meed-logo

line1 line2 line3
SIGN IN / REGISTER

Chinese firms dominate region’s projects market

5 March 2025

 

This package also includes: China construction at pivotal juncture

Chinese construction companies secured over $90bn in contracts in the Middle East and North Africa (Mena) in 2024. Their market share was 26% of the $347bn total for the region, according to regional projects tracker MEED Projects. 

The record-breaking performance underscores the growing influence of Chinese firms in the region’s projects market.

In the past decade, Chinese construction companies have steadily increased their foothold in the region. 

Between 2015 and 2019, the value of contracts won by Chinese firms ranged from $12bn to $23bn, reflecting a solid presence. There was a dip in 2016, when $12bn of awards reflected government spending cuts, and a second occurred in 2020, when lower oil prices and the impact of the Covid-19 pandemic led to awards of $13bn.

Since the pandemic, Chinese contractors’ orderbooks have grown sharply, with contract values rebounding to $26bn in 2021, dipping slightly in 2022 to $22bn. Then, in 2023, contracts awarded to Chinese contractors more than doubled to $51bn, rising even further to reach a record-breaking $90bn in 2024.

Leading players

According to MEED Projects, the top-ranking company by contract value and project volume based on work at the execution stage is China State Construction Engineering Corporation (CSCEC), with 47 projects totalling $23.5bn.

The other active companies are Sepco 3 Electric Power Construction Corporation, with $17.1bn of work across 14 projects; PowerChina, with $17bn across 22 projects; and Hualu Engineering & Technology, with $14bn of work concentrated in just three high-value projects. 

Sinopec and China Energy Engineering Corporation managed 19 and 14 projects, respectively, reflecting their broad engagement in the region.

China Harbour Engineering Company has a more diversified orderbook, with 32 projects worth a total of $8.1bn. Meanwhile, China Petroleum Engineering & Construction Corporation has 27 projects, amounting to $5.7bn.

China’s strengths

The record volumes of work secured by Chinese contractors in recent years can be explained by a combination of factors. 

Saudi Arabia has become the largest market for Chinese contractors in the Mena region

Traditionally, Chinese firms have enjoyed a lower cost base than their international competitors. This comes from lower manpower costs, access to cheaper materials and equipment, and financial support from state banks. 

Culturally, Chinese firms have typically had a different attitude to risk than many other contractors. Instead of seeking to turn a profit on specific projects, Chinese firms have entered markets cautiously and, as their knowledge of the local market grew, built a commanding long-term position.

More recently, the edge that Chinese contractors enjoy has come from the technical experience they have gained from delivering large-scale, complex projects in their domestic market. While in the past Chinese contractors were only considered capable of delivering basic construction work, they now have some of the best project references in the world. 

This was demonstrated in 2024, when CSCEC competed to complete the 1,000-metre-plus tower in Jeddah. The work was eventually given back to the incumbent Saudi Binladin Group, but when CSCEC was pursuing the contract, it boasted a portfolio of several completed super-high-rise and mega-tall projects, exceeding anything its competitors could demonstrate.

Meanwhile, in the UAE, the five groups that competed for the $5.5bn contract for Dubai Metro’s Blue Line extension all had at least one Chinese firm as a consortium member. The eventual winner was a team of Turkiye’s Limak Holding and Mapa Group with the Hong Kong office of China Railway Rolling Stock Corporation.

Oil and gas is another area where expertise has been developed. Twenty years ago, Chinese contractors could not prequalify for work on most oil and gas projects in the region, but today they compete for and win work from Mena’s leading oil companies. For example, Chinese firms won four of the 17 contracts awarded last year for the third expansion phase of Saudi Aramco’s Master Gas System project.

China’s domestic market has created a pool of resources that are being deployed internationally as the outlook for the Chinese construction market shows signs of weakness.

Chinese contractors have also been able to give their clients the solutions they require. 

In North Africa, they have raised finances for projects in countries that in some cases lack funding. This has enabled Chinese companies to develop a steady pipeline of projects across North Africa.

In February this year, China’s Tianchen Engineering Corporation was selected by state-owned Egyptian Petrochemicals Holding Company to execute three contracts to develop industrial projects in Egypt. In Algeria, the Agence Nationale d’Etudes et de la Realisation des Investissements Ferroviaires (Anesrif) awarded a $476m railway line upgrade contract in late 2024 to a joint venture of China Railway Sixth Group and the local Infrarer.

In Saudi Arabia, where funding is less of a concern, Chinese contractors have been able to deploy the large project teams required to deliver Riyadh’s Vision 2030.

Saudi foothold

Saudi Arabia has become the largest market for Chinese contractors in the Mena region, with $43bn of contract awards in 2024. This accounted for nearly 30% of the $143bn total for the kingdom last year.

Saudi Arabia’s Vision 2030 comes at a perfect time for Chinese contractors. Riyadh is hungry for resources to deliver its ever-growing roster of projects, including the five official gigaprojects, the requirements of which are extensive. 

At the top level, they require funding and financial support, but contractors and suppliers are also needed to deliver the projects. The contract award numbers show that Chinese companies looking to expand their international reach have latched onto this opportunity.

For China, Saudi Arabia is not just a volume play. Other markets in Asia and Africa also offer opportunities for Chinese contractors as part of Beijing’s $4tn Belt & Road Initiative, launched in 2013. In recent years, however, the problem for Chinese companies in many of these markets is that the soft loans provided to complete projects cannot be repaid.

The key difference for China when looking at Saudi Arabia is that it sees a reliable market that is financially strong and backed by oil wealth.

Beyond construction, Chinese firms are investing in the Saudi supply chain, which is a pillar of Vision 2030. Earlier this year, China Harbour Engineering Company inaugurated a 200,000-square-metre modular building factory at gigaproject developer Roshn’s Sedra project in Riyadh.

Other investments include a steel plate manufacturing complex in Ras Al-Khair Industrial City, developed by Saudi Aramco, the Public Investment Fund (PIF) and China’s Baosteel; and Lenovo’s Oasis Project, a $2bn technology hub in Riyadh, set to manufacture computer devices and serve as the company’s regional headquarters for the Middle East and Africa.

The economic forces that bring Saudi Arabia and China together are also being encouraged, particularly by the PIF.

Last year, agreements worth up to $50bn were signed with major Chinese financial institutions, including the Agricultural Bank of China, Bank of China and China Construction Bank, to ensure a steady stream of funding for Chinese firms working in the kingdom.

Broader outlook 

As the influence of Chinese contractors grows on the international stage, it has raised concerns. In 2022, the US Department of Defence released the names of what it calls “Chinese military companies”. The list included some of China’s largest contracting companies.

The economic forces that bring Saudi Arabia and China together are also being encouraged, particularly by the Public Investment Fund

In a statement at the time, the Department of Defence said it “is determined to highlight and counter the PRC [People’s Republic of China] Military-Civil Fusion strategy, which supports the modernisation goals of the People’s Liberation Army by ensuring its access to advanced technologies and expertise are acquired and developed by PRC companies, universities and research programmes that appear to be civilian entities”.

The sharp growth in contract awards secured by Chinese contractors in the Mena region since 2022 suggests this concern is limited outside the US.

Looking ahead, Chinese contractors are keen for more work in the Mena region. This was strongly signalled in mid-February, when CSCEC partnered with Cairo-based Al-Organi Group to secure contracts for the $24bn Ras El-Hekma project on Egypt’s Mediterranean coast. 

The 170 million-square-metre master-planned development, backed by Abu Dhabi-based ADQ, is one of the world’s largest ongoing construction projects. The CSCEC-Al-Organi partnership has set a target to secure more than $5bn in contracts on the scheme within the next three years.

With major schemes in Egypt, Saudi Arabia and the rest of the Mena region, Chinese firms will be well positioned to deliver the region’s project ambitions.

China construction at pivotal juncture
 

https://image.digitalinsightresearch.in/uploads/NewsArticle/13451503/main.jpg
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Renewables projects in Oman near completion

    9 March 2026

    Three Oman-based renewable energy projects are nearing completion, according to OQ Alternative Energy (OQAE), part of Oman’s state-backed energy group OQ.

    The Riyah 1, Riyah 2 and North Solar projects have a combined capacity of 330MW and are expected to be operational by the end of the year, the renewable energy firm said in a statement.

    The Riyah 1 and Riyah 2 wind power plants are located in the Amin and West Nimr fields in southern Oman, while the North Solar project is located in northern Oman.

    OQAE owns a 51% share in the three projects, which are being developed in partnership with France’s TotalEnergies for state-backed firm Petroleum Development Oman (PDO).

    The schemes have a combined investment of more than $230m.

    Once commissioned, PDO will purchase the electricity from the plants through long-term power-purchase agreements with the developer team, whose 49% shares are owned by TotalEnergies.

    According to OQAE, the North Oman Solar project is approaching mechanical completion. About 95% of tracker and photovoltaic (PV) module installation has been completed, with full PV module installation expected by mid-March.

    Construction is also progressing on the Riyah wind projects. Seven wind turbines with a tip height of 200 metres have been erected and installation works are continuing on the remaining units.

    All 36 wind turbine generators have arrived in Oman and 19 have been transported from the port to the site. All wind turbine foundations have also been completed, allowing installation works to accelerate.

    OQAE said the projects have achieved about 30% in-country value, with several local companies involved in the supply chain.

    These include Voltamp, Oman Cables, Al-Kiyumi Switchgear and Al-Hassan Switchgear, which supplied electrical equipment and infrastructure components.

    Substation engineering design was carried out by Worley Oman. Muscat-based business conglomerate Khimji Ramdas handled logistics and customs management for turbine components.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15910036/main.jpg
    Mark Dowdall
  • Dubai’s real estate faces a hard test

    9 March 2026

    Commentary
    Yasir Iqbal
    Construction writer

    Register for MEED’s 14-day trial access 

    Dubai entered 2026 from a position of historic strength. Dubai Land Department figures show AED917bn ($250bn) in real estate transactions in 2025 across more than 270,000 deals, with residential prices up 60%-75% since 2021.

    In January 2026, the surge extended. Residential transaction values jumped 44% year-on-year to AED55bn. By most measures, it was Dubai’s strongest property cycle on record.

    Then the drones and missiles arrived.

    Iran has reportedly launched more than 1,000 drones and missiles towards UAE targets in recent days. Most of these attacks were neutralised, but debris struck its major assets, such as the Burj Al-Arab hotel and Dubai International airport. Explosions were also reported near the Fairmont the Palm hotel, the US Consulate and in Dubai Marina. These are not shocks that can be quietly absorbed by a market whose value proposition rests on being “safe”.

    Dubai property has been stress-tested before. In 2008, prices fell 50%-60% and took six years to recover. A 2014-19 correction knocked off another 25%-30%. Covid-19 was sharper but shorter, with the market stabilising within 12-18 months. Dubai tends to correct hard, then rebound quickly once confidence returns.

    What’s different now is the nature of the shock, which is the physical damage to the city itself. The core question is whether Dubai’s safe-harbour identity, which is what drew thousands of millionaires and billions in personal wealth last year, can survive missiles landing across the city for long.

    Markets have reacted negatively, as expected. Emaar and Aldar shares fell about 5% in a few days. Developer bond markets are largely shut to new issuance. Off-plan sales, which are about 65% of 2025 transactions, are most exposed because buyers must commit capital years ahead of planned delivery dates amid uncertainty.

    Fitch had already projected a correction of up to 15% in late 2025-26; UBS ranked Dubai fifth out of 21 cities for bubble risk.

    There are offsets, however. Regional capital flight has historically flowed into Dubai, and a large expatriate base provides steady demand. But it is unwise to assume past recovery patterns will repeat amid the unprecedented times, and a 2026 delivery pipeline of over 131,000 units, which is already running ahead of population growth.

    Dubai now faces two risks at once: a structural correction and a reputational shock. The outcome hinges less on the data than on one variable: how long the conflict lasts, and how close it stays.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15910169/main.jpg
    Yasir Iqbal
  • Bahrain’s Bapco Energies declares force majeure

    9 March 2026

    Register for MEED’s 14-day trial access 

    Bahrain’s state energy conglomerate Bapco Energies has declared force majeure on its group-wide operations following attacks on the Sitra oil refinery in the country.

    In a statement on 9 March, Bapco Energies said its decision to issue the force majeure notice follows “the recent attack on its refinery complex”, without providing details.

    Earlier in the day, Bahrain’s National Communication Centre announced that “the facility in Ma’ameer” – an apparent reference to the refining facility in near Sitra – had been targeted in an Iranian attack, causing a fire to break out. The fire was contained, and “the incident resulted in material damage but caused no injuries or fatalities”, said the statement carried by the official Bahrain News Agency.

    “The company clarified that all local market needs are fully secured according to the proactive plans in place, ensuring the continuity of supplies and meeting local demand without impact,” Bapco Energies said in its statement.

    “Bapco Energies values its relationships with all of its stakeholders and will continue to communicate the latest available information,” it said.

    The Monday morning attack on the Sitra refinery was the second strike on the complex in days. Iranian missiles hit the facility on 5 March, resulting in parts of the refinery being engulfed in flames, although that fire was also put out quickly.

    ALSO READ: Oil prices soar above $100 a barrel as conflict intensifies

    QatarEnergy has also issued force majeure to customers that have been affected by its decision to stop production and shipments of liquefied natural gas (LNG) and associated products.

    “QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” the state enterprise said in a statement on 4 March.

    QatarEnergy announced its decision to halt production of LNG and associated products on 2 March due to military attacks on the company’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in Qatar.

    The following day, the company said it was stopping output of products in the downstream energy value chain, including urea, polymers, methanol, aluminium and other products.

    The state enterprise did not blame Iran for the attacks in either of its statements, but it is understood that its facilities have been hit by drones or missiles launched by Tehran, as it retaliates against Israel, the US and their military bases in the GCC states, further escalating the ongoing conflict.

    ALSO READ:
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15910429/main.jpeg
    Indrajit Sen
  • Wade Adams wins more work in Dubai

    9 March 2026

    Dubai-based Wade Adams Contracting has been awarded two contracts covering infrastructure works in the Nad Al-Sheba and Villanova communities in Dubai.

    The first contract, which was awarded by local real estate developer Dubai Holding, covers roads and infrastructure works for the spine road at its Nad Al-Sheba residential development.

    The scope of work includes the development of the road network, service reservation, storm water drainage, street lighting, traffic control, potable water system and sewage collection system.

    The work also covers the main irrigation system, fire-fighting system, electrical power ducts, telecommunications, spare ducts, irrigation pump station, storm pump station and all utility tie-in connections to adjacent packages.

    The project area covers 2,800 square metres (sq m).

    The other contract covers the infrastructure works for the La Tilia cluster at the Villanova development.

    The scope of work includes ground investigation, demolition and site clearance, earthworks, road network, Dubai Electricity & Water Authority-related works, street lighting, telecommunications, irrigation, drainage, sewerage and spare ducts.

    In August last year, Wade Adams Contracting was awarded a contract to carry out infrastructure works within the Nad Al-Sheba Gardens development in Dubai, as MEED reported.

    The contract includes enabling works, roads and utility services in Zones C, D and H of the development.

    The project spans an area of over 550,000 sq m within Nad Al-Sheba Gardens.

    This latest contract adds to the work awarded to Wade Adams in January, which included two contracts for grading and enabling works in clusters D and H of Nad Al-Sheba Gardens, as well as infrastructure works in Zone E.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15909803/main.jpg
    Yasir Iqbal
  • Roshn signs $177m investment deal with local developer

    9 March 2026

    Saudi gigaproject developer Roshn Group has signed an investment agreement worth over SR650m ($177) with Riyadh-based developer Miskan Real Estate Development Company.

    The agreement will allow the firm to develop a project spanning more than 68,000 square metres (sq m) of land within the Warefa community in Riyadh.

    The latest agreement follows Roshn Group's signing of several land sale and development deals with local developers, worth over SR2bn ($570m).

    The agreements were signed on the sidelines of the recently concluded Restatex Real Estate Exhibition in Riyadh.

    The signed agreements cover residential and commercial projects at Roshn’s Sedra and Warefa communities in Riyadh.

    The client signed three agreements worth over SR1.3bn ($363m) related to its Sedra residential community. These include a SR1bn ($293m) agreement with Jeddah-based developer Arabian Dyar for a 55,000 sq m plot.

    Another agreement was signed with Riyadh-based firm Tiraz Al-Arabia to build integrated commercial facilities within the Sedra development. The value of this deal has yet to be disclosed.

    In a separate announcement, Alramz Real Estate Company said it has signed a SR262m ($70m) agreement to acquire and develop a plot spanning over 14,000 sq m for a 240-unit residential project in Sedra.

    In Warefa, Roshn signed two agreements totalling SR781m ($208m).

    It signed a SR548m ($146m) deal with Sateaa Altameer for Real Estate to develop a site spanning an area of over 108,000 sq m.

    Another SR233m ($62m) agreement was signed with Fayziyya for Real Estate Development for a plot covering 46,000 sq m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15909425/main.png
    Yasir Iqbal