Related Articles

• 
  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.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14639848/main.jpg

  Indrajit Sen
• 
  Dubai moves Al-Maktoum airport bid deadline

  11 September 2025

  

   

  Dubai Aviation Engineering Projects (DAEP) has allowed contractors until 15 September to submit bids for the five packages covering substructure works for the first phase of the expansion of Al-Maktoum International airport.

  MEED understands the tender was issued in mid-June. The previous submission deadline was 1 September.

  The prospective bidders are expected to include:

  • Al-Naboodah Construction (UAE)
  • Alec (UAE)
  • Aviation Industry Corporation of China 
  • Besix (Belgium)
  • China Harbour Engineering Company 
  • China National Aero-Technology International Engineering Corporation 
  • China State Construction Engineering Corporation 
  • Dutco Construction (UAE)
  • Innovo (UAE)
  • Limak Holding (Turkiye)
  • PowerChina (China)
  • Tristar E&C (UAE)
  • Vinci (France)
  • Webuild (Italy)

  According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000-square-metre facility with an annual capacity of 45 million passengers. It will be the second of three terminals at Al-Maktoum International airport, linking to the airside with a 14-station automated people-mover (APM) system.

  Last month, MEED exclusively reported that DAEP had received bids from firms to build the APM at Al-Maktoum airport. 

  The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

  Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

  The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

  It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

  Construction progress

  Construction on the first phase has already begun. In May, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

  The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based Tristar E&C.

  While speaking to the press on the sidelines of the Airport Show in Dubai in May, Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation, said the government of Dubai will award more packages this year, including for the APM and baggage handling systems.

  “Several other packages are expected to be tendered this year, including the terminal substructure, 132kV substations and district cooling plants,” Al-Zaffin added.

  Construction works on the project’s first phase are expected to be completed by 2032.

  The government approved the updated designs and timelines for its largest construction project in April 2024.

  In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

  The statement added that the project will create housing demand for 1 million people around the airport.

  In September last year, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultants on the expansion of Al-Maktoum airport.

  Project history

  The expansion of Al-Maktoum International, also known as Dubai World Central (DWC), is a long-standing project. It was officially launched in 2014, with a different design from the one approved in April 2024. At that time, it involved building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

  An initial phase, due to be completed in 2030, involved increasing the airport’s capacity to 130 million passengers a year. The development was to cover an area of 56 sq km.

  Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.

  ---

  Further reading:

  > Middle East invests in giant airports
  > Broader region upgrades its airports
  > Global air travel shifts east

   

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14647297/main.jpg

  Yasir Iqbal
• 
  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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14642517/main.gif

  Colin Foreman
• 
  Infrastructure takes centre stage in Saudi strategy

  10 September 2025

  

   

  Saudi Arabia is placing infrastructure at the core of its national development strategy, as the kingdom moves forward with its Vision 2030 plan to diversify the economy. With oil no longer the sole driver of growth, investment is shifting towards sectors that can support long-term sustainability, and infrastructure is top of the list. 

  The key to Riyadh’s success lies in developing infrastructure across the country. According to regional projects tracker MEED Projects, there are about $240bn-worth of active transport projects in the kingdom. These plans include new railway lines, airport expansions and road upgrades – all now considered central to Saudi Arabia’s efforts to boost trade, tourism and regional connectivity.

  The investment push is most visible in Riyadh, where billions of riyals are being spent to transform the capital into a world-class hub. However, the impact stretches far beyond the capital. Across the country, transport networks are being modernised, new routes planned or upgraded, and construction is ramping up. The kingdom also expects these projects to stimulate the economy by creating jobs and attracting foreign investment.

  Resurgence of rail

  Rail projects have seen a revival in the kingdom after a lull of several years. Rail accounts for approximately 32% of transport developments, with nearly $75bn-worth of active projects.

  The most significant of these schemes is Line 7 of the Riyadh Metro project. The tender for the multibillion-riyal main contract is currently in the market, with bids expected to be submitted by 15 September.

  There is renewed expectation that the long-awaited Saudi Landbridge project will finally proceed, as the kingdom began tendering in September for the Riyadh rail link – a crucial component of the overall scheme.

  Another major project likely to present market opportunities is the Q-Express rail link. Riyadh is preparing to release expression of interest documents to developers and investors. The project was initially planned under a conventional model, but will now proceed under a public-private partnership (PPP) framework.

  Other planned rail projects include high-speed connections between Riyadh and GCC capitals, such as Doha and Kuwait City, as well as the Saudi sections of the GCC railway network.

  Airport ambitions

  Saudi Arabia is also expanding and upgrading its airports to support Vision 2030 goals. Airports represent a significant subsector, accounting for $62bn of planned or underway projects, or about 25% of the transport total.

  The largest upcoming airport project is the development of King Salman International airport (KSIA), which will ultimately expand and replace the existing King Khalid International airport. In August, contractors submitted their best and final offers for the first phase of Terminal 6 and the Iconic Terminal at KSIA. The client is also preparing to award the contract to build the third runway, while tendering is ongoing for the fourth runway.

  Meanwhile, Saudi Arabia’s Civil Aviation Holding Company (Matarat) and the National Centre for Privatisation & PPP (NCP) have extended the tender closing date to mid-October for a contract to develop and operate a new passenger terminal building and related facilities at Abha International airport.

  Located in Asir Province, the first phase of the Abha International airport PPP project will expand the terminal area from 10,500 square metres (sq m) to 65,000 sq m.

  Another major airport project planned in the kingdom is the new international airport in Taif, located in Mecca Province. In February, more than 90 local and international firms expressed interest in developing and operating the project.

  Roads development 

  Expanding the Saudi road network is essential to completing the country’s transport infrastructure rollout. The government is investing heavily in expanding and maintaining the kingdom’s vast network of roads.

  New roads are being built to improve access between cities, reduce congestion, and support the efficient movement of goods and services.

  Some of the major road schemes under development are in Riyadh and are being undertaken by the Royal Commission for Riyadh City (RCRC). The masterplan includes 15 road development schemes in the capital, such as the second southern ring road and the Thumama road development projects.

  Tendering is also expected to begin shortly for a contract to develop and operate the Asir-Jizan highway project. In August, Saudi Arabia’s Roads General Authority (RGA), the NCP and the Aseer Development Authority (Asda) announced five prequalified teams eligible to bid for the project.

  The highway is one of four planned under the kingdom’s privatisation and PPP pipeline.

  Expo Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, is also expected to float the tender for the project’s initial infrastructure works by September.

  The rollout of these major infrastructure projects in Saudi Arabia is expected to provide significant opportunities for the market in the coming years, with successful delivery requiring close coordination between local and international contractors.

  ---

  Main image: Mecca, Saudi Arabia – 9 Jan 2025: Haramain high-speed railway station 

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14641803/main.gif

  Yasir Iqbal
• 
  PIF firm awards $167m Pirelli tyre plant deal

  10 September 2025

  

  Register for MEED’s 14-day trial access 

  Saudi Arabia’s Mena Tyre Company, a joint venture of Saudi sovereign wealth vehicle the Public Investment Fund (PIF) and Italian tyre maker Pirelli Tyre, has awarded an estimated SR628m ($167m) contract to build the Pirelli tyre manufacturing plant in King Abdullah Economic City (KAEC).

  The contract was awarded to Saudi Amana, the local branch of UAE-based Group Amana.

  The PIF holds a 75% stake in Mena Tyre Company, with Pirelli holding the remaining 25%.

  The plant is expected to start production in 2026. It will make tyres for passenger vehicles under the Pirelli brand. It will also manufacture and market tyres under a new local brand targeting the domestic and regional markets.

  The plant is expected to have the capacity to produce 3.5 million tyres a year.

  In July, MEED exclusively reported that Saudi Amana had emerged as the frontrunner for the project.

  UK-based firm Jones Lang LaSalle is the project consultant.

  The project is located within the King Salman Automotive Cluster at KAEC, in Saudi Arabia’s Mecca Province. The cluster was officially announced on 6 February by Crown Prince Mohammed bin Salman.

  The move was part of the kingdom’s push to become a dominant player in the Gulf’s automotive sector. Recent years have seen investment in infrastructure, supply chain development and research to attract global automakers to Saudi Arabia and create an ecosystem for electric vehicle (EV) production – driven by the Saudi Vision 2030 mandate to diversify the economy.

  The cluster is expected to be a major contributor to the kingdom's National Industrial Development and Logistics Programme (NIDLP), which aims to develop high-growth sectors locally and attract foreign investment.

  Several initiatives under the NIDLP have made significant progress in recent years, including multibillion-dollar EV manufacturing plants backed by the PIF. These include assembly facilities for US-based Lucid Motors, as well as for Ceer – the kingdom’s first homegrown EV brand — launched by the PIF in collaboration with Taiwan’s Foxconn.

  These facilities are supported by the National Automotive & Mobility Investment Company (Tasaru Mobility Investments), which the PIF established in 2023 to develop the kingdom’s local supply chain capabilities for the automotive and mobility industries.

  The PIF has signed several agreements with international companies, including South Korean car maker Hyundai, to establish production facilities in KAEC’s automotive cluster.

  ---

  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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14639790/main.jpg

  Yasir Iqbal