Iraq steps up post-war revival

13 May 2024

Latest news from Iraq’s construction and transport sectors:

> Iraq taps international consultant for Europe road
> Iraq to award metro projects by May
> Countries sign Iraq to Europe road agreement
> AD Ports signs agreement with Iraqi ports operator
> Iraq remains tough to sell
> Iraq approves new airport and steel plant projects
> Iraq confirms consultants for metro schemes


 

Recent signs of infrastructure project progress in Iraq have generated a renewed sense of optimism that certain major schemes may finally move ahead under the country’s post-war building initiatives.

Contract awards in Iraq’s construction and transport projects market reached $5bn in 2023, the highest value in the sector since 2012 and well above the average of $2.9bn over the past decade. The 2023 awards value was also a much-needed rebound from the disappointing value of just $1.4bn-worth of awards in the sector in 2022.

The sector has more generally been headed on a clear upward path, with awards averaging $3.4bn a year in the past five years (2019-23) compared to $2.4bn a year in the five years prior to that (2014-18).

Benefitting from higher oil prices and a period of relatively stable governance, Baghdad has shifted its focus to reconstructing and modernising Iraq’s deteriorating infrastructure.

The positive sentiment in the sector has been particularly buoyed by the robust 2023 budget, which outlined plans for substantial investments into transport, social infrastructure and housing initiatives.

Key infrastructure priorities for the country include advancing transport plans to capitalise on the expanding Al-Faw Port, including through the delivery of a north-to-south high-speed rail system—a proposal that has been under discussion for more than two decades.

Transport

As part of its 2023 budget, Baghdad approved 16 new projects, with an estimated value of nearly $17bn, for the development and construction of roads, bridges and overpasses in the capital. 

The schemes are part of the first package of the master plan revealed in December that included 150 projects intended to modernise and expand infrastructure, address congestion, and improve access and security in central Baghdad and inside the Green Zone.

One of the first contracts to be awarded was the $55m contract to build the Al Zafaraniyah Bridge project, which the Ministry of Construction & Housing awarded to Lebanese contractor Setraco in August 2023.

In a strong positive sign for market activity, Iraq floated tender notices in February 2024 for a combined $4bn-worth of contracts to develop the Baghdad and Najaf-Karbala metro projects on a design, build, operate, maintain, finance and transfer basis.

In April 2024, the country further advanced its infrastructure plans by signing a memorandum of understanding (MoU) with Turkiye, Qatar and the UAE to establish a framework for implementing a 1,200km-long Development Road project from Al-Faw Port to Turkiye.

While previous false starts on ambitious transport schemes such as these have eroded investor confidence in the country, there appears to be some hope that Iraq may have reached a tipping point leading to the most recent revival of projects.

One smaller, but still strategically important, transport scheme in the works is the $200m project to rehabilitate and expand Baghdad International airport, which is due to be awarded in 2025. In February, Baghdad also approved the construction of the $800m Diwaniyah International airport.

As the $5.8bn Al-Faw Grand Port masterplan – one of Iraq’s most significant ongoing projects – nears completion in 2025 after a decade of delays, it is also especially critical that new projects proceed to market.

Housing initiatives

Despite past efforts to boost supply, the housing shortfall in Iraq remains critical, with three million homes needed urgently and presenting a supply gap that is increasingly problematic for the government.

Between 2016 and 2020, Iraq reported 971 reconstruction projects, of which 718 were completed. 

Most recently, Iraq broke ground on the estimated $2bn Al-Jawahiri residential city project in Abu Ghraib, west of Baghdad. It selected East China Engineering Science & Technology Company and China National Chemical Engineering Company, in collaboration with the local Shams Al Binaa, as the main contractors for the project.

The Jawahiri project is part of a programme to construct five cities across Iraq, including Babil, Karbala, Nineveh and Anbar, to fill the country's housing shortages. 

Continuing the Iraq Housing Programme, which aims to build 3 million residential units in the form of low-rise buildings and townhouses nationwide, also remains pivotal for driving future construction activity.

Projects pipeline

Iraq has a total of around $86bn-worth of project work in planning and pre-execution across its construction and transport sectors. This is split roughly evenly between the sectors, at $43bn each.

It is hard to estimate how much of this value consists of work that will likely go ahead soon. Much of the value is still at an early stage, though $30bn-worth of construction projects and $41bn-worth of projects in the transport sector have on paper proceeded past study.

The immediate outlook for transport projects seems optimistic as the government continues to focus on economic revitalisation through expansive infrastructure initiatives.

These projects hold the potential to attract investors, stimulate local employment opportunities and generate significant revenues. The specific allocation of funds for vital metro and airport projects will also likely boost investor confidence.

There nevertheless remains a pressing need for major investments across other project sectors, including energy, utilities, construction and transport, to fully address infrastructural requirements and spur economic growth.


MEED's June 2024 market focus on Iraq also includes:

> Al Sudani struggles to maintain Iraq’s political stability
> Iraq economic revival faces headwinds
> Iraq electricity sector makes slow progress

https://image.digitalinsightresearch.in/uploads/NewsArticle/11764791/main.gif
Yasir Iqbal
Related Articles
  • Adnoc Onshore selects contractors for well tie-ins project

    27 October 2026

     

    Abu Dhabi National Oil Company’s onshore operating arm (Adnoc Onshore) has selected contractors for a major project to tie in wells across the Bab and North East Bab oil field developments in Abu Dhabi.

    Located 84 kilometres southwest of Abu Dhabi city, the Bab field has been in production since 1960 and is the emirate’s first oil-producing asset. The North East Bab cluster comprises the Al-Nouf, Rumaitha and Shanayel fields. 

    The Bab and North East Bab One Tie-In project is central to Adnoc Onshore’s contribution to Adnoc Group’s target of expanding crude oil production capacity to 5 million barrels a day (b/d) by 2027, an initiative known as the Accelerated Integrated Programme 5. The state energy company’s total production capacity currently stands at approximately 4.85 million b/d.

    According to industry sources, Adnoc Onshore has selected local contractor Robt Stone Middle East and China’s Jereh Group to carry out engineering, procurement and construction (EPC) works on the project. While both firms have been notified of their selection, a formal project kick-off meeting has yet to take place.

    Adnoc Onshore is understood to have started the tendering process for the Bab and North East Bab One Tie-In project last year, with contractors submitting technical and commercial bids earlier this year.

    Following the evaluation of bids, Adnoc Onshore sought best commercial offers from the bidders, which contractors submitted in May, MEED previously reported.

    The project budget is estimated at $1.2bn.

    Bidders for the contract are understood to have included:

    • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
    • Jereh (China)
    • Kalpataru Projects International (India)
    • Matrix Construction (UAE)
    • Robt Stone Middle East (UAE)
    • Target Engineering Construction Company (UAE)

    The project scope covers residual engineering, procurement of materials not supplied as free-issue items, site surveys, construction, installation, inspection, testing, and pre-commissioning and commissioning support. The works will deliver new wellsite facilities, including a new mini-pad, well bays and clusters across the Bab and North East Bab developments.

    Adnoc Onshore is Adnoc Group’s largest production subsidiary, accounting for roughly 2 million b/d of crude and about 7 billion cubic feet a day of associated gas from four primary onshore asset clusters: Bab, Bu Hasa, North East Bab and South East.

    ALSO READ:

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20951928/main.jpg
    Indrajit Sen
  • Ashghal tenders Al-Udeid air base access road works

    27 October 2026

     

    Qatar’s Public Works Authority (Ashghal) has invited contractors to bid on a contract to build roads and related infrastructure around Al-Udeid Air Base.

    The project is located in Zone 95 of Al-Wakra Municipality, adjacent to Al-Majd Road. 

    The tender was issued on 22 October, with a submission deadline of 22 November.

    The scope includes the construction of a dual-lane carriageway to improve access to the air base, together with three roundabouts. The alignment will connect to Al-Majd Road to the east and tie into Street 203 in Zone 95 to the west. The contractor will also resurface and maintain connections to the existing road network.

    Associated works include street lighting, intelligent transport systems, directional signage and a surface-water drainage collection system.

    The contractor will provide crossing ducts, protect and relocate conflicting existing utilities, and complete detailed utility designs as required by relevant stakeholders through the Qatar Design Review System.

    The project also includes the design and construction of two electrical substations. The contractor must secure the necessary stakeholder and authority approvals before starting these works.

    The scheme will be delivered on a remeasurable, build-only basis using designs approved by others. It will also include designated contractor-designed elements and design-and-build packages for the substations.

    Bidders must submit two commercial pricing options: a base offer subject to material price-fluctuation provisions, and an alternative authority option without such provisions.

    The contract has a 550-day completion period from the commencement date, including mobilisation, followed by a 400-day maintenance period after the completion certificate is issued.

    Participation is restricted to local and international contractors registered under the Ministry of Finance classification system in Grade A or Grade B for road specialisation.

    Unclassified foreign firms may submit equivalent certified documentation from their country of origin, attested by Qatari diplomatic missions. They must obtain Ministry of Finance registration before contract award.

    For joint-venture bids, the lead partner must hold the required classification grade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20950810/main.jpg
    Yasir Iqbal
  • 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.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20950333/main.jpg
    Mark Dowdall
  • Qatari firm wins $147m Syria road deal

    27 October 2026

    Qatari contractor Al-Mohannadi for Roads, Trading & Contracting has signed a $147m contract with Syria’s General Directorate of Roads to rehabilitate and expand a 215-kilometre (km) highway corridor connecting to the Iraqi border.

    The project covers the rehabilitation and dualisation of a 170km section linking the Al-Busairi junction to the Al-Tanf border crossing, alongside the construction of a 45km link between the Al-Sabaa Biyar junction and Al-Busairi. Work is scheduled for completion within 900 days.

    The agreement was signed in Damascus by Moaz Najjar, director-general of the General Directorate of Roads, and Abdullah Adnan Al-Zattam, chief executive of Al-Mohannadi, in the presence of Syrian Transport Minister Yarob Badr and Finance Minister Mohammad Yusr Barnieh.

    The upgrade is intended to restore and expand one of Syria’s primary overland arteries to Iraq, which has suffered significant deterioration and capacity bottlenecks following years of conflict. The Al-Tanf corridor represents the most direct overland link between Damascus, central Syrian industrial centres and Baghdad.

    The project is designed to accommodate heavier commercial freight vehicles and reduce transit times between the two countries.

    The investment also forms part of broader efforts to re-establish Syria’s role as a regional transit corridor connecting Mediterranean ports with landlocked trade routes into Iraq and the wider region.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20950332/main.gif
    Yasir Iqbal
  • Adnoc showcases $16.3bn local manufacturing potential

    27 October 2026

    Abu Dhabi National Oil Company (Adnoc Group) has identified more than AED60bn ($16.3bn) in local manufacturing opportunities through 2030.

    The Abu Dhabi energy company also announced changes to its procurement, supplier registration and In-Country Value (ICV) localisation frameworks.

    The measures were announced at the second Make it with Adnoc Forum, held in Abu Dhabi on October 25. They are intended to give manufacturers, suppliers and investors greater visibility of future demand and a faster, clearer route to compete for Adnoc contracts, the company said.

    The more than 200 manufacturing opportunities cover products required for Adnoc’s projects and operations, including:

    • Rotating equipment and power
    • Electrical, control and automation systems
    • Drilling and completion equipment
    • Chemicals and catalysts
    • Piping, fabrication and heavy equipment
    • Spare parts and advanced manufacturing

    Many of the identified products are currently imported, Adnoc said. “Manufacturing them in the UAE shortens lead times, reduces exposure to global supply disruptions and strengthens the resilience of Adnoc’s operations,” it said in its statement.

    Adnoc, the UAE Ministry of Industry & Advanced Technology and the Abu Dhabi Investment Office (Adio) will work together to connect manufacturers with these opportunities. The collaboration will combine visibility of Adnoc’s demand, access to the national industrial database and financing through the National Industrial Resilience Fund, the company said.

    Adnoc also signed two memorandums of understanding on the sidelines of the forum with Adio and Kezad Group.

    ICV scheme expansion

    Adnoc announced the expansion of its Local+ programme, part of its ICV framework, to more than 100 UAE manufacturers, compared with 70 at its launch in May. The programme gives UAE-made products priority in Adnoc projects by requiring engineering, procurement and construction (EPC) contractors bidding for new tenders to source relevant products from manufacturers approved under the programme.

    Separately, Adnoc announced a redesign of its supplier registration and prequalification process. The company is targeting a reduction of up to 80% in the time required for suppliers to complete the process and become eligible to compete for Adnoc opportunities.

    The new model halves the number of required documents and removes prequalification requirements for 60% of service categories.

    A single window brings together registration, qualification and compliance, with requirements tailored to the nature of the work and its level of risk. Artificial intelligence will support document verification and the reuse of existing data, reducing repetitive submissions and administrative processing.

    ALSO READ:
    Adnoc steps up crude oil capacity expansion
    Adnoc funnels billions into boosting gas processing

    “Adnoc’s enhanced ICV model will more closely connect procurement decisions with commercial value and suppliers’ contribution to the UAE economy. Under the new model, commercial and ICV offers will be integrated into a single evaluation model,” the company said.

    “The previous bid-matching approach will be retired, encouraging suppliers to submit their most competitive commercial and ICV offers from the outset. Requirements will be proportionate to contract size and scope.

    “The model also enhances the administration of ICV-related retention payments. Where retention applies, automated calculation and release processes through the Adnoc Supplier Hub will improve transparency, reduce manual follow-up and support suppliers’ cash flow as obligations are met.”

    Alongside the ICV and registration enhancements, Adnoc outlined a new commercial approach built around four strategic shifts: agile, competitive, strategic and forward-looking.

    “The approach will advance simpler procurement and faster decision-making, contracting models aligned with project and market dynamics, targeted commercial negotiations and earlier visibility of Adnoc’s future demand.”

    Since its launch in 2018, Adnoc’s ICV programme has directed more than AED307bn ($83.6bn) into the UAE economy, the company said. By the end of 2025, it had also supported the localisation of more than 130 products, the development of 95 UAE factories, and employment opportunities for more than 27,500 Emiratis at participating private sector companies.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20948385/main5518.jpg
    Indrajit Sen