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• 
  Saudi Arabia expands PPP pipeline

  14 May 2024

  Register for MEED’s guest programme 

  Saudi Arabia’s National Centre for Privatisation and PPP (NCP) has seen tremendous progress in its public-private partnership programme over the past year, according to Salman Badr, vice-president of the state PPP procuring authority.

  Speaking at the MEED Mena Construction Summit in Riyadh, Badr said that NCP has a “healthy pipeline” of over 200 approved projects in different stages of development. 

  He cited another 300 projects that are currently under review.

  It is understood the current pipeline includes more than 180 schools, following the award of contracts to develop and operate 60 schools each in Jeddah and Medina in 2020 and 2022.

  “New sectors like healthcare and education have been opened up for public-private partnerships beyond the traditional water and power sectors,” said Badr.

  The kingdom is understood to have awarded over 60 PPP contracts since 2017, when NCP was formed.

  Badr said private sector participation has “allowed the government to deliver infrastructure projects much more efficiently”. 

  Recently completed projects include the kingdom’s first hospital PPP project in Medina. 

  In addition to healthcare and school facilities, NCP’s pipeline includes airports, seaports and roads, catering to Saudi Arabia’s growing infrastructure needs as the population and economy expand.

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  MEED’s April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11768175/main.jpg

  Sarah Rizvi
• 
  Rua Al Madinah seeks construction partners

  14 May 2024

  Register for MEED’s guest programme 

  Saudi Arabia’s Rua Al Madinah, the Public Investment Fund (PIF) subsidiary tasked with Medina’s tourism and cultural development, has revealed that construction work is under way on the main tunnel that will take all incoming traffic towards the Harem area. 

  Extensive works are also ongoing to redevelop the airport road and modernise the city’s wider transportation network. 

  “There are significant opportunities for contractors and partners,” said Abdulsalem Alharbi, projects delivery director, Rua Al Madinah, at the MEED Giga Projects event in Riyadh on 13 May. 

  “We are looking for capable service providers and strategic partners to support the large-scale infrastructure and construction works.”

  Alharbi said five packages of residential towers – comprising over 120 towers in total – are currently in various stages of design and tender. 

  The superblock 5 package includes 18 towers and is already on the market, while superblock 4, involving 19 towers, is in the design phase.

  Packages District 9 and District 10, consisting of 35 towers and 46 towers, respectively, are seeking partners to take on development roles. 

  Alharbi also highlighted several investment opportunities being developed to support the growing tourism sector, including a central kitchen, cold storage warehouse, commercial laundry and staff accommodation facilities.

  “This represents a major chance for local and international companies to participate in the redevelopment of Medina,” he added.

  Project background

  Crown Prince Mohammed Bin Salman Bin Abdulaziz Al Saud inaugurated the infrastructure works and unveiled the masterplan for the Rua Al Madinah development in August 2022.

  Before this, US-based Hill International was awarded a contract in 2021 for the project management of road works at the Madinah Central Area (MCA).

  In June 2022, a local media report cited China Railway 18th Bureau as having won a contract to build the Medina tunnel. 

  The tunnel, valued at $970m, was expected to be completed within 42 months. The work includes building the AH tunnel, the Ali Bin Abi Talib tunnel, the airport tunnel and related projects, including a pedestrian bridge.

  Rua Al Madinah Holding Company CEO Ahmed Al Juhani told MEED in February that construction work on the Ali Bin Abi Talib road has been completed, making it the first tunnel to be finished as part of the Rua Al Madinah project. 

  In February 2023, US-based Parsons won a $15m contract to provide construction project management consultancy and contract administration services (PMCM) for the project. The US consultancy firm will manage the main infrastructure works, including the tunnel, road and utility works.

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  MEED’s April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11766934/main.jpg

  Sarah Rizvi
• 
  Emirates Group posts $5.1bn profit

  14 May 2024

  Emirates Group, comprising Emirates Airline and Dnata, has posted a record profit of AED18.7bn ($5.1bn) in its latest fiscal year ending 31 March, up 71% compared to a AED10.9bn profit for last year.

  The group’s revenue stood at AED137.3bn, an increase of 15% over last year’s results.

  Its cash balance was AED47.1bn, the highest ever reported and an 11% increase from last year.

  According to its annual report, the group's profits for the last two years reached AED29.6bn, which has surpassed pandemic losses of AED25.9bn in 2020-22.

  The group has declared a dividend of AED4bn to its owner, the Investment Corporation of Dubai.

  Emirates Group chairman and CEO, Sheikh Ahmed Bin Saeed Al Maktoum, attributed the company's record performance to Dubai’s progressive policies.

  He added that profits enable further investments in new aircraft, facilities and equipment, technology, products and services, and staff.

  Business performance

  Emirates reported a new record profit of AED17.2bn, up 63% from AED10.6bn last year.

  The airline's revenue rose 13% to AED121.2bn while capacity increased by 20% to 57.7 billion available tonne-kilometres.

  The group's cargo and logistics arm, Dnata, reported a profit of AED1.4bn, up more than four-fold compared to its AED331m profit last year.

  Revenue increased 29% to hit a new record high of AED19.2bn, reflecting increased customer flight activity and travel demand across its UAE and worldwide business divisions. 

  Investments and outlook

  In 2023-24, the group collectively invested AED8.8bn in new aircraft, facilities, equipment, companies and the latest technologies to support its growth plans.   

  In line with this, Emirates expects to receive delivery of 10 new A350 aircraft in 2024-25.

  The group’s total workforce grew by 10% to 112,406 employees, its largest ever.

  In terms of environment, social and governance (ESG) initiatives, in 2023-24, Emirates signed new supply agreements to uplift sustainable aviation fuel (SAF) at its Dubai hub for the first time, and also in Amsterdam and Singapore.

  The airline operated the first A380 demonstration flight using 100% SAF in one engine, collecting data to support industry efforts to enable a future of 100% SAF flying.

  The business outlook is positive and the group expects customer demand for air transport and travel to remain strong in the coming months.

  "As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations and volatile environments caused by socio-political changes," said Sheikh Ahmed.

  "Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges.”

  Sheikh Ahmed affirmed the Dubai government's plan to start the next phase of expansion at Al Maktoum International airport, which will eventually be the new hub for Emirates' and Dnata’s operations.

  "This AED128bn investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and Dnata’s growth," he added.

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  MEED's April 2024 special report on the UAE includes:

  > COMMENT: UAE rides high on non-oil boom
  > GVT & ECONOMY: Non-oil activity underpins UAE economy
  > BANKING: UAE banks seize the moment
  > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
  > DOWNSTREAM: UAE builds its downstream and chemical sectors
  > POWER: UAE marks successful power project deliveries
  > WATER: Dubai tunnels project dominates UAE pipeline
  > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
  > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11766365/main13521409.jpg

  Jennifer Aguinaldo
• 
  Soudah seeks contractors for mountain resort

  14 May 2024

  Follow exclusive coverage from MEED's Saudi Giga Projects summit today on meed.com

  Register for MEED's guest programme 

  

   

  Saudi Arabia's Soudah Development is preparing to start construction work on its Soudah Peaks development after its masterplan was approved last year.

  "We have approval to develop across 627 square metres, although we will only use a small fraction of that to protect the natural environment," Soudah Development’s chief development officer, Daniel McBrearty, told MEED’s Saudi Giga Projects event in Riyadh on 13 May.

  Situated 3,015 metres above sea level, the project is located in a mountainous area in Saudi Arabia's Asir region. 

  “The masterplan for the park took some time to come to fruition due to its scale. And we are now looking for contractors – both large and small speciality groups," said McBrearty.

  “These contractors must understand the scope of work and be familiar with constructing low-rise buildings common in this area, such as those made from natural materials.”

  McBrearty added that the long timeline allows contractors to invest with visibility of continued work packages. "This project showcases what makes Saudi Arabia unique, as local companies see long-term opportunities from the sustained multi-phase construction work.”

  To be constructed over the next three years, phase one will include nine hotels with 940 rooms, as well as 250 homes and 20,000 square metres of commercial space. 

  Future phases, to be executed over 10 years, will expand the resort with more amenities. 

  The masterplan includes six distinct development zones, each featuring different elements to attract diverse visitors. 

  An investment of SR11bn ($3bn) has been planned to develop tourism infrastructure and attractions in the Asir region in the southwest of the kingdom.

  ---

  MEED's April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11765171/main5539.jpg

  Sarah Rizvi
• 
  Jeddah Al Balad project gets under way

  14 May 2024

  Follow exclusive coverage from MEED's Saudi Giga Projects summit today on meed.com

  Register for MEED's guest programme 

  

   

  Saudi Arabia’s Al Balad Development Company (BDC), which is backed by the Public Investment Fund (PIF), is working to revitalise Jeddah’s historic district and transform it into a heritage and tourism destination.

  “We are looking to tackle the urban challenges in Jeddah,” said Sean O’Sullivan, general manager for projects department – Jeddah Historical District at Saudi Arabia's Culture Ministry, on 13 May at the MEED Saudi Giga Projects event in Riyadh.

  The project’s goal is to preserve the heritage and culture of Jeddah.

  BDC has been tasked with revitalising the historic areas of Jeddah to turn them into an economic hub and global cultural, heritage and tourism destination.

  The company plans to achieve these goals by upgrading the district’s infrastructure, overseeing the restoration of historic buildings in Al Balad and developing service facilities and recreational, residential, commercial, hotel and office spaces.

  O'Sullivan said the Jeddah Historical District is working closely with Unesco to restore more buildings in the city and turn them into commercial assets.

  Project background

  In 2021, Crown Prince Mohammed Bin Salman Bin Abdulaziz Al Saud announced plans to transform the Al Balad area in Jeddah into an urban space for commercial and cultural activities.

  The PIF established BDC in October 2023 in line with this plan.

  The overall project development area is about 2.5 square kilometres. The development will have a total built-up area of 3.7 million square metres (sq m). This includes 9,300 residential units, 1,800 hotel units and about 1.3 million sq m of commercial and office space.

  BDC intends to engage with the private sector and specialists to develop the area’s infrastructure.

  ---

  MEED's April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11765058/main1147.jpg

  Yasir Iqbal