Meed | Driving Madinah’s economic development

Driving Madinah’s economic development

14 February 2024

The Rua Al Madinah project is a transformative development located next to the Prophet’s Mosque in Madinah, the second holiest site in Islam.

Saudi Arabia’s Crown Prince Mohammed Bin Salman announced the infrastructure works and the masterplan for the project in August 2022. It aims to enhance the experience of the millions of visitors who travel to the holy city each year.

Spearheading the development is Rua Al Madinah Holding, which is a subsidiary of the Public Investment Fund (PIF). Its mandate is to develop modern real estate projects in the holy city with goals aligned with the broader objectives of Vision 2030.

The project is central to the kingdom’s plans to expand its tourism and hospitality sectors. The urban development is designed to integrate the heritage of Madinah with state-of-the-art facilities. Covering an area of 1.5 million square metres, it is expected to contribute SR140bn ($37bn) to Saudi Arabia’s GDP, creating 93,000 jobs.

Visits increase

“Madinah currently attracts millions of visitors annually, primarily due to its religious significance, centred around the Prophet’s Mosque,” says Rua Al Madinah Holding Company CEO Ahmed Al Juhani. “More than 13.5 million Muslims performed Umrah in 2023 – the highest number of international pilgrims the kingdom has welcomed, as per the country’s Minister of Hajj and Umrah Tawfiq Al Rabiah.

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“With Vision 2030 projects like Rua Al Madinah, the city is poised for significant hospitality growth. These initiatives aim to improve infrastructure and services to accommodate an expected increase in visitors, particularly for Umrah, projected to reach 30 million annually by 2030,” says Al Juhani.

“This growth presents both an opportunity for economic development and a challenge in sustainably managing the influx while preserving Madinah’s cultural and religious heritage,” he adds.

With Vision 2030 projects such as Rua Al Madinah, the city is poised for significant hospitality growth
Ahmed Al Juhani, CEO of Rua Al Madinah Holding Company

Innovative solutions

Rua Al Madinah is meeting the holy city’s infrastructure and real estate requirements with cutting-edge solutions.

“The focus lies in modern urban planning and the execution of diverse, comprehensive projects to enhance Madinah’s stature as a destination with a contemporary architectural landscape,” says Al Juhani.

“Rua Al Madinah Holding is leading the development of modern infrastructure and is working on current and future projects to develop a hotel and commercial ecosystem,” he says.

The projects’ objectives are aligned with Saudi Arabia’s Vision 2030 goals, which include increasing the number of tourists visiting the kingdom and creating job opportunities.

“The company seeks to advance Madinah’s hospitality and real estate investment sectors to enhance services for visitors while fostering sustainable green environments and a modern lifestyle for residents,” says Al Juhani. “The company also strives to drive economic development in Madinah, providing tens of thousands of job opportunities for local residents.”

While offering best-in-class modern buildings and infrastructure, the “Rua Al Madinah project complements prior efforts and projects”, says Al Juhani.

“By aligning with Vision 2030, it integrates modernised designs that honour Madinah’s heritage, prioritises sustainability and deploys advanced smart city technologies.”

Work is already well advanced, and so far, there have been SR8bn ($2.1bn) of contract awards on the project that include, but are not limited to, construction contracts.

By early 2024, 25% of the infrastructure work had been completed. Key highlights include the Al Amidah Road project, which has transformed the secondary route into a major thoroughfare with a width exceeding 35 metres.

Another major construction effort was the tunnel at Ali Bin Abi Talib Road, which is now completed, making it the first tunnel to be finished as part of the Rua Al Madinah project.

Investment opportunities

Looking ahead, Al Juhani says that the delivery strategy for the Rua Al Madinah project portfolio is split into phases with the aim of delivering around 47,000 keys up to 2030 progressively.

“The phasing and packaging strategy has considered multiple factors, including asset class, star rating, package value and site logistics, aiming to expand the pool of supply chain to include consultants and contractors from multiple tiers and subsequently support Rua Al Madinah’s strategic objective to create economic opportunities to drive Madinah’s growth and diversification,” he says.

There is a broad range of investment and business opportunities on the project, and Al Juhani says the city is a major economic centre and an attractive place for companies to work.

“Madinah features a sophisticated supply chain and excellent connectivity. Its strategic location and infrastructure, including advanced logistics, cater to fluctuating demands, particularly during peak seasons like Hajj and Umrah,” he says.

“The city is well-connected to key Saudi economic centres like Jeddah and Riyadh, thanks to its extensive road networks, Haramain high-speed railway and international airport. This combination of a flexible supply chain and robust transportation network positions Madinah as a vital economic hub in the kingdom.”

For investors, the project has also proven to be attractive. “We have forged strategic agreements with globally renowned operators such as Marriott International, Hyatt International and Accor Group. Such agreements are set to introduce 14 distinguished international brands to the project,” says Al Juhani.

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Colin Foreman

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Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

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Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

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Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

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> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

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Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

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Kuwait halves drilling contractor pool
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State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
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- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.