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
  • Aramco issues tender for gas pipeline at Ras Tanura refinery

    19 June 2026

     

    Register for MEED’s 14-day trial access 

    Contractors are preparing bids for a Saudi Aramco tender involving the replacement of a pipeline that is part of the Gas Line Abqaiq – Ras Tanura (GART) transmission network.

    The GART grid transports associated gas and natural gas liquids (NGL) from the Abqaiq oil processing complex as feedstock, northwards to the Ras Tanura refinery in Saudi Arabia’s Eastern Province.

    The aim of the project is to replace the GART-22 pipeline that connects the Juaymah export terminal on the Gulf coast in the Eastern Province to the Ras Tanura refinery, to ensure reliable fuel gas supply and meet ongoing demand.

    The basic scope of work on the project is to install a new, 24-inch pipeline system that will replace the GART-22 line and the abandoned GART-24 line. It will cover a distance of 18 kilometres between Juaymah and the Ras Tanura terminal.

    The scope also includes the installation of associated scraper trap facilities (launcher and receiver), pressure control valves, motor-operated valves and gas detection and sampling systems.

    Aramco issued the tender for the project in May and has set a deadline of 30 June for contractors to submit proposals.

    The following contractors, among others, are understood to be bidding for the project:

    • ACE Pipeline Arabia
    • Combined Group Contracting Company
    • Gas Arabian Services Company
    • Max Streicher Saudi Arabia
    • National Basics Company
    • Saad Ali Alessa Group
    • Sicim
    • Sinopec Engineering Group Saudi
    • Tecton Engineering & Construction
    Ras Tanura refinery complex

    The Ras Tanura refinery is the oldest, and one of the largest, crude oil refineries in Saudi Arabia. The complex has a refining capacity of 550,000 barrels a day (b/d).

    The facility also has a 305,000 b/d NGL processing facility, a 960,000 b/d crude stabilisation facility, combined steam and gas turbine electrical power generation plants with a summer capacity of 145MW and a winter capacity of 158MW, and a combined 150-pound and 600-pound steam capacity of 6,217 million pounds an hour.

    It has 75 crude oil and products storage tanks with a combined capacity of 5.8 million barrels.

    The Ras Tanura refinery’s major facilities include a 325,000 b/d crude distillation unit, a 225,000 b/d gas condensate distillation unit, a 50,000 b/d hydrocracker and 107,000 b/d of catalytic reforming capacity.

    The facility is Aramco’s only refinery to contain a Visbreaker processing unit, which has a 60,000 b/d capacity.

    The Visbreaker reduces the quantity of residual oil produced in the distillation of crude oil and increases the yield of more valuable middle distillates, heating oil and diesel.

    The refinery complex also produces 17,000 b/d of asphalt, more than any other refinery in Saudi Arabia.

    Ras Tanura receives crude feedstock from the Abqaiq, Safaniya and Manifa oil field developments.

    Crude is typically transferred to Ras Tanura through a pipeline and can also be supplied by ship.

    Most of Ras Tanura’s production is transferred to the Dhahran bulk plant for domestic use, while some products are exported from the nearby Ras Tanura shipping terminal.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17332850/main.JPG
    Indrajit Sen
  • Bahrain opens bids for 1.2GW Sitra IWPP

    19 June 2026

    Register for MEED’s 14-day trial access 

    Two developers have submitted bids for the 1.2GW Sitra independent water and power plant (IWPP), according to details published by Bahrain’s Tender Board.

    The offers were made by Abu Dhabi National Energy Company (Taqa) and Saudi Arabia's Acwa. The technical element of the bid was opened on 18 June.

    The Sitra IWPP is a combined-cycle gas turbine plant and is expected to have a generation capacity of about 1,200MW of electricity. The project’s seawater reverse osmosis desalination facility will have a production capacity of 30 million imperial gallons a day. 

    The build, own and operate project is being procured by Bahrain’s Electricity & Water Authority (EWA) under a public-private partnership framework for 20-25 years.

    According to a source, "evaluation will be done on technical bids and put up to a tender board for approval".

    Financials will be opened only after the technical element has been approved.

    Other major IWPP projects in the region have also recorded relatively low bidder particpation in recent weeks, reflecting the level of investment required for such projects.

    Earlier this month, MEED reported that just two bids had been received for the first phase of Kuwait’s Al-Khairan IWPP project.

    Three consortiums and two individual companies had previously prequalified to participate in the tender.

    In 2024, Bahrian's EWA received statements of qualifications from nine firms interested in bidding for the Sitra IWPP. Seven international companies and consortiums were then prequalified to bid last year.

    Sitra grid works

    Meanwhile, firms are still awaiting awards for two separate contracts related to the establishment of new Sitra 400kV grid substations.

    The first contract involves transformer and reactor works for the establishment of the substations.

    Switzerland-headquartered Hitachi Energy submitted the lowest bid of BD17.8m ($47.1m). Germany’s Siemens Energy submitted an offer of BD23.9m ($63.2m).

    The second contract involves 400kV and 220kV feeder cable works for the same Sitra 400kV grid substations. Three South Korean companies previously bid for the contract.

    Bids for both contracts were opened in March.

    In September, Siemens Energy won a contract worth BD48.1m ($127m) to build a 400kV transmission substation in Sitra to provide the transmission link for the planned Sitra IWPP.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17329853/main.jpg
    Mark Dowdall
  • Jordan starts international stadium construction works

    18 June 2026

    Register for MEED’s 14-day trial access 

    Jordan has started preliminary excavation and site preparation work at its Al-Hussein Bin Abdullah II International Stadium, located east of the capital city of Amman.

    The project is part of the first phase of the Amra City development master plan.

    The development is being implemented by Jordan Cities & Facilities Development Company, a Jordan Investment Fund-owned company.

    The main works are expected to begin early next year, with the stadium slated for completion in 2029.

    The project will cover an area of about 1 million square metres and the stadium will have a capacity of 50,000 spectators.

    The stadium is being built within the Amra City development, which is located about 40 kilometres (km) from downtown Amman and 35km from Zarqa City and Queen Alia International airport.

    The project forms part of Jordan's Economic Modernisation Vision (EMV) 2023-25.

    The EMV – Amman’s flagship reform programme – aims to increase real income per capita by an average of 3% annually, create 1 million jobs, and more than double the country’s GDP over the next decade.

    The strategy envisages a leading role for the private sector, which is expected to account for 73% of the estimated $58.8bn investment required.

    To achieve these targets, a substantial pipeline of public-private partnership (PPP) projects is planned in sectors including water desalination, school construction, clean energy, green hydrogen, transport and road infrastructure.

    Last year, the PPP unit at the Investment Ministry said it was targeting seven key PPP projects in 2025.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17325757/main.png
    Yasir Iqbal
  • Chinese firms win $506m Saudi housing project deals

    18 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Municipalities & Housing Ministry has awarded contracts worth over SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    The first contract has been awarded to China Architectural Construction Corporation for the construction of 2,010 housing units at the Al-Ruba residential project in Riyadh. The contract value is SR875m ($233m).

    The other contract has been awarded to China State Construction Engineering Corporation for the Al-Rasha Al-Faisaliah residential project in Dammam. The project comprises 2,426 housing units, and the contract value is over SR1bn ($266m).

    The contracts were announced during the official visit of Majed Al-Hogail, Saudi Municipalities & Housing Minister, to China, where he also signed six memorandums of understanding (MoUs) between Saudi and Chinese firms. The MoUs aim to accelerate housing development, localise advanced construction technologies and enhance public-private sector collaboration.

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and to become one of the 10 wealthiest cities in the world.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17322994/main.png
    Yasir Iqbal
  • Diriyah awards $727m Waldorf Astoria superblock deal

    17 June 2026

     

    Saudi gigaproject developer Diriyah Company has awarded a SR2.7bn ($727m) contract for the main construction works on the development’s Waldorf Astoria superblock.

    The contract was awarded to the joint venture of Hassan Allam Construction Saudi and UCC Saudi, the local branch of Qatar’s Urbacon Holding.

    The Waldorf Astoria superblock is a mixed-use development comprising a Waldorf Astoria hotel, Waldorf Astoria-branded residences, commercial and residential facilities, and office space.

    The Waldorf Astoria hotel will feature 200 keys, while the residential component will comprise 47 branded residences.

    The project is located on the Grand Boulevard South and Northern Arterial Road in the Boulevard Northwestern district at Diriyah Gate 2. 

    Diriyah Company tendered the contract in November last year, with submissions due in January, as MEED reported.

    Diriyah Company Group CEO Jerry Inzerillo said: “We are delighted to announce this latest major construction contract for the Waldorf Astoria superblock as we continue to progress at pace across the Diriyah development area. The Waldorf Astoria will be a world-class addition to our growing portfolio of globally renowned hospitality brands, further strengthening Diriyah’s appeal as a globally significant destination that offers world-class hospitality and lifestyle experiences.

    “Together with our partners, we look forward to delivering another landmark development that supports the kingdom’s Vision 2030 ambitions and contributes to the continued growth and success of Diriyah.”

    Hassan Allam, chairman and CEO of Hassan Allam Holding, said: “We are proud to support the development of one of the kingdom’s most ambitious and transformative destinations and to continue our partnership with Diriyah Company in bringing its vision to life.

    “Drawing on more than 90 years of experience across the Mena region, we remain committed to delivering the highest standards of quality and excellence on landmark projects that are helping shape the kingdom’s future.”

    Ramez Al-Khayyat, UCC Holding president and group CEO, said: “Being awarded this contract by Diriyah Company marks another important milestone in our growing partnership and reinforces our shared commitment to delivering world-class developments across the kingdom. This project builds on our ongoing collaboration in Diriyah, including the delivery of four luxury hotels and the Royal Diriyah Equestrian and Polo Club in Wadi Safar.

    “We value the opportunity to contribute once again to one of Saudi Arabia’s most ambitious and prestigious urban development destinations, supporting the vision of creating a world-class cultural, hospitality and lifestyle hub.”

    The latest award follows Diriyah Company’s award of an estimated SR730m ($195m) construction contract for civic quarter buildings within the Diriyah development to local contractor Al-Rashid Trading & Contracting Company (RTCC).

    In April, Diriyah announced a SR1.84bn ($490m) construction contract to build the Saudi Arabia Museum of Contemporary Art (SAMoCA) within the Diriyah development. The contract was awarded to a consortium of Egyptian contractor Hassan Allam Construction Saudi and Saudi Arabia’s Albawani.

    In March, Diriyah Company awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock in the DG2 area.

    The Pendry superblock includes the construction of the Pendry Hotel alongside residential and commercial assets. The package will cover 75,365 square metres and is located in the northwestern district of the DG2 area.

    The previous month, Diriyah Company also awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan, with a gross floor area of more than 31,000 sq m.

    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.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17287718/main.jpg
    Yasir Iqbal