Meed | Five project megatrends to watch in 2023

Five project megatrends to watch in 2023

4 January 2023

High oil prices, the journey to net zero and Cop28 in the UAE, property markets, Saudi gigaprojects and deepening regional integration will all be key themes in 2023 that will have a strong bearing on some of the region’s largest projects and programmes of construction work.

These are five of the key megatrends to watch in 2023:

1. Neom

Neom will be a focus of attention for the global construction sector in 2023.

Announced by Saudi Crown Prince Mohammed bin Salman in 2017 with a project value of $500bn, the project arguably failed to live up to expectations following its launch as efforts focused on preparing concepts and designs with little onsite construction activity.

That changed dramatically in 2022 as contractors signed major contracts across the project’s key components. One key development was the signing of construction contracts for the $6.5bn Neom green hydrogen project, which involves building a hydrogen-based ammonia production facility powered by renewable energy.

Other large construction contracts were signed for tunnelling works for The Line, which is a 170-kilometre infrastructure corridor with a highspeed rail system and two rows of interconnected 500-metre-tall-mirrored buildings. Crucially these contracts were won by joint ventures comprising some of the world’s leading names in construction, indicating a shift of opinion within the international community towards the project and its opportunities.

There are plenty more contracts to be tendered and awarded in 2023. There is high-level political pressure for progress to be made on the project, and last year the mountain resort of Trojena was selected to host the 2029 Asian Winter Games giving the project a hard deadline.

As onsite activity gathers momentum, Neom will finally deliver on its promise of being the region’s largest project by far.

2. Hydrogen

Some say hydrogen will follow a similar story to the one experienced by solar power over the past decade, while others say it is reminiscent of the early days of liquefied natural gas (LNG).

The Middle East will play a leading role in deploying this relatively new technology following a slew of project announcements in recent years. The value of all announced hydrogen plants in the Middle East and Africa is now estimated to exceed $70bn. This total rises to more than $120bn if other elements, such as air separation units, export facilities and renewable energy complexes, are included.

These projects are already resulting in contract awards for contractors, and as more schemes move into the construction phase, hydrogen will become an increasingly important industry for the region.

3. Rail

Rail is back. After years of stalled projects, momentum has finally returned to the rail sector as regional governments press ahead with rail projects.

The data shows the impact of these efforts. With $10.7bn of contract awards, 2022 was the best year for the region’s rail sector since 2013, according to data from regional projects tracker MEED Projects.

READ MORE: Railway diplomacy

Even more encouraging is that headway is being made on planned projects expected to be tendered and awarded in the coming two years. The progress is across the region, but most noticeable in the GCC, where there has been a top-down drive to get the GCC Rail Project moving again following the Al-Ula declaration in 2021.

In 2022, design work started and progressed on a series of major rail schemes that should move towards tendering for construction contracts by the end of 2023. Once that happens, the region will be well on course to finally surpass its 2013 peak.

4. Dubai real estate

Dubai’s property market was in rude health in 2022 with double-digit gains in values across multiple asset classes, including residential and commercial space. There was also a wide variety of new project launches, ranging from villa communities to tall towers and offshore islands (again).

The Covid-19 pandemic allowed Dubai to position itself as a home for the wealthy. Compared to other global cities such as London, New York, Paris and Hong Kong, property valuations in the emirate remain highly competitive, even after a year of strong growth.

Prices are also still below the 2014 peak, which suggests the market has the potential to go even higher in 2023. Strong sales and rising prices due to limited supply have meant developers are launching new projects to satisfy demand.

As projects become more daring and ambitious, a key question will be whether Dubai’s construction sector still has the appetite for major projects. Over the past five years, international players have left the market and, in 2020, the UAE’s largest general contractor, Arabtec Construction, filed for bankruptcy.

The plight of these companies is a reminder that Dubai’s property market is cyclical, and while there may be good times today, things may not be so good in the future.

READ MORE: Real Estate Returns

5. Saudi nuclear

It takes years to prepare the regulations and designs for nuclear power plants. Saudi Arabia is no different. It has been pursuing its nuclear strategy since 2016. While progress may appear slow, experience from other markets has shown that nuclear power plants become significant undertakings once they move into construction. For example, the contract to build Abu Dhabi's nuclear reactors, signed by a South Korean consortium in late 2009, was valued at $20bn.

In Saudi Arabia, preparatory work is proceeding for its nuclear power programme, which is being pursued with a three-pronged strategy. Most of the nuclear power capacity will be developed through conventional, large-scale nuclear facilities, such as the one being studied by major consultants.

The kingdom also plans to develop atomic energy through a series of smaller, system-integrated modular advanced reactor technology (Smart) nuclear power plants. The third pillar involves mining uranium resources to fuel the plants, as highlighted earlier this year by the kingdom's energy minister.

In March 2022, it was reported that Saudi Arabia had established a holding company to develop nuclear power projects in the country. Also over the past year, the King Abdullah City for Atomic & Renewable Energy (KA-Care) awarded three separate contracts for the legal, technical and financial advisory works for the project.

As these plans progress towards the tender of contracts, contractors are preparing themselves for the construction phase. For example, in late 2021, MEED reported that local contracting company Nesma & Partnerships had signed a memorandum of understanding with France’s Bouygues Travaux Publics to jointly execute civil works for a potential nuclear power plant project in Saudi Arabia.

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Colin Foreman

Exclusive from Meed

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22 September 2026
Oman tenders Thumrait Industrial City infrastructure
22 September 2026
Kuwait halves drilling contractor pool
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Abu Dhabi expects 45% emissions cut as electricity demand rises
21 September 2026

Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

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Yasir Iqbal

Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

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

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

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

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Yasir Iqbal

Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

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Yasir Iqbal
Kuwait halves drilling contractor pool
22 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.