Firms prepare King Salman International airport runway bids
21 May 2025
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King Salman International Airport Development Company (KSIADC), backed by Saudi sovereign wealth vehicle the Public Investment Fund, has given firms until 23 May to submit bids for a design-and-build contract to develop the third runway at King Salman International airport (KSIA) in Riyadh.
MEED understands that the notice was issued in the last week of February. The previous deadline was 12 May.
It is understood that the third and fourth runways will add to the two existing runways at Riyadh’s King Khalid International airport, which will eventually become part of KSIA.
In February, MEED exclusively reported that firms had submitted prequalification forms on 18 January for a contract to develop the third runway and taxiways at KSIA.
KSIADC received interest from firms on 18 December for the package.
KSIADC prequalified firms in September for the main engineering, procurement and construction packages and early and enabling works, as well as other elements of the construction work. These included specialist systems and integration; materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; local content; and environmental, social and governance (ESG) and other services.
The entire scheme is divided into eight assets:
- Iconic Terminal
- Terminal 6
- Private aviation terminal
- Central runway and temporary apron
- Hangars
- Landside transport
- Cargo buildings
- Real estate
In August last year, KSIADC appointed several architectural and design firms for the various elements of the project.
KSIADC confirmed that it had signed up UK-based Foster + Partners to design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.
US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.
The client also confirmed the appointment of UK-based engineering firm Mace for the delivery partner role on the project.
The airspace design consultancy contract was awarded to local firm Nera.
Project scale
The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways. It will include the existing terminals at King Khalid International airport, as well as 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.
Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.
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Oman kicks off airport procurement
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Oman’s Civil Aviation Authority (CAA) has launched the long-awaited procurement process for the construction of the new Musandam airport.
Contractors have until 14 July to prequalify for the design and implementation of enabling works on the estimated $500m project.
Almost 40 companies have purchased the prequalification application documents to date, including more than a dozen international contractors. These include PowerChina, China Communications Construction Company (CCCC), Hassan Allam and Arab Contractors of Egypt, India’s Larsen & Toubro, Mohammed Abulmohsin Al-Kharafi & Sons from Kuwait, Malaysia’s WCT Berhad Engineering & Construction and Qatar’s Generic Engineering Technologies & Contracting.
In March last year, the CAA appointed Swiss engineering firm Renardet SA & Partners to prepare designs for the proposed development of the airport in the northern peninsula of the sultanate, which is separated from the rest of Oman by the UAE.
The airport is planned to be developed in two phases. The first phase involves the construction of a 2.5-kilometre-long and 45-metre-wide runway, a terminal building capable of handling 250,000 passengers annually, an air traffic control tower and other associated facilities.
A new 7km-long road will also be constructed as part of the first phase.
The second phase includes the expansion of the runway to 3.3km and the expansion of the terminal building and associated facilities.
The main construction work is expected to take three years.
The implementation period for the second phase is 18 months. The airport is expected to be completed in 2028.
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Oman launches new mountain development
16 June 2025
Oman’s Ministry of Housing & Urban Planning has issued a tender for the comprehensive detailed masterplan and detailed engineering design for a major new residential and tourism development called Al-Jebal Al-Aali in the Al-Dakhiliyah region.
Interested consultants have until 10 July to submit their proposals for the contract, which encompasses planning, architecture, engineering and infrastructure design, tender preparation, tender launch, and award for both infrastructure and building elements.
At least 10 local and international engineering firms have purchased tender documents to date, including Canada’s AtkinsRealis, France’s Artelia, Dar Al-Handash and Khatib & Alami, both of Lebanon, and local firms Almanarah Engineering Consultancy and Nicholson Jones Partnership Engineering Consultancy.
The multibillion-dollar Al-Jebal Al-Aali development lies on the Hajar Mountains range close to Jebal Akhdar. According to local media reports, it will cover an area of 11.8 square kilometres (km) along a 5.4km-long mountain ridge, and house more than 10,000 residents.
In May, an investment agreement was signed with the ministry for the first phase of a health-focused district at the development with an investment value of up to RO200m ($520m). The Western District project will cover 630,000 square metres and comprise 500 residential and hotel units.
Other agreements are expected to be signed in due course, particularly once the masterplan and basic infrastructure works handled by the ministry are completed.
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Scatec updates on two Egyptian renewables projects
16 June 2025
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Norwegian renewable energy company Scatec has announced updates on two utility-scale renewable independent power projects (IPPs) in Egypt.
For the first project, it has announced the signing of a 25-year power-purchase agreement (PPA) with Egyptian Electricity Transmission Company (EETC) for a new 900MW onshore wind IPP at Ras Shukeir on the Red Sea coast.
The PPA is denominated in US dollars, allowing it to be derisked from any fluctuations in the value of the Egyptian Pound. It is also sovereign-backed, further reducing development risk.
Scatec will set up a special-purpose vehicle project company called Shadwan Wind Power to develop the IPP. It says it will now proceed to conducting year-long wind measurements at the site before proceeding to financial close and construction.
Separately, the developer has announced financial close on its Obelisk solar power hybrid solar and battery project at Nagaa Hammadi in Upper Egypt, about 80 kilometres northwest of Luxor.
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The financing amount corresponds to approximately 80% of the total estimated capex of $590m, with the difference funded from Scatec’s own equity injections at the end of the construction period after it recently signed equity bridge loans (EBLs) of $120m for the project.
The Oslo-headquartered firm signed the 25-year PPA with EETC in September last year.
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The first phase comprises a 561MW solar and 100MW/200MWh battery storage project, which is targeted to reach commercial operation in the first half of 2026.
The second phase comprises a 564MW solar project, which is expected to reach commercial operation in the second half of the same year.
Scatec itself will deliver engineering, procurement and construction, asset management, and operations and maintenance services for the project.
READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF
Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices
Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:
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Iraqi airspace shutdown to impact oil projects
16 June 2025
The closure of Iraq’s airspace and heightened concerns about security are likely to impact project progress in the country’s oil and gas sector, according to industry sources.
Iraq closed its airspace and suspended all air traffic on 13 June following Israeli strikes on Iran on 12 June.
Oil companies remain concerned about the potential for violence to spill over into Iraq and are closely watching developments, sources said.
One source said: “All of the oil companies active in Iraq are likely to be watching developments very closely.
“They are also likely to be drawing up plans for potential evacuations over land borders into neighbouring companies that could be used if the security situation deteriorates.
“The latest developments are already impacting oil companies as they cannot transport workers and they are having to divert increased resources into security precautions.
“Just how much projects will be impacted will depend on how long this period of heightened tensions goes on for and whether or not the security situation worsens.”
If the conflict does escalate between Israel and Iran, Iraq’s southern oil and gas assets are likely to be most vulnerable as they would potentially be in the line of fire between the two countries, sources said.
On 15 June 2025, Iraqi security forces deployed air defence systems near the Bazarkan oil field in Iraq’s Maysan province.
On 12 June, the Italian oil company Eni, which is developing the Zubair oil and gas field in Basra, said it was closely monitoring the security situation in Iraq.
The comments from the oil company came after the US decided to partially evacuate its embassy in the country.
[Oil companies active in Iraq] are likely to be drawing up plans for potential evacuations over land borders into neighbouring companies that could be used if the security situation deteriorates
Industry sourceThis latest period of increased concerns about security in Iraq follows a surge in investment in the country’s oil and gas sector.
In May, MEED revealed that the total value of all oil, gas and chemicals projects in Iraq had hit its highest level in a decade as international oil companies showed renewed enthusiasm for the country’s assets.
On 6 May, the total value of projects within these sectors that had been announced as planned or already under execution hit $152.2bn, according to information gathered by regional projects tracker MEED Projects.
The total value of oil, gas and chemicals projects in the country had risen by 15.6% since the same time last year, when it stood at $131.7bn. The value of projects under execution had also hit an all-time high of $93.3bn.
MEED’s June 2025 report on Iraq includes:
> COMMENT: Iraq maintains its pace, for now
> GOVERNMENT & ECONOMY: Iraq’s economy faces brewing storm
> OIL & GAS: Iraqi energy project value hits decade-high level
> PIPELINES: Revival of Syrian oil export route could benefit Iraq
> POWER: Iraq power sector turns a page
> CONSTRUCTION: Iraq pours billions into housing and infrastructure projects
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Kuwait issues Shagaya solar RFP
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Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE), through the Kuwait Authority for Partnership Projects (Kapp), has issued the request for proposals (RFPs) for a contract to develop the state’s first utility-scale solar photovoltaic (PV) plant.
Prequalified developers have until 14 September to submit technical and commercial bids for the Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP), which will have a total power generating capacity of 1,100MW.
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London-headquartered consultancy firm EY is the lead and financial transaction adviser. London-headquartered DLA Piper is the legal adviser, while Norwegian engineering services firm DNV is the client’s technical and environmental adviser.
2030-50 strategy
Kuwait aims to have a renewable energy installed capacity of 22,100MW by 2030 as part of the 20-year strategy announced in March and ending in 2050.
In May this year, Kapp invited companies to prequalify for its Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone two IPP, which will have a capacity of 500MW. Applications are due by 24 July.
Minister of Electricity, Water & Renewable Energy, Salem Falah Al-Hajraf, confirmed that the strategy also involves installing distributed or rooftop solar farms, with the state procuring the energy output from solar PV farms.
Kuwait aims to reach net-zero carbon emissions by 2060.
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