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Infrastructure takes centre stage in Saudi strategy

10 September 2025

 

Saudi Arabia is placing infrastructure at the core of its national development strategy, as the kingdom moves forward with its Vision 2030 plan to diversify the economy. With oil no longer the sole driver of growth, investment is shifting towards sectors that can support long-term sustainability, and infrastructure is top of the list. 

The key to Riyadh’s success lies in developing infrastructure across the country. According to regional projects tracker MEED Projects, there are about $240bn-worth of active transport projects in the kingdom. These plans include new railway lines, airport expansions and road upgrades – all now considered central to Saudi Arabia’s efforts to boost trade, tourism and regional connectivity.

The investment push is most visible in Riyadh, where billions of riyals are being spent to transform the capital into a world-class hub. However, the impact stretches far beyond the capital. Across the country, transport networks are being modernised, new routes planned or upgraded, and construction is ramping up. The kingdom also expects these projects to stimulate the economy by creating jobs and attracting foreign investment.

Resurgence of rail

Rail projects have seen a revival in the kingdom after a lull of several years. Rail accounts for approximately 32% of transport developments, with nearly $75bn-worth of active projects.

The most significant of these schemes is Line 7 of the Riyadh Metro project. The tender for the multibillion-riyal main contract is currently in the market, with bids expected to be submitted by 15 September.

There is renewed expectation that the long-awaited Saudi Landbridge project will finally proceed, as the kingdom began tendering in September for the Riyadh rail link – a crucial component of the overall scheme.

Another major project likely to present market opportunities is the Q-Express rail link. Riyadh is preparing to release expression of interest documents to developers and investors. The project was initially planned under a conventional model, but will now proceed under a public-private partnership (PPP) framework.

Other planned rail projects include high-speed connections between Riyadh and GCC capitals, such as Doha and Kuwait City, as well as the Saudi sections of the GCC railway network.

Airport ambitions

Saudi Arabia is also expanding and upgrading its airports to support Vision 2030 goals. Airports represent a significant subsector, accounting for $62bn of planned or underway projects, or about 25% of the transport total.

The largest upcoming airport project is the development of King Salman International airport (KSIA), which will ultimately expand and replace the existing King Khalid International airport. In August, contractors submitted their best and final offers for the first phase of Terminal 6 and the Iconic Terminal at KSIA. The client is also preparing to award the contract to build the third runway, while tendering is ongoing for the fourth runway.

Meanwhile, Saudi Arabia’s Civil Aviation Holding Company (Matarat) and the National Centre for Privatisation & PPP (NCP) have extended the tender closing date to mid-October for a contract to develop and operate a new passenger terminal building and related facilities at Abha International airport.

Located in Asir Province, the first phase of the Abha International airport PPP project will expand the terminal area from 10,500 square metres (sq m) to 65,000 sq m.

Another major airport project planned in the kingdom is the new international airport in Taif, located in Mecca Province. In February, more than 90 local and international firms expressed interest in developing and operating the project.

Roads development 

Expanding the Saudi road network is essential to completing the country’s transport infrastructure rollout. The government is investing heavily in expanding and maintaining the kingdom’s vast network of roads.

New roads are being built to improve access between cities, reduce congestion, and support the efficient movement of goods and services.

Some of the major road schemes under development are in Riyadh and are being undertaken by the Royal Commission for Riyadh City (RCRC). The masterplan includes 15 road development schemes in the capital, such as the second southern ring road and the Thumama road development projects.

Tendering is also expected to begin shortly for a contract to develop and operate the Asir-Jizan highway project. In August, Saudi Arabia’s Roads General Authority (RGA), the NCP and the Aseer Development Authority (Asda) announced five prequalified teams eligible to bid for the project.

The highway is one of four planned under the kingdom’s privatisation and PPP pipeline.

Expo Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, is also expected to float the tender for the project’s initial infrastructure works by September.

The rollout of these major infrastructure projects in Saudi Arabia is expected to provide significant opportunities for the market in the coming years, with successful delivery requiring close coordination between local and international contractors.

Main image: Mecca, Saudi Arabia – 9 Jan 2025: Haramain high-speed railway station 

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Yasir Iqbal

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