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.
Exclusive from Meed
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Saudi Arabia approves new procurement law17 August 2026
Saudi Arabia’s Council of Ministers has approved a new Government Tenders and Procurement Law (GTPL), introducing changes to public procurement procedures and government contracting.
The Ministry of Finance announced the approval on 5 August.
The new law aims to strengthen governance and transparency, improve procurement planning and implementation, and promote fairness and equal opportunities in government contracting.
The changes give government entities greater flexibility in procurement while introducing new provisions that could affect contractors and suppliers, including contract variations, outstanding payments and procurement procedures.
Contract flexibility
According to a Ministry of Finance summary of the key amendments, one of the main changes allows government entities to increase existing contract items by up to 20% of the contract value. Contractor approval is required for increases exceeding 10%, while the total increase from adding new items or increasing existing items cannot exceed 20% of the contract value.
The amendments also introduce measures addressing outstanding payments to contractors. A government entity cannot make a new award when it has outstanding amounts owed to contractors for works or procurement and the required procedures have not been taken, after notification from the Ministry of Finance.
Exceptions apply where non-payment relates to ministry procedures or where the government entity has taken the required action on a claim but does not have sufficient budget allocations.
Single committee
Under the new law, the committees responsible for opening and examining bids will be merged into a single committee.
The maximum value for direct procurement will rise from SR100,000 ($26,700) to SR1m ($267,000) while government entities will be required to explain and document their use of direct procurement.
Direct procurement will also be permitted in cases involving research, development and innovation and certain contracts with professional practitioners.
The amendments reduce the minimum standstill period following a procurement award from five working days to three working days. Government entities will also be able to negotiate where the best bid exceeds the estimated cost plus the permitted contingency.
Localisation
The new framework includes provisions covering industrial localisation and knowledge transfer. The Ministry of Finance said it will issue rules for contracting for these purposes in cooperation with the Local Content and Government Procurement Authority.
A new regulation will also cover research, development and innovation, including tendering and contracting provisions for these activities.
Other changes involve contractors’ exposure to penalties. The maximum delay penalty on contracts, excluding supply contracts, will fall from 20% to 15% of contract value. The maximum penalty for non-performance in continuous-performance contracts will also fall from 20% to 15%.
The value of purchases exempt from providing a final guarantee will rise from SR100,000 ($26,700) to SR300,000 ($80,000). Additional exemptions will apply to contracts with professional practitioners and emergency or urgent cases.
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GCC reviews first phase of water interconnection study17 August 2026
The GCC General Secretariat has completed the first phase of a study examining the feasibility of developing water interconnection projects between GCC member states.
A two-day workshop reviewing the study’s findings concluded on 12 August at the headquarters of the GCC Interconnection Authority (GCCIA) in Dammam, Saudi Arabia.
The GCC General Secretariat organised the workshop in cooperation with GCCIA, with representatives from relevant authorities and experts in water, infrastructure and water security taking part.
Participants reviewed the first phase findings, including an assessment of existing water supply infrastructure and the actual water needs of GCC member states. They also discussed the technical requirements and data needed to complete the study.
The study is intended to identify practical options and feasible solutions for developing a regional water interconnection network. This includes establishing an implementation roadmap.
The initiative aims to improve the GCC states’ ability to respond to emergencies and crises and support continuity of water supplies.
First meeting
The workshop followed a virtual meeting on 22 July between the GCC General Secretariat and Saudi Arabia’s water authorities as part of the study.
That meeting, which also involved consultancy Artelia, reviewed the study’s methodology and implementation stages. These include assessing existing water systems across GCC states, their resilience and emergency readiness, and developing technical options for bilateral water interconnection projects.
In Saudi Arabia, the study is focused primarily on the Eastern Province and Riyadh. It is assessing water production and desalination facilities, transmission pipelines, strategic reservoirs, pumping stations and existing and planned projects.
The study is also examining potential bilateral connections between Saudi Arabia and Bahrain, Kuwait and Qatar, as well as the possibility of a connection with the UAE.
The 22 July meeting also discussed potential connection points and routes, water flow directions and the possibility of designing interconnection pipelines to operate in both directions.
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Neom’s next phase is crucial to green hydrogen pipeline17 August 2026
Commentary
Mark Dowdall
Power & water editorThe completion of construction at Neom Green Hydrogen comes at an important point for Saudi Arabia’s wider hydrogen ambitions.
The project has already shown that a large green hydrogen scheme can secure financing by reaching financial close in 2023 with long-term offtake from Air Products.
With the facility now moving into commissioning ahead of a targeted commercial operations date next year, Neom could soon give lenders and developers real evidence on the performance, costs and risks of a large-scale green hydrogen project.
That could be important for projects still moving through development. Acwa’s Yanbu Green Hydrogen Hub, for example, is targeting commercial operations in 2030.
The project has brought in Germany’s EnBW as a co-developer and minority investor and Japan’s Itochu as a co-developer, investor and offtaker. Acwa is targeting production of 2.5 million tonnes a year of green ammonia from the hub.
Saudi Arabia is also putting more of the framework around the industry in place. In July, the government granted Acwa exclusive rights to export green hydrogen produced in the kingdom along with its derivatives, including green ammonia, methanol and fuels.
However, partnerships and policy support alone will not remove the commercial questions facing projects. Yanbu still needs to progress through development and secure the financing needed to move into construction.
Neom’s financing structure and 30-year offtake may be specific to the project, but its operating performance should give future developers and lenders a clearer reference point for assessing production, reliability and costs.
While Neom will not make the next projects bankable on its own, if it stays on track and performs as expected, it could give lenders a stronger basis for assessing projects that follow. In the long-run, this could be one of its most important contributions.
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Five bid for King Salman Bay construction work17 August 2026

Five teams have submitted bids for the contract covering the marine infrastructure works at King Salman Bay on the Red Sea coast, north of Jeddah.
MEED understands that the bids were submitted on 31 July.
The bidders include:
- Deme / Archirodon (Belgium/Netherlands)
- Van Oord (Netherlands)
- Abdulmohsen Altamimi / NMDC Group (local/UAE)
- Urbacon / Negida Contracting (Qatar/Egypt )
- Modern Building Leaders / China Harbour (local/China)
The scope includes dredging and earthworks, as well as quay wall and edge protection works spanning about 11 kilometres.
King Salman Bay is expected to be a waterfront development that aims to reshape the city’s northern Red Sea frontage into a mixed-use destination, anchored by public-realm improvements and leisure-led development.
Saudi gigaproject developer Red Sea Global (RSG) is developing the project.
The latest development follows RSG’s award of an estimated SR100m ($27m) contract to construct a solid waste management centre at its Red Sea Project. The scope includes four buildings: a materials recycling facility, a transfer station, an administration building and a vehicle maintenance building.
In October last year, MEED reported that RSG had secured a SR6.5bn ($1.7bn) credit facility to further develop Amaala, its luxury tourism destination on Saudi Arabia’s northwestern Red Sea coast.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18800910/main.jpg -
PDO allows more time for Al-Ghubar field project prices17 August 2026

Petroleum Development Oman (PDO) has allowed contractors additional time to prepare commercial bids for a project to build a new facility to handle additional oil production from the Al-Ghubar field in the sultanate.
The Al-Ghubar field is located in the Ghaba Salt Basin at Qarn Alam, within majority state-owned PDO’s Block 6 concession area.
The Al-Ghubar gas-oil gravity drainage (GOGD) facility will be designed as a sour (hydrogen sulphide) facility and is expected to handle maximum oil production of 1,800 standard cubic metres a day (cm/d), a maximum total water flow rate of 10,421 standard cm/d, and maximum gas lift of 256,934 standard cm/d. Production from the planned Al-Ghubar GOGD facility will be exported to PDO’s main oil line.
Following receipt of the technical bids for the project in July, PDO granted contractors additional time – until 16 August – to submit commercial bids for the project, MEED recently reported.
The project operator has now extended the deadline for submitting commercial bids to 1 September, sources told MEED.
PDO floated the tender for the Al-Ghubar GOGD facility project in March, setting an initial bid submission deadline of 4 May, MEED previously reported.
PDO later extended the deadlines for submission of technical and commercial bids to 26 July and 7 August, respectively. Contractors submitted technical proposals by the revised deadline, according to sources.
The following contractors, among others, are understood to be bidding for the project:
- Archirodon (Greece)
- Engineering for the Petroleum & Process Industries (Egypt) / Petrojet (Egypt)
- Jereh (China)
- Kent (UAE)
- Larsen & Toubro Energy Hydrocarbon (India)
The scope of work on the Al-Ghubar GOGD facility project covers the engineering, procurement and construction (EPC) of the following:
- On-plot scope consists of:
- Production separator
- Test separator
- Concentric wash tank
- Wet oil pump
- Water bath heater
- Surge tank
- Gas injection/gas lift compressor (centrifugal)
- Utilities (Instrument Air compressors, chemical injection skids, drain system, vent system)
- Suction scrubber
- Air coolers
- Discharge scrubbers
- Condensate flash drum
- Atmospheric pressure knock-out drum
- Flare system
- Gas heater
- Water disposal pump
- Oil shipping pump
- New 132kV substation and plant substation (housing 6.6kV & 415-Volt switchboard)
- New control room
- Off-plot scope consists of:
- Off-plot pipeline network (bulk header, test header, gathering infrastructure/ gathering line header, instrument air header, water disposal header)
- Two remote manifold stations
- Tie-in connection to main oil line
- Tie-in to gas network pipeline
PDO previously intended to tender the Al-Ghubar GOGD project under its framework structure with selected EPC contractors, but eventually tendered it separately.
PDO is the operator of the Block 6 hydrocarbons concession in Oman, which is the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields, with PDO producing a total of approximately 680,000 barrels a day (b/d) of oil and condensates from those fields.
The Omani government holds a 60% stake in PDO through Energy Development Oman (EDO). The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).
ALSO READ: PDO floats tender for major flare gas monetisation scheme
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