Gigaproject contract awards reach $56bn
18 March 2024
Saudi Arabia’s five official gigaprojects have awarded $56bn of construction contracts since they were launched, according to MEED’s Saudi Gigaprojects Tracker compiled using data from regional projects tracker MEED Projects.
The $56bn total for the five official gigaprojects awards represents 19 per cent of the $300bn of contract awards made across all clients and sectors in Saudi Arabia since the initial gigaproject contracts were awarded in May 2017.
Contract activity in the kingdom has increased since 2021 as key elements move out of the design phase and into construction. In September 2021, $9bn of contracts had been awarded on gigaprojects. The total more than doubled to $26bn in 2022 and has nearly doubled again in September this year.
January 2024 was the best-performing month for gigaprojects contract awards, with $5.56bn of deals reported. This monthly total was largely due to the $4.7bn contract secured by Italian contractor WeBuild for the construction of the dams at the Trojena mountain resort at Neom.
The deal, which MEED exclusively reported on 15 January, includes the construction of three dams that will form a freshwater lake for the Trojena ski resort.
If Webuild’s dam construction deal is discounted, the gigaprojects performance this year is less impressive, with $1.4bn of awards during the first two months of the year.
There are concerns that dampened levels of contract awards could be a sign of things to come. At the launch of the 2024 budget in December last year, Finance Minister Mohammed Al Jadaan told reporters that the delivery of some of the projects included in the Saudi Vision 2030 plan may be delayed to avoid pressure on the Saudi economy.
The outlook for the oil and gas sector was also dealt a blow in January when a government directive instructed Saudi Aramco to halt its plans to increase the kingdom’s oil production capacity.
In a statement on 30 January, Aramco said it had received a directive from the energy ministry to maintain its maximum sustainable capacity at 12 million barrels a day (b/d). The state energy giant had previously been set a target of achieving an oil output spare capacity of 13 million b/d by 2027.
MEED has subsequently reported that Aramco has shelved more than a dozen offshore oil field upgrade tenders issued to its Long-Term Agreement (LTA) pool of offshore contractors last year.
MEED's April 2024 special report on Saudi Arabia includes:
> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects
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The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
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READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
These include:
DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
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According to an official statement, Modon will act as the master developer for the entire development, which will cover more than 170 million sq m.
Modon Holding will develop the first phase of the project, which will cover 50 million sq m.
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In 2025, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units of Ro-Ro imports.
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The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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Chinese firm wins Ceer automotive supplier park deal
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Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
The supplier park is located next to Ceer’s electric vehicle (EV) production facility in KAEC.
The automotive supplier park will include production and ancillary facilities for various suppliers and provide the material supply infrastructure for Ceer’s EV plant.
The facilities include:
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