A case study in procurement
18 March 2025

Register for MEED’s 14-day trial access
While it may not be in the headlines as much as some of its more eye-catching official gigaproject counterparts, Roshn has already delivered thousands of residential units in Saudi Arabia as it seeks to fill the upscale and community living housing map.
Launched in 2020, the Roshn gigaproject is a component of the Vision 2030 plan to achieve 70% home ownership among Saudi nationals by 2030. Alongside the National Housing Company, it is the delivery vehicle for government-backed housing construction as Riyadh seeks to meet the shortfall in available stock.
Its first project was its Sedra community in the north of the capital. Currently on its fourth of eight delivery phases, the multibillion-dollar masterplanned development will comprise 30,000 homes over 20 million square metres (sq m) when completed.
Roshn’s second Riyadh community under construction is Warefa in the northeast of the capital. More compact than Sedra, it will have 2,300 units over an area of 1.4 square kilometres, with 150,000 sq m of green open space.
Three years after the launch of its first projects, Roshn announced Marafy, its first scheme in Jeddah and its largest mixed-use development to date. Designed to accommodate more than 130,000 residents, Marafy will be built around an 11-kilometre, 100-metre-wide canal, linking with Obhur Creek in the northern outskirts of the kingdom’s second city.
Already breaking ground, Marafy’s first core component is the Alarous residential community, which will offer 18,000 units over a 4 million sq m land area.
Elsewhere in the kingdom, Roshn’s other planned community projects include Almanar in Mecca, Alfulwa in Hofuf and Aldanah in Dhahran. Between them, these schemes total more than 50,000 units. It is expected that thousands of additional homes in other parts of the kingdom will be announced by the developer in the next two years.
Delivering such projects at many different locations is a complex exercise, requiring procurement strategies that not only encompass on-time and on-budget completion, but also ensure that local content is maximised while at the same time maintaining stringent quality standards.
Tasked with handling Roshn’s overall procurement strategy is Iain McBride, the gigaproject developer’s head of commercial.
It is expected that thousands of additional homes in other parts of the kingdom will be announced by the developer in the next two years
Like other gigaprojects in the kingdom, McBride and his procurement team have had to deal with the twin challenges of soaring cost inflation and maximising local content in materials and equipment.
The five official gigaprojects – Diriyah, Neom, the Red Sea Project, Qiddiya and Roshn – are free to employ their own procurement rules and processes, and each has taken a different approach to address its specific requirements. For example, Red Sea Global uses a construction management approach wherein it contracts directly with companies and suppliers that would normally work as subcontractors under the main contractors.
Similarly, Diriyah Company employs a strategy of bundling several smaller contract packages into a single large contract, as a means of consolidating work to ensure lower costs and maintain contractor interest.
Hear directly from the gigaproject owners at the biggest construction event – The Saudi Gigaprojects 2025 Summit, happening in Riyadh from 12-14 May 2025. Click here to know more
Demand signalling
The nature of Roshn’s mainly residential projects means that from the outset it knew it would need thousands of items with similar specifications, such as doors; glass panes; sanitaryware; and heating, ventilation and air-conditioning systems.
To secure this supply chain, early on the company identified local manufacturers of these products and reached long-term agreements with them for the delivery of required materials.
“Our first step was signing a lot of long-term partnership agreements through master purchase agreements where we could leverage preferential rates,” says McBride, speaking to MEED in late January.
“Ultimately, it's all about balance and risk – derisking the opportunities for the supply chain by telling them how many doors, for example, we're going to need each quarter for the next five to 10 years. It gives confidence to the manufacturers that they can start committing to.”
Roshn was the first of the gigaprojects to publicly signal its demand requirements. In 2021, it announced that it would require at least 5 million doors, 3.5 million air-conditioning units, 4.3 million windows, 80 million sq m of tiles and 6.5 million pieces of sanitaryware. These numbers have since changed, but they are indicative of the scale of the supply chain challenge.
Armed with the knowledge that Roshn is both supported by its parent, sovereign wealth vehicle the Public Investment Fund (PIF), and that it is a central element of Saudi Vision 2030, local manufacturers had the confidence to commit to investing in production capacity to meet its needs.
Significantly, most of these deals have been with manufacturers within the kingdom, thereby maximising the local content aspects. Just as importantly, Roshn has not had to make any fixed orders – so-called ‘take-or-pay agreements’ – with suppliers, such is the latter’s faith in the developer.
“For the time being, we’ve not had to make any firm commitments,” says McBride. “We did look at it at one point, but our approach has always been to keep it as simple as possible by listening to the supply chain and seeing what they need. When we were speaking to them, it wasn’t their number one driver; they weren’t screaming at us saying, ‘We need you to give us a firm order’.
“Now, many people think a take-or-pay agreement is essential – where you commit to ordering [a certain quantity] of materials over a period of months or years and, if you don’t, you have to pay a penalty, thereby adding risk and complexity for the developer.
“What we were able to agree instead was that we'll be open and transparent with [the suppliers about] what we need. We said to ourselves, ‘Let's get a good price that works, whether we buy directly from the supplier or whether we include that supplier within our tenders with major contractors’. And we’ve seen great success with that approach, with multiple companies.”
The localisation push is supported by the design process. Wherever possible, the designs for Roshn’s projects incorporate and specify equipment and materials that are known to be manufactured locally.
There have been instances where specific, specialised materials and products are not produced in the kingdom, or not in the quantities required, such as marble and certain architectural facades.
Where this is the case, Roshn is keen to explore how it can help to build in-kingdom capacity. The developer has initiatives through which it looks to co-invest in production facilities that come with high capital requirements.
As McBride explains, Roshn is only one part of the huge and rapidly accelerating Saudi projects market ecosystem, and in helping to increase capacity, it is also putting itself in a position to help other developers with their supply chain needs.
A case in point is Roshn’s contract with China Harbour Engineering Company, which was awarded the $2bn deal in 2023 to build villas at Sedra and Warefa.
Part of the contract requires the Chinese contractor to set up a precast manufacturing facility on site at Sedra. In this way, Roshn could not only ringfence the plant for its own needs, but when it no longer requires the output, other projects could benefit from its production capacity.
“The factory has a 15-year lifespan, so any additional capacity will be there for another 10 years after our requirements are met,” says McBride. “In Riyadh, we have Expo 2030, the new airport, the stadiums and many other projects that could draw on its output.”
There are some situations where even this is not enough, particularly when it comes to contracting expertise. One such case is Roshn’s mandate to develop a 45,000-seat stadium in the southwest of Riyadh as part of the kingdom’s Fifa World Cup 2034 plans. On such a complex, highly engineered project, Roshn has insisted that an international contractor teams up with a local company as a condition of tender participation.
This insistence is based on Roshn’s experience overseeing the construction of a football stadium in Dammam alongside co-developer, Saudi Aramco. The project, which is being built by a joint venture of Belgium’s Besix and the local Albawani, is proceeding at a rapid pace and progress has been relatively trouble-free.
McBride says: “If we have to go abroad, let’s go abroad. But make sure it’s done in a smart way and that we’re not just throwing money out of the kingdom.”
Early contractor involvement
On the issue of contracting, it is well known that the massive amount of work in Saudi Arabia is stretching contractors to the limit, pushing up prices and straining labour, engineering and equipment resources.
Roshn’s approach to this challenge has been to engage with contractors at the earliest possible stage of project planning, specifically at the design phase, through an early contractor involvement (ECI) procurement framework. In this way, the company is able to obtain contractor feedback during concept and design and subsequently lower construction risk by improving a project’s constructability.
“It's about signposting the demand by getting the contractor in early, where you can really influence the design, the buildability and the value-engineering opportunities,” says McBride. “Ideally, we bring them in as quickly as possible during the concept stages, when there's very little cost to changing things.
“The worst thing for a contractor is receiving a [request for proposal] cold. They have to … come back in four weeks and then be squeezed for a best price, whereas with ECI they can add value. They really appreciate that.”
When asked to quantify the cost benefits of such an approach, McBride is forthright: “It’s not even a case of doing the maths,” he says. “We have a great example of where it’s worked on our Aldanah project in Dammam. We selected the contract very early on and locked in the floor plans and facades that we wanted. We were then able to deliver a street of 10 show homes [that took] not much more than four months to design and construct.
“The saving, in terms of time, was massive; we probably halved the duration. I probably wouldn’t be exaggerating if I said it saved about a year.
“There are two ways you can follow your engineer,” he continues. “One: you can follow them early and make sure that the way you're looking to save costs is in areas that are not impacting the customer.
“Or two: the worst thing you can do is get to the end and you have a full structural design that could be over-engineered and you’re spending money in the wrong places.
“We don’t want to get to a point where we're trying to value-engineer by cutting things out that are important to customers,” McBride explains. “And that's what you avoid by having this early contractor involvement.”
The company is able to obtain contractor feedback during concept and design and subsequently lower construction risk by improving a project’s constructability
Unlike the other gigaprojects, Roshn has been in the favourable position of being able to raise some revenue by marketing and selling its properties off plan. While this has been beneficial from a development perspective, it has also meant that the developer must get its pricing and housing specifications right if it is to develop homes within an already-defined budget.
Having a contracting partner on board during the design and specification stage facilitates the conversation between the property sales team, which is informing on market requirements, and the builder, who can deliver within the designed cost and quality parameters.
This is in contrast to many real estate developments for which sales are completed before the construction estimates come in, potentially undermining the business case.
The step beyond ECI is for contractors and suppliers to partner with Roshn to inject equity into the projects by acting as co-developers. McBride points to several planned mid-rise towers at Marafy that could be a starting point for this.
Contractors financing projects or bringing in replacement equity has long been an ambition in the region, but builders have been reluctant to adopt this approach. Nonetheless, McBride is confident that it could happen, indicating that there has already been strong interest from the contracting community.
Cost inflation
Another major talking point in Saudi construction is the escalating costs caused by high inflation, logistical challenges and a tightening of contracting and skilled labour capacity.
In many cases, this has required the rescoping of projects, revisions to timelines and even the scrapping of elements. Neom is arguably the best example of this, as it has reprioritised The Line and is facing an estimated cost of $50bn for building each of its first three modules – far in excess of original estimates.
Roshn’s approach to the challenge is to be as open and transparent as possible with the contractor and supplier community. This has involved outlining a long-term pipeline of work that gives the supply chain confidence about its requirements, enabling them to fix in long-term pricing structures. In return, the developer expects prices to come in competitively.
“It’s no secret within the supply chain market that Roshn has quite aggressive price points,” says McBride, a former chartered surveyor who, prior to joining Roshn, worked as a quantity surveyor and cost-management director at consultants Faithful+Gould (now AtkinsRealis) and Rider Levett Bucknall.
“What we're trying to do is engage early, build trust with the contractors, let them see we’re a good client that's going to pay and have honest and fair contracting terms, and work together to try and solve issues post-contract.
“We don't mind if there's inflationary pressures because of commodity prices increasing. But what we're trying to avoid is inflationary prices through just the demand increasing.
“An innovative way that we've implemented this even on our lump-sum contracts – our traditional Redbook or older contracts – is that we have preferred supplier agreement clauses in them,” he adds.
“So, rather than a traditional bill of quantities (BoQ) that has a rate, a quantity, a total, within our rate section we have the material supply rate, the installation rate and then everything else, such as overhead profit. We protect the installation rate, so it's not a percentage of the material; it's a fixed SR100 a square metre to install, for example.
“One of the big frustrations for contractors is [that the supplier has] a material we think they're going to deliver. It's maybe not available, so they submit alternative materials. The client keeps rejecting it – it's not what they want – and it becomes a delay; it's painful.”
McBride gives the example of a pre-approved bathroom sink. Thanks to Roshn’s relationships with key long-term suppliers, the company is able to negotiate better rates for sanitaryware than would be available to a contractor on an ad hoc basis. If the developer’s rates for sinks are better than the BoQ, it splits the savings 50:50 with the contractor.
“The contractors are winning out of that exercise, we're winning out of it and, ultimately, the customers are winning out of it as well, because we’re passing on those savings,” says McBride.
Flexibility
The benefits to contractors and suppliers extend to payment terms. In today’s sellers’ market, vendors are effectively able to pick and choose the clients they want to work for. As a result, clients – including the gigaprojects – have had to introduce more flexible payment terms and develop market reputations for paying on time.
Roshn may lead the pack on this, with an average payment time from invoice to payment of just 13 days in 2024. A decade ago, this would have been unheard of, but it is now increasingly becoming the norm among the gigaprojects.
In addition, like its PIF peers, Roshn has done away with tender fees and tender bonds, viewing them as outdated means of enforcing vendor participation, especially given the tight liquidity and cashflow situation in the projects market in Saudi Arabia.
Will such flexibility ever extend to performance bonds? McBride is sceptical, pointing to the fact that Roshn’s strong relationship with local banks allows to it facilitate credit agreements between contractors and their lenders. Being a gigaproject developer supported by the PIF – and by tacit extension the state – also helps provide the underlining ease of mind for financers.
Nonetheless, Roshn also takes a proactive approach with advanced payments, enabling up to 20% of the total contract value at the initial stage of the project.
“We've been quite clever in how we do this,” says McBride. “We don't go and release 20% straight away. We’ll do 10% and then, when we’ve evidence that you’ve expended that 10% on mobilisation and site establishment, we’ll release the second 10% tranche.”
Subcontractors
One of the chief sticking points in the kingdom’s projects ecosystem in the past decade has been the capacity and capability of its subcontractors.
The payments crisis in 2017-20 forced many main and general contractors to reduce their permanent labour forces, plant and general resources. Wary of a repeat, most have retained their leaner structure and so have turned increasingly to subcontractors for their manpower and delivery requirements.
In theory, this makes sense, but in practice subcontractors in Saudi Arabia are themselves often overstretched in terms of both delivery capacity and labour availability. In turn, they frequently use their own subcontractors, which then also outsource, to the point that specific elements of a project may be completed by companies very far down the supply chain – with the quality issues that this implies.
Roshn’s solution is to ensure any subcontractor on site goes through a vetting process encompassing quality and financial checks, thereby ensuring it has full visibility on every company on site.
Increasingly, Roshn is dealing with suppliers directly, under supply-install contracts. This can create interfacing issues with the main contractors, however, which are ultimately responsible for the project’s delivery.
“We have to be quite careful on that,” McBride says. “We have to go through all the checks and balances during the prequalification process because if we are going to give a subcontractor to a contractor that we're saying is pre-vetted by Roshn, we could be opening the door to lots of claims from the main contractor against us. So, vetting for us is absolutely crucial.”
Roshn is also working with smaller suppliers and subcontractors to help them evolve and grow, so that they can start taking on smaller main contractor roles themselves.
“Not every construction package we award is in the billions of riyals,” says McBride. “Our thinking is to let the big tier-one contractors focus on the multibillion-riyal deals while we encourage the smaller ones to grow as part of our supplier development programme.”
To achieve this, the developer holds events and bootcamps with its vendors to discuss best practices on subjects including health and safety, variation procedures and how to submit good tender returns.
Roshn is also working with smaller suppliers and subcontractors to help them evolve and grow
Building information modelling
Vendor education also extends to the use of building information modelling (BIM) and other construction technologies.
BIM is mandatory on Roshn’s projects, as it is on the other gigaprojects. While use of the technology is standard across almost all main contractors in the region, its take-up among smaller companies in the supply chain has been slower, with firms pointing to the cost of its adoption and integration as a barrier, as well as the fact that some clients, particularly government ones, view it as providing limited benefit.
Roshn’s task in this area is made difficult because its projects are less complex from an engineering and construction perspective.
“We’re building villas; it’s completely different to building stadiums or airports,” McBride says. “Can these contractors build from [two-dimensional] drawings? Yes, of course they can. You're not going to convince a smaller contractor that all of these benefits will make it easier to build because they know how to build. They've been doing it for decades.
“But the savings are in making it easier to procure, savings in the repeatability, and in the change control. If you upskill yourself on a Roshn project, you are building your capability, which you can then [demonstrate] to other clients as proof you can go after bigger and more complex projects. It's something that the whole industry has to get behind.”
Indeed, there is much to learn from Roshn’s approach to delivering its infrastructure and building plans. While the comparatively straightforward nature of its projects means that its procurement strategies may not be suited to those gigaprojects with more iconic designs, for many other developers it is a case study in efficient processes that have proven effective in delivering work on time and to budget.
This is just as well given that Roshn is set to embark on the next stage of its journey, with its focus on the more complex Marafy city development in Jeddah and Roshn Stadium in Riyadh. However, the evidence suggests that from a procurement strategy perspective, it is well-positioned to also make this a success.
Exclusive from Meed
-
-
-
Egypt signs $420m Gabal El-Zeit wind agreements10 June 2026
-
-
Saudi Arabia and Turkiye sign railway agreements10 June 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Uncertainty increases for Shell’s $3.9bn gas project in Iraq11 June 2026

Uncertainty is increasing for phase two of the Basra Gas Company (BGC) expansion project in Iraq amid fallout from the ongoing regional conflict that started when the US and Israel bombed Iran on 28 February.
BGC is a joint venture of the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), London-headquartered Shell (44%) and Japan’s Mitsubishi Corporation (5%).
In September last year, the World Bank’s International Finance Corporation (IFC) signed a $500m investment deal with BGC for the phase two project.
The entire phase two project is estimated to be worth $3.9bn, according to the IFC, which says the money will be spent between 2025 and 2030.
Of the $500m deal that was signed in September, $300m will be provided directly by the IFC, and this was approved by the IFC’s board on 14 January this year, less than two months before the US and Israel attacked Iran.
The subsequent conflict and the disruption to shipping through the Strait of Hormuz have created major obstacles for the project, according to industry sources.
One source said: “Many Western workers that were specialists in the oil and gas sector have now left the country due to security concerns.
“On top of this, it was originally assumed that required equipment for the project could be brought in through the Strait of Hormuz and that operational cash flows could be relied upon to help fund the project.”
Due to the major disruption to shipping crude exports through the Strait of Hormuz, Iraq has had to dramatically reduce oil production in the Basra region, and, as a result, associated gas production has declined as well.
One source said: “Right now, the state-owned oil companies in Iraq are in the midst of a financial crisis and it is unlikely that they will be able to contribute to this project in the way that was originally envisioned.”
The main focus of the BGC phase two expansion project is a new liquefied petroleum gas (LPG) refrigeration train to increase the overall capacity of the upstream facility, where LPG and condensate are obtained through processing of the associated natural gas.
The scope of the project also includes the construction of a new 22-kilometre-long, 132kV overhead transmission line, which will help to meet the energy demand associated with the project.
READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDFGCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.
Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
> AGENDA: Gulf races to reroute trade> EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity> CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends> MEED TOP 100: Middle East stocks recover unevenly> LEADERSHIP: Building the infrastructure that makes net zero possible> TRADE DEAL: UK-GCC trade deal talks concludeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17178691/main.png -
PIF to work with Egypt’s TMG on Saudi real estate schemes11 June 2026
Saudi Arabia’s Public Investment Fund (PIF) and Egyptian real estate conglomerate Talaat Moustafa Group (TMG) have signed a memorandum of understanding (MoU) to explore collaboration on mixed-use real estate projects across PIF-owned developments in Saudi Arabia.
The non-binding agreement covers potential cooperation across the residential, commercial, hospitality and retail sectors, as well as integrated urban environments. PIF said the partnership would accelerate project delivery and value creation across its portfolio.
TMG, which has nearly 55 years of experience developing large-scale integrated cities, communities and hospitality projects across Egypt, brings technical and managerial capacity to the collaboration. The company previously signed an agreement with Saudi Arabia’s National Housing Company (NHC) in early 2024 to develop more than 27,000 residential units at the Banan City project in Riyadh’s Al-Fursan suburb.
The MoU also establishes a framework to attract additional investors to future project phases and is intended to expand private sector participation as investors, partners and suppliers.
PIF said the agreement forms part of its broader strategy to diversify Saudi Arabia’s economy and develop its urban development and livability ecosystem – one of six strategic ecosystems under its 2026-30 strategy. That ecosystem spans housing, retail, office and community spaces and essential services.
The MoU is subject to the satisfaction of certain conditions precedent and receipt of all necessary regulatory and internal approvals.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/17181887/main.png -
Egypt signs $420m Gabal El-Zeit wind agreements10 June 2026
Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.
Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.
The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.
Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.
The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.
The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.
The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.
According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.
The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg -
Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC10 June 2026
Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).
The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.
The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.
In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.
In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg -
Saudi Arabia and Turkiye sign railway agreements10 June 2026
Register for MEED’s 14-day trial access
Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.
Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.
Agreement scope
The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.
More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.
The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.
Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.
Turkish projects
Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.
The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.
READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDFGCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.
Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
> AGENDA: Gulf races to reroute trade> EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity> CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends> MEED TOP 100: Middle East stocks recover unevenly> LEADERSHIP: Building the infrastructure that makes net zero possible> TRADE DEAL: UK-GCC trade deal talks concludeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17169958/main.gif

