Related Articles

• 
  Saudi Arabia gauges interest for Al-Ula wastewater expansion

  27 October 2026

  

   

  Saudi Arabia’s Royal Commission for Al-Ula (RCU) is conducting market sounding for the first phase of the Mughayra wastewater treatment plant (WWTP) expansion before formally starting its tendering process, according to industry sources.

  The project is valued at SR400m ($107m) and is intended to increase the Mughayra plant’s wastewater treatment capacity to 62,000 cubic metres a day.

  RCU is gauging interest from potential contractors and has not yet issued a prequalification questionnaire, a source said.

  The scheme forms part of Saudi Arabia’s broader investment drive to develop its cultural and tourism offering across Al-Ula.

  The commission launched its Journey Through Time Masterplan in April 2021, with implementation scheduled in three phases through 2035. The masterplan covers infrastructure development, water management and irrigation, alongside the regeneration of a 9-kilometre cultural oasis.

  French engineering firm Artelia previously noted in its 2025 annual corporate report that it is involved in the design phase of the Mughayra WWTP.

  RCU is also developing strategic potable-water storage infrastructure in Al-Ula, including a design-and-build project covering a 50,000-cubic-metre reservoir at Hub 06 and a 15,000-cubic-metre reservoir at Hub 08.

  Local contractor Bin Omairah previously confirmed that it is serving as the engineering, procurement and construction contractor for the storage facilities.

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  Mark Dowdall
• 
  Saudi Arabia raises electricity tariffs

  26 October 2026

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  Saudi Energy, formerly Saudi Electricity Company, has announced revised electricity tariffs, which will take effect on 1 January 2027. 

  The revised tariff schedule, published on the company’s official website, covers residential, commercial, industrial, agricultural, charitable and government customers.

  The largest percentage increase in consumption rates is 16.7%, for residential customers using up to 6,000 kilowatt-hours (kWh) a month. Residential customers will pay 21 halalas/kWh for monthly consumption of up to 6,000kWh, up from 18 halalas. For consumption above 6,000kWh, the rate will rise from 30 to 33 halalas/kWh, a 10% increase.

  The industrial tariff will increase by 15%, from 20 to 23 halalas/kWh. Commercial customers, private healthcare facilities and private educational facilities will pay 25 halalas/kWh, up from 22 halalas, for consumption up to 6,000kWh a month, and 35 halalas/kWh above that level, up from 32 halalas.

  Tariffs for charities and government customers will also increase. In addition to consumption-based charges, customers will pay a fixed monthly fee based on the capacity of their electricity meter. This replaces the previous separate charge for meter reading, maintenance and billing, with VAT applied to the revised tariffs. 

  Electricity investment

  The new tariffs coincide with changes to water consumption tariffs announced by the National Water Company, also effective from 1 January 2027.

  King Salman Bin Abdulaziz Al-Saud directed support measures following a proposal presented by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

  This includes raising the minimum wage required for Saudi nationals to count as full employees towards private sector localisation quotas under the Nitaqat programme. 

  The tariff changes come as Saudi Arabia plans substantial investment in its electricity infrastructure. In September 2025, Saudi Energy announced plans to invest SR220bn ($58.7bn) in power infrastructure projects between 2025 and 2030.

  A June 2025 report by Fitch Ratings forecast negative free cash flow of about SR16bn a year over the period and rising leverage, reflecting the financial demands of the programme.

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  Mark Dowdall
• 
  Dubai Municipality confirms AED3bn Tasreef drainage awards

  26 October 2026

  Dubai Municipality has confirmed it has awarded four contracts worth AED3bn ($817m) to expand the emirate’s stormwater drainage network by about 100 square kilometres under phase three of the Tasreef programme.

  The projects will cover Jumeirah, Umm Suqeim, Al-Quoz, Al-Barsha, Al-Wasl and Al-Marmoom. The works include constructing and extending main stormwater drainage lines with diameters of up to three metres.

  The four packages are part of Dubai’s AED30bn Tasreef programme, which aims to increase the emirate’s stormwater drainage capacity by 700% and reduce costs associated with pumping stations, network operations and maintenance by 20%.

  The contracts have been awarded to China State Construction Engineering Corporation (CSCEC) and three local firms: Arifco Group, Nael Construction & Contracting (NCC) and Detech Contracting. Dubai Municipality did not state which projects the awards relate to.

  According to sources, the contract awards include packages TF-15-C1, TF-15-C2 and TF-13-C1.

  The first package, TF-15-C1, involves the construction of 21 kilometres of main and secondary drainage lines along Al-Wasl Road and in surrounding areas. It will cover Za’abeel 2, Al-Wasl, Jumeirah 1 and 2, Al-Bada’a, Al-Satwa and Dubai World Trade Centre. The estimated $100m contract was awarded to Detech in July, as exclusively reported by MEED.

  The second package, TF-15-C2, covers the corridor between Sheikh Zayed Road and Al-Khail Road. It includes about 14km of main drainage lines serving Al-Quoz Industrial Areas 1, 3 and 4, and Al-Barsha 1. In July, MEED reported that CSCEC had won the engineering, procurement and construction contract for this project.

  The third package, TF-13-C1, covers Al-Marmoom, where 23km of drainage infrastructure will be developed. According to a source, Arifco has been awarded this contract.

  The final package covers Jumeirah and Umm Suqeim, where about 42km of main drainage lines will serve Umm Suqeim 1, 2 and 3; Umm Al-Sheif; Jumeirah 3; Al-Safa 1 and 2; and Al-Manara.

  In May, MEED reported that NCC had been awarded a contract to build a sewage and stormwater drainage system, DS-204. However, it is unconfirmed whether this relates to the same project.

  Earlier, 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 included two contracts awarded to Detech and one to CSCEC for stormwater drainage infrastructure. In addition, two consultancy contracts were awarded for the study and design of drainage systems in selected areas across the emirate.

  Cumulatively valued at AED2.5bn, the new projects will serve 30 vital areas, spanning approximately 430 million square metres and supporting an estimated population of three million residents by 2040.

  Previously, in April 2025, an earlier package of awards was announced under phase one of the Tasreef programme. The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033.

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  Mark Dowdall
• 
  Nakheel awards $259m Dubai Islands buildings contract

  26 October 2026

  Dubai-based master developer Nakheel, part of Dubai Holding Real Estate, has awarded local firm Parkway International Contracting a construction contract valued at about AED950m ($259m) for phases two and four of Bay Grove Residences on Dubai Islands.

  The package covers 617 residential units across eight buildings, ranging from one to four bedrooms, together with basement structures, infrastructure and community amenities including swimming pools, sports courts and fitness centres.

  Phase two comprises 360 homes across four buildings, with main construction scheduled for completion in late 2028.

  Phase four includes 257 homes across four buildings, with completion targeted for the second quarter of 2029.

  The award follows an earlier contract valued at about AED800m ($218m) awarded to local contractor Metac General Contracting Company for phases one and three, covering 537 homes across seven buildings.

  Together, the two contracts total more than AED1.75bn ($476m) and account for all 1,154 planned homes across the 15 buildings of Bay Grove Residences.

  Project activity on Dubai Islands has gathered pace in recent months. Earlier this month, Nakheel awarded local firm Mar Marine & Building Contracting a contract for marine and coastal works on Island B. The scope includes constructing breakwaters, removing existing rock revetments and creating a new 320-metre beach near the Bay Villas development, as well as remedial and refurbishment works along approximately 3 kilometres of the island’s western shoreline.

  In August 2025, Nakheel awarded Fibrex Contracting a AED2.6bn ($708m) construction contract for the Bay Villas residential project. That followed a AED527m ($143m) contract awarded to Al-Nasr Contracting Company in April 2026 for primary infrastructure and utilities on Island B.

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  Yasir Iqbal
• 
  Expo 2030 Riyadh tenders Culture of Wisdom Pavilion

  26 October 2026

  

   

  Saudi Arabia's Expo 2030 Riyadh Company (ERC) has tendered the design-and-build main contract for the construction of the Culture of Wisdom Pavilion in the expo’s Humanity District.

  The tender was issued on 1 October, with a bid submission deadline of 6 January 2027.

  The scope covers the pavilion’s design and the delivery of the building, visitor experience, landscape and public-realm works, in addition to testing, commissioning and operational handover.

  The pavilion will be built on a plot of at least 12,293 square metres and will include a one-level basement, ground- and first-floor public areas, three interconnected courtyards, exhibition spaces on three levels, and an auditorium.

  Other facilities will include visitor engagement areas, food and beverage outlets, retail space, VIP areas, offices, back-of-house and technical spaces, as well as vertical circulation and building services.

  The facility is designed to accommodate at least 20,000 visitors a day during peak periods, with an anticipated average daily footfall of about 15,000 visitors. The project has a target of Leed Gold certification.

  The successful contractor will complete the design, including specialist contractor design portions, and will coordinate the works with the lead design consultant. The scope also includes substructure and early works, including earthworks, excavation, soil improvement, raft foundations, basement reinforced-concrete walls, waterproofing and backfilling.

  The main works tender is based on Royal Institute of British Architects' Stage 3 design at 60%, with the 100% Stage 3 design to be issued by addendum.

  The main contractor will take over early construction, foundation works and the lead designer’s role. Visitor experience works will be confirmed at a later stage.

  The contract also covers the building envelope; internal fit-out; mechanical, electrical and plumbing systems; information and communications technology; fire and life safety systems; security; specialist lighting; landscaping; utilities; and digital and immersive visitor-experience installations.

  ERC has also tendered the design-and-build main contract for the Adaptation and Innovation Pavilion in the exhibition’s Technology District, as MEED reported last week.

  Expo 2030 Riyadh will run from October 2030 to March 2031 with the theme Foresight for Tomorrow, with host authorities projecting approximately 42 million visits.

  The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event.

  Situated north of the Saudi capital, the site is located near the future King Salman International airport and will provide direct access to Riyadh landmarks.

  The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

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

  Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

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

  > AGENDA: Oxagon takes centre stage at Neom > MARKET FOCUS: Saudi projects hold steady > INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking > POWER: AI is creating a grid capacity problem > LEGAL: What IFAD’s wind-down means for Gulf commodity markets > OIL: Oil companies focus on North Africa amid Hormuz crisis  > LEADERSHIP: The future city does not need to hang above the ground

  To see previous issues of MEED Business Review, please click here

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  Yasir Iqbal