meed-logo

line1 line2 line3
SIGN IN / REGISTER

Earthquake rebuild to impact Turkish interest in Saudi

2 March 2023

The Kahramanmaras earthquakes that struck Turkiye and northern Syria on 6 February have left more than 44,300 people dead and another 1.5 million homeless.

The disaster could also impact Turkish contractors’ appetite for work on projects in Saudi Arabia as their domestic market focuses on the $70bn reconstruction effort.

Over the past year, Turkish contractors have had increasing appetite to take on large volumes of the construction work that Saudi Arabia plans to complete as part of Vision 2030. Some $569bn-worth of contracts could be awarded between 2021 and 2025, according to MEED’s Saudi Gigaprojects report.

The expectation stems from the fact that Turkish contractors have traditionally played an active role in the Middle East on projects such as the Kuwait, Doha and Abu Dhabi airports, the Haramain railway in Saudi Arabia and Dubai Metro. According to regional projects tracker MEED Projects, Mapa, Yapi Merkezi, Yuksel and Tekfen have been the most active Turkish contractors in Saudi Arabia.

Turkish contractors were unofficially blacklisted in Saudi Arabia for political reasons in recent years. In 2020 and 2021, no contracts were awarded to Turkish firms. The annual total had averaged $1.3bn for the 10 years before 2018, with a peak of $2.3bn of awards in 2011, according to MEED Projects.

The embargo ended last year, and since then, Turkish contractors have been making a comeback in the kingdom. 

Over the past six months, several major construction contracts have been awarded to Turkish contractors. The first major award to a Turkish contractor came in August 2022 when Saudi Baytur secured a contract from Umm al-Qura for Development & Construction Company (Umm al-Qura) to build part of its Masar mixed-use development in Mecca.

The number and total value of contracts awarded to Turkish contractors had been forecast to grow as more projects move into the construction phase. However, those expectations may have to be revised due to the scale of the damage caused by the earthquakes.

The extent of the reconstruction effort required is only just being quantified. According to a report published by the World Bank on 20 February, direct damages from the earthquakes are estimated at $34.2bn, equivalent to 4 per cent of Türkiye’s 2021 GDP.

The report adds that based on global experience, recovery and reconstruction costs will be much larger, potentially twice as large, which puts the price at close to $70bn.

Market reversal

The expected spike in construction work will reverse a market that is in decline. According to GlobalData’s Construction in Turkey – Key Trends and Opportunities to 2026, published in December last year before the earthquake, the Turkish construction industry was expected to decline by 9.9 per cent in 2022 and 3 per cent in 2023, owing to weaknesses in the general economy amid the ongoing lira crisis and disruption stemming from the Russia-Ukraine conflict. According to GlobalData, Turkiye’s most active local contractors are Limak, Kolin, Dogus and Yapi Merkezi.

Industry figures in Turkiye do not expect the earthquake rebuilding programme to affect the appetite of these internationally active contractors for work in Saudi Arabia.

“There are two groups of contractors in Turkiye,” says an industry leader. “There are companies that work internationally, and there are others that are purely domestic. There are many mid-sized contracting companies that only work in Turkiye that are going to be involved with the rebuilding efforts.”

But even if the internationally focused contractors are still keen for work in Saudi Arabia, their ability to execute projects cost-effectively may be challenged as the earthquake rebuild programme increases the overall demand for people, materials and equipment.

There are already signs that Turkish resources will be redeployed to Turkiye from the GCC.

“There are people looking to source equipment in Qatar and send it to Turkiye to help with the reconstruction efforts,” says a Turkish contractor working in the GCC.

Companies focusing their expertise on national rebuilding efforts is nothing new. In 2011, when the Tohoku earthquake and tsunami damaged large parts of northeastern Japan, many Japanese construction companies working internationally and in the Middle East concentrated on rebuilding Japan. The construction work required for the 2020 Tokyo Olympics then meant many Japanese contractors did not return to the Middle East region.

Japan is different to Turkey. Japan is further away from the Middle East, its construction sector is widely regarded as lucrative with healthy margins, and its economy was less fragile. These things combined should mean Turkish interest in Saudi projects remains strong.

The more subtle question is how hungry for work contractors will be if there are more opportunities to work at home, and secondly, how cost-effective they will be if the demand for resources increases sharply.

Image: Hatay, Iskenderun, Turkey – 6 February 2023

https://image.digitalinsightresearch.in/uploads/NewsArticle/10640199/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait construction holds up despite regional strife

    29 July 2026

     

    Kuwait’s construction and transport sectors are emerging from one of their strongest periods on record, with contract awards totalling $5.5bn last year, close to the record $5.6bn set in 2024.

    Against that backdrop, momentum has held up better than expected in 2026. Awards in the construction and infrastructure sectors reached about $1.2bn in the period to 27 July, only marginally down from the $1.6bn recorded over the same period last year. Given the disruption to investor confidence and tender timelines across the Gulf caused by regional conflict, the near-flat comparison points to a market that has held its footing rather than stalled.

    That steadiness reflects a broader push to keep major projects moving even as the region navigates a more uncertain operating environment. Underpinning the momentum is the $4bn engineering, procurement and construction (EPC) contract awarded to China Communications Construction Company (CCCC) in late December for the remaining phases of Mubarak Al-Kabeer Port on Boubyan Island, covering dredging, marine works and terminal infrastructure.

    Although the deal predates the current period of regional disruption, it helped establish momentum that has carried into 2026, with Kuwait continuing to advance large-scale schemes across ports, roads and utilities.

    This marks a notable shift for a market that, prior to its recent run, had a reputation for slow decision-making and a thin pipeline relative to regional peers. Contractors and consultants point to a steadier flow of tenders reaching the award stage this year, even with overall values marginally below last year’s pace – a gap narrow enough to suggest Kuwait’s pipeline has proven more insulated from regional volatility than many expected.

    Infrastructure pipeline

    Kuwait’s infrastructure pipeline is now approaching $16bn, spanning ports, roads and utilities projects at various stages of tendering and execution. The most recent addition came at Shuaiba Port, Kuwait’s oldest and principal industrial gateway, where the Kuwait Ports Authority (KPA) received bids in July for infrastructure and electrical modernisation works.

    The package sits alongside longer-term plans for Shuaiba. Since December, KPA has been in talks with Abu Dhabi’s AD Ports Group over a possible concession to develop a new container terminal, adding to a pipeline that already includes upgrade works at Shuwaikh and Doha ports under KPA’s wider tender programme.

    Elsewhere, Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City. Local firm United Buildings Company has emerged as the lowest bidder on both, with combined offers worth KD44m covering the construction, completion and maintenance of services, infrastructure and public buildings across different district centres.

    Tendering is also under way for the estimated KD222m ($718m) rainwater drainage networks serving Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra. The works comprise a major concrete sewer, three collection basins and an extensive stormwater drainage network, with collection tanks linked through an independent system that discharges to sea via the Nuwaiseeb outlet.

    Construction gains pace

    This infrastructure momentum has been mirrored in the construction sector, where Kuwait awarded an estimated $232m contract to China State Construction Engineering Corporation (CSCEC) in mid-July to construct the new headquarters of the Kuwait Direct Investment Promotion Authority (KDIPA). The contract covers a 275-metre, 55-storey office tower in Kuwait City’s Sharq district, targeted for completion in the second quarter of 2028.

    Beyond the KDIPA award, several schemes forming part of Kuwait’s estimated $36bn construction pipeline are expected to progress in the coming months.

    The largest is the first phase of the planned $22bn Sabriya City project, for which Beijing- and Shanghai-listed Metallurgical Corporation of China (MCC) is expected to sign one of the main contracts. MCC presented a fully funded proposal to Kuwaiti ministers for the city last year. The project is expected to include 52,000 housing units, alongside a power plant, hospital and marina.

    Consultants are meanwhile bidding for the design and supervision of the estimated $580m service hub buildings at Al-Mutlaa Health City, a project spanning more than 351,000 square metres.

    The Kuwait Authority for Partnership Projects (Kapp) has also awarded two landmark public-private partnership (PPP) deals this year.

    In January, it awarded an estimated $252m contract to develop the Al-Muthanna Complex real estate project to a local consortium comprising Real Estate House, National Investments Company, Arkan Kuwait Real Estate Company, Beyout Holding Company and Osoul Investment Company. The contract covers the rehabilitation, development, operation and management of the complex under a 15-year usufruct arrangement.

    In February, United Real Estate Company was awarded the third phase of a waterfront real estate project in Sharq, Kuwait City, under a similar 15-year arrangement covering rehabilitation, development, operation and management.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17805093/main.gif
    Yasir Iqbal
  • Events put Saudi Arabia on the world stage

    29 July 2026

    Commentary
    Colin Foreman
    Editor

    The Expo 2030 and the 2034 World Cup will not transform Saudi Arabia’s economy on their own, but the momentum they generate and the international profile they bring underline their importance.

    Over the past decade, Saudi Arabia has taken great strides in changing the international perception of the kingdom. Futuristic projects and investment in football and other sports, combined with social reforms such as opening cinemas and allowing women to drive, have helped foster a new image for the country.

    This year, those efforts have been dented as the rest of the world once again sees a region blighted by conflict. Saudi Arabia will need to correct the course of public perception once the conflict draws to a close, and Expo 2030 Riyadh and the 2034 Fifa World Cup are well timed to help the kingdom maintain its modernisation drive.

    Both are truly global events that will attract millions of visitors. More than 40 million visits are anticipated at the Expo, and the World Cup final in Qatar in 2022 was watched by some 1.5 billion people.

    Both are truly global events that will attract millions of visitors

    Locally, the impact has already begun. Flying into Riyadh’s King Khalid International airport from the south, one can clearly see earthworks and infrastructure progressing at the Expo site. To the east of the city, construction work on King Fahd Sports City Stadium is well advanced.

    Expo Riyadh 2030 Company expects the construction phase and legacy development to contribute around $64bn to Saudi GDP and generate some 171,000 jobs. Fifteen stadiums are planned across five cities.

    Construction activity is ramping up. Tendering is starting for the first buildings at the Expo site, including the KSA Pavilion. Meanwhile, work is beginning on more stadiums and other related infrastructure projects that will support the World Cup.

    In the build-up to Expo 2030 and World Cup 2034, construction will be the main event.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17794600/main.gif
    Colin Foreman
  • Read the August 2026 MEED Business Review

    29 July 2026

    Download / Subscribe / 14-day trial access

    Saudi Arabia’s biggest event and infrastructure programmes are moving into a new phase of delivery.

    Construction activity at the Expo 2030 Riyadh site is accelerating, with some of the largest packages set to be awarded before the end of this year. Infrastructure works are gathering pace and preparations are intensifying for an event that is expected to reshape the capital long after its six-month run comes to an end.

    At the same time, the lessons emerging from this summer’s expanded Fifa World Cup provide an early guide to the opportunities – and challenges – Saudi Arabia will face as it prepares to host football’s biggest tournament in 2034.

    August’s Market Focus turns to the Maghreb, where four economies are following increasingly divergent paths. While Morocco is benefiting from World Cup-driven investment and a booming tourism sector, Algeria is deploying record public spending, Tunisia is pressing ahead with strategic power investments despite fiscal constraints, and Libya is seeing sustained interest from oil and gas investors undeterred by ongoing political disputes. The report examines what is driving this divergence and where the region’s strongest opportunities now lie.

    This edition also includes MEED’s annual ranking of the Top 50 GCC banks, exploring how regional lenders have demonstrated remarkable resilience through recent geopolitical turbulence, supported by strong funding, capital buffers and government backing.

    In the latest issue, we speak to renewable energy consultancy SgurrEnergy about why developers are increasingly moving beyond standalone solar towards hybrid renewable energy projects that combine battery storage and other technologies to deliver round-the-clock power.

    We also examine how geopolitical tensions, shifting trade routes and supply chain disruption are driving a new wave of global investment in port infrastructure, and consider what Saudi Arabia must do to unlock greater pools of private capital as sovereign funding gives way to a more institutionally financed infrastructure model.

    Finally, we congratulate the winners of the Mena Banking Excellence Awards 2026, recognising the retail, digital and SME institutions that are setting new benchmarks for innovation, customer experience and business banking across the region.

    We hope our valued subscribers enjoy the August 2026 issue of MEED Business Review. 

     

    Must-read sections in the August 2026 issue of MEED Business Review include:

    > AGENDA: Expo 2030 Riyadh construction gathers pace

    > FOOTBALL: What the 2026 World Cup means for Saudi Arabia 2034

    INDUSTRY REPORT:
    Top 50 Gulf banks
    > GCC banks prove resilient amid turmoil

    > AWARDS: Mena Banking Excellence Awards reveals retail, digital and SME winners

    > LEADERSHIP: Private capital and the GCC infrastructure inflection

    > PORTS: Geopolitical risk shapes $513bn of global ports projects

    > INTERVIEW: Developers look beyond standalone solar

    > MAGHREB MARKET FOCUS: 
    > COMMENT: Maghreb fortunes diverge
    > GOV'T & ECONOMY: Elections fail to change the Maghreb's political realities
    > PAYMENTS: Morocco’s payments shift remains cash-led
    > OIL & GAS: Morocco strives to work out feasible energy strategy
    > OIL & GAS: Libya’s oil and gas project market has grown by 48%
    > OIL & GAS: Value of Algerian extractive projects more than doubles
    > POWER & WATER: Tunisia drives Maghreb power investment with $1.4bn electricity link
    > CONSTRUCTION: Morocco is bright spot in Maghreb construction
    > CONSTRUCTION: Algeria’s record budget sets stage for construction comeback
    > TOURISM: Morocco tourism hits record highs
    > TOURISM: Tunisia's tourism sector eyes record growth

    > MEED COMMENTS: 
    >     I Squared deal is latest sign of PIF's new playbook
    > Projects market holds its nerve
    > Saudi water sector awaits next catalyst
    > Gulf IWPPs risk becoming a two-horse race

    > GULF PROJECTS INDEX: Gulf index maintains growth run

    > JUNE 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The moving finger of time

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17726746/main.gif
    MEED Editorial
  • Bahrain tenders Tashan sewer scheme

    29 July 2026

    Bahrain’s Ministry of Works (MoW) has issued a tender for the construction of a sewer network in Tashan, on the outskirts of Manama.

    Contractors have until 20 September to submit bids.

    The scheme covers blocks 405, 419 and 421, administrative areas covering Tashan and surrounding communities. It will expand the local wastewater collection network and provide connections for existing and planned properties.

    The scope includes about 2 kilometres of 150mm-diameter lateral sewers and 4.8km of main sewer lines ranging from 200mm to 400mm in diameter.

    The contract also covers house connections and future connections for planned properties.

    A pressure station with a capacity of 75 litres a second will be built as part of the scheme. It will be supported by about 834 metres of 250mm-diameter rising main and a discharge chamber.

    Other works include the construction of manholes and associated infrastructure, as well as the decommissioning of an existing lift station.

    The project is part of Bahrain’s wider programme to develop and expand its sewerage networks and treatment infrastructure.

    In June, MoW issued a tender for another sewer network project in A’ali, southwest of Manama, covering Block 730 and part of Block 740.

    The scheme will connect 232 plots to the public sewer network. It includes 5.2km of sewer mains with diameters ranging from 200mm to 300mm and about 3.4km of 150mm-diameter lateral sewer lines.

    The scope also includes house connections, new manholes and connections to the existing sewer network.

    The bid submission deadline for the A’ali project is 5 August.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17800238/main.jpg
    Mark Dowdall
  • Chinese firm signs $3.3bn Kuwait wastewater deal

    29 July 2026

    Register for MEED’s 14-day trial access 

    China State Construction Engineering Corporation (CSCEC) has confirmed it has signed a contract to build Kuwait’s largest wastewater treatment plant.

    The North Kabd wastewater treatment plant and related works contract was signed on 26 July between senior officials from CSCEC and Kuwait’s Ministry of Public Works (MPW).

    The plant has a planned capacity of up to 1 million cubic metres a day (cm/d).

    In January, MEED reported that the Chinese firm had been appointed as the main contractor for the project pending the contract’s official signing.

    According to official government records at the time, the Central Agency for Public Tenders (Capt) had authorised MPW to proceed with a direct contract valued at KD999.85m ($3.3bn).

    The contract covers the design, construction, operation and maintenance of the facility over a 10-year period.

    Earlier, in September 2025, MEED reported that a Chinese firm was expected to sign the contract as part of a series of Kuwait-China agreements covering infrastructure and energy.

    This included a $4bn agreement signed in December with China Communications Construction Company for the Mubarak Al-Kabeer Port project.

    The MPW invited bids for the expansion of the Kabd facility in 2022.

    Plans for the North Kabd sewage treatment plant (STP) were first announced in 2013, according to regional project tracker MEED Projects.

    The initial plan included two STP units with a total combined capacity of close to 500,000 cm/d, in addition to an upgrade to an existing plant.

    Kuwait has been investing significantly in wastewater infrastructure to address challenges in reusing treated sewage.

    In February, Saudi Arabia’s Acwa and local financial institution Gulf Investment Corporation signed a contract with Kuwait’s Ministry of Electricity & Water, confirming the long-term offtake arrangements for the Al-Zour North independent water and power plant (IWPP) phases two and three.

    The integrated facility will have a net power generation capacity of at least 2,700MW and a net desalinated water capacity of at least 545,520 cm/d, making it the largest IWPP ever undertaken in the country.

    The Kuwait Authority for Partnership Projects and the Ministry of Electricity & Water are also tendering phase one of the Al-Khiran IWPP.

    The estimated $200m project includes an 1,800MW power plant and a desalination facility with a capacity of 568,000 cm/d.

    Bids were submitted for the project in June.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17794972/main.jpg
    Mark Dowdall