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. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/10994933/main.gif
Colin Foreman
Related Articles
  • Adnoc funnels billions into boosting gas processing potential

    15 October 2026

     

    Abu Dhabi National Oil Company (Adnoc Group) is accelerating investment in gas processing and associated downstream infrastructure as demand in the UAE rises and the government prioritises lower-carbon energy growth.

    Rising gas consumption in the UAE is being driven by rapid population growth, greater household electrification, expanding industrial bases and demand from gas-intensive downstream segments such as petrochemicals, fertilisers and metals.

    Power generation and water desalination are also key sources of demand, while new industrial zones – as well as data centres supporting the expansion of artificial intelligence (AI) use in the country – add further baseload requirements.

    Adnoc Gas, Adnoc Group’s gas processing subsidiary, is leading the UAE’s push to expand gas processing capacity and is executing a major capital expenditure (capex) programme worth $28bn over 2026-30.

    As part of that capex plan, Adnoc Gas achieved final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.

    Adnoc Gas awarded $8.2bn of engineering, procurement and construction (EPC) contracts for the second and third phases of the RGD programme. These relate to the construction of a new gas processing train at the Habshan complex and a natural gas liquids fractionation train at the Ruwais gas processing facility, respectively.

    Adnoc Gas officially announced the awards, saying it selected China-based Wison Engineering for RGD phase 2 under a $3.9bn contract, while Italy’s Tecnimont was awarded the $4.3bn phase 3 contract.

    Adnoc Gas has also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management contracts in three tranches for phase 1 of the RGD programme in June last year, marking the company’s largest-ever capital investment.

    Across all three phases, Adnoc Gas has committed a total of $13.2bn to the RGD programme.

    Bab Gas Cap development

    Looking ahead, Adnoc Gas is advancing towards FID on the estimated $8bn Bab gas cap development. The project will process up to 1.85 billion cubic feet a day (cf/d) of raw feed gas once Adnoc Group begins extracting reserves from four underdeveloped onshore reservoirs at the Bab field: Thammama A, B and H (projected to yield a combined 1.45 billion cf/d) and Thammama F (projected at 396 million cf/d).

    Because existing trains at the Habshan complex cannot accommodate these supplementary volumes, the project entails building a processing plant approximately 170 kilometres from Abu Dhabi city, alongside pipeline networks and ancillary units.

    Adnoc Gas has split the EPC scope into four packages, with technical bids due on 16 November:

    • Package 1: Main Bab gas cap processing plant
    • Package 2: Early civil works
    • Package 3: Pipeline network
    • Package 4: Non-process facilities and associated infrastructure

    Four contractor consortiums prequalified to bid for the main contracts:

    • Larsen & Toubro Energy Hydrocarbon (India) / Samsung E&A (South Korea)
    • Saipem (Italy) / NMDC Energy (UAE)
    • Technip Energies (France) / JGC Corporation (Japan) / Sinopec (China)
    • Tecnimont (Italy) / China Petroleum Engineering & Construction Corporation 

    Gas pipeline investments

    Adnoc Group continues to invest in projects to enhance its gas transmission networks across the UAE, following its $3.5bn-plus capex on the Estidama programme earlier this decade to expand its sales-gas network in the country.

    Adnoc Gas recently awarded the main contract for a project to build a new pipeline that will supply gas from the Habshan scraper launcher station at its Habshan gas compression complex in Abu Dhabi to the Al-Nouf customer receiving station, for delivery to Emirates Water & Electricity Company (Ewec).

    The proposed 56-inch, 127km pipeline will help the UAE’s state utility, Ewec, meet additional gas demand to power the second phase of an AI data centre in Abu Dhabi, as well as support the relocation of some of its key assets in the Mirfa area of the emirate.

    Adnoc Gas awarded the EPC contract for the project to India-based Kalpataru Projects International.

    Separately, Adnoc is moving ahead with plans to build an oil pipeline network that will transport crude from its main offshore oil processing islands in the Gulf to its onshore crude export terminal at Jebel Dhanna, Abu Dhabi.

    The planned network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport it about 300km inland to the Jebel Dhanna terminal.

    The proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Jebel Dhanna to the emirate of Fujairah, which is expected to be commissioned in 2027.

    Boosting chemicals output

    Meanwhile, following major investments over the past three years to set up specialty chemical plants under the first phase of its chemical derivatives complex in Ruwais Industrial City, Taziz is firming up plans for the second phase of the complex.

    Taziz has partnered with local conglomerate Alpha Dhabi to undertake a joint feasibility and market study and, subject to FIDs and regulatory approvals, the second phase of the Taziz Industrial Chemicals Zone could produce up to 14 new chemicals, with total output capacity of about 2.2 million tonnes a year (t/y).

    The chemicals under study include styrene and polystyrene, acrylic acid and derivatives, polyols, methylene diphenyl diisocyanate (MDI), epoxy resins and linear alpha-olefins. These are widely used across construction, automotive, packaging, consumer goods, infrastructure and advanced manufacturing.

    Taziz, Germany-based chemicals producer Covestro and XRG – all wholly or majority-owned subsidiaries of Adnoc Group –  have launched a joint feasibility study to assess the development of a world-scale MDI plant in Ruwais Industrial City.

    The partners aim to establish a facility in the Taziz Industrial Chemicals Zone with a production capacity of 660,000 t/y of MDI. The study will evaluate the technical, commercial and economic feasibility of the proposed plant, with the aim of informing a future investment decision.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20622502/main.gif
    Indrajit Sen
  • Contractors win $317m Qatar road contracts

    15 October 2026

     

    Qatar’s Public Works Authority (Ashghal) has awarded three road development contracts worth more than QR1.1bn ($317m) to local contractors for works across Qatar.

    The contracts were formally awarded on 1 October, and each has a three-year construction period.

    Qatar Building Engineering Company secured a QR479m ($132m) contract for roads and infrastructure works in the Wadi Al-Banat North Zone 70 area.

    The contract covers constructing and upgrading local roads across several streets in the area. The scope also includes surface-water drainage, foul sewerage and treated sewage effluent networks, as well as connections to existing potable water, power and telecommunications infrastructure.

    The works include an attenuation tank near the Al-Khor Expressway and Link Road 7 to collect surface water and prevent infiltration into the Northern Aquifer.

    The contractor will also carry out groundwater mitigation works at the Al-Khor Expressway’s F1 interchange.

    Surface works include paved medians, including sections along Umm Al-Zubar Road near Lusail Palace, as well as landscaping.

    Qatar Trading & Contracting Group won the QR457m ($126m) contract to complete the remaining works on the C2021/44 roads and infrastructure scheme in Al-Sheehaniya (Package 1).

    The scheme covers site preparation, earthworks, and the construction of roads, pavements, road markings, signage, traffic-calming measures and street lighting.

    The scope also includes surface-water drainage and a complete pumping-station package encompassing civil, structural, mechanical, electrical, instrumentation, control and automation works.

    The contractor will also install a foul sewerage network with house connections across stages one and two, alongside a treated sewage effluent system, irrigation infrastructure, landscaping and landscape lighting.

    JAK Construction was awarded the QR217m ($60m) contract for the remaining works on the C/2021/038 roads and infrastructure project.

    The scope covers completing the remaining civil works, road network works, and key public-utility works across Umm Slal Ali, Umm Ebariya Village, South Umm Al-Amad and North Bu Fessela (Package 1).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20617022/main.jpg
    Yasir Iqbal
  • Kuwait studies two oil export pipelines to bypass Hormuz

    15 October 2026

    State-owned Kuwait Petroleum Corporation is considering developing two oil export pipelines that would bypass the Strait of Hormuz, according to a senior Kuwaiti oil official.

    The pipelines would transport crude oil through Saudi Arabia and the UAE, aiming to diversify Kuwait’s export routes.

    Mohammed Al-Abduljalil, the deputy chief executive for planning and innovation at the KPC subsidiary Kuwait Oil Company, told Asharq Bloomberg that KPC had agreed with its partners in Saudi Arabia and the UAE to conduct feasibility studies for two separate projects.

    The first project extends from Kuwait’s Ahmadi region through Saudi Arabia to the Red Sea coast. The second extends from the Ahmadi region to Fujairah in the UAE.

    The pipelines would build on existing infrastructure and, if the plans are approved, are expected to take around four or five years to complete, Al-Abduljalil said.

    He said the first project, currently under study, would use the route of the existing East-West pipeline, which connects the kingdom’s eastern oil-producing regions to its western coast.

    The second project would follow the UAE’s Habshan-Fujairah pipeline route, enabling oil exports from the Sea of Oman coast, outside the Strait of Hormuz.

    Al-Abduljalil emphasised that both projects remain in a very early stage, noting that the agreement to conduct feasibility studies does not constitute a final investment decision to proceed with implementation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20602978/main.jpg
    Wil Crisp
  • Gulf Spic submits lowest bid for Kuwait booster stations

    15 October 2026

     

    Kuwait-based Gulf Spic General Trading & Contracting Company has submitted the lowest bid for a contract to upgrade gas booster stations in the country.

    Gulf Spic’s bid was worth KD41.2m ($132m) and was one of four bids submitted for the contract.

    The project scope focuses on upgrading gas booster stations 140 and 150 (BS-140 and BS-150).

    The full list of bidders was:

    • Gulf Spic General Trading & Contracting Company, Kuwait – KD41.2m ($132m)
    • Combined Group Contracting Company (CGC), Kuwait  – KD45.5m ($146m)
    • Heavy Engineering Industries & Shipbuilding Company (Heisco), Kuwait – KD50.7m ($163m)
    • Alghanim International General Trading & Contracting Company, Kuwait – KD65.5m ($210m)

    The project was first announced in 2014. The invitation to bid was issued in May this year, and bids were submitted ahead of the 11 October deadline.

    The scope of work on the project covers:

    • Upgrade of BS-140 and BS-150
    • Replacement of dehydration facilities
    • Laying of pipelines
    • Installation of safety system
    • Construction of associated facilities

    Kuwait’s oil and gas sector is currently in the midst of a major crisis, as disruptions to shipping through the Strait of Hormuz have dramatically reduced exported crude oil volumes.

    The disruption is also creating significant challenges for oil and gas construction projects, which normally import equipment and materials through the Strait of Hormuz.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20602827/main.jpg
    Wil Crisp
  • Stability holds as project work continues

    14 October 2026

     

    When Dean McGrail describes the performance of the region’s construction market, he keeps returning to a single word: “stable”.

    After initial concerns that the market would experience a sharp downturn and project cancellations following the onset of conflict in the region, regional president McGrail says WSP has yet to see a single major contract cancelled across its regional portfolio.

    “We have seen some projects re-evaluated – questions around whether the mix between residential and commercial is right, and whether it should be luxury residential,” he says. “But as of today, we have not seen any projects cancelled, which is a real sign of resilience in the market.”

    Under the surface

    That resilience does not mean nothing has changed. McGrail is careful to separate re-evaluation from cancellation. Projects already on site and selling into the market are pressing ahead. It is schemes that have not yet been released for off-plan sales that are being paused and reconsidered.

    “None of the projects we are currently involved in have been put on hold or suspended,” he says. “It is more re-evaluation. Some of that is investor sentiment, but some of it is materials and logistics as well, which people do not necessarily consider.”

    Logistics, in particular, is a pressure that rarely makes the headlines. According to McGrail, shipping disruption has complicated the delivery of heavy equipment on certain schemes. “If we have big pieces of kit coming in – chillers or turbines for a power station – that becomes challenging,” he says.

    The bigger question is viability. And while rising material costs, set against softening sales prices, are forcing developers to reappraise the numbers, for now the balance sits firmly on the side of continuity. McGrail estimates that revalidation and feasibility work accounts for less than 3% of the firm’s current order book, with the remainder progressing as normal.

    “Requests for proposals have not slowed down across any of our disciplines or business units,” he says. “We are definitely seeing an uptick in infrastructure.”

    Infrastructure pivot

    That focus points to where McGrail expects the next few years of growth to come from. Rail sits at the centre of the UAE story, alongside road upgrades and other major developments in Abu Dhabi. In Dubai, the clearest signal of intent is the expansion of Al-Maktoum International airport.

    “Al-Maktoum is a really good indicator of the future direction of travel,” he says. “That is not a project that is slowing down. There has been a commitment to Emirates that it will move there, and it is still progressing.”

    The scale of the airport – and the challenge of relocating an airline the size of Emirates in one move – raises the question of how it will be funded. Here, McGrail returns to the theme of stability and to the mechanism that underpins it.

    “One of the beauties of this region is the ability of government to step in,” he says. “They can fund it. If the private sector does start to suffer, that is the backstop. They push money into infrastructure – roads, rail, airports – which keeps our industry moving.”

    Saudi reset

    In Saudi Arabia, the recalibration story predates the conflict, and McGrail says the change should be read as a strength rather than a retreat.

    “I am positive,” he says. “When the reprioritisation started at the beginning of 2025, having lived through the global financial crisis here, I saw the decision to stop, re-evaluate and reprioritise expenditure as a positive. When Vision 2030 was set, Saudi Arabia had not won Expo or the World Cup, so the reprioritisation was the right thing to do. Saudi Arabia will come out of it stronger. Short-term pain, long-term gain.”

    The nature of the work is shifting with the budget. McGrail sees the kingdom moving towards a model long familiar in the UAE, in which core infrastructure and a handful of landmark buildings are delivered first, before surrounding plots are carved up and sold on.

    “You establish a few key iconic buildings, then the plots on the outside are carved up and they look for external investment to come in and develop them,” he says. “It is no different from Downtown Dubai, where Emaar built the Burj Khalifa and a few buildings, then started selling plots.”

    That approach is increasingly tied to public-private partnerships (PPPs), although McGrail is measured on how far the model will stretch.

    “PPP is definitely becoming more prevalent on some of the larger infrastructure projects, though still not as significant as it was made out to be when they first started talking about it,” he says. He sees industrials, mining, healthcare and schools as a natural fit, rather than PPP becoming a blanket procurement route.

    Aviation is another priority. WSP was recently appointed to the rehabilitation of the existing terminal at Jeddah’s King Abdulaziz International airport, alongside a new terminal. It also recently secured a role on the expansion and upgrade of King Fahd International airport in Dammam.

    “Aviation is definitely a key area of focus for us as we head into the next 12, 24, 36 months,” McGrail says.

    Beyond the two dominant markets, McGrail sees pockets of activity but no challenge to the balance of the portfolio. In Qatar, he points to a recovery taking shape towards the end of last year, with WSP active on the Qatar Children’s Museum and continuing its long-running work with the Public Works Authority (Ashghal). Oman is generating masterplanning work, including reviving the Blue City scheme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20545689/main.gif
    Colin Foreman