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
Related Articles
  • UAE monitors desalination plants after oil spill

    3 November 2026

    State utility Etihad Water & Electricity (EtihadWE) says it is monitoring seawater quality at desalination plant intake points following an oil spill off the UAE's northern coast.

    In a statement, the utility said it is continuing to "implement proactive measures to safeguard the water production system" following the spread of an oil slick towards coastal areas in the emirates of Umm Al-Quwain, Ras Al-Khaimah, Ajman and Sharjah.

    The spill involved the tanker Gem No. 2, which was struck by a projectile in UAE territorial waters on 9 October. The resulting oil pollution has raised concerns over potential contamination of seawater used by desalination plants along the northern coast.

    EtihadWE said its measures include continuous monitoring of seawater quality at plant intake points, regular testing of produced and distributed water, and verification of compliance with approved standards before water enters the distribution network.

    The utility added that the precautionary measures will not affect the continuity of water supplies to consumers in the Northern Emirates.

    In an earlier update on 30 October, the Climate Change & Environment Ministry said the oil slick was concentrated off the coast of Umm Al-Quwain, extending partially towards coastal areas in Ras Al-Khaimah, Ajman and Sharjah.

    The ministry said the concentration of pollution had declined significantly and that the leak had been stopped at source. However, surveying, monitoring and clean-up operations are continuing in affected coastal areas.

    The Energy & Infrastructure Ministry said specialised technical teams are continuing work to address technical issues with the tanker, including repairing damaged sections, restoring operational systems and assessing the integrity of its structure.

    The proximity of the oil slick to the Naqa'a desalination plant in Umm Al-Quwain has drawn particular attention. According to media reports, the slick approached to within approximately 2 kilometres of the facility.

    Naqa'a has a production capacity of 150 million imperial gallons a day, equivalent to approximately 682,000 cubic metres a day. The plant supplies water to the Northern Emirates and has been operational since 2022.

    It is owned by Naqa'a Desalination Plant, a special-purpose vehicle established by Mubadala, Acwa and the former Federal Electricity & Water Authority, now known as EtihadWE.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21104534/main3427.jpg
    Mark Dowdall
  • Oman signs 1GW battery storage agreement

    3 November 2026

    Oman's Nama Holding, a subsidiary of Oman Investment Authority (OIA), has signed a framework agreement with China's State Grid International Development to develop battery energy storage systems (bess) with a targeted capacity of 1GW.

    The agreement covers two battery storage systems, each with a capacity of 500MW, at Duqm Industrial Station and Al-Subaikhi (Ibri Solar 3) Station.

    It is understood that both systems will operate at 400kV and connect to Oman's national electricity transmission grid.

    The deal is part of a package of economic and investment agreements signed by OIA with Chinese institutions and companies during the Oman-China conference on 2 November. OIA put the combined value of the bess projects at approximately RO384.5m ($1bn).

    The agreement comes as Oman advances plans to expand its renewable energy capacity and strengthen the electricity transmission network.

    Nama Power & Water Procurement Company is also procuring a separate 950MW standalone bess programme comprising five facilities in the sultanate, as MEED exclusively reported.

    The wider package of agreements, signed during Sultan Haitham Bin Tariq's state visit to China, covers sectors including renewable energy, mining, logistics, digital transformation and space technology.

    In the wind energy sector, Oman's O-Green and Shanghai Electric Wind Power signed a strategic partnership to establish a joint research and development centre and wind turbine testing facility at the Mawarid turbine factory in Duqm.

    The partnership will focus on adapting turbine technologies to Gulf climate conditions, supporting local manufacturing and developing green ammonia projects in Oman.

    The partnership is valued at RO3.85m-RO7.69m ($10m-$20m). It also identifies potential future contracts exceeding $1bn, alongside green ammonia projects and initial investment commitments in Oman exceeding $200m.

    In solar, OIA signed a preliminary term sheet with Chinese firms PCG Power and Hoymiles for a partnership valued at RO38.45m ($100m).

    The partnership aims to develop solar energy projects in Oman and establish a solar inverter manufacturing facility serving markets in the Middle East and North Africa.

    It is also intended to support the localisation of solar-related industries, expand domestic production and develop export markets.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21102638/main.jpg
    Mark Dowdall
  • Consultants bid for Roshn’s north Riyadh scheme

    3 November 2026

     

    Saudi gigaproject developer Roshn Group has received proposals from lead design consultants for its planned flagship development in north Riyadh.

    Consultants submitted proposals on 1 November for detailed design, tender documentation and construction documents for the project’s first plot.

    The planned development covers 13.7 square kilometres and will be a residential-led mixed-use scheme containing retail, office, hospitality, education and civic facilities.

    The consultancy scope for plot one includes infrastructure, utilities, public-realm works and the site adaptation of Roshn’s residential prototypes. It has been divided into two work packages.

    The first package covers phases A, B and E, which cover about 7.8 million square metres (sq m) and will include 17,000 units.

    The second package covers phases C and D, covering about 4.7 million sq m and with more than 15,000 units.

    The site is bordered by the Expo 2030 site, King Abdulaziz Park, the Sports Innovation Lab Zone and National Housing Company’s Khozam development.

    Transport connectivity is a key element of the masterplan. Two metro stations are planned, including a station at the interchange between the existing Line 4 and planned Line 7, and a dedicated Line 7 station. The development could also be served by the planned Qiddiya high-speed rail link and a potential diversion of King Salman Road.

    The scheme will add to Roshn’s existing development pipeline in Riyadh, which includes the multi-phase Sedra community. The developer is expanding its focus from single-family housing to larger mixed-use districts under its Roshn 3.0 strategy.

    Last month, Roshn signed a preliminary agreement with TMG Saudi, the local subsidiary of Egypt’s Talaat Moustafa Group, to establish a joint venture to explore a separate mixed-use project in Riyadh.

    TMG Saudi will hold a 51% stake in the proposed joint venture and Roshn will hold the remaining 49%. The companies said they will undertake detailed masterplanning and prepare a business case for the project, which preliminary studies indicate could include more than 55,000 residential units.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21101503/main.jpg
    Yasir Iqbal
  • Adnoc awards contract for Ruwais Diyab unconventional gas

    3 November 2026

     

    Abu Dhabi National Oil Company (Adnoc) has taken the final investment decision (FID) for the Ruwais Diyab unconventional gas development in Abu Dhabi.

    The project will deliver 345 million standard cubic feet a day (scf/d) of raw gas from 2029 over a 25-year period, with the potential to reach up to 1 billion scf/d in the future.

    Gas will be processed on site and connected to the UAE’s gas network through new pipeline infrastructure, “strengthening domestic supply, supporting the nation’s economic and industrial growth as well as Adnoc’s liquefied natural gas export ambitions”, the Abu Dhabi energy giant said when announcing FID on the project at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026.

    According to sources, Adnoc has awarded the design, build and operate (DBO) contract for the Ruwais Diyab unconventional gas development to China-based Jereh Group.

    A formal kick-off meeting between Adnoc and Jereh is expected to take place later in November, sources told MEED.

    The DBO contract awarded by Adnoc to Jereh is understood to cover the second phase of the Ruwais Diyab unconventional gas development. The tendering exercise for the project started last year.

    “The development [of Ruwais Diyab] follows a disciplined programme of technical studies, field testing and subsurface analysis, delivered by Adnoc Onshore under a DBO model, to reduce development risk,” Adnoc said in its statement on 2 November.

    “It brings together advanced subsurface expertise, artificial intelligence-enabled drilling and completion technologies and integrated project delivery capabilities to support the efficient and responsible development of domestic gas resources,” it added.

    The UAE holds the seventh-largest gas reserves in the world, with 298 trillion standard cubic feet (scf) of conventional gas reserves and 160 trillion scf of unconventional gas resources.

    Adnoc holds the majority 60% stake in the Ruwais Diyab concession, the majority of which is situated onshore, while France’s TotalEnergies holds the other 40% interest.

    The agreement to explore, appraise and develop the area’s unconventional gas resources was signed by Adnoc and TotalEnergies in November 2018. The partners announced first gas output at the concession, presumably on a pilot basis, two years later.

    Adnoc has set a target of producing 1 billion scf/d of gas from the Ruwais Diyab concession by 2030, in line with its target to achieve self-sufficiency in overall gas production by the end of this decade.

    “Ruwais Diyab’s additional unconventional gas supply will strengthen Adnoc’s gas value chain, including Adnoc Gas’s ability to meet rising domestic and international customer demand,” Adnoc said in its 2 November statement.

    “Ruwais Diyab advances Adnoc’s ambition to establish a scalable unconventional gas business and create a platform for future growth,” the company added.

    Ruwais Diyab first phase

    Adnoc awarded the contract for engineering, procurement and construction (EPC) on the first phase of the unconventional gas development programme to local contractor Astra Engineering & Construction in early 2025, according to regional project tracker MEED Projects.

    The first phase aims to achieve a gas output level of 100 million scf/d. The main structures to be built in the first phase include a central processing facility, two well pads, interconnecting well fluid pipelines, gas export pipelines and tie-in stations.

    The EPC contractor will be required to provide services such as surveying, design, engineering, procurement, expediting, transportation, fabrication, construction, testing, installation, pre-commissioning, commissioning, site performance testing, operation and maintenance of all units.

    The duration of the EPC works is understood to be 20 months, with the contractor also responsible for operating and maintaining the phase one facilities for 15 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21100974/main4351.png
    Indrajit Sen
  • Sultan Al-Jaber appeals for global energy security reset

    2 November 2026

    The global energy industry must fundamentally rethink how it builds, protects and delivers secure energy, following a year of unprecedented disruption that has exposed critical vulnerabilities in international supply chains, Sultan Ahmed Al-Jaber, the UAE’s Industry & Advanced Technology Minister and managing director and group CEO of Abu Dhabi National Oil Company (Adnoc Group) has said.

    Delivering the opening address at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026 on 2 November, Al-Jaber said preparedness is essential to navigating an increasingly uncertain global landscape.

    “For decades, energy security was a question for specialists. It was debated in rooms like this, by people like us, in a language that few needed to learn. This year, every family, every farmer, every industry and every business owner is asking about it, and our collective job is to find the answers.”

    Noting that it is not possible to control every situation and remove every risk, Al-Jaber said: “The choices we make today will determine the energy landscape a decade from now. Let’s apply the lessons we have learnt. Let’s build capacity and everything that supports it. Let’s forge partnerships that hold when it matters. And if you want a partner you can count on, you are in the right room, in the right city, in the right country. Because when it counts the most, you can count on the UAE.”

    Setting out the case for a more resilient energy system, Al-Jaber said that since the disruption in the Strait of Hormuz, nearly 1 billion barrels of crude have been drained from inventories. He noted that in some markets, stocks of diesel are at their lowest seasonal level in 35 years, while others are facing a supply gap for liquefied natural gas (LNG) of 600 billion cubic feet. “Simply put, the world has eroded its supply buffers,” Al-Jaber said.

    “But supply is only half the story. The other half is delivery. Before the disruption, logistics were less than 5% of the cost of a barrel. Today, they are more than 30%. In short, energy security is not only measured at the point of production. It is now also measured at the point of delivery.”

    Mitigation steps

    Al-Jaber outlined five steps the energy industry can take to reduce the impact of future shocks. “First, accessible supply. We need expanded strategic storage, larger stockpiles of products and flexible refining capacity closer to consumer markets.

    “Second, routes to market. Supply only counts when it arrives. Infrastructure must be built before it is needed and enabled by advanced logistics.

    “Third, operational intelligence. Moving from automated operations to intelligent energy systems that anticipate risk, optimise performance and drive down the cost of every barrel.

    “Fourth, capital follows confidence. Policy must create it, finance must accelerate it and insurance must keep trade moving.

    “Fifth, which is in my view the most important, is people. Because behind every barrel that arrives is a person who made sure it did. Systems don’t carry responsibility, people do.”

    Photo credit: Adipec via LinkedIn

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21091189/main2954.jpeg
    Indrajit Sen