National Security Adviser and Deputy Ruler of Abu Dhabi, Sheikh Tahnoon Bin Zayed Al-Nahyan, met with US President Donald Trump at the White House. During the meeting, the UAE is understood to have committed to a 10-year, $1.4tn investment framework for the US.

    Tech funds

    In the past 24 months, Abu Dhabi and Riyadh in particular have set up funds, sometimes in partnership with global firms, to invest in AI and data centre infrastructure, both domestically and abroad.

    Abu Dhabi’s MGX aims to build $100bn in assets under management within a few years, along with US-headquartered and Blackrock-backed Global Infrastructure Partners and Microsoft, the fund's key partners. It is part of the US’ Stargate consortium, which aims to mobilise up to $500bn to build AI infrastructure in the US over the next four years.

    In Riyadh, a $100bn AI initiative known as Project Transcendence is expected to invest in data centres, technology startups and other related infrastructure for the development of AI.

    US-based Silver Lake announced in March 2025 that, together with MGX, it has become a minority shareholder in state-backed, Abu Dhabi-based Khazna Data Centres, one of the region’s largest data centre operators.

    In 2023, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) partnered with US-based DigitalBridge to develop data centres in Saudi Arabia and across the GCC states.

    In early 2025, Saudi Arabia-based DataVolt – which is owned by Vision Invest, a major shareholder in Saudi utility developer Acwa Power and a public-private partnership advocate – signed a preliminary agreement to build a data centre in Neom, Saudi Arabia. The $5bn facility, with an initial phase of 300MW, is the first of many such schemes that DataVolt is planning.

    Not to be outdone, the founder of Dubai-based private real estate developer Damac pledged to invest $20bn in data centre projects in several US cities earlier this year.

    And there is more to the growing – if outsized – number of bidirectional data centre-focused investment flows than meets the eye.

    Given the global AI race and mounting competition, investment decisions regarding data centres are moving from a simple, commercial focus to account for complex geopolitical considerations, according to Jessica Obeid, a partner at Dubai-headquartered New Energy Consult.

    “As the US weaponises its technological advancements, decisions to invest in US-based data centres hedge against the risks of US export controls, positioning developers in proximity to suppliers, ensuring reliable access to components.

    “Yet, this access could become costlier, driven by trade tariff wars, heightened regulations and limited access to grid infrastructure,” Obeid says.

    She adds that the GCC is quickly positioning itself as a global digital hub, driven by cost-competitive energy, advanced infrastructure and strong government backing.

    “Proximity to reliable power supply at an affordable cost, and speed in licensing processes and grid connections, are increasingly becoming strategic factors in data centre deployment – and the GCC offers that.”

    Powering AI strategies

    Almost all of the GCC states have formulated AI strategies that aim to improve operational efficiencies, create jobs and support their energy transition and net-zero initiatives.

    As a result, analysts expect the region to register double-digit annual growth in data centre construction activities in the next few years.

    In a recent update, global consultancy PwC projected that the Middle East data centre capacity could triple from 1GW in 2025 to 3.3GW in five years’ time.

    According to data from regional projects tracker MEED Projects, as of April, an estimated $12bn-worth of data centre construction projects are in the planning stage, in addition to over $820m under bid and $7bn under construction.

    Li-Chen Sim, assistant professor of civil security at Abu Dhabi’s Khalifa University, says that AI investments are, on the one hand, “all part of a carefully conceived strategy to … diversify out of a hydrocarbons-driven economy, to create new revenue streams from overseas data centres, build new growth sectors, support business requirements and offer more knowledge-based jobs as opposed to traditional manufacturing from domestic investments”.

    On the other hand, AI investments also aim to future-proof the hydrocarbons sector, which Sim expects will continue to be a significant driver of growth, revenue and exports, even as the use of renewable power grows.

    However, the ability of Gulf states to execute their plans for leveraging AI to diversify economies and create jobs –and specifically to address youth unemployment – depends on two factors, according to Obeid.

    The first factor is the ability of countries to advance their AI goals from infrastructure to capital and partnerships. The second involves the speed with which they can build up adequate human capital and a skilled workforce.

    “We will have to see how governments align their educational curricula with the AI policies and electricity infrastructure development,” she says.

    Ecosystem investment

    AI and data centre investments go beyond the facilities that house thousands of advanced graphics processing units, miles of cables and many cooling systems. To run and execute applications – particularly AI inferencing tasks – data centre facilities require a substantial amount of energy. 

    Moreover, data centres in the Middle East and North Africa region face elevated environmental risks due to the high ambient temperatures, which increase energy demand for cooling, as well as water requirements.

    This presents both a challenge and an opportunity, according to Obeid. "The GCC has an opportunity to advance innovation in energy and cooling technologies. Liquid cooling is necessary for AI workloads, and small modular reactors will become central in these data centres.” 

    In January, Abu Dhabi’s Emirates Water & Electricity Company (Ewec) appeared to show the way with a plan to build a round-the-clock solar photovoltaic (PV) plant combined with a battery energy storage system (bess) facility.

    The 5.2GW solar PV and 19 gigawatt-hour bess plant is expected to deliver renewable power as baseload, and UAE President Sheikh Mohamed Bin Zayed Bin Sultan Al-Nahyan has said that the project will help power advancements in AI and emerging technologies, and support the delivery of the UAE National AI Strategy 2031 and 2050 Net Zero initiative.

    Sim agrees that renewables combined with battery storage is part of the answer when it comes to building sustainable data centres. “Globally, data centres consume about 1% of electricity, and this figure – together with carbon emissions by data centres – is expected to grow significantly.”

    He notes that Goldman Sachs Research forecasts that global power demand from data centres will increase 50% by 2027, and 165% by the end of the decade, compared to 2023.

    “The other part of the puzzle with regard to sustainability is water consumption by data centres, particularly those in the Gulf, where high temperatures necessitate even more cooling measures.

    “Singapore, for instance, has pioneered integrated water systems that recycle treated wastewater for reuse – and this circular water model could be an option for data centres in the Gulf, instead of using expensive desalinated water,” says Sim.

    As things stand, the GCC can play a key role in the advancement of these and other technologies, along with efficiency measures and the optimisation of server utilisation through AI applications such as digital twins, says Obeid.

    This is just as well, since the region appears to be on the cusp of a boom in inbound and outbound investments that will build data centre capacity abroad and closer to home.

    “We are at a pivotal moment for innovation, where the intersection of digital advancements and energy innovation could position the GCC as a global leader, shaping the future of sustainable digital infrastructure,” concludes Obeid.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13732105/main5907.jpg
    Jennifer Aguinaldo
  • Diriyah floats museum tender

    8 May 2025

    Saudi gigaproject developer Diriyah Company has tendered a contract to build the new iconic museum in the DG2 area of the Diriyah project in Riyadh.

    MEED understands that the tender was issued in April, with the bid submission deadline in June.

    Diriyah completed the prequalification process for the project in February this year.

    Diriyah Company is expected to award more multibillion-dollar contracts this year. In April, MEED exclusively reported that the client had awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Salman University (KSU) project located in the second phase of the Diriyah Gate development (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.

    Last month, MEED also 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 late July, 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.

    In December, MEED reported that Diriyah Company had 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.

    MEED’s April 2025 report on Saudi Arabia includes:

    > GOVERNMENT: Riyadh takes the diplomatic initiative
    > ECONOMY: Saudi Arabia’s non-oil economy forges onward
    > BANKING:     Saudi banks work to keep pace with credit expansion
    > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
    > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
    > POWER: Saudi power sector enters busiest year
    > WATER: Saudi water contracts set another annual record
    > CONSTRUCTION: Reprioritisation underpins Saudi construction
    > TRANSPORT: Riyadh pushes ahead with infrastructure development
    > DATABANK: Saudi Arabia’s growth trend heads up

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13838747/main.jpg
    Yasir Iqbal