Firms submit $550m PIF Pirelli tyre plant bids
21 April 2025

Saudi Arabia’s Mena Tyre Company received bids on 10 April for a contract to build an estimated $550m tyre manufacturing plant in King Abdullah Economic City (KAEC).
Mena Tyre Company is a joint venture of the Public Investment Fund (PIF) and Italian tyre maker Pirelli Tyre. PIF holds a 75% stake in the venture, with Pirelli holding the remaining 25%.
MEED understands that the tender notice was issued in December last year.
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 March, MEED exclusively reported that PIF and Pirelli Tyre had tendered the contract to build an estimated $550m tyre manufacturing plant in KAEC.
UK-based firm Jones Lang LaSalle (JLL) is the project consultant.
The project is located within the King Salman Automotive Cluster of KAEC, which was officially announced on 6 February by Saudi Arabia’s Crown Prince Mohammed Bin Salman.
The move was the latest sign of the kingdom’s push to become a dominant player in the Gulf’s automotive sector. It follows heavy investment over recent years in infrastructure, supply chain development and research to attract global automakers to Saudi Arabia and create an ecosystem for electric vehicle (EV) production in particular – all driven by the Saudi Vision 2030 mandate to diversify the economy.
The cluster is expected to be a major contributor to the National Industrial Development and Logistics Programme (NIDLP), which aims to develop high-growth sectors locally and attract foreign investment.
Several schemes catering to the NIDLP have made significant progress in recent years, including multibillion-dollar EV manufacturing plants backed by PIF, such as assembly facilities for US-based Lucid Motors and Ceer, the kingdom’s first homegrown EV brand, launched by PIF in collaboration with Taiwan’s Foxconn.
These facilities are supported by the National Automotive & Mobility Investment Company (Tasaru Mobility Investments), which PIF established in 2023 to develop the kingdom’s local supply chain capabilities for the automotive and mobility industries.
PIF then signed several agreements with international companies, including the South Korean car maker Hyundai and Pirelli, to establish production facilities in the KAEC automotive cluster.
MEED’s April 2025 report on Saudi Arabia includes:
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads up
Exclusive from Meed
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Chinese firm wins Dubai drainage contract20 July 2026
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Abu Dhabi launches E20 highway expansion project20 July 2026
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Aramco executive becomes Samref chairman17 July 2026
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Chinese firm wins Dubai drainage contract20 July 2026
China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.
The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai.
MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.
The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.
It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.
In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.
These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.
Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.
According to a source, a consultant has yet to be appointed.
TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.
Bids are currently under evaluation for the EPC contracts for both projects.
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Dubai receives eight bids for Hassyan SWRO pipeline contract20 July 2026
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Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.
The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).
Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.
The other bids were:
- Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
- Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
- Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
- RMB Contracting (UAE) – AED437.96m ($119.3m)
- Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
- Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
- Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)
RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received.
In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.
Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.
Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.
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Abu Dhabi launches E20 highway expansion project20 July 2026
Abu Dhabi’s Department of Municipalities and Transport (DMT) has announced the E20 highway expansion project.
The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.
Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.
The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.
The E20 expansion is one of the major infrastructure schemes being overseen by DMT in Abu Dhabi.
Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.
The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.
Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.
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Firms given more time for Mid Island Parkway prequalifications20 July 2026

Abu Dhabi’s Modon Infrastructure has extended the deadline to 31 July for firms to submit expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership (PPP).
The previous deadline was 15 July. MEED understands the prequalification notice was issued in June, following Modon Infrastructure’s invitation in May for firms to register their interest.
Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.
Phase two of the MIPP involves the construction of about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.
The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.
The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.
Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.
Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.
Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.
It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.
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Aramco executive becomes Samref chairman17 July 2026
Saudi Aramco Mobil Refinery Company (Samref) has announced the appointment of Abdullah Bin Saleh Al-Suwailem as the chairman of its board of directors.
Al-Suwailem serves as senior vice president of Western Region manufacturing at Saudi Aramco.
Prior to being appointed chairman, Al-Suwailem had been a member of the Samref board since .
Samref is the downstream joint venture of Aramco and US oil and gas producer ExxonMobil. The entity owns a crude refining facility located in Yanbu on Saudi Arabia’s west coast, which entered operations in November 1984.
The Samref refinery has a capacity of 400,000 barrels a day (b/d) and mainly produces propane and several grades of automotive diesel oil, two grades of marine heavy fuel oil and sulphur.
In a , Samref said that Al-Suwailem “brings more than 30 years of leadership across the refining and petrochemicals sectors, having led some of the kingdom's most significant industrial joint ventures”.
“We expect his deep expertise in governance and large-scale operations to be invaluable as Samref continues its journey of growth and operational excellence. We look forward to his leadership in steering the board's strategic direction,” Samref added.
Aramco and ExxonMobil signed a memorandum of understanding (MoU) in May 2025 to evaluate a significant upgrade of the Samref complex and expand the oil refining facility into a world-class integrated petrochemicals complex.
The MoU between Aramco and ExxonMobil to upgrade the Yanbu refinery and convert the facility into an integrated refining and petrochemicals complex was signed at the Saudi-US Investment Forum held in Riyadh on 13-14 May 2025, during US President Donald Trump’s state visit to Saudi Arabia.
MEED understands that the Samref petrochemicals expansion project is one of the schemes that comprise Aramco’s $100bn liquids-to-chemicals programme.
Aramco has divided its liquids-to-chemicals programme into four main projects and has taken steps forward this year by signing joint-venture investment agreements with foreign partners for these schemes:
- Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery. Front-end engineering and design (feed) on the project is under way and is being performed by Samsung E&A, although progress has been slow.
- Conversion of the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. China’s Sinopec is a joint-venture partner in the project.
- Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. US oil and gas producer ExxonMobil, Aramco and Samref signed a venture framework agreement in December to begin preliminary feed work on the project.
- Building a crude oil-to-chemicals complex in Ras Al-Khair in the Eastern Province. Progress on this project remains slow.
The central aim of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million b/d of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.
Aramco and its subsidiary Saudi Basic Industries Corporation (Sabic) were tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which included greenfield developments and expansions of existing facilities, were to be built both in Saudi Arabia and in overseas markets.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17697004/main.gif