meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

Connect with Rua Al Madinah using this LINK

“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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11515581/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aramco Stadium races towards completion

    12 November 2025

     

    The Aramco Stadium in Khobar is moving forward at an impressive pace as the fast-track project races towards completion in 2026

    The 47,000-seat stadium will be the new home for the Aramco-owned Al-Qadsiah Club and a key venue for the 2027 AFC Asian Cup and the 2034 Fifa World Cup. 

    The project’s progress stems from detailed planning and an accelerated delivery strategy. The project was conceived in May 2023, with the design process, managed by Aramco, commencing shortly thereafter. 

    “We completed the design within six months,” said Mohammed Subhi, the Aramco Stadium’s project manager.


    The project advanced quickly due to thorough planning and a fast-track delivery approach. Initiated in May 2023, the design phase—overseen by Aramco—was completed within six months

    An early engagement approach with the main contractor – a joint venture of Besix and Al-Bawani – was instrumental in maintaining momentum. This partnership began early in 2024, allowing for collaborative input on critical construction elements. 

    This upfront collaboration minimised pre-construction time, ensuring a rapid transition to site work.

    Engineering challenges

    The stadium’s architectural design, inspired by the natural whirlpools of the Gulf and featuring interwoven transparent sails, presents significant engineering challenges, particularly in the structural steel and façade work. For spectator comfort, the stadium is equipped with full cooling systems and designed to the highest international standards.

    Logistics management is another crucial facet of the project, which is located in central Khobar. With thousands of workers on site, the movement of materials is tightly controlled to minimise community disruption. 

    “We control how many trucks can enter the site and at what time. For example, we cannot cast concrete during the day. It has to be after 6pm, up until the early morning,” said Subhi.

    A key priority on site is health and safety, an area where the organisation’s legacy from its oil and gas operations is clearly visible. Subhi explains that the principle of health and safety is part of the company’s DNA and is embodied in the deployment of advanced technology and rigorous standards, which have collectively resulted in over 10 million safe working hours to date.

    The project employs a sophisticated Smart Safety Command Centre (SCC), which utilises artificial intelligence-based monitoring and 24/7 surveillance. One key feature of the centre is the crane collision prevention system – a key technological advancement in heavy machinery coordination and a first for the region. 

    “We have tower cranes and crawler cranes talking to each other. The anti-collision system means cranes talk to each other without human interference, and they automatically shut down when they are too close to each other,” said Subhi.


    A key technological advancement is the crane collision prevention system, which means the cranes talk to each other and shut down if they become too close

    In addition to ground operations, the project is leveraging aerial technology to mitigate risk in high-altitude work.

    “We have used drones for the inspection of the cranes and inspection of the steel structure itself to minimise the risk of working at height,” said Subhi.


    Drones have been adopted on-site to mitigate the risk of working at height

    Worker welfare

    The project’s commitment extends beyond mere regulatory compliance to comprehensive worker welfare, establishing a high standard for construction sites in the region. 

    With current staffing reaching approximately 11,000 direct and indirect workers, welfare provisions are a core priority, linking directly back to Aramco’s corporate standards.

    In a region where extreme heat is a constant challenge, the project has implemented advanced heat stress management protocols. This includes the installation of heat sensors with alarm systems, mandatory work stoppage during peak heat hours and regular briefings on heat exhaustion symptoms. Fully air-conditioned rest areas are provided for breaks and meals.

    Aramco is also committed to developing national talent. A significant proportion of the staff are young, and about 20% of the team are women.

    The relationship with the joint-venture contractor is defined by collaboration rather than traditional client-contractor hierarchy. “We are one team, working together,” said Subhi. This approach has fostered a cooperative environment that is accelerating the on-site progress towards the 2026 completion goal. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073939/main.gif
    Colin Foreman
  • Oman signs PPA for 125MW Dhofar 2 wind project

    12 November 2025

    Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) have won a contract to develop the 125MW Dhofar 2 wind independent power project in Oman.

    The contract was awarded by state offtaker Nama Power & Water Procurement Company (Nama PWP) under a 20-year power purchase agreement (PPA).

    Under the PPA, Sembcorp and OQAE will form a joint venture to build, own and operate the wind farm, which will supply power to Nama PWP once operational.

    The equity split will give Sembcorp 75% and OQAE 25%, a source close to the project told MEED.

    Nama PWP said that it will allocate a portion of contracted works for the Dhofar 2 project to Omani small and medium-sized enterprises under its in-country value programme.

    The project is expected to begin commercial operations in the third quarter of 2027.

    The facility, valued at about OR43m ($112m), will be located on a 12-square-kilometre site in Dhofar Governorate.

    The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid via a 400kV substation.

    The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

    It is also expected to generate about 396,754 megawatt-hours and free up around 76 million cubic metres of natural gas annually.

    Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

    According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

    Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies".

    This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

    Oman aims to have 30% of its electricity generation from renewable sources by the same year.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073043/main.jpg
    Mark Dowdall
  • Hitachi wins Alexandria Raml tram systems deal

    12 November 2025

    Register for MEED’s 14-day trial access 

    Hitachi Rail has announced that it has won a contract related to the modernisation and upgrade of the Alexandria Raml tram network in Egypt.

    Hitachi Rail said it will deliver advanced signalling and communications systems, an operational control centre and supervisory control and data acquisition, security systems with CCTV cameras and access control, passenger information and on-board equipment.

    The contract was awarded by a joint venture of Hassan Allam and Arab Contractors.

    The project scope includes rehabilitating a 13.2-kilometre tram line, constructing a maintenance depot, developing elevated viaducts and upgrading 24 stations.

    The project will reduce journey times from 60 to 35 minutes by increasing the operational speed on the line from 11 kilometres an hour (km/h) to 21km/h. The project will also increase the hourly capacity from 4,700 to 13,800 passengers in each direction. 

    UK analytics firm GlobalData expects the Egyptian construction industry to grow by 6.5% in real terms in 2025, supported by investments in oil and gas, industrial and housing construction projects. According to the Central Bank of Egypt, the country’s average construction production index grew by 5.8% year-on-year in the first 10 months of 2024.

    GlobalData says the construction industry's output is expected to register an annual average growth rate of 8% in 2026-29, supported by investments in commercial, renewable energy and transport infrastructure projects, coupled with the government’s target of developing 10GW of renewable energy projects by 2028 under the Nexus of Water, Food and Energy Programme.

    The infrastructure construction sector is expected to expand by 4.4% in real terms in 2025 and record an annual average growth rate of 7% in 2026-29, supported by government plans to continue its spending on transport infrastructure, ports and terminals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073050/main.jpg
    Yasir Iqbal
  • Contract award nears for Al-Ula tram works

    12 November 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Al-Ula (RCU) is preparing to award the contract to build infrastructure for the tramway at the Al-Ula development.

    MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.

    Contractors submitted revised bids for the scheme in August, as MEED reported.

    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 offers 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 will 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.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072614/main.jpg
    Yasir Iqbal
  • Contractors submit bids for $1.4bn Kuwait oil pipeline

    12 November 2025

    Register for MEED’s 14-day trial access 

    A low bid of KD419m ($1.4bn) has been submitted on an oil pipeline project in Kuwait, according to figures published by the country’s Central Agency for Public Tenders (Capt).

    The bid was submitted by local contractor Alghanim International General Trading & Contracting.

    The contract was tendered by state-owned upstream operator Kuwait Oil Company (KOC) and covers the construction of crude oil pipelines and associated works.

    The full list of bidders and prices is:

    • Alghanim International General Trading & Contracting – KD419m ($1.4bn)
    • Mechanical Engineering & Construction Company – KD422.5m
    • Al-Dar Engineering & Construction Company – KD425.7m
    • Combined Group Contracting Company – KD502m
    • Heisco – KD506.1m
    • Sayed Hameed Behbehani & Sons – KD674m

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072150/main.jpg
    Wil Crisp