Another bumper year for Mena projects

25 December 2024

 

The Middle East’s projects market in 2024 has been fuelled by the same heady cocktail of favourable oil prices, continued investment into oil and gas projects, government infrastructure spending, the energy transition, real estate investment and economic diversification that propelled the total value of awards in 2023 to record levels.

By the end of October 2024, there were $262bn of contract awards across the Middle East and North Africa (Mena) region, according to regional projects tracker MEED Projects. By the end of the year, the 2024 total may top the $290bn recorded in 2023. 

While economic diversification is a priority for governments across the region, oil and gas remains a key sector for project awards. The three largest contract awards in 2024 were from the sector.

The top-ranked contract by value was a $20bn deal awarded to Iranian companies Petropars, Oil Industries Engineering & Construction, Khatam Al-Anbiya Construction Headquarters and Mapna Group for the South Pars gas field pressure-boosting project in Iran by Pars Oil & Gas Company.

Next was the $8bn deal won by China’s Hualu Engineering Technology Company for delivering the Al-Faw refinery in Iraq for Southern Refineries Company.

The third-largest award was a $5.5bn contract won by a joint venture of France’s Technip Energies, Japan’s JGC Corporation and the UAE’s NMDC Group for the Ruwais low-carbon liquefied natural gas terminal project by Abu Dhabi National Oil Company (Adnoc).

These contract awards mean that the oil and gas sector accounted for 32% of the $262bn total that was recorded in the Mena region by the end of October 2024.

Breaking down the sector into oil and gas separately reveals a telling trend. Oil accounts for 12% of awards, while gas accounts for 20%. These numbers reflect the growing importance of gas as a transition fuel that is cleaner and more environmentally friendly than oil, but still provides the dependable energy that many renewable alternatives still do not offer. 

Strong performances

Construction is the second-largest sector after oil and gas, accounting for 23% of awards. Its significance has dropped in 2024 compared to 2023, when it accounted for 32% of contract awards. 

In terms of value, there were $68bn of contract awards in 2024 until the end of October. If the same pace is maintained during November and December, the 2024 total is expected to be about $81bn, which falls short of the 2023 total of $97bn. 

While the total value of contract awards may have dropped, there was the largest construction contract award on record in 2024 – a $4.7bn deal secured by Italian contractor WeBuild for the construction of three dams for the Trojena mountain resort at Saudi Arabia’s Neom gigaproject. 

The power sector accounted for 18% of the total awards during the period, the largest of which was the $5.3bn contract won by Saudi Arabia’s Alfanar Projects and China Electric Power Equipment & Technology Company for the 7,000MW Saudi Central, Western and Southern Regions high-voltage direct current overhead transmission lines project being developed by Saudi Electricity Company.

When analysed by country, Saudi Arabia and the UAE dominate the market, and together they account for over 60% of contract awards across the region in 2024 up to the end of October. 

As the region’s largest economy, it is unsurprising that Saudi Arabia accounts for the largest share, with 38.6%, followed by the UAE, which had 22%. The next most significant country was Iran, which came in a distant third with 8% of contract awards. 

The outsized contribution of Saudi Arabia and the UAE reflects the relative economic stability found in the GCC compared to other countries in the region that are grappling with the impact of conflict and other associated financial pressures. 

Looking beyond the contract awards numbers, the biggest project announcement in 2024 came in April, when Abu Dhabi investment vehicle ADQ released details of plans to invest $35bn in Egypt. The plans involve ADQ acquiring the development rights for Ras El-Hekma, a planned new city on Egypt’s northern Mediterranean coast, for $24bn. 

The development has been billed as having the potential to attract over $150bn in investment.

In October, ADQ appointed its subsidiary Modon Holding as the master developer for Ras El-Hekma. Modon will act as the master developer for the entire development, which covers more than 170 square kilometres (sq km). 

Modon will develop the first phase, which covers 50 sq km, and the remaining 120 sq km will delivered with private developers.

Key partners for delivering the project have already been found. For construction, Modon has signed a framework agreement with Egyptian firm Orascom Construction to serve as the primary contractor for the project’s first phase. 

Modon also signed a deal with Abu Dhabi National Energy Company (Taqa) for developing, financing and operating greenfield utility infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects at the Ras El-Hekma development.

While economic diversification is a priority for governments across the region, oil and gas remains a key sector for project awards

Future prospects

Looking ahead, the performance of the projects market in 2025 will depend  on the favourable macroeconomic conditions remaining in the GCC, which if the other four members of the six-nation bloc are added, accounted for nearly 72% of the Mena region’s total contract awards during the first 10 months of 2024. 

The key metric to watch in 2025 will be the oil price. In mid-November, the price of Brent Crude was $72 a barrel, which is below what many in the region, including Saudi Arabia, require if they are to maintain their project spending plans. 

The outlook for oil prices is uncertain and after oil producers’ group Opec cut its global demand growth forecasts for both 2024 and 2025 for the fourth time, highlighting economic weakness in China, India and other regions, there are concerns prices will dip in 2025. 

The election of Donald Trump as US president adds to those concerns. He has promised to “drill, baby, drill”, and a sharp uptick in output from the US could cause oil prices to soften further.

Trump is also a protectionist and has said ‘tariff’ is his favourite word. Most of his new tariffs are expected to be aimed at China, which could mean that Chinese companies look to other markets that remain open to them, including the Middle East.

The appeal is clear to see. Chinese contractors already command a dominant position in the region – particularly in North Africa and Iraq – and Chinese companies will find great appeal in affluent markets such as Saudi Arabia and the UAE, which can offer large-scale project opportunities.

The other metric that will drive the projects market in 2025 is real estate. In the UAE, much of the ongoing development work is supported by the buoyant property market, particularly in Dubai, which has grown strongly throughout 2024. 

According to a report by data and analytics company Reidin, property sales in the UAE reached AED46.52bn ($12.7bn) in October 2024, marking a 55% year-on-year increase. Demand also remains robust, with 19,500 transactions recorded in October, reflecting a 72% rise compared to the same period in 2023. 

Looking ahead to 2025, Reidin says that the outlook remains optimistic as sustained demand, rising property values and steady inventory turnover are all expected to continue driving growth. 

While the forecast supports a positive outlook for construction in the UAE, those who have seen Dubai’s property market collapse before will be keenly watching the data in 2025.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13024940/main.gif
Colin Foreman
Related Articles
  • Building resilience into infrastructure delivery

    21 October 2026

     

    The regional disruptions earlier this year tested Gulf supply chains, challenging the movement of goods and construction materials and raising questions about the ability of infrastructure programmes to maintain momentum.

    For the UAE Ministry of Energy & Infrastructure, the experience reinforced the importance of the systems that support project delivery, from transport networks and customs procedures to domestic manufacturers and international suppliers.

    “The disruption reinforced an important principle: infrastructure resilience is ultimately about the ability of the national system to continue operating under pressure,” says Mohammed Al-Mansoori, undersecretary for infrastructure and transport affairs.

    Supply resilience

    The ministry worked with ports, customs authorities, transport and rail operators, contractors, suppliers and the private sector to maintain the flow of essential goods and construction materials. It monitored critical materials and project schedules, identified alternative sources and adjusted procurement and delivery arrangements.

    The response included movement exemptions and facilitation measures for more than 6,600 lorries, while rail freight operations increased from approximately one journey a week to as many as seven journeys a day. Priority and green corridors were activated, customs procedures facilitated and critical shipments prioritised at ports.

    According to Al-Mansoori, these measures contributed to an estimated 25% reduction in transport costs, a 40% improvement in customs clearance times and an increase of approximately 15% in port capacity during the response period.

    For infrastructure projects, the ministry worked with local manufacturers and suppliers to identify alternative sources of road and construction materials meeting the required technical specifications and quality standards. This helped reduce reliance on disrupted international supply routes and support ongoing projects.

    The experience also highlighted the value of existing coordination mechanisms and partnerships.

    “It also reinforced a fundamental principle: resilience means ensuring that critical infrastructure delivery does not depend on a single supplier, a single route or a single mode of transport,” Al-Mansoori says.

    The ministry is planning to build on this experience by diversifying suppliers, strengthening domestic manufacturing and improving supply-chain monitoring.

    Resilience is increasingly being incorporated into procurement planning. For critical materials and services, the ministry aims to identify risks early, broaden the pool of qualified suppliers and ensure viable alternatives are available.

    The approach supports the UAE’s wider industrial objectives, including the national in-country value programme, which seeks to direct a greater share of procurement expenditure into the national economy.

    “Our objective is not simply to purchase more locally. It is to help create competitive national supply chains,” Al-Mansoori says.

    Domestic suppliers must be able to meet the technical requirements, quality standards and volumes demanded by major infrastructure programmes. Localisation is therefore about developing competitive industrial capabilities while shortening supply chains, improving responsiveness and encouraging investment.

    “Localisation is not simply a procurement choice; it is an investment in national capability and long-term resilience,” Al-Mansoori says.

    The ministry is also working with contractors to manage pressures from fluctuating material, insurance and transport costs. Its approach combines commercial discipline with early engagement to prevent external pressures from affecting project delivery.

    “Our approach is based on early engagement, transparency and disciplined commercial management,” Al-Mansoori says. “Long-term infrastructure delivery depends on strong contractors as much as it depends on strong contracts.”

    Contractors remain responsible for normal market and contractual risks, but the ministry seeks to assess exceptional pressures objectively, supported by evidence of their impact on costs and schedules. Realistic planning, early procurement and proactive risk management also help maintain momentum.

    “The objective is to strike the right balance between protecting the government’s commercial interests and securing best value for money, while maintaining an efficient, sustainable contracting market capable of continuing to deliver strategic infrastructure projects,” Al-Mansoori says.

    Resilience means ensuring that critical infrastructure delivery does not depend on a single supplier, a single route or a single mode of transport

    Project delivery

    The ministry’s focus on measurable outcomes is reflected in the Emirates Road enhancement project, which involves widening approximately 25 kilometres of Emirates Road from three to five lanes in each direction, alongside major improvements to Interchange No. 7.

    The works are expected to increase road capacity by up to 65% and reduce journey times by up to 45%.

    The project illustrates the ministry’s emphasis on assessing infrastructure by the benefits it delivers, rather than simply the scale of construction.

    “Infrastructure success should be measured by the value it creates – not just by the kilometres we build,” Al-Mansoori says.

    That principle is increasingly important as the UAE balances new construction with the long-term costs of operating and maintaining its assets. Decisions made during planning and construction can influence maintenance requirements, operating costs and performance for decades.

    For Al-Mansoori, resilience, domestic capability and effective delivery are closely connected. Stronger local supply chains can reduce exposure to external shocks, while closer engagement with contractors can help projects withstand cost pressures. 


    Don’t miss MEED’s MENA Construction Summit 2026, taking place under the patronage of the UAE Ministry of Energy & Infrastructure
     Secure your place as an attendee or request the sponsorship deck by clicking here or emailing us at meedevents@meed.com


     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20810056/main.gif
    MEED Editorial
  • Riyadh tenders Expo 2030 Adaptation and Innovation Pavilion

    21 October 2026

     

    Register for MEED’s 14-day trial access 

    Expo 2030 Riyadh has tendered the design-and-build main contract for the Adaptation and Innovation Pavilion in the exhibition’s Technology District.

    The pavilion will be built on a plot of at least 12,710 square metres and will feature a two-level basement, ground-level public areas, an elevated skywalk, visitor experience areas, food and beverage outlets, retail space, VIP facilities, offices, back-of-house areas, exhibition spaces, an amphitheatre and a resonance hall.

    The facility is being designed to accommodate a minimum of 20,000 visitors a day at peak periods, with an anticipated average of about 15,000 visitors a day. The project targets LEED Gold certification.

    The tender was issued on 1 October, with bids due on 6 January 2027.

    The design-and-build contractor will be responsible for completing, reviewing, verifying, coordinating and technically integrating the design, including specialist contractor design portions and coordination with the novated lead design consultant.

    The scope includes completing early works and substructure activities, including grading, bulk earthworks, excavation, cut and fill, soil improvement, raft foundations, reinforced-concrete basement walls, basement columns through to the ground-floor slab, waterproofing, mechanical, electrical and plumbing (MEP) provisions, and backfilling.

    The contractor will also deliver the superstructure and building envelope, including structural works, facade engineering and installation, roofs, waterproofing, external finishes, and permanent facade access and maintenance systems. The internal works will cover front-of-house and back-of-house areas, public and core spaces, internal finishes, fixtures, fixed fittings, joinery, circulation areas, lobbies, stairs, toilets, storage, waste areas and associated builder’s works.

    The building services package includes MEP systems, information and communications technology, extra-low-voltage systems, building management systems, security, fire and life safety systems, specialist lighting and vertical transportation.

    The contract also covers the visitor experience package, including procurement, installation, integration, testing, commissioning and handover of visitor-facing environments, media, immersive and audiovisual technologies, interactive elements, experiential lighting, digital content, interpretive and wayfinding systems, controls and supporting infrastructure.

    Within-plot infrastructure and utilities, landscaping, public realm works, paving, planting, irrigation, signage, street furniture, drainage, stormwater systems, external lighting, security, and fire and life safety systems are also included.

    The contractor will be responsible for procurement, off-site fabrication, construction, testing and commissioning, performance verification, training, operations and maintenance documentation, operational readiness, handover, defects rectification and close-out.

    The main works tender is based on a 60% RIBA Stage 3 design, with the Stage 3 design to be completed to 100% through an addendum.

    Early works and substructure works, as well as the lead design consultant, will be novated to the contractor. Visitor experience works are included as a provisional sum.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20801465/main.jpeg
    Yasir Iqbal
  • Mubadala Bio lands Lilly logistics deal

    21 October 2026

    Mubadala Bio, the life sciences subsidiary of Abu Dhabi state investor Mubadala Investment Company, has signed an agreement with US drugmaker Eli Lilly to localise the packaging and logistics of Lilly’s glucagon-like peptide-1 (GLP-1) medicines in Abu Dhabi.

    The work will take place at a 125,000-square-metre site in Khalifa Economic Zones Abu Dhabi (Kezad), which includes packaging and warehousing facilities. Mubadala Bio said the facilities would strengthen its pharmaceutical contract manufacturing, packaging and logistics capabilities and its ability to serve international clients from the UAE.

    The packaging and logistics activities will be introduced in phases and will be subject to technical, quality and regulatory requirements. The companies did not disclose the value of the agreement or a timeline for the first phase.

    The Emirates Drug Establishment approved Lilly’s oral GLP-1 drug Foundayo (orforglipron) for chronic weight management in April. The companies said this made the UAE the second country in the world to register the medicine.

    In Abu Dhabi, the treatment is available to eligible patients under a weight management programme launched by the Abu Dhabi Department of Health and the Abu Dhabi Public Health Centre in June 2025. The UAE was also an early launch market for Lilly’s injectable treatment Mounjaro (tirzepatide) in August 2022.

    Mubadala launched Mubadala Bio in 2025 to expand domestic drug manufacturing and distribution, with a focus on national drug security. It is one of Mubadala’s designated national champions, set up to support strategic sectors. At launch, its combined facilities covered 110,000 square metres, with an annual capacity of more than 2.5 billion tablets and capsules and 120 million intravenous and injectable units.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20801279/main.jpg
    Colin Foreman
  • Chinese/local joint venture wins Qiddiya stadium facade

    21 October 2026

    Register for MEED’s 14-day trial access 

    A joint venture of China’s Fangda Group and Saudi Arabia’s IKK Group has secured a SR1.15bn ($306m) contract to deliver curtain wall facade works for the Prince Mohammed Bin Salman Stadium in Qiddiya City, Riyadh.  

    The contract was awarded by the joint venture of Spain’s FCC Construccion and local contractor Nesma & Partners, which is building the stadium under an estimated SR15bn ($4bn) main contract awarded by Qiddiya Investment Company (QIC) in October 2024.  

    The IKK-Fangda joint venture will design, supply and install curtain wall façade systems for the main stadium (Lot 1), as well as for the museum and ancillary buildings (Lot 3).

    The contract has an execution period of 863 days.  

    The stadium will seat about 47,000 spectators and will be the home ground for Saudi Pro League clubs Al-Nassr and Al-Hilal.

    The facade award follows the appointment of Elegancia Arabia, a subsidiary of Qatar-based Elegancia MEP and Estithmar Holding, to deliver the stadium’s mechanical, electrical and plumbing works.

    The SR829m ($221m) contract is Elegancia Arabia’s largest award in Saudi Arabia to date.

    The project is being designed by US-based consultant Populous.

    It is among the venues planned for the 2034 Fifa World Cup and will also host the Saudi King Cup, the AFC Asian Cup and the 2034 Asian Games.  

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20799367/main.jpg
    Yasir Iqbal
  • Zamil Steel wins $82m Qiddiya tennis centre contract

    21 October 2026

    Advanced Building Industries Company (Senaat) has announced that its subsidiary, Zamil Structural Steel Company (Zamil Steel), has secured a SR308m ($82m) contract for the National Tennis Centre in Qiddiya City, Riyadh.  

    The 19-month contract was awarded by the joint venture of France’s Bouygues Batiment International and local contractor Almabani General Contractors Company.  

    Zamil Steel’s scope includes the fabrication, supply and installation of structural steel and external facades for the scheme.   

    MEED reported in June that the Bouygues Batiment International-Almabani joint venture had started construction of the National Tennis Centre.  

    The development will include 30 tennis courts, comprising 28 hard courts and two clay courts. The main Centre Court will seat 15,000 spectators and feature a retractable roof.

    The facility is being designed to meet standards set by the Association of Tennis Professionals, the Women’s Tennis Association and the International Tennis Federation.  

    The development will also include an 8,000-seat multipurpose arena with a retractable roof, known as Court 3. Other facilities include a 5,000-seat Court 1, a 2,000-seat Court 2, six competition courts, six indoor courts and 14 practice courts. Each outdoor match court will provide 450 seats.  

    Total seating capacity across the complex will be 33,000. US-based architect Populous designed the project.  

    Qiddiya Investment Company officially announced the project on 15 June. The developer has said the centre will be the region’s largest tennis complex and will host international tennis events.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20799055/main.jpg
    Yasir Iqbal