Contractors prepare Oxagon tunnelling bids
30 May 2023
Contractors are preparing to submit bids in June for a contract to build tunnels connecting the offshore elements of the Oxagon industrial city at Neom to the mainland.
The design-and-build contract involves digging a 6.5-metre-diameter tunnel using a tunnel boring machine (TBM) under the sea that will link the Neom Connector with the offshore elements of Oxagon port. It will house utilities including water pipelines, fibre optic cables and electricity cables.
Prospective bidders for the contract include:
- Abuljadayel Company (local)
- Bessac (France)
- Binladin Contracting (local)
- Daewoo (South Korea)
- Dogus (Turkey)
- Hassan Allam (Egypt)
- Petrojet (Egypt)
- Saudi Pan Kingdom Company (Sapac)
- Shanghai Tunnel Engineering Company (China)
- Soletanche Bachy (France)
Crown Prince Mohammed bin Salman launched Oxagon in late 2021. It will include onshore elements as well as floating structures offshore. Construction works on the 48 square-kilometre, eight-sided industrial city have already started.
Port construction
Work is also under way for the industrial city’s port, with Neom tendering a contract to complete the next phase of the Duba port expansion at Oxagon industrial city.
The prospective bidders are Belgium’s Deme with Greece’s Archirodon; Van Oord of the Netherlands with South Korea’s Hyundai Engineering & Construction; a Belgian joint venture of Jan de Nul and Besix; Netherlands-based Boskalis with France’s Soletanche Bachy; and China Harbour Engineering Company.
The tender for the project’s second phase follows the award of a contract to deliver the first phase of the port expansion. A team of Boskalis, Besix and the local Modern Building Leaders (MBL) was awarded that estimated SR3bn ($800m) contract in mid-January.
The scope of the Duba port expansion package includes excavation and dredging, revetments for channel widening, demolition, container terminal quay expansion and earthworks, in addition to the development of a flexible quay, a roll-on/roll-off (RoRo) berth and quay walls to a marine services berth and a coast guard facility.
Jacobs is the main design consultant with Moffatt & Nichol, IGO and Trent as the main subconsultants.
Port operations
Several crane and container equipment contracts have been awarded to Saudi Liebherr Company and Shanghai Zhenhua Heavy Industries Company (ZPMC).
Saudi Liebherr was awarded contracts for 10 mobile harbour cranes for SR200m.
ZPMC has been awarded contracts for 10 ship-to-shore gantry cranes, 30 electric rubber-tiered gantry cranes and six automated rail-mounted gantry cranes for over SR1bn. ZPMC will work with Siemens Europe to deliver the automation components.
An expanded Duba port is a critical component of Oxagon and the broader Neom development, as it will allow greater volumes of materials to be imported for the project. With an expected investment value of $500bn, Neom is the largest programme of construction work in the world.
Neom says the first container terminal will be operational by the beginning of 2025.
The management of Duba port was transferred from national maritime regulator Mawani to Neom in 2022.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Oman awards $2.3bn water services contract30 June 2026
-
Gulf aviation’s toughest test since the pandemic30 June 2026
-
-
Read the July 2026 MEED Business Review30 June 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Oman awards $2.3bn water services contract
30 June 2026
Oman Water & Wastewater Services Company (Nama Water Services) has awarded a $2.28bn contract to a consortium led by French utility firm Suez to operate and maintain water and wastewater services in parts of the sultanate.
In a statement, the operator said the 15-year performance-based contract covers Muscat and the North Sharqiyah and South Sharqiyah governorates, known as Cluster 1. The area is home to approximately 2.3 million people, representing about 43% of Oman’s population.
The consortium also includes local firms National Trading Company and National Energy Centre, a local utility development and infrastructure company. It will deliver the contract through a dedicated company, National Sustainable Water Alliance.
According to Suez, the contract is the company’s largest ever in the Middle East.
The scope includes the operation and maintenance of 240 wells and 10,700 kilometres of water pipelines that distribute 470,000 cubic metres a day (cm/d) of drinking water. It also covers the refurbishment and upgrading of four desalination plants and the operation of more than 400,000 smart water meters.
The wastewater package includes the operation and maintenance of 22 wastewater treatment plants with a combined treatment capacity of 280,000 cm/d. It also covers about 3,000km of sewer networks, 400km of treated effluent networks, and the installation and operation of new wastewater house connections.
The contract includes 33 key performance indicators that will determine the consortium’s remuneration. These include reducing water losses from 34% to 11% by 2040, maintaining a continuous 24-hour water supply and improving preventive maintenance to extend the lifespan of water assets.
The contract also includes a capacity-building programme to develop operational and management skills. Suez said the project will target more than 83% Omanisation in support of the government’s Vision 2040 objectives.
Under the agreement, Nama Water Services will retain responsibility for strategic oversight and regulation, while the consortium will manage day-to-day operations.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492322/main.jpg -
Gulf aviation’s toughest test since the pandemic
30 June 2026
Commentary
Colin Foreman
EditorThe conflict that erupted on 28 February has tested Gulf aviation more severely than any event since the Covid-19 pandemic. Yet the sector’s response has revealed both its vulnerability and its underlying resilience in equal measure.
The scale of the disruption has been severe. Between 28 February and 5 March alone, more than 15,000 flights were cancelled across seven major regional airports. Jet fuel prices are expected to average $152 a barrel this year, almost 70% above 2025 levels, while the International Air Transport Association now forecasts global airline net profit of $23bn in 2026, roughly half its earlier projection.
For Gulf hub carriers, whose business models depend on stable long-haul routings and transfer traffic, the financial hit has been unavoidable.
The sector’s response has revealed both its vulnerability and its underlying resilience
What is striking, however, is the speed and confidence of the recovery. Etihad is already operating at 90% of pre-war capacity, with fares back at pre-war levels and no plans to discount. Emirates, despite flying at just 58% of its capacity in March, posted a record annual profit and announced a 20-week salary bonus for staff. Riyadh Air pressed ahead with five new destinations in June. Dubai and Riyadh are together preparing to award tens of billions of dollars in airport construction contracts before the year is out.
The pattern is consistent across tourism, too. Hotel and resort construction contracts in the GCC have already surpassed last year’s full-year total, and sovereign entertainment projects such as the Sphere Abu Dhabi are being formalised mid-conflict. Governments are making clear that their long-term infrastructure ambitions are not contingent on short-term demand.
The coming months will determine how quickly international airline confidence, and the passengers that follow it, returns to the Gulf. The signals from within the region point firmly in one direction.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492201/main.gif -
DP World and Bahraini firm break ground on Jafza facility
30 June 2026
Dubai-based ports operator DP World and Lintara Properties, the real estate development arm of Bahrain-headquartered Arcapita Group Holdings, have commenced construction of a new 20,000-square-metre (sq m) build-to-suit logistics facility at Jebel Ali Free Zone (Jafza) in Dubai.
The Grade A asset is being developed by Lintara Properties and will be operated by DP World as part of its integrated, end-to-end supply chain offering in the region.
The project is slated for completion in Q1 2027.
The facility will provide high-clearance warehousing, temperature-controlled zones, dedicated dangerous goods storage, office accommodation and related operational support amenities.
The latest announcement follows Arcapita’s agreement last week with US-based firm Hines to establish an investment platform focused on industrial and logistics real estate assets across the GCC.
The initiative will be supported by Lintara Properties.
Arcapita has also signed an agreement with Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, to deliver a 1.4 sq m built-to-suit logistics complex at King Salman Energy Park (Spark) in Saudi Arabia.
The project will feature a 43,000 sq m temperature-controlled Grade A warehouse; more than 3,000 sq m of office space and staff amenities; 5,300 sq m dedicated to chemical storage; and an open yard spanning about 1.2 million sq m.
Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, and automation and robotics.
Lintara Properties was formally launched in October last year as a dedicated real estate asset management, development and investment advisory firm.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17491690/main.jpg -
Read the July 2026 MEED Business Review
30 June 2026
Download / Subscribe / 14-day trial access The events that unfolded from 28 February delivered the Gulf aviation sector its toughest test since the Covid-19 pandemic.
Missile and drone attacks exposed the fragility of one of the region’s most vital economic engines, triggering unprecedented disruption. In just one week, more than 15,000 flights were cancelled across seven major Gulf airports, leaving over 1.5 million passengers stranded and sending shockwaves through global travel networks.
While the Gulf's national airlines have largely restored services, many international carriers remain absent, highlighting the lasting impact of the crisis.So what does this mean for the future of Gulf aviation? In the July issue of MEED Business Review, MEED editor Colin Foreman examines how the industry responded under extraordinary pressure – and why the crisis revealed not only its vulnerabilities, but also the remarkable resilience that will shape its next chapter.
July’s market focus is on the Levant, and finds the region’s three markets – Jordan, Lebanon and Syria – recovering at different speeds and from very different starting points.
This edition also includes a tourism report as the first signs of recovery begin to emerge in Dubai, and the region presses ahead with tourism projects.
In the latest issue, we speak to EtihadWE about its roadmap for future projects, examine why the Mena projects market continues to show remarkable resilience despite regional conflict, and investigate whether Big Tech is delivering on its data centre ambitions.
We also explore the multibillion-dollar opportunity emerging from the region’s evolving retirement savings market and discover how Aramco's citizen developers are accelerating digital transformation from within.
We hope our valued subscribers enjoy the July 2026 issue of MEED Business Review.
Must-read sections in the July 2026 issue of MEED Business Review include:
> AGENDA: Gulf aviation ambitions face uncertain future
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitionsINDUSTRY REPORT:
Tourism investment
> Dubai eyes tourism sector recovery
> GCC presses ahead with tourism projects> INTERVIEW: EtihadWE prepares roadmap for future projects
> PROJECTS MARKET: Mena project momentum holds despite conflict
> DATA CENTRES: Big Tech falls short on data centre promise
> SAVINGS: Retirement creates multibillion-dollar opportunity for region
> LEADERSHIP: Aramco’s citizen developers accelerate digital change
> INTERVIEW: Samsung E&A’s hydrocarbons business rooted in Mena
> LEVANT MARKET FOCUS:
> COMMENT: Levant recovers in three speeds
> GOVERNMENT: Jordan consolidates as deeper reforms lag
> BANKING: Caution governs Jordanian bank lending
> POWER & WATER: Record investment drives Jordan’s utilities market
> ECONOMY: Gulf liquidity outpaces Syria’s financial revival
> PROJECTS: Momentum builds for Syrian projects
> OIL & GAS: Activity ramps up in Syria’s oil and gas sector
> CONSTRUCTION: Prospects improve for Levant construction
> OIL & GAS: Lebanon taps foreign players to assess resources
> DATABANK: Jordan faces fresh round of challenges> MEED COMMENTS:
> UAE clears the path for recovery
> Water tariffs near their floor
> Petrofac seeks to reclaim lost ground
> The UAE’s eastern pivot> GULF PROJECTS INDEX: Gulf index extends growth streak into 15th month
> MAY 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The price of permanent risk
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17490904/main.gif -
Consortiums sign agreements to develop Oman energy projects
30 June 2026
Consortiums led by France’s EDF Power Solutions have signed agreements to develop a 2,000MW pumped hydro energy storage (PHES) project and a 500MW solar independent power producer (IPP) project in Oman.
The agreements were signed in Paris on 29 June during the official visit of a high-level Omani delegation to France, led by Sultan Haitham Bin Tariq.
The framework agreement for the 2,000MW Jabal Abyad PHES project was signed by a consortium comprising EDF Power Solutions, Oman National Engineering & Investment Company (ONEIC), Takhzeen Oman and local firm Green Universe Enterprise, along with the Authority for Public Services Regulation.
The project will be located near Wadi Dayqah Dam and is expected to be the Middle East’s largest PHES plant.
The power purchase agreement for the 500MW Al-Kamil solar IPP was signed by a separate consortium comprising EDF Power Solutions, ONEIC and the local OQ Alternative Energy, alongside Nama Power & Water Procurement Company (Nama PWP).
The project will be financed, built and operated by the consortium.
The Al-Kamil solar photovoltaic IPP is EDF Power Solutions’ third renewable energy project in Oman following the 500MW Manah 1 solar PV IPP and the 120MW JBB wind IPP.
As previously reported, the Kamil IPP sits alongside renewables schemes in Nama PWP’s development pipeline, including the 400MW Sina and 280MW Marsa solar IPPs. Plans also include the 800MW Mahout and 300MW Duqm 2 wind IPPs, both of which are targeted for commissioning between 2027 and 2029.
Separately, the Omani government, EDF Power Solutions and Synergy Investments signed a memorandum of understanding to develop a 1,000MW sustainable digital infrastructure platform.
The project aims to position Oman as a regional hub for artificial intelligence, advanced computing and cloud services in line with Oman Vision 2040.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17491165/main.jpg