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• 
  Qatar tenders completion of 39km strategic trunk sewer

  11 September 2025

  Qatar’s Public Works Authority (Ashghal) has issued a tender for the completion of remaining works on the strategic trunk sewer from Sheehaniya to the Doha North sewage treatment works (DN STW).

  The package also includes the first phase of a new sewage terminal pumping station at the DN STW site.

  The tender, numbered PWA/GTC/26/2025, has a bid submission deadline of 30 September.

  A tender bond of QR12m ($3.3m) is required, and tender documents are priced at QR45,000.

  The project will channel sewage across a 27,320-hectare area making it one of Qatar’s largest sanitation infrastructure undertakings.

  Located in Al-Sheehaniya municipality, the sewage will be channelled through interceptor sewers into a new deep tunnel trunk sewer of about 39 kilometres in length, with diameters ranging from 600mm to 1,800mm.

  The infrastructure will serve villages, farms, army camps, camel stabling areas and a new residential development, the authority said.

  According to MEED Projects, Aljaber Engineering was previously awarded the main contract for the project in 2021, following a bid of $83.7m.

  Asghal said the contractor completed about 15.7km of the sewer, but did not state why construction stopped.

  Sheehaniya Terminal Pumping Station​​​​​​​

  The new Sheehaniya Terminal Pumping Station will have a capacity of 1,200 litres per second and is designed to meet demand up to 2037.

  The first phase, included in this contract, will install four pumps with capacity to handle about 615 litres per second.

  Other works include rising mains, surge vessels, screening facilities, odour control systems, and supporting buildings.

  Both the sewer works and the Sheehaniya pumping station are expected to take around three years to complete, followed by a year of maintenance.

  The project will also include testing and fixing any previously completed works six to nine months after construction begins.

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  Mark Dowdall
• 
  Riyadh looks to adjust investment approach

  11 September 2025

  

   

  Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), is preparing to set out a new investment approach for the $1tn sovereign wealth fund he runs, telling an event in Washington on 8 September that “in the coming two months or so, we will set the new strategy for the PIF”.

  It will be a significant moment given the scale of the fund’s investments in the Saudi economy, which were worth some SR2.8tn ($747bn) at the end of last year.

  Al-Rumayyan described it as “a continuation from the original strategy”, but, as yet, has not provided any further details. The fact that the state-owned fund is planning to change or evolve could, however, be taken as an implicit acknowledgement that all is not going as planned for the government’s efforts to remodel the economy.

  There have been a number of other recent signs of trouble, not least for the PIF and the other stalwart of the economy, Saudi Aramco.

  The PIF’s recent annual report for 2024 showed a 19% rise in assets under management to SR3.4tn, but the fund also cut the valuation of its gigaprojects by 12%, amid well-documented problems at some of its key projects.

  On 5 August, Aramco meanwhile reported a 14% year-on-year fall in net profits for the first half of 2025 to $48.7bn, amid a 15% drop in average oil prices. Despite that, its dividend payments crept up by 4%, while its debts increased by 25% to $3bn. 

  Seen together, such developments point to some wider problems with the government’s Vision 2030 diversification strategy, launched in 2016. In recent years, the PIF has been steadily increasing its domestic investments – in large part because international investors have not been putting money into the Saudi economy at anywhere near the rate hoped. Changing that trend is a critical test for Riyadh, but is also more difficult to pull off at a time of lower oil prices.

  There have been a lot of changes in the business environment in a short period of time and it can take a bit of time to bed down and for people to get comfortable with that
  Toby Iles, Jadwa Investment

  The Ministry of Investment reported on 3 September that inward foreign direct investment (FDI) had grown by 24% last year to reach SR119bn ($31.7bn), but that is still a long way short of the annual target of $100bn by 2030.

  Amine Mati, the IMF’s mission chief for Saudi Arabia, said at an event hosted by the Arab Gulf States Institute in Washington on 4 September that “FDI is coming, it's still not the numbers that we would like to see”.

  The reforms brought in over recent years may yet help to turn this around, but it is taking longer than some in Riyadh might hope.

  “There have been a lot of changes in the business environment in a short period of time and it can take a bit of time to bed down and for people to get comfortable with that,” said Toby Iles, chief economist at Riyadh-based Jadwa Investment.

  “I think it's important to reserve a bit of judgement on the FDI numbers for now and, of course, to remember that that 2030 target is both very high and also the target for 2030, not for now.”

  Grounds for optimism

  There are nevertheless various more positive signs in the market. Inflation appears to be contained at around 2%, home ownership levels are rising and unemployment is at a record low, with youth and female unemployment rates halving over the past four years.

  Overall, the Saudi economy – like those of the rest of the GCC – has so far avoided being too badly affected by regional instability or the global trade tensions prompted by US President Donald Trump’s tariffs.

  This can be seen in the continued growth in non-oil activity. According to the latest IMF report on the Saudi economy, released in early August, non-oil GDP grew by 4.5% last year, driven by the retail, hospitality and construction sectors. Public and private sector investments in transport systems, supply chains and new industries from tourism to electric vehicles are helping to underpin economic activity.

  Opec+ production cuts caused a 4.4% decline in oil GDP last year and left overall growth at around 2%, but the voluntary cuts have been unwound and Saudi crude output is now rising. Mati pointed out that a 1 million b/d increase in production can offset a $10 drop in oil prices: “People always talk about oil price, but forget to talk about oil production.”

  The IMF’s short-term forecast is for GDP to grow by 3.6% this year and 3.9% in 2026, helped by robust domestic demand, including government-led projects, and higher oil production. Others are predicting slightly higher numbers. Naif Alghaith, chief economist at Riyad Bank, said: “We expect maybe it's a bit higher: maybe just slightly shy of 5%.”

  Economic activity is being supported by fairly robust public spending, which has not dipped in the way it has in previous periods of lower oil prices. The IMF expects the budget deficit to be around 4% of GDP this year, but Mati said “there’s no need to cut spending to get back to the deficit target”, with the reforms and adjustments already made likely being enough to stabilise the situation without further action, he said.

  Project spending is significantly down this year, but Dubai-based bank Emirates NBD has said spending on projects will remain a key driver of Saudi Arabia's economic growth. The country has around $443bn-worth of projects under execution, according to MEED Projects – with the majority of them in the power, construction and gas sectors, not in the PIF’s troubled gigaprojects portfolio. The country has a further $208bn-worth of project work in the prequalification and bidding phases and due for imminent award.

  For all the efforts to encourage more private sector, non-oil activity, the main factors that will govern the trajectory of the economy in the coming years remain oil prices and government spending.

  “The government's pretty mindful of striking this balance between pushing the economic transformation agenda and maintaining strong fiscal external metrics,” said Iles.

  “I think the speed of travel for the economy is a function of how that pans out, and obviously, the oil market is part of the determinant of where the speedometer ends up.”

  ---

  MEED’s October 2025 special report on Saudi Arabia also includes:

  > BANKING: New funding sources solve Saudi liquidity challenge
  > GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
  > CONSTRUCTION: Saudi construction pivots from gigaprojects to events
  > TRANSPORT: Infrastructure takes centre stage in Saudi strategy

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  Dominic Dudley
• 
  Qatar tenders Wadi Al-Banat infrastructure contract

  11 September 2025

  

   

  Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting firms to bid for the construction of roads and infrastructure in Wadi Al-Banat North zone 70.

  The tender was floated on 3 September with a bid submission date of 30 September.

  The contract duration is three years from the start of construction.

  The notice follows Ashghal’s awarding of two contracts worth QR3.5bn ($961m) for the operations and maintenance of two schemes in Qatar.

  The contracts were awarded to the local subsidiary of Waagner Biro, which is owned by French firm Egis.

  The first contract is worth QR2.6bn ($713m) and covers the operations and maintenance of strategic highways.

  The other contract, valued at QR898m ($246m), covers the operations and maintenance of intelligent transportation systems.

  Market overview

  After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

  In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

  Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

  There are strategic projects worth more than $5bn in the bidding phase, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.

  ---

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

  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:

  > 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 > LEGAL: Dubai’s new law aims to reshape construction > KUWAIT MARKET FOCUS: Kuwait’s political hiatus brings opportunity

  To see previous issues of MEED Business Review, please click here

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  Yasir Iqbal
• 
  Saudi Arabia and Kuwait accelerate Dorra gas field development

  11 September 2025

  

  Saudi Arabia and Kuwait are pressing ahead with their ambitious plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field, located in the waters of their shared Neutral Zone.

  Three major, multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field have gathered pace since the beginning of the year.

  Saudi Arabia and Kuwait have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, both countries have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.

  Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

  KJO offshore and onshore facilities

  Al-Khafji Joint Operations (KJO), which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company (AGOC) and KPC subsidiary Kuwait Gulf Oil Company (KGOC), is moving forward with its Dorra gas field facilities project. KJO has divided the project’s scope of work into four engineering, procurement and construction (EPC) packages – three offshore and one onshore.

  Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) is the frontrunner for package 1 of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines.

  Contractors are currently preparing to submit bids by 27 September for the remaining three packages — offshore packages 2A and 2B, and onshore package 3.

  The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables. Package 3 includes the EPC of onshore gas processing facilities.

  KGOC onshore processing facilities

  KGOC has initiated early engagement with contractors for the main EPC tendering process for a planned Dorra onshore gas processing facility, which is to be located in Kuwait.

  The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.

  The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).

  A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility, and discussions regarding survey work are ongoing. The site may require shoring, backfilling and dewatering.

  The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company (KOC), for possible injection into its oil fields.

  Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.

  AGOC onshore Khafji gas plant

  Meanwhile, AGOC has issued main tenders for seven EPC packages as part of a project to construct the Khafji gas plant, which will process gas from the Dorra field onshore Saudi Arabia.

  Contractors have been set deadlines of 24 October for technical bid submissions and 9 November for commercial bids.

  The seven EPC packages cover a wide range of works, including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems, and main operational and administrative buildings.

  France-based Technip Energies has carried out concept study and front-end engineering and design (feed) work on the entire Dorra gas field development programme.

  However, progress has been hampered by a geopolitical dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.

  In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

  Since that show of strength and unity, projects targeting production and processing of gas from the Dorra field have gained momentum.

  

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  Indrajit Sen
• 
  Saudi construction pivots from gigaprojects to events

  10 September 2025

  

   

  Saudi Arabia’s construction sector is undergoing a transition in 2025, shifting from the gigaproject era that dominated market activity between 2020 and 2024 to a new phase focused on delivering high-profile international events.

  As the market pivots, it has entered a quieter phase compared to the previous three years. As of the end of August, the total value of construction contract awards stood at $15.5bn, according to regional projects tracker MEED Projects, which is significantly below the annual totals recorded since 2021. 

  The market had grown significantly during the gigaprojects era, from $19.2bn in 2021 to $29.9bn in 2022, and then to $33.1bn in 2023, before peaking at $36bn in 2024. By comparison, the year-to-date figure for 2025 suggests that unless activity accelerates in the final quarter, the full year total is likely to end well below the highs of the past three years.

  Historically, the current levels are still above the sector’s trough years between 2016 and 2020, when awards typically hovered around $10bn-$13bn, but they signal a cooling from the exceptional momentum of the early 2020s.

  Construction priorities

  The slowdown in 2025 reflects the transition in market priorities as event-driven programmes come into focus. Saudi Arabia has won a series of major events that will drive the construction agenda over the coming decade.

  First is the 2027 AFC Asian Cup, which will be hosted at various locations across the kingdom. Next is the Asian Winter Games at Neom’s Trojena in 2029, although recent reports suggest the event may be postponed to 2033, with China or South Korea potentially stepping in to host in 2029.

  In 2030, Riyadh will host the World Expo, and in 2034, Saudi Arabia is set to host both the Fifa World Cup and the Asian Games.

  Saudi Arabia secured the rights to host these events across a three-year period from 2022 to 2024, and since then, attention has turned to delivering the projects needed to ensure that these events are a success. 

  Looking ahead, more stadium construction contracts will be tendered, along with other building projects that will provide hotel and commercial space to support the events

  Stadium development

  The most recent example of this shifting focus came in early September, when MEED reported that Qiddiya Investment Company (QIC) had started the procurement process for an estimated SR7bn ($1.8bn) contract to develop the National Athletics Stadium.

  Located within the Qiddiya Sports Park cluster and scheduled for completion by 2030, the project is an ambitious undertaking. It will cover an area of approximately 182,000 square metres and is being benchmarked against the design of the London Olympic Stadium.

  The athletics stadium follows progress on other event-related schemes, including the appointment of contractors for football stadiums in Qiddiya, Riyadh, Al-Khobar and Jeddah, as well as major infrastructure and building contracts for work at Trojena.

  Looking ahead, more stadium construction contracts will be tendered, along with other building projects that will provide hotel and commercial space to support the events. Meanwhile, construction contracts worth an estimated $7bn are expected to be tendered for the Expo site.

  Infrastructure expansion

  Additional infrastructure projects will also be required. King Khalid International airport needs to be upgraded, and tendering has begun for major construction packages that will transform the existing airport into a much larger facility known as King Salman International airport. The Riyadh metro network will also be upgraded.

  Gigaprojects plateau

  The focus on event-driven development comes as the gigaproject programme cools. According to MEED Projects, the five official gigaprojects have not generated the growth in contract awards that was initially expected when they were first launched.

  Over the past three years, the total value of contract awards across the five official gigaprojects has remained largely flat, with $15.9bn of contract awards in 2023, $18.2bn of awards in 2024 and $9.3bn by the end of August 2025. 

  According to MEED Projects, the most active gigaproject developer in 2025 in terms of contract awards has been Diriyah with a total of $4.9bn, which is over half of the total for the year so far. Roshn has awarded $1.7bn of contracts, Neom $1.4bn, Qiddiya $1.2bn and Red Sea Global $100m.

  While the pace of contract awards on the gigaprojects has failed to grow, projects continue to be delivered. This is most apparent at the Red Sea Project, where a series of hotel and resort launches have taken place, including Sheybarah Island, featuring its distinctive metal orbs that sit above the water. 

  Broader transformation

  Although construction progress has not met expectations, the gigaproject programme has already achieved many of its broader ambitions. Ambitious project launches have altered global perceptions of Saudi Arabia, as it positions itself as a modern, welcoming society eager to play an active role on the world stage.

  This has contributed to Saudi Arabia’s economic objectives outlined in the Vision 2030 national strategy, which was launched in 2016. The 2024 annual report, released earlier this year, disclosed that 93% of the key performance indicators for the kingdom’s Vision Realisation Programme and national strategy had either been fully achieved or were on track as of 2024.

  Major international events will elevate Saudi Arabia’s aspirations to another level, and the construction sector will play a crucial role in delivering the buildings and infrastructure necessary to make those events a success.

  Infrastructure takes centre stage in Saudi strategy

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  Colin Foreman