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  Dubai tenders Al-Maktoum airport rail system

  25 June 2025

  

   

  Dubai Aviation Engineering Projects (DAEP) has tendered a contract to deliver the automated people mover system as part of the first phase of the expansion of Al-Maktoum International airport.

  MEED understands that firms have been asked to submit their bids for the package by 15 July.

  The firms that are expected to participate in the tender include:

  • CRRC (China)
  • Hitachi (Japan)
  • Alstom (France)

  The automated people mover system will serve as a critical facility for operations at Al-Maktoum International airport. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of multiple tracks, taking passengers from the terminals to the concourses.

  Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

  The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres south of Dubai and have five parallel runways, five terminal buildings and 400 aircraft gates.

  It will be five times the size of the existing Dubai International airport and have the world’s largest passenger handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

  Construction on the first phase has already begun. In May, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to the local firm Binladin Contracting Group to construct the second runway at the airport.

  The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based firm Tristar E&C.

  While speaking to the press on the sidelines of the Airport Show in May, Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation, said that Dubai will award more packages this year, including the automated people mover and baggage handling system.

  “Several other packages are expected to be tendered this year, including the terminal substructure, 132kV substations and district cooling plants,” Al-Zaffin added.

  The construction works on the project’s first phase are expected to be completed by 2032.

  Dubai approved the updated designs and timelines for its largest construction project in April last year.

  The government of Dubai said that the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International airport within 10 years.

  The government statement added that the project will create housing demand for 1 million people around the airport.

  In September last year, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead master planning and design consultants on the expansion of Dubai’s Al-Maktoum International airport.

  Project history

  The expansion of Al-Maktoum International airport is a long-standing project. Also known as Dubai World Central (DWC), it was officially launched in 2014, with a different design from the one approved in April 2024. Back then, it involved building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

  An initial phase, due to be completed in 2030, involved increasing the airport’s capacity to 130 million passengers a year. The development was to 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.

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  Yasir Iqbal
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  Contractors prepare revised bids for Al-Ula tram works

  25 June 2025

  

   

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  Saudi Arabia’s Royal Commission for Al-Ula (RCU) has asked firms to submit their last and final offer for a contract to build the infrastructure for the tramway at the Al-Ula development in Saudi Arabia.

  The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions. The tramway is scheduled to start operating in 2027.

  The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.

  The RCU issued a request for proposal notice in June last year and received commercial bids for the project on 10 November.

  France’s Systra is the consultant.

  In October 2023, the RCU announced that France’s Alstom would provide rolling stock and systems for the Al-Ula tram scheme.

  The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.

  New paradigm

  The scheme could be one of several others affected by the reprioritisation of gigaproject activity reported last year. 

  After four years of consistently strong year-on-year growth in the Saudi construction sector up to 2023, when just under $32.1bn-worth of contracts were awarded, the growth slowed in 2024.

  This plateauing of growth in part reflects a pause in – and reprioritisation of – gigaproject activity last year. However, as gigaproject awards declined slightly, construction work on other projects helped to sustain contract awards activity overall.

  Another challenge is funding, with encouragement from Public Investment Fund-led companies to find alternative means of financing projects.

  A greater emphasis on public-private partnership projects using private sector funding is expected going forwards, as are requests for contractors to propose financing options. This is leading to more openness about project plans and improved transparency regarding issues and strategies, as the gigaprojects seek to attract foreign investment.

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  Yasir Iqbal
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  Saudi Arabia completes SR2.4bn sukuk issuance

  25 June 2025

  The National Debt Management Centre (NDMC) has successfully completed investor requests for its June 2025 issuance as part of its Saudi riyal-denominated sukuk programme, raising a total of SR2.355bn ($630m).

  The NDMC’s latest sukuk issuance was structured into five tranches. The first tranche, valued at SR25m, is set to mature in 2027. The second tranche, totalling SR1.175bn, will mature in 2029. The third tranche, amounting to SR500m, is scheduled to mature in 2032. The fourth tranche, valued at SR5m, will mature in 2036, while the fifth tranche, totalling SR650m, is set to mature in 2039.

  This latest issuance follows the NDMC’s previous success in May 2025, when it secured SR4.08bn ($1.09bn). That issuance was structured into four tranches, with maturities ranging from 2029 to 2039, and reflected the government’s approach to financing its budget deficit, which reached SR58.7bn in the first quarter of 2025.

  The Saudi Finance Ministry has indicated that the public debt has increased in both domestic and external components, with domestic debt closing at SR797bn and external debt at SR531.7bn. The NDMC’s ongoing sukuk issuances are part of a broader strategy to manage this debt effectively and ensure fiscal stability.

  In April 2025, the NDMC announced the closure of its April sukuk issuance, which totalled SR3.71bn and was split into four tranches.

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  Colin Foreman
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  Morocco seeks contractors for LNG terminal and power station

  25 June 2025

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  Morocco’s Ministry of Energy Transition & Sustainable Development has issued an invitation for expressions of interest in a major liquefied natural gas (LNG) infrastructure project.

  The project includes an LNG import terminal, pipelines and a gas power station, according to documents released by the ministry.

  Contractors have been set a bid deadline of 2pm on 23 July 2025.

  The project is located at Morocco’s Nador West Med Port and will include a gas power station with a capacity of approximately 1,200MW, according to the newly released documents.

  The power plant will be developed under Morocco’s independent power production (IPP) regime, in accordance with National Office of Electricity and Drinking Water (ONEE) Law, according to the ministry.

  The project will also include a pipeline network that will supply industrial consumers in Nador, Kenitra and Mohammedia.

  The scope of the LNG terminal portion of the project includes the design, construction, equipment, operation and maintenance of all offshore and onshore infrastructure elements of the terminal. It also includes all high-pressure gas systems.

  A dedicated berth is expected to be developed at Nador West Med Port.

  The terminal will either be a floating storage and regasification unit (FSRU) or a floating storage unit (FSU) that has the regasification element developed on the jetty.

  Nador West Med Port is currently under construction and is expected to achieve commissioning by the end of 2026, according to the ministry.

  The LNG terminal is expected to have the capacity to import 500 million standard cubic feet a day (mmscfd).

  The pipelines are expected to have a diameter of 48” and the capacity to transport 750 mmscfd.

  In the documents, the ministry said that “the launch of several procurement procedures is currently being considered”.

  It said that Morocco’s updated gas roadmap provided for the “gradual development” of critical gas network infrastructure necessary to support the importation of LNG.

  It also said that the roadmap provided for the development of infrastructure to boost domestic gas production and supply, and the delivery of natural gas to consumers throughout the country, “enabling the growth of the national gas market”.

  Phase one of the roadmap is due to be executed from 2025 to 2027 and includes three modules.

  These are:

  • The tender, construction and commercial operation of the planned LNG terminal at Nador West Med Port
  • The tender, construction and commercial operation start of natural gas pipelines from Nador West Med Port to the Maghreb Europe Gas Pipeline (GME) and from the GME to Mohammedia
  • The update of a pre-feasibility study of an LNG regassification terminal on the Atlantic coast

  Phase two of the roadmap is expected to be executed after 2030 and also includes three modules.

  These are:

  • Delivery of the Atlantic coast LNG regasification terminal
  • The development of an LNG regasification terminal at Dakhla Atlantic port
  • Construction of further pipelines to connect the gas network

  Phase three is a long-term plan that includes connecting to the Mauritanian and Senegalese gas networks through the Gazoduc Afrique Atlantique pipeline.

  It also includes the development of green hydrogen infrastructure.

  The latest request for expressions of interest follows a memorandum of understanding (MoU) signed in March 2024.

  The MoU was signed by five Moroccan governmental bodies in Rabat as part of the push to expand the country’s LNG infrastructure.

  This MoU was followed by announcements by the Minister of Energy Leila Benali, who said the project would include a gas pipeline network to connect the new terminal to the Maghreb Europe Gas Pipeline.

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  Wil Crisp
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  Oman LNG awards pre-feed contract for pilot methanation plant

  24 June 2025

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  Oman LNG has awarded Japan-based Kanadevia Corporation a contract to perform pre-front-end engineering and design (pre-feed) work for a pilot methanation plant, and a detailed concept study for future commercial scaling of the facility.

  The proposed facility is expected to produce 18,000 normal cubic metres of e-methane an hour.

  The pre-feed will focus on the pilot plant, while the concept study will cover technical and commercial evaluations.

  The pilot plant will comprise three components: a seawater desalination unit, equipment for producing hydrogen via water electrolysis and a methanation system that combines hydrogen with captured carbon dioxide to produce e-methane.

  During the pre-feed phase, Kanadevia will conduct detailed design studies and cost estimations for engineering, procurement and construction.

  The agreement follows a memorandum of understanding that Oman and Japan signed in March 2024, covering collaboration in hydrogen, fuel ammonia and carbon recycling. 

  “The project aligns with Oman’s target of achieving net-zero emissions by 2050 through the adoption of clean energy solutions such as carbon capture and utilisation and methanation,” the Oman News Agency said in a report.

  Oman LNG operations

  Oman LNG is a joint venture of the sultanate’s Energy & Minerals Ministry, which holds the majority 51% stake, and foreign stakeholders.

  The remaining 49% is held by UK-based Shell (30%); France’s TotalEnergies (5.54%); South Korea’s Korea LNG (5%); Japanese firms Mitsubishi Corporation (2.77%), Mitsui & Company (2.77%) and Itochu Corporation (0.92%); and Thailand’s PTTEP, following the acquisition of Portuguese firm Partex (2%).

  Oman LNG operates three trains at its site in Qalhat, with a nameplate capacity of 10.4 million tonnes a year (t/y). Due to debottlenecking, the company’s production capacity has gradually increased to about 11.4 million t/y.

  Oman LNG secured $2bn-worth of project financing in 1997 to set up its first liquefied natural gas (LNG) export terminal in the sultanate, the Qalhat LNG terminal, which was commissioned in 2000.

  From 1 September 2013, Qalhat LNG was integrated with Oman LNG to form a single entity.

  The terminal exports gas produced by state oil and gas producer Petroleum Development Oman from its central Oman gas field complex. Oman LNG’s customers are mainly based in Asia, although the company has been expanding its client base outside the continent in recent months.

  In April, Oman LNG announced it had started turnaround activities at the third LNG processing train, which has an output capacity of 3.3 million t/y. The third train commenced operations in 2006 and mainly processes gas produced at the Saih Nihayda field in central Oman.

  ALSO READ: Contractors line up for Oman LNG fourth train project

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

  Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

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

  > AGENDA 1: Data centres churn investments > AGENDA 2: Gulf seizes AI opportunities > SYRIA: US announces lifting of Syria sanctions > MEED TOP 100: Middle East stocks defy lower oil prices > TOURISM: Abu Dhabi hopes bigger is better with Disney theme park > TRADE: Emerging Gulf-Asia corridor grows despite headwinds  > SAUDI ARABIA: Riyadh confirms capital expenditure cuts > INTERVIEW: Mena crucial to Veolia’s growth plan > IRAQ REPORT:  Iraq maintains its pace, for now > GULF PROJECTS INDEX: Gulf projects index leaps 4.3% > CONTRACT AWARDS: Region sees third month of weak awards activity > ECONOMIC DATA: Data drives regional projects > OPINION: Dealmaking trumps the Truman Doctrine

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

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  Indrajit Sen