Related Articles

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  Saudi Arabia shuts East-West oil pipeline after drone strikes

  14 September 2026

  Saudi Arabia has temporarily closed its 1,200-kilometre East-West pipeline after it was targeted by multiple drones launched from Iraq, disrupting one of the kingdom’s most critical energy export routes and threatening global oil supplies already strained by conflict across the region.

  The Ministry of Energy said the pipeline, which connects the Abqaiq oil field in the east to the Red Sea port of Yanbu, was hit in the Riyadh and Medina regions on 12 September. Specialised teams have begun securing the facility and assessing damage. A Foreign Ministry statement said the attack resulted in injuries and “some damage that is currently being addressed”.

  The closure removes about 4 million barrels a day from the global market, representing 4% of world oil supply. The pipeline’s role has become increasingly critical since the US-Iran conflict forced a near-complete shutdown of flows through the Strait of Hormuz in March.

  Saudi Arabia has been using the East-West route to bypass the chokepoint, but the assault has left the kingdom dependent on substantially reduced Hormuz exports and Red Sea shipping routes now threatened by Iran-backed Houthi forces in Yemen.

  Iraqi Prime Minister Ali Al-Zaidi’s office confirmed the drone strike on the East-West Pipeline originated in the Maysan province, which borders Iran. The government formally condemned the attack, announced an investigation into the Maysan operations command and dismissed its commander. No armed group has claimed responsibility, but security analysts attribute the strike to Iran-backed militias operating from Iraqi territory.

  Riyadh said it was not retaliating “at this stage”, choosing instead to support Iraqi efforts to prevent further strikes from its territory. 

  The attack comes amid wider regional upheaval. Houthi forces have rapidly advanced along Yemen’s coast, seizing the strategic Mokha port and the Zuqar Island in the southern Red Sea, moving closer to the Bab El-Mandab strait. Saudi authorities said the group simultaneously launched dozens of drones and missiles at the southern kingdom on 11 September, striking civilian and economic targets and injuring 73 people.

  Oil analysts and traders reported that Yanbu’s storage capacity, estimated at around 35 million barrels, now holds supplies sufficient for only five to seven days of exports without pipeline operations. Storage facilities at Egypt’s Ain Sokhna and Sidi Kerir ports have similar constraints. Repair timelines remain uncertain, with sources citing estimates ranging from days to five or six weeks.

  The dual disruption of both the pipeline and Red Sea shipping has compressed global energy supplies. Energy analysts warned that without pipeline repairs, oil prices could return to the $120-a-barrel peak reached earlier in the regional conflict.

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  Colin Foreman
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  WSP wins Dammam airport expansion design works

  14 September 2026

  WSP Middle East, the regional arm of Canadian engineering firm WSP, has won a design contract to expand King Fahd International airport in Dammam, Saudi Arabia.

  Dammam Airports Company (DACO) awarded the contract.

  The scope includes designing passenger terminal expansions, facility upgrades, and improvements to airport entrances and access roads.

  It also covers the development of baggage-handling systems, digital services and other associated infrastructure.

  The expansion works will be carried out in line with the airport’s approved masterplan, which targets serving more than 19 million passengers a year by 2030.

  The plan also aims to increase air cargo capacity to more than 600,000 tonnes a year and raise aircraft operational capacity to 77 movements per hour, supported by comprehensive expansions to infrastructure, runways and general aviation facilities.

  This contract forms part of DACO’s ongoing efforts to strengthen the airport ecosystem, enhance operational efficiency, and support the Aviation Programme and Saudi Vision 2030 objectives.

  King Fahd International airport is the kingdom’s third-largest airport by annual passenger traffic, behind Jeddah’s King Abdulaziz International and Riyadh’s King Khaled International.

  DACO was formed in July 2017 to manage, operate and develop King Fahd International airport in Saudi Arabia’s Eastern Province.

  It was established as part of the broader Saudi Vision 2030 privatisation and economic reform programme to corporatise the aviation sector, increase operational efficiency, upgrade infrastructure, and transition state-run airports into commercially viable, world-class regional aviation hubs.

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  Yasir Iqbal
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  Dubai seeks contractors for multibillion-dollar road scheme

  14 September 2026

  

   

  Register for MEED’s 14-day trial access 

  Dubai’s Roads & Transport Authority (RTA) is seeking contractors to design and build a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

  MEED understands that the scope covers the construction of about 30 kilometres (km) of works.

  These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

  The RTA floated the expression of interest notice to contractors in early September, with a submission deadline of 10 October.

  The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

  Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

  The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through-traffic while the existing at-grade lanes served local access.

  The plans ultimately progressed as standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

  The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

  Planning for growth

  Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

  In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

  In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

  The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

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  Yasir Iqbal
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  Kuwait postpones contractor meeting for $3.3bn gas project

  14 September 2026

  

   

  State-owned Kuwait Gulf Oil Company (KGOC) has rescheduled a key meeting about the development of the planned onshore gas plant next to the Al-Zour refinery, according to industry sources.

  The project was tendered last month with an estimated budget of $3.3bn and a bid deadline of 29 December 2026.

  If it goes ahead as planned, the project is expected to be the country’s biggest oil and gas sector contract award in more than a decade.

  The meeting with contractors is now scheduled for 14 October 2026. Previously, it was scheduled to take place on 14 September.

  Sources said contractors have not been told why the meeting date was pushed back.

  While the date for the initial meeting with contractors has been postponed, the bid deadline of 29 December 2026 remains the same, according to industry sources.

  The proposed plant will have the capacity to process up to 632 million cubic feet a day of gas and 60,000 b/d a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

  In February, MEED reported that at least seven companies had shown interest in participating in the tender.

  Contractors that sent representatives to previous meetings to discuss the project include:

  • Samsung E&A (South Korea)
  • Larsen & Toubro (India)
  • Tecnicas Reunidas (Spain)
  • Saipem (Italy)
  • Hyundai Engineering & Construction (South Korea)
  • Hyundai Engineering Company (South Korea)
  • JGC (Japan)

  The tender process is using a fast-track model, which means that Kuwait’s Central Agency for Public Tenders (Capt) will not be involved in the tender process.

  Capt typically reviews the technical and commercial evaluations of bids and verifies that the bidding process is competitive.

  It is understood that not requiring Capt to approve this tender is expected to speed up the tender process.

  Iran disputes ownership of the field, referring to it as Arash.

  Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

  The Dorra field’s close proximity to Iran could make development difficult due to current security concerns.

  The offshore elements of the wider Dorra field development project are expected to be especially difficult to protect from attacks from Iran.

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  Wil Crisp
• 
  Riyadh looks to reset its regional defence outlook

  11 September 2026

  

   

  Saudi Arabia may not have suffered as many Iranian missile and drone strikes as some of its neighbours – Bahrain, Jordan and Kuwait have all had to contend with many more during this year’s conflict – but it still feels exposed. Like other Gulf countries, Riyadh has learnt that its deep defence and economic ties to the US, which were meant to provide security and deter aggressors, have in some ways merely made it a target for Tehran.

  The threats are not just from direct Iranian strikes, though. In late July, Saudi Arabia joined with the US to attack Iraqi militia groups alleged to have targeted Saudi energy sites in the preceding days.

  Yemen’s Houthis are also re-emerging as a serious threat. After several years in which the conflict in Yemen was largely in abeyance, the Yemeni group has in recent months repeatedly launched attacks on Saudi airports and refineries, as well as on ships passing through the Bab El-Mandeb Strait.

  From mid-July to mid-August, the Houthis carried out 16 attacks against Saudi assets, including seven oil facilities and six oil tankers, according to the conflict monitoring group Armed Conflict Location & Event Data (ACLED). Riyadh responded with hits on Houthi targets; most notably on weapons depots and other infrastructure in the port city of Hodeidah on 24 July.

  The Houthis stepped up their attacks on 8 August, firing dozens of ballistic missiles and drones at Saudi Aramco facilities in Abha, Jaqzam, Khamis Mushait and Najran. The Saudi authorities said 73 civilians were injured. Major General Turki Al-Malki, a spokesman for the Saudi-dominated Coalition to Support Legitimacy in Yemen, described the Houthi attacks as “a dangerous escalation” and said Riyadh would take “all necessary operational measures” to deter further attacks.

  So far, a return to a full-scale war in Yemen has been avoided, but ACLED’s Middle East analyst Sherwan Hindreen Ali warned in a report in August that, if both sides continue to escalate, the “chances for renewed full-scale war increase exponentially”.

  New partnerships

  The increasingly volatile nature of the region has prompted Riyadh to reevaluate its approach to security and to develop new defence partnerships with allies.

  The first major step came in late July, when Saudi Arabia launched the Multinational Maritime Defence Coalition with an initial band of 13 other countries; more are expected to sign up in the coming months. The group is designed to protect shipping in the Red Sea, the Gulf of Aden and nearby waters, with Saudi Arabia’s Rear Admiral Abdullah Bin Salem Al-Shehri as its commander.

  That was followed by a trilateral mutual defence pact with Pakistan and Turkiye signed in Mecca on 7 August. Their joint defence agreement includes a provision that an attack on any one of them will be considered an attack on all three. At a meeting in Istanbul on 31 August, the partners agreed to set up a secretariat in Riyadh.

  There have been other, smaller steps too. In late August, Saudi Arabia signed an agreement to expand defence co-operation with France, during a visit by Crown Prince Mohammed Bin Salman Al-Saud to Paris (pictured). And on 1 September, Saudi Arabia’s National Cybersecurity Authority signed a memorandum of understanding with Pakistan to strengthen cybersecurity cooperation.

  Diplomatic tracks

  For Riyadh, enhancing its security capabilities to deter Iran and the Islamic Republic’s allies in Yemen and Iraq is a critical issue. However, the Iran war looks unlikely to be resolved by military means alone. Indeed, Saudi officials have repeatedly emphasised their preference for a negotiated, diplomatic solution to the conflict.

  The regional diplomatic efforts have been spearheaded by Pakistan, Oman and Qatar, but Saudi Foreign Minister Prince Faisal Bin Farhan Bin Abdullah Al-Saud has also spoken on several occasions to his Iranian counterpart Abbas Araghchi – most recently on 6 September.

  One issue where Riyadh is less keen to publicly engage is in relation to Israel. When Saudi Arabia signed an agreement with the US in July covering the development of a civil nuclear power programme, the deal made no mention of Riyadh having to normalise links with Israel – a condition that previous US administrations had insisted on. That was a notable win for Saudi Arabia, although it was thrown into doubt when US President Donald Trump insisted in the following days that the deal would only proceed if Riyadh signed up to the Abraham Accords.

  Trump sent the proposed nuclear deal to the US Congress for approval in late August, but administration officials reiterated at the time that the pact would only ‌go into effect if Riyadh normalised relations with Israel – something that, in the current environment, looks extremely unlikely.

  Alliance strains

  Saudi Arabia’s close ties with the US have been a central element in the kingdom’s regional positioning for decades – but the combination of the Iran war and the volatile nature of the Trump administration means the strength and direction of those ties are now a matter of speculation.  

  The situation is made more complex by the rivalry between Riyadh and Abu Dhabi, with their differing approaches to regional conflicts and diplomatic initiatives creating a strain within the GCC bloc.

  Both sides have tried to change the narrative. In July, Saudi Media Minister Salman Al-Dosary and the UAE’s National Media Authority (NMA) chairman Abdulla Bin Mohammed Al-Hamed issued similar statements on social media denying any rupture between the two governments, with Al-Dosary writing that the countries were “united by a shared history and heritage, and wise leadership”.

  On the broader regional stage, Saudi Arabia remains unable to fully insulate itself against the Iran war. On 31 August, the Saudi oil tanker SIDR was hit by Iranian projectiles while transiting the Strait of Hormuz, resulting in the death of two crew members. On the same day, another Saudi oil tanker, the Amzan, was hit by Yemen’s Houthis off the coast of Yanbu, in the Red Sea.

  Coupled with the wave of Houthi attacks on 8 September, it suggests that Saudi Arabia’s efforts to create new layers of deterrence have yet to make their mark.

  Photo credit: SPA

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  MEED’s October special report on Saudi Arabia also includes:

  > ECONOMY: Conflict bolsters case for Saudi economic diversification
  > BANKING: Saudi lenders readjust to lower lending and deposit climate
  > POWER: Saudi Arabia’s power award activity slows
  > WATER: Saudi water sector hits sharp slowdown
  > CONSTRUCTION: Saudi construction defies the headwinds
  > TRANSPORT: Saudi infrastructure pushes forward amid conflict

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  Dominic Dudley