Big construction plans offer hope to Maghreb market
10 July 2023
This package on the Maghreb also includes:
> Morocco plans six stadium projects for 2030 World Cup
> Libya has potential for energy project surge
> Security company licensing system overhauled in Libya
> US firm plans 2MW Morocco hydrogen project
> Italy and Tunisia start $1bn Elmed prequalifications

Based on the total value of work under execution, the Maghreb region remains an active market for construction companies.
According to regional projects tracker MEED Projects, there are $33bn of construction and transport projects at the execution stage in the Maghreb.
Algeria and Morocco are the two most active markets with $19.6bn and $10bn of projects under execution, respectively.
Libya and Tunisia have about $1.4bn of projects under execution each.
The challenge is that many of these projects are long-standing ones, with the average duration of ongoing projects exceeding four-and-a-half years.
At the same time, the value of new project awards remains subdued. Over the past year, there have been $1.2bn of construction and transport awards across the four countries.
During that period, there have only been two contract awards with a value exceeding $100m in the Maghreb region.
The largest is a $403m contract to build a 36.5-kilometre-long stretch of highway in Morocco; the other is a $330m deal to expand a port in Algeria.
A joint venture of Mojazine Groupe and NGE Contracting, Entreprise Houar, secured the Moroccan road scheme. The Ministry of Equipment, Transport, Logistics & Water project involves constructing a highway connecting Guercif to Saka as part of Morocco’s Guercif-Nador motorway project.
China Harbour Engineering Company secured the $330m Algerian contract to expand Arzew port.
Morocco opportunities
With few significant projects awarded over the past year, construction companies are looking to the future for new opportunities.
Morocco’s prospects for major construction projects appear the most promising, driven by two significant developments: the Spain-Morocco tunnel project and the potential hosting of the 2030 World Cup.
In June, Spain approved funding for the Spanish Society for Fixed Communication across the Strait of Gibraltar (Secegsa) to conduct a design study for a tunnel link under the Mediterranean. Planned since 1980, the proposed railway tunnel is 38.7km long and will undoubtedly require the involvement of major international construction companies.
For the World Cup, King Mohammed VI announced Morocco’s plans to join Spain and Portugal’s bid to host the 2030 tournament in March. To facilitate hosting the event, Morocco plans to build a 93,000-seat stadium in Casablanca and upgrade at least five existing stadiums.
The estimated MD2bn ($200m) stadium planned for Casablanca will be built on the outskirts of the city. It will be developed with the involvement of the Ministry of National Education, Preschool & Sports, the Royal Moroccan Football Federation and the local municipalities.
The five stadiums to be upgraded are the Prince Moulay Abdallah stadium in Rabat, the Ibn Battuta stadium in Tangier, and stadiums in Fez, Agadir and Marrakesh. A stadium in Tetouan may also be upgraded.
Algeria rail
In Algeria, the future pipeline of projects is dominated by railway schemes. At the end of 2022, Algeria’s National Agency for the Engineering & Monitoring of the Achievement of Railway Investments (Anesrif) invited national and international companies to express interest in working on its multibillion-dollar rail-building programme. It involves the development of lines that, when complete, will total more than 12,000km in length.
Tunisia viaduct
In Tunisia, the opportunities are more limited. One project that has attracted interest from international construction companies is the design and build of a 2.1km viaduct linking Tunis and Bizerte.
At the end of last year, the Equipment, Housing & Infrastructure Ministry prequalified firms including players from China, France, Turkey, Egypt, Italy and Japan for the estimated $250m scheme. The project is expected to be tendered this year.
The scheme, which is cofinanced by the European Investment Bank and African Development Bank, is split into three sections. The south liaison road, which comprises lot one, includes three interchanges. The main viaduct forms lot two, and the north liaison road, lot three, will feature one interchange.
Longer term, foreign investors may play a leading role in the market. One such investor is the UAE’s Bukhatir Group, which plans to revive a $5bn sports-focused development in northern Tunis. In its first phase, it will include the construction of luxury villas and a golf course.
Libya highway
For Libya, there are high hopes that the market will soon put a decade-long conflict behind it. Over the past year, various moves have indicated that new projects may now be starting to progress.
The most significant of these came at the end of 2022 when it was reported that the Italian government had begun the tendering process for the coastal highway linking the east and west of Libya from Misrata to Ras Jedir, on the border with Tunisia.
For the Maghreb to become a dynamic construction market, the plans for projects in Morocco, Algeria, Tunisia and Libya will need to start moving ahead in 2023 and 2024. If not, the market will remain subdued.
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The Houston-headquartered company was the only bidder to pass the technical evaluation for the Mutriba integrated project management (IPM) contract.
The minimum passing technical evaluation score was 75%.
The full list of bidders was:
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The decision was finalised at a meeting of the Higher Purchase Committee (HPC) of state-owned Kuwait Petroleum Corporation (KPC) on 20 November 2025.
According to a document published earlier this year by KOC, the IPM tender for the Mutriba field aims to “accelerate production through a comprehensive study that includes economic feasibility evaluation, well planning and long-term sustainability strategies”.
The field was originally discovered in 2009.
Commercial production from the Mutriba field started earlier this year, on 15 June, after several wells were connected to production facilities.
The field is located in a relatively undeveloped area in northwest Kuwait and spans more than 230 square kilometres.
The oil at the Mutriba field has unusually high hydrogen sulfide content, which can be as much as 40%.
This presents operational challenges requiring specialised technologies and safety measures.
In order to start producing oil at the field, KOC deployed multiphase pumps to increase hydrocarbon pressure and enable transportation to the nearest Jurassic production facilities in north Kuwait.
The company also built long-distance pipelines stretching 50 to 70 kilometres, using high-grade corrosion-resistant materials engineered to withstand the high hydrogen sulfide levels and ensure long-term reliability.
KOC also commissioned the Mutriba long-term testing facility in northwest Kuwait, with a nameplate capacity of around 5,000 barrels of oil a day (b/d) and 5 million standard cubic feet of gas a day (mmscf/d).
Once this facility was commissioned, production stabilised at 5,000 b/d and 7 mmscf/d.
In documents published earlier this year, KOC said that starting production from the field had “laid a solid foundation” for the IPM contract by generating essential reservoir and surface data that will guide future development.
Future output from the field is expected to range between 80,000 and 120,000 b/d, in addition to approximately 150 mmscf/d of gas.
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Dana Gas makes onshore discovery in Egypt12 December 2025
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UAE-based Dana Gas has made an onshore gas discovery in Egypt’s Nile Delta area, according to a statement from the company.
The discovery was made by the drilling of the North El-Basant 1 exploratory well, and initial well results indicate estimated reserves of 15-25 billion cubic feet of gas.
Production from the reserve is expected to exceed 8 million cubic feet a day (cf/d) once the well is connected to the national network.
The North El-Basant 1 exploratory well was the fourth well in a campaign of 11 development and exploration wells.
The campaign is being executed as part of the company’s $100m investment programme to support domestic gas production, increase reserves and meet growing energy demand.
Earlier this year, Dana Gas completed the drilling of three wells, adding 10 million cf/d.
The programme is expected to increase long-term production and add approximately 80 billion cubic feet of recoverable gas reserves, according to Dana Gas.
Dana Gas expects to start drilling the fifth well in the programme, the Daffodil exploration well, in the first week of January 2026.
Richard Hall, the chief executive of Dana Gas, said: “The latest drilling success reinforces the value of our investment programme in Egypt and highlights the significant remaining potential within the Nile Delta.”
He added: “By increasing local gas production, the programme will help reduce Egypt’s reliance on imported liquefied natural gas (LNG) and fuel oil and is expected to generate more than $1bn in savings for the national economy over time.”
Previously, Dana Gas signed an agreement with state-owned Egyptian Natural Gas Holding Company (EGas) to secure additional acreage under improved fiscal terms, and to accelerate drilling activity.
Hall said: “We appreciate the strong cooperation from EGas and the ministry, and we remain committed to delivering the majority of our planned programme next year.
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In November, a new gas discovery was made in Egypt’s Western Desert region by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation and US-headquartered Apache Corporation.
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SAR to tender new phosphate rail track section in January12 December 2025

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Saudi Arabian Railways (SAR) is expected to float another multibillion-riyal tender to double the tracks on the existing phosphate railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.
MEED understands that the new tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – will be issued in January.
The new tender follows SAR’s issuance of the tender for the project's first phase in November, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.
The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.
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The tender notice was issued in late November, with a bid submission deadline of 20 January 2026.
Switzerland-based engineering firm ARX is the project consultant.
MEED understands that these two packages are the first of four that SAR is expected to tender for the phosphate railway line.
The other packages expected to be tendered shortly include the depot and the systems package.
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Dar Global to develop $4.2bn Oman mixed-use project10 December 2025
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Saudi Arabia-headquartered real estate developer Dar Global has announced that it will develop a mixed-use project in Muscat at an estimated investment of RO1.6bn ($4.2bn).
Dar Global will co-develop the Muscat Marine, Art & Digital District project with Oman's Art District Real Estate Development Company.
The project will cover an area of over 1.5 million square metres (sq m) and will be developed in several phases over 12 years.
The development will comprise a mix of residential communities, cultural venues, marinas, retail spaces, finance and business parks and hotels.
Dar Global, a subsidiary of Dar Al-Arkan, was one of the first Saudi brands to list on the London Stock Exchange.
Dar Al-Arkan established Dar Global in 2017 to focus on developing projects in the Middle East and Europe, including in Dubai, Qatar, Oman, London and the Costa del Sol in southern Spain.
Dar Global has $12bn-worth of projects under development in six countries: the UAE, Oman, Qatar, Saudi Arabia, the UK and Spain.
It completed three developments – the Urban Oasis and Da Vinci towers in Dubai and the Sidra gated community in Bosnia – in 2023.
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The Aida project is being developed as a joint venture with Omran Group and the first phase is expected to be completed in 2027.
UK analytics firm GlobalData forecasts that the Omani construction industry will expand at an annual average growth rate of 4.2% in 2025-28. Growth in the country will be supported by rising government investments in renewable energy, the transport infrastructure and the housing sector, all as part of Oman's Vision 2040 strategy.
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Contract award nears for Saudi Defence Ministry headquarters10 December 2025

Saudi Arabia’s Defence Ministry (MoD) is preparing to award the contract to build a new headquarters building, as part of its P-563 programme in Riyadh.
MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.
The MoD issued the tender in April. The commercial bids were submitted in September, as MEED reported.
Located to the northwest of Riyadh, the P-563 programme includes the development of facilities and infrastructure to support the MoD’s broader initiatives under the kingdom’s Vision 2030 strategy.
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READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDFProspects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges
Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:
> AGENDA 1: Regional rail construction surges ahead> INDUSTRY REPORT 1: Larsen & Toubro climbs EPC contractor ranking> INDUSTRY REPORT 2: Chinese firms expand oil and gas presence> CONSTRUCTION: Aramco Stadium races towards completion> RENEWABLES: UAE moves ahead with $6bn solar and storage project> INTERVIEW: Engie pivots towards renewables projects> BAHRAIN MARKET FOCUS: Manama pursues reform amid strainTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15222401/main.gif

