Contractors submit revised bids for Al-Ula tram works
8 September 2025
Saudi Arabia’s Royal Commission for Al-Ula (RCU) has received bids for a contract to build infrastructure for the tramway at the Al-Ula development.
MEED understands that contractors submitted revised bids for the contract in late August.
It is understood that consortiums were asked to propose self-funded financing arrangements for the project.
The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions.
The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.
In June, MEED exclusively reported that the RCU had asked firms to submit their final offer for a contract to build tramway infrastructure at the Al-Ula development.
The RCU issued a request for proposals in June last year and received commercial bids for the project on 10 November.
France’s Systra is the consultant.
In October 2023, the RCU announced that France’s Alstom would supply rolling stock and systems for the Al-Ula tram scheme.
The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.
New paradigm
The scheme could be one of several affected by the reprioritisation of gigaproject activity reported last year.
After four years of strong year-on-year growth in Saudi Arabia’s construction sector – culminating in nearly $32.1bn in contract awards in 2023 – growth slowed in 2024.
This plateauing of growth partly reflects a pause – and reprioritisation – in gigaproject activity last year. However, as gigaproject awards declined slightly, construction activity on other projects helped sustain overall contract awards.
Another challenge is funding, with encouragement from Public Investment Fund-led entities to find alternative means of financing projects.
There is expected to be a greater emphasis on public-private partnership (PPP) projects using private sector funding, along with an increase in requests for contractors to propose financing options. This shift is leading to more openness in project planning and improved transparency around challenges and strategies, as gigaprojects seek to attract foreign investment.
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Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage
Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
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> OLYMPICS: Qatar banks on infrastructure for Olympic bid
> QATAR TOURISM: Olympics bid aims to extend tourism gains
> CURRENT AFFAIRS: Syria charts post-war reconstruction course
> INDUSTRY REPORT: Regional chemicals spending set to soar
> DOWNSTREAM: Adnoc set to become a chemicals major
> SAUDI STADIUMS: Stadiums become main event for Saudi construction
> CONSTRUCTION: Middle East to be a growth leader for global construction
> LEADERSHIP: Dubai’s sea-air logistics model powers resilient trade
> KUWAIT MARKET FOCUS: Kuwait’s political hiatus brings opportunity
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Dubai seeks consultants for drainage projects6 February 2026
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Modon tenders Ras El-Hekma construction contracts6 February 2026
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Egypt contractor secures €58m loan for Hungary power plant6 February 2026
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AD Ports signs Jordan Aqaba port PPP deal6 February 2026
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Chinese firm wins Ceer automotive supplier park deal6 February 2026
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MEED understands that the tenders were issued in January.
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Chinese firm wins Ceer automotive supplier park deal
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