meed-logo

line1 line2 line3
SIGN IN / REGISTER

Contractors asked for best Diriyah Square offers

10 October 2025

 

Register for MEED’s 14-day trial access 

Saudi Arabia’s gigaproject developer Diriyah Company has invited contractors to submit their best and final offers for the contract to carry out construction works on a new package within the Diriyah Square project.

The contract scope covers finishing work and mechanical, electrical and plumbing (MEP) systems for several key assets in Diriyah Square.

These include:

  • Armani Hotel (69 keys)
  • Armani-branded Residences (15 units)
  • Baccarat Hotel (86 keys)
  • Baccarat-branded Residences (9 units)
  • Corinthia Hotel (86 keys)
  • Corinthia-branded Residences (10 units)
  • Fauchon Hotel (85 keys)
  • Orient Express Hotel (86 keys)
  • Offices
  • Imam Mohammed Bin Saud Grand Mosque

MEED understands the bidders include:

  • Nesma & Partners
  • Modern Building Leaders
  • Alec
  • UCC Holding

In July, MEED exclusively reported that Diriyah Company had received bids from contractors for the package.

Diriyah Square lies at the centre of the Diriyah project and will offer hospitality, residential, retail, leisure and entertainment facilities.

Diriyah has made significant progress on several packages of the Diriyah Square project. Italian contractor Webuild announced in July that it had won a $600m contract from Diriyah Company for package three of the project.

The package involves the finishing and MEP works on more than 70 buildings and public spaces within Diriyah Square. These assets cover a total area of about 365,000 square metres (sq m).

Webuild is also working on the underground multi-storey car park at Diriyah Square that will serve the mixed-use district. 

The car park will have a floor area of 1 million sq m, with underground roads and tunnels below Diriyah Square, and a capacity of 10,500 cars.

The parking facility will directly connect commuters to all of Diriyah’s destinations, including Wadi Hanifah, the Western Ring Road and a national motorway. It will be a key component of the City of Riyadh’s arterial road system.

In an official statement on its website, Webuild said construction of the car park is 55% complete.

Diriyah gigaproject

The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

To date, the company has awarded several main construction contracts worth over SR18bn ($5bn). 

Just days after Webuild announced that it had won the $600m contract for package three of the Diriyah Square project, Beijing-headquartered China Harbour Engineering Company won a SR5.7bn ($1.5bn) contract to build the Arena Block assets in the Boulevard Southwest section of the second phase of the Diriyah Gate development (DG2).

In April, Diriyah awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Saud University project located in DG2. The contract was awarded to a joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

Earlier in the same month, a SR5.1bn ($1.3bn) construction deal was awarded to a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting to build the Royal Diriyah Opera House.

Also in April, a consortium of Saudi Arabia-based contractors Almajal Alarabi and Man Construction won an estimated SR915m ($244m) contract to build King Salman Grand Mosque in Diriyah.

Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.

MEED’s October 2025 special report on Saudi Arabia includes:

> COMMENT: Riyadh strives for sustainable growth
> GOVERNMENT: Riyadh confronts rising regional chaos
> ECONOMY: Riyadh looks to adjust investment approach
> BANKING: New funding sources solve Saudi liquidity challenge
> OIL & GAS: Aramco turns attention to strategic projects
> GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
> POWER: Saudi Arabia accelerates power transformation
> WATER: Transmission projects drive Saudi water sector growth
> CONSTRUCTION: Saudi construction pivots from gigaprojects to events
> TRANSPORT: Infrastructure takes centre stage in Saudi strategy
> DATABANK: Saudi Arabia maintains growth momentum

To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/14841925/main.jpg
Yasir Iqbal

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Local firm executing Yasref tail gas treatment project

    14 April 2026

     

    Yanbu Aramco Sinopec Refining Company (Yasref) is overseeing progress on a key project to build a tail gas treatment unit (TGTU) at its crude refinery complex, located in Yanbu on the west coast of Saudi Arabia.

    Yasref is a joint venture in which Saudi Aramco owns the majority 62.5% stake and China Petroleum & Chemical Corporation (Sinopec) owns the other 37.5%. The Yasref refinery was commissioned in 2015 and has a crude oil refining capacity of 400,000 barrels a day (b/d).

    The aim of the project, which Yasref calls the tail gas synergy project, is to significantly reduce emissions of sulphur dioxide (SO₂) and hydrogen sulphide (H₂S) from its production complex. The 'synergy' comes from integrating primary treatment (such as the Claus process, which typically recovers about 95-97% of sulphur) with advanced secondary treatment in a TGTU, to achieve overall sulphur recovery of nearly 99.9%.

    Yasref awarded the main contract for the tail gas synergy project to Jeddah-based contractor Carlo Gavazzi Arabia earlier this year, according to information obtained by MEED Projects, with the contract estimated at $80m.

    The local branch of London-headquartered Berkeley Engineering Consultants is acting as the project’s main consultant, according to MEED Projects.

    The scope of work on Yasref’s tail gas synergy project includes the following:

    • Construction of downstream TGTU with catalytic hydrogenation reactor and amine absorber train
    • Modification of existing sulphur recovery units
    • Construction of acid gas removal units employing amine solvent systems
    • Construction of desulphurisation units including carbonyl sulphide hydrolysis
    • Construction of associated utilities and auxiliary infrastructure: thermal exchangers, power and steam supplies, flare knockout drums
    • Installation of safety and security systems hydrogen sulphide detection, overpressure relief, firewater deluge, access control, safety instrumented systems
    • Integration of emission monitoring and process control instrumentation.

    In April last year, Aramco, Sinopec and Yasref signed a venture framework agreement for a potential petrochemicals expansion of the Yasref refinery complex into a major integrated petrochemicals facility. The project would include a large-scale mixed-feed steam cracker with a capacity of 1.8 million tonnes a year (t/y) and a 1.5 million-t/y aromatics complex, along with associated downstream derivatives.

    MEED understands that the Yasref petrochemicals expansion project, which is also referred to as Yasref+, is part of Aramco’s $100bn liquids-to-chemicals programme.

    The central ambition of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million b/d of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

    ALSO READ: Saudi downstream projects market enters lean period
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16383830/main3043.jpg
    Indrajit Sen
  • Kuwait sets April deadline for $718m drainage tender

    14 April 2026

    Kuwait’s Ministry of Public Works has set a 21 April deadline for a major tender estimated to be worth about KD222m ($718m).

    The tender scope covers the construction of rainwater drainage networks across the residential areas of Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra.

    The Ministry of Public Works floated the tender on 22 March.

    According to regional projects tracker MEED Projects, the works include the construction of a major concrete sewer, three collection basins and extensive stormwater drainage basins.

    Rainwater collection tanks will be connected through an independent network, with outlets to the sea via the Nuwaiseeb exit to manage overflow.

    The infrastructure will also filter pollutants such as oils, minerals and sediments to protect water quality and support environmental sustainability.

    The project aims to reduce surface runoff, prevent street and urban flooding, and improve groundwater recharge.

    UK analytics firm GlobalData expects Kuwait’s construction industry to grow by 5.1% in 2026-29, supported by government investment in the oil and gas sector aimed at raising production, as well as investment in the infrastructure sector.

    In the short term, growth will be boosted by planned expenditure under the 2025-26 budget, which was approved in March 2025.

    The construction industry in Kuwait is expected to record an annual average growth rate of 4.9% in 2026-29, supported by investments in renewable energy, transport, and oil and gas projects.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16383203/main.jpg
    Yasir Iqbal
  • Local firm makes hydrocarbon discovery in Oman’s Block 7

    14 April 2026

    Omani oil and gas exploration and production company Masar Petroleum has announced a discovery in the Hasirah Ridge in the sultanate’s Block 7.

    Masar Petroleum was the inaugural operator to appraise and produce hydrocarbons from the Hasirah reservoir in Block 7 in 2017.

    Building on that experience, Masar Petroleum has now successfully drilled a new exploration well south of its existing discoveries, validating the concept of the Hasirah Ridge — a geological trend 5 kilometres wide and 30km long mapped across Block 7 using 2D seismic data.

    This discovery represents the first step towards unlocking the Ridge’s prospective resource base of 100 million to 380 million barrels, Masar Petroleum said in a statement.

    Following this discovery, a planned 3D seismic survey and exploration and appraisal programme is expected to advance the development of the new resources by the end of 2028.

    First production from this field is expected to come on stream during the last quarter of this year.

    Masar Petroleum plans to rapidly advance appraisal and development opportunities across Block 7.

    “Masar is a proud Omani E&P company that has delivered significant value through a continuous and focused effort on unlocking our potential,” Abdulsattar AlMurshidi, CEO of Masar Petroleum, said.

    ALSO READ: Oman offers five hydrocarbon exploration blocks in new bidding round
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16383075/main2121.jpg
    Indrajit Sen
  • Bidders get more time for Saudi water transmission projects

    14 April 2026

     

    Saudi Arabia’s Water Transmission Company (WTCO) has extended the bid submission deadlines for engineering, procurement and construction (EPC) contracts for two major independent water transmission system projects.

    The Jubail-Buraidah and Ras Mohaisen-Baha-Mecca transmission projects were first tendered last September under the public-private partnership model.

    The deadlines for qualified contractors to submit technical and financial bids had initially been extended to March. 

    The new bid submission deadline for the Jubail-Buraidah project is 30 April.

    Scheduled to begin construction in 2027, the scheme comprises an approximately 348-kilometre-long greenfield water transmission system with a capacity of 840,650 cubic metres a day (cm/d), delivering water from the Ashmasiah reservoirs to cities and towns in Al-Qassim province.

    The project is large by WTCO standards. The company’s second phase of the Khobar-Hofuf system, completed in 2024, was 140km in length, with a capacity exceeding 530,000 cm/d. 

    Ras Mohaisen-Baha-Mecca

    For the Ras Mohaisen-Baha-Mecca water transmission system project, the new bid submission deadline is 7 May.

    The project involves constructing an approximately 325km-long greenfield independent water transmission system with a capacity of 542,000 cm/d, delivering water from Ras Mohaisen to the Adham and Aradhiyah regions.

    Prequalification for both projects closed on 15 January.

    It is understood that local firms Alkhorayef Water & Power Technologies and Mutlaq Al-Ghowairi Contracting Company (MGC) are among those qualified to bid for the Ras Mohaisen contract.

    MGC secured the EPC contract for an even larger independent water transmission pipeline project in June last year.

    The project, also linking Jubail and Buraidah, spans 587km and carries 650,000 cm/d.

    According to regional project tracker MEED Projects, construction works recently commenced on the project, which is estimated to cost about SR8.5bn ($2.2bn).

    WTCO is also planning to tender a contract for phase two of the Ras Mohaisen water transmission system project. This includes laying water transmission pipelines 408km in length with a capacity of 400,000 cm/d. This project is estimated to cost around $600m.

    It is understood that the main contract tender will be issued in 2027.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16383056/main.jpg
    Mark Dowdall
  • Saudi firm wins $64.2m steel pipe orders from Aramco

    14 April 2026

    Saudi Arabia-based Arabian Pipes Company has announced it has won orders from Saudi Aramco to supply steel pipes, totalling SR241m ($64.2m).

    Under the terms of the contracts, Arabian Pipes Company will supply steel pipes over contract durations of nine months and 11 months, commencing from the date of signing.

    “These contract awards reinforce Arabian Pipes Company’s strong position as a key supplier to the kingdom’s energy sector and highlight its continued commitment to supporting major oil and gas infrastructure projects in Saudi Arabia,” the company said in a filing with the Saudi Exchange (Tadawul), where its shares trade.

    The company added that the orders will contribute positively to its financial performance over the contract period.

    Arabian Pipes Company last secured a contract from Aramco in August 2024, when it won an eleven-month steel pipe supply order worth approximately $28.53m.

    Prior to that, in July 2024, the company won a contract worth SR293m ($78.1m) to supply steel pipes for the second expansion phase of Aramco’s Jafurah unconventional gas development. That contract had a duration of 10 months.

    The order was placed as a subcontract by Denys Arabia, the main contractor performing engineering, procurement and construction works on one of the Jafurah second expansion phase project packages.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16382513/main2830.jpg
    Indrajit Sen