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
  • Sharjah developer launches Al-Mamzar towers scheme

    9 June 2026

    Local real estate developer Alef Group has launched a mixed-use development in the Al-Mamzar area of Sharjah. The Linar project is valued at AED4bn ($1.1bn) and comprises five residential towers and one commercial tower. Across the development, the 50- to 55-floor towers will offer a total of 2,620 residential units.

    With 325 metres of sea-facing frontage overlooking Al-Mamzar Beach, the development also includes retail and service spaces. Tower A, which forms part of Phase 1 of the project, is expected to be completed from 2030 onwards. 

    In a statement, the developer said that following strong demand for expressions of interest (EoIs) in Tower A, Alef Group expanded EoIs to include towers B and C. All Phase 1 EoIs have now been fully reserved, representing a total of 1,572 residential units with a combined value of over AED2bn. The group is preparing to open EoIs for towers D and E.

    In April, Alef Group awarded Abu Dhabi-based construction firm A&M International a AED750m contract to build the next phases of its Hayyan residential community in Sharjah. The scope includes the construction of more than 700 villas and townhouses across three clusters – Samr 1, Samr 2 and Deem – along with Hayyan Mall, a clubhouse and associated infrastructure works.

    The Hayyan masterplan includes seven residential clusters: Alma, Arim 1, Arim 2, Arim 3, Samr 1, Samr 2 and Samr 3.

    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/17157150/main1720.jpg
    Colin Foreman
  • Record investment drives Jordan’s utilities market

    9 June 2026

     

    In April, Jordan signed the final technical and legal agreement for its landmark National Water Carrier Project, paving the way for the financial close of the kingdom’s largest planned water infrastructure project to date.

    The agreement represents a significant step forward for the scheme, which is now projected to reach $5.6bn in total costs, including financing, up from earlier estimates of $3.5bn.

    Paris-based investment and utility firms Meridiam and Suez were awarded the contract last year to develop the project in partnership with Jordan’s Water & Irrigation Ministry.

    Since then, multiple large-scale financing agreements have been put in place for the project, which is expected to supply about 40% of Jordan’s drinking water needs.

    While new contract awards have been limited in 2026, the successful execution of the Aqaba-Amman Water Desalination and Conveyance scheme will help reassure the market that large-scale infrastructure projects of this nature can move forward.

    The project is set to reduce the benchmark water cost from about $3 a cubic metre in 2024 to approximately $2.7 and is crucial to addressing Jordan’s severe water scarcity.

    Prime Minister Jafar Hassan recently said that the scheme, along with the Aqaba Port railway project, represented “the largest level of foreign investment in the kingdom’s history”.

    For its part, the government has said it will contribute $722m to the Aqaba-Amman project, representing the largest single capital expenditure in the state budget.

    Upcoming projects

    Looking forward, there is a healthier pipeline of new water projects, led by a two-phased wastewater treatment project at Wadi Zarqa.

    The first phase will have an initial capacity to treat 150,000 cubic metres a day (cm/d) of wastewater by 2030.

    The $150m second phase covers an independent sewage treatment plant with a capacity of 200,000 cm/d. Both tenders are expected to be released in the coming months.

    Two larger projects, valued at $300m each, are currently in the planning stages. Both are managed by Yarmouk Water Company and involve major transmission pipeline works in Ajloun and Irbid as part of the Jordan Water Sector Efficiency Project.

    The Jordan Water Sector Efficiency Project is a World Bank-backed programme aimed at reducing water losses, improving utility performance and enhancing the efficiency of water services across the kingdom.

    Power contracts

    Jordan’s power sector is set for a record-breaking year following the announcement that a $900m combined-cycle gas turbine (CCGT) plant will be developed in partnership with Etihad Development Company, a subsidiary of the UAE’s Etihad Water & Electricity (EtihadWE).

    The project will be developed under a build-own-operate model with Jordan’s National Electric Power Company (Nepco) purchasing electricity under a 25-year power-purchase agreement.

    For context, Jordan’s power sector saw just $33m in total contract awards in 2025, according to MEED Projects.

    The full-year total last exceeded $100m in 2022, when there were $111m of contract awards. The plant is expected to meet about 10% of Jordan’s electricity demand once operational.

    The kingdom has also been looking at other forms of power generation, such as Jordan’s first 450MW pumped hydroelectric energy storage project near Al-Mujib Dam.

    Earlier this year, US-headquartered K&M Advisors and France’s Artelia were appointed as transaction advisers to carry out the final feasibility study for the project, which is expected to be tendered in the third quarter of 2026.

    The Ministry of Energy & Mineral Resources (MEMR) is also planning to undertake the construction of a 1,000MW wind power plant and battery energy storage system near the Port of Aqaba in Jordan.

    The renewable energy scheme could potentially support the kingdom’s emerging green hydrogen industry, including a separate planned $1bn green ammonia and hydrogen project in Aqaba.

    In May, the project became the first publicly announced green ammonia project in Jordan to receive development approval from the Council of Ministers.

    The project would be developed by Jordan Green Ammonia, a special-purpose vehicle funded by the UAE-based 7Fidelity Group and Poland’s Hynfra.

    The project in Aqaba is expected to produce 100,000 tonnes a year of green ammonia from 2030

    Of approximately $6bn-worth of power projects in the pre-execution phase, it is worth noting that about $4.4bn are still in the early study or feed stages.

    Near-term awards are likely to come from several smaller substation and power generation schemes.

    Jordan-Syria power link

    Among the wider pipeline of regional opportunities, Jordan’s power sector could also benefit from efforts to restore electricity connectivity with neighbouring Syria.

    Syria’s Public Establishment for Transmission & Distribution of Electricity recently tendered a contract to repair the 400kV high-voltage interconnector transmission lines between the two countries.

    The works form part of Syria’s $146m Electricity Emergency Project, which is being financed through a World Bank grant and aims to restore critical electricity infrastructure across the country.

    The rehabilitation of the Syria-Jordan interconnector is expected to enable the import of up to 600MW of electricity and represents one of several initiatives under way to rebuild Syria’s power network following years of conflict and underinvestment.

    More broadly, Syria is emerging as an active power market in its own right. In April, Germany’s Siemens Energy signed manufacturing agreements for major power plant projects being developed by a consortium led by Qatar’s UCC Holding.

    The contracts cover combined-cycle power packages for the Zayzoun and Deir Azzour power plant projects, announced last year as part of a $7bn memorandum of understanding between the consortium and Syria’s Ministry of Energy.

    The May 2025 agreements include four combined-cycle gas turbine power plants in Traifawi, Homs and Zayzoun, Deir-Azzour and Mehardeh in Hama with an installed capacity of 4GW.

    Additionally, a 1GW solar power plant will be developed in Wedian Al-Rabee in Syria’s southern region.

    Most of these projects, awarded under concession agreements following a strategic memorandum of understanding framework, are due to come online in 2029.

    After years of inactivity, this is considerable progress. The next step is attracting sufficient interest in new and upcoming tenders. This will signal whether international contractors are ready to re-engage with the country’s power sector.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17157016/main.gif
    Mark Dowdall
  • PIF-owned Ardara tenders Al-Wadi sewer package

    9 June 2026

     

    Ardara, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), has issued a tender for the trunk sewer diversion and associated works package at its Al-Wadi development in Abha in Saudi Arabia’s Asir region.

    The scope includes the construction of rainwater and flood drainage networks, roads and transport infrastructure, and associated works within the wider Al-Wadi project.

    The bid submission deadline is 15 June.

    The sewer diversion package, valued at about $20m, is part of Ardara’s wider Al-Wadi development in Abha. The company, launched by PIF in 2023, is developing the 2.5-square-kilometre Al-Wadi destination in Abha as a mixed-use tourism and lifestyle development. The project will include residential, hospitality, commercial and recreational assets. 

    As MEED understands, the sewer diversion works are expected to facilitate the development of future phases of the Al-Wadi project by relocating existing wastewater infrastructure within the site.

    The tender follows demolition works completed on the site last year.

    Previously, in 2024, US-based Parsons was appointed to provide project management and supervision services for the project.

    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/17156098/main.jpg
    Mark Dowdall
  • Abu Dhabi selects team for 3.3GW Al-Nouf IPP

    9 June 2026

     

    State utility Emirates Water & Electricity Company (Ewec) has selected a preferred developer and contractor for the 3.3GW Al-Nouf independent power producer (IPP) project in Abu Dhabi, according to sources.

    Located within the newly established Al-Nouf complex, the facility will be the largest single-site, carbon-capture-ready, combined-cycle gas turbine plant in the UAE. 

    Japan’s Sumitomo Corporation has been selected as the preferred developer, with the power-purchase agreement (PPA) expected to be signed in the coming weeks, sources said.

    It is also understood that a joint venture of Spain’s Tecnicas Reunidas and Egypt’s Orascom Construction has been picked as the preferred engineering, procurement and construction (EPC) contractor.

    Three developer consortiums submitted bids earlier this year, along with Sumitomo as the only company to bid individually.

    The bidders included:

    • Aljomaih Energy & Water (Saudi Arabia) / Sembcorp Industries (Singapore) / EDF Power Solutions (France)
    • Engie (France) / Korea Overseas Infrastructure & Urban Development Corporation (Kind) / Korea Western Power Company (Kowepo)
    • Korea Electric Power Corporation (Kepco) / Etihad Water & Electricity (EtihadWE) (UAE)
    • Sumitomo (Japan) 

    Ewec issued a request for proposals for the project last August. It had previously received statements of qualifications for the contract in April 2025.

    This follows confirmation earlier this month that Ewec has signed a PPA with a developer consortium for the 2.5GW Taweelah C IPP project.

    A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.

    As MEED previously reported, both projects are following the model of Abu Dhabi’s IPP programme, in which developers enter into a long-term agreement with Ewec as the sole procurer. 

    This involves the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity. The remaining equity will be held indirectly by the Abu Dhabi government.

    The project site for the Al-Nouf plant was selected for its ability to accommodate both seawater-cooled power generation and reverse osmosis desalination technologies. The plant will have the capacity to support several utility-scale energy and desalination projects in the future.

    The facility is scheduled to begin commercial operations in the third quarter of 2029.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17155245/main.jpg
    Mark Dowdall
  • Zoom launches new Saudi data centre at center3

    9 June 2026

    Zoom has announced a new data centre in Saudi Arabia to boost in-kingdom capacity for government and enterprise customers requiring local data residency.

    In a statement, Zoom said the data centre is located within center3, a Saudi-headquartered provider of carrier-neutral data centres and subsea cable systems linking Europe, Asia and Africa. Zoom said the data centre builds on its broader investment plans in the kingdom, including a $75m commitment made last year focused on artificial intelligence (AI)-enabled innovation and the advanced infrastructure required to scale it.

    Zoom said its existing regional data centre, established in 2023, already supports customers with local data residency requirements, while the new site will enhance services for government entities, enterprises and critical national infrastructure organisations.

    AI is an important part of Saudi Arabia’s economic growth plans leading up to 2030. In January, government officials confirmed that as the global economy is evolving rapidly with the rise of AI, some projects such as The Line at Neom have slowed down, while other projects related to the World Cup, Expo 2030, technology and AI have accelerated. 

    The largest AI project in the kingdom is being developed by Humain, which is owned by the Public Investment Fund (PIF). In May, it issued a tender inviting firms to develop infrastructure for its planned 6GW hyperscale AI data centre campus in Riyadh.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17155250/main.jpg
    Colin Foreman