meed-logo

line1 line2 line3
SIGN IN / REGISTER

Heady times for biggest construction markets

22 December 2023

 

It was a whirlwind couple of months at the end of 2023 with major global announcements that will positively impact the region’s largest construction market for years to come.

On 31 October, Saudi Arabia was effectively confirmed as the 2034 Fifa World Cup host after the only other potential bidder for the tournament withdrew from the race. 

Then, on 28 November, Saudi Arabia was selected as the host country for the World Expo 2030 after securing 72 per cent of the votes cast by Bureau International des Expositions member states. 

Recent experience from elsewhere in the GCC has shown that hosting these events comes with a plethora of construction projects.

Qatar invested billions of dollars in infrastructure ahead of the Fifa World Cup 2022; similarly, Dubai spent heavily on infrastructure for Expo 2020.

Crucially, these events, global pandemics withstanding, are immovable deadlines that must be met, which means construction projects have to be delivered on time. 

Significant undertakings

While the investment required for the 2034 World Cup remains to be determined, the Saudi bid must include a minimum of 14 all-seater stadiums, of which at least four should be existing structures. The capacity needed is at least 80,000 seats for the opening and final matches, and at least 60,000 seats for the semi-finals. For all other matches, a minimum of 40,000 seats are necessary. 

Meanwhile, the Royal Commission for Riyadh City, which led the Expo 2030 bid, has said the Expo site masterplan, which is located north of Riyadh close to King Khalid International airport, will cost $7.8bn to develop. 

While both programmes of work are significant undertakings, they are not expected to be as transformative for the Saudi economy as they were for Qatar and Dubai, which were both smaller and dwindling construction markets when they secured the rights to host their events. 

The same cannot be said for Saudi Arabia, where the construction market is already overheated as construction activity ramps up on a series of self-styled gigaprojects, including Neom, Diriyah Gate and Qiddiya, that aim to transform the economy as part of Vision 2030. 

In a report on the Saudi economy released on 2 November, London-based Capital Economics said: “We don’t expect this to be the fillip to the Saudi economy as it was for Qatar, which hosted the World Cup in 2022.

“First, Saudi Arabia already has much of the infrastructure in place, including stadiums, meaning there is unlikely to be a World Cup-related construction boom like Qatar saw.

“Second, even with 104 games scheduled compared to 64 in Qatar, tournament-related tourism spending we estimate could be equal to just 2 per cent of non-hydrocarbon GDP (compared to 6 per cent in Qatar).”

Capital Economics made similar comments on the impact of the 2030 Expo.

In a report issued on 30 November, it said: “[While] hosting the event may support the kingdom’s longer-term goals of boosting tourism, it is highly unlikely that the Expo itself will provide a boost to the economy of the same magnitude as it did in Dubai.

“The Saudi economy is 10 times larger than that of Dubai, so even a similar sized nominal impact will be a much smaller boost as a share of GDP.”

In terms of construction and transport awards, 2023 has been the best year in recent times and could potentially be the best year on record.

By 1 December, there had been $36.3bn of construction and transport awards in Saudi Arabia, which already exceeds the 2022 total of $35.7bn. The record was achieved in 2013 when there were $41.7bn of contract awards, with a significant portion coming from the $23bn of contracts signed that year for the six lines of the Riyadh metro system.

UAE in 2023

It was also a good 2023 for the UAE, which recorded its best contract awards total in over a decade. There were $34.3bn of contract awards by 1 December 2023, higher than the 2014 high of $34.1bn, but still significantly short of 2008, when there were $40.2bn of construction and transport contract awards.

The UAE’s strongly performing property market has driven the country’s construction sector.

Next year, spending on projects by the government and its related entities will play a larger role as tendering starts for projects such as the $4.9bn extension to Dubai Metro’s Blue Line.

Runners up

For the other four GCC markets, the performance in 2023 and outlook for 2024 is more subdued. The hope is that as activity continues in the region’s two largest markets, the others will follow with ambitious projects. There are tentative signs that this is starting to happen as major projects restart or move into tendering. 

The region’s other major construction market is Egypt. This year, its performance has stuttered as the total value of contract awards fell to $9.1bn from $29bn. As the economy continues to struggle with ongoing currency issues, the outlook for 2024 is subdued.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11342964/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Egypt approves plans for 869MW wind power plant

    22 June 2026

    Egypt’s Cabinet has approved plans for French renewable energy developer Voltalia to develop an 869MW wind power project.

    The scheme will be built on land allocated by the New & Renewable Energy Authority (NREA), according to a statement posted by the Cabinet following its most recent weekly meeting.

    Voltalia will make an initial investment of $53m and has committed to achieving commercial operations by December 2028.

    Voltalia already operates the 32MW Ra solar plant at the Benban solar complex in Aswan and is expanding its renewable energy portfolio in Egypt.

    Previously, in 2024, it signed a framework agreement with Egypt’s Taqa Arabia to develop a green hydrogen and renewable power cluster near the Ain Sokhna port in the Suez Canal Economic Zone.

    The green hydrogen development is planned in two phases, each centred on a 500MW electrolyser powered by more than 1.3GW of renewable generation capacity. The project, still in its early stages, is expected to produce up to 350,000 tonnes of green ammonia a year.

    Voltalia’s partnership with Taqa Arabia also includes plans for a 3.2GW hybrid wind and solar project to repower the existing 545MW Zafarana wind farm in Suez Governorate. The Cabinet statement did not indicate whether the newly approved 869MW wind project forms part of that proposal.

    Meanwhile, the developer won another contract, earlier this year, to develop a 132MW solar power project in Tunisia’s Gabes region.

    The project, known as Wadi, marked Voltalia’s third major solar award in the country after the Sagdoud and Menzel Habib projects awarded in 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17376730/main.jpg
    Mark Dowdall
  • Local firm signs Jeddah drainage contracts

    22 June 2026

    Local contractor Alkhorayef Water & Power Technologies (AWPT) has announced it has signed two contracts with Jeddah Municipality to operate and maintain stormwater and surface water drainage networks across the city.

    The contracts have a combined value of SR202.06m ($53.9m), and each will run for five years.

    The first contract, valued at SR108.46m ($28.9m), covers the operation and cleaning of stormwater and surface water networks in the South and Al-Malisa sub-municipalities.

    The second contract, worth SR93.59m ($25m), covers similar services for the Airport Sub-Municipality.

    In March, MEED reported that the firm had won a long-term contract to carry out work in the airport’s sub-municipality area. The agreement was signed on 16 June.

    Elsewhere, construction has yet to begin on phases one and two of the King Abdullah Road-Falasteen Road tunnel project, each valued at about $175m.

    According to sources, Jeddah Municipality selected Saudi contractor Thrustboring Construction Company to build the large-diameter stormwater drainage tunnels in 2025. However, an official agreement has yet to be signed.

    The municipality was also previously planning to rehabilitate the existing Al-Zahra pumping station. Prequalification for the project began in 2020; however, it is understood that the main contact tender was cancelled last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17376097/main.jpg
    Mark Dowdall
  • Saudi firm signs Uzbekistan water treatment PPP

    22 June 2026

    Saudi-listed Miahona has signed a public-private partnership agreement to enhance, operate and maintain Uzbekistan’s Zomin water treatment plant in the country’s Jizzakh region.

    The agreement was signed on 18 June with Uzsuvtaminot, the country’s state-owned water utility, the developer said in a filing with the Saudi stock exchange.

    Miahona will carry out enhancement works and 25 years of operation and maintenance services for the existing plant, which has a design treatment capacity of 50,000 cubic metres a day

    The contract marks the company’s entry into Uzbekistan’s water sector. According to the disclosure, it will enter into force once a project-related governmental decree is issued in accordance with Uzbekistan’s applicable legislation.

    The contract is estimated at $105m (SR395m), with a final value to be confirmed following the issuance of the governmental decree.

    MEED reported earlier this month that Uzbekistan had stepped up its engagement with Middle Eastern investors, including holding talks with Saudi Arabia’s Acwa and Vision Invest on renewable energy, water management, waste recycling, digital infrastructure and urban utility projects.

    The government also recently held discussions with a UAE delegation led by Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure and chairman of Etihad Water & Electricity’s Board of Directors.

    At the Tashkent International Investment Forum, it signed a €197m financing package with Germany’s KfW Development Bank to support drinking water supply and wastewater projects in the Surkhandarya and Fergana regions.

    The projects will cover Termez and several district centres in Surkhandarya region, as well as Kokand and Margilan in Fergana region.

    This includes “the construction and reconstruction of hundreds of kilometres of drinking water and wastewater networks, pumping stations and modern wastewater treatment facilities”, deputy prime minister Jamshid Khodjaev said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17375811/main.jpg
    Mark Dowdall
  • Qiddiya seeks contractors for indoor arena project

    22 June 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian gigaproject developer Qiddiya Investment Company (QIC) has invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.

    The invitation was issued on 21 May, with a submission deadline of 28 June.

    The multipurpose arena is designed to International Olympic Committee standards.

    It will be located in District 18, in the Uptown South area of Qiddiya.

    Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.

    The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.

    It will have a seating capacity of 18,000 spectators.

    The project is scheduled for completion by 2030.

    QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17375504/main.jpg
    Yasir Iqbal
  • Egypt signs gas deal with Harbour Energy

    22 June 2026

    Egypt’s Ministry of Petroleum & Mineral Resources has signed a new agreement with London-headquartered Harbour Energy.

    Under the scope of the agreement, Harbour Energy will drill two new exploration wells and carry out maintenance work for one of the existing wells within the Dsouq-1 development contract.

    Harbour Energy committed an initial $6m investment and a $1m signing bonus for the Dsouq concession. Total investment could rise to $18m if commercial discoveries are made.

    The signing was witnessed by Egypt’s Minister of Petroleum, Karim Badawi.

    He said that his ministry is continuing to implement a package of investment measures and incentives aimed at encouraging partners to increase investments and intensify exploration, development and production activities.

    The agreement was signed by Syed Saleem, a member of the executive branch of the state-owned Egyptian Natural Gas Holding Company (EGAS), and Samah Sabry, the executive director of Harbour Energy for the Middle East and North Africa region.

    Harbour Energy drilled two new wells in Egypt during the fiscal year 2025/2026, resulting in the addition of reserves estimated at 35 billion cubic feet of gas.

    The company aims to drill three new exploration wells during the fiscal year 2026/2027.

    Egypt is currently pushing to boost the production of both oil and gas in its territory.

    Earlier this month, Egypt’s Ministry of Petroleum & Mineral Resources announced that it had fully settled all outstanding arrears owed to oil and gas companies.

    Two years ago, in June 2024, the country owed approximately $6.1bn to partners in the oil and gas sector.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17374536/main4731.jpg
    Wil Crisp