Jeddah plans $31bn airport expansion
29 May 2023

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Jeddah Airports Company (Jedco) plans to transform King Abdulaziz International airport (KAIA) into one of the world’s largest airports with a SR115bn ($31bn) expansion plan that will increase its capacity to 114 million passengers a year.
The largest components of the plan cover the design and expansion of Terminal 1 and the construction of a new passenger terminal to be called Terminal 2.
The expected completion date for the expansion project is 2031.
Terminal plans
The Terminal 1 project comprises basic infrastructure and enabling works, the installation of new gates, air bridges and parking aprons, the extension of the automatic people mover, new baggage conveyor systems and lounges, with the goal of increasing annual passenger capacity by 15 million.
Work on the multibillion-dollar scheme is scheduled to start this year, with completion targeted for 2026.
The Terminal 2 project aims to increase the airport’s total capacity to 114 million passengers a year, almost tripling the airport’s 40 million limit today.
Due to start in 2026 and end by 2031, the project will involve constructing a completely new terminal building with dozens of gates, new taxiways, aprons, roads, utilities, and baggage handling and other software systems. It is likely to be worth in excess of $10bn to build.
Jedco is also planning to construct a fourth runway starting in 2025 and completing by 2029 to cope with the increased traffic. Due to space limitations, the new runway will require substantive infrastructure relocation work to accommodate it.
Passenger traffic-focused developments are not the only element of the plan. As part of growing the airport’s commercial proposition, the client is also due to start developing a new logistics area later this year.
Covering more than 3 square kilometres, the facility will house new customs and service buildings as well as several leasable warehouses for the private sector. Construction of the facilities will be implemented in phases with an ultimate scheduled completion date of 2029.
Concurrently, Jedco is building a new Hajj and Umrah terminal. Pilgrims comprise a large portion of passenger traffic, and the new arrivals and departures hall for budget airlines will be able to handle 15 million passengers a year. The project is expected to be completed by 2025.
Another project starting this year is the construction of a new baggage handling facility to expand the airport’s existing capacity. The building will be located next to Terminal 1 and will be integrated with the existing conveyor belt systems.
Passenger demand
The project investment programme is a result of Jedco’s forecast that annual demand will reach 114 million passengers by 2030. Of this figure, the authority estimates 51 million will come from Saudi Arabian Airlines, 21 million from international airlines, and 13 million and 12 million from budget airlines Flynas and Flyadeal, respectively.
The forecast and plans were created in conjunction with key drivers of future passenger demand in the Mecca and Jeddah region, including gigaproject real estate developers Roshn and Uptown Jeddah, air cargo handler Saudi Logistics Services (SAL), and the General Civil Aviation Authority (Gaca) with its subsidiary Matarat Holding. Engineering firms Atkins, Mace and DGJ also inputted into the process. The three companies are the consultants on the capital projects investment plan.
KAIA has three operational terminals. Opened in 2018, Terminal 1 is one of the world’s largest passenger terminals, and caters primarily for the state carrier and domestic flights. The North Terminal handles international airlines, while the Hajj Terminal is dedicated to pilgrim traffic.
Construction work on KAIA has been a key driver of airport-building activity in Saudi Arabia in the past. In 2010, there were over $7bn of contract awards for work at the airport, marking the most active year for airport construction activity on record, according to regional projects tracker MEED Projects.
There are other major airport projects planned in Saudi Arabia. In November, Saudi Arabia’s Crown Prince Mohammed bin Salman bin Abdulaziz al-Saud announced the masterplan for King Salman International airport in Riyadh. If completed on time in 2030, it will become the largest airport in the world in terms of passenger capacity.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. For cargo, the goal is to process 3.5 million tonnes a year by 2050.
Neom airport
Another major airport is planned for Neom. US firm Aecom confirmed on 22 March that it had been awarded a contract to provide project management consultancy (PMC) services for the new airport project.
The airport will be inland, close to the Tabuk end of the 170-kilometre-long Line development. Neom International airport is separate from the Neom Bay airport, which started receiving commercial flights in 2019.
Although not confirmed, it is understood that the first phase of the airport will have the capacity to handle 25 million passengers a year. A second phase could take the capacity up to 50 million passengers a year. There is an aspiration for the airport to become the largest in the world, with a capacity of 100 million passengers a year.
Regional airports
Smaller domestic airports are also being developed. In March, Matarat signed a three-year contract with France’s Egis Group to provide technical support and project management services for 26 regional airports.
The contract aims to establish phased project management portals, update airport project management policies and procedures, and provide technical support for planning and designing.
The contract also involves following up on the implementation of capital projects with Matarat subsidiaries, including Riyadh Airports Company, Jeddah Airports, Dammam Airports and Cluster2.
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Dubai seeks contractors for multibillion-dollar road scheme14 September 2026

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Dubai’s Roads & Transport Authority (RTA) is seeking contractors to design and build a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.
MEED understands that the scope covers the construction of about 30 kilometres (km) of works.
These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.
The RTA floated the expression of interest notice to contractors in early September, with a submission deadline of 10 October.
The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.
Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.
The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through-traffic while the existing at-grade lanes served local access.
The plans ultimately progressed as standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.
The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.
Planning for growth
Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.
In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan.
In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.
The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.
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Riyadh looks to reset its regional defence outlook11 September 2026

Saudi Arabia may not have suffered as many Iranian missile and drone strikes as some of its neighbours – Bahrain, Jordan and Kuwait have all had to contend with many more during this year’s conflict – but it still feels exposed. Like other Gulf countries, Riyadh has learnt that its deep defence and economic ties to the US, which were meant to provide security and deter aggressors, have in some ways merely made it a target for Tehran.
The threats are not just from direct Iranian strikes, though. In late July, Saudi Arabia joined with the US to attack Iraqi militia groups alleged to have targeted Saudi energy sites in the preceding days.
Yemen’s Houthis are also re-emerging as a serious threat. After several years in which the conflict in Yemen was largely in abeyance, the Yemeni group has in recent months repeatedly launched attacks on Saudi airports and refineries, as well as on ships passing through the Bab El-Mandeb Strait.
From mid-July to mid-August, the Houthis carried out 16 attacks against Saudi assets, including seven oil facilities and six oil tankers, according to the conflict monitoring group Armed Conflict Location & Event Data (ACLED). Riyadh responded with hits on Houthi targets; most notably on weapons depots and other infrastructure in the port city of Hodeidah on 24 July.
The Houthis stepped up their attacks on 8 August, firing dozens of ballistic missiles and drones at Saudi Aramco facilities in Abha, Jaqzam, Khamis Mushait and Najran. The Saudi authorities said 73 civilians were injured. Major General Turki Al-Malki, a spokesman for the Saudi-dominated Coalition to Support Legitimacy in Yemen, described the Houthi attacks as “a dangerous escalation” and said Riyadh would take “all necessary operational measures” to deter further attacks.
So far, a return to a full-scale war in Yemen has been avoided, but ACLED’s Middle East analyst Sherwan Hindreen Ali warned in a report in August that, if both sides continue to escalate, the “chances for renewed full-scale war increase exponentially”.
New partnerships
The increasingly volatile nature of the region has prompted Riyadh to reevaluate its approach to security and to develop new defence partnerships with allies.
The first major step came in late July, when Saudi Arabia launched the Multinational Maritime Defence Coalition with an initial band of 13 other countries; more are expected to sign up in the coming months. The group is designed to protect shipping in the Red Sea, the Gulf of Aden and nearby waters, with Saudi Arabia’s Rear Admiral Abdullah Bin Salem Al-Shehri as its commander.
That was followed by a trilateral mutual defence pact with Pakistan and Turkiye signed in Mecca on 7 August. Their joint defence agreement includes a provision that an attack on any one of them will be considered an attack on all three. At a meeting in Istanbul on 31 August, the partners agreed to set up a secretariat in Riyadh.
There have been other, smaller steps too. In late August, Saudi Arabia signed an agreement to expand defence co-operation with France, during a visit by Crown Prince Mohammed Bin Salman Al-Saud to Paris (pictured). And on 1 September, Saudi Arabia’s National Cybersecurity Authority signed a memorandum of understanding with Pakistan to strengthen cybersecurity cooperation.
Diplomatic tracks
For Riyadh, enhancing its security capabilities to deter Iran and the Islamic Republic’s allies in Yemen and Iraq is a critical issue. However, the Iran war looks unlikely to be resolved by military means alone. Indeed, Saudi officials have repeatedly emphasised their preference for a negotiated, diplomatic solution to the conflict.
The regional diplomatic efforts have been spearheaded by Pakistan, Oman and Qatar, but Saudi Foreign Minister Prince Faisal Bin Farhan Bin Abdullah Al-Saud has also spoken on several occasions to his Iranian counterpart Abbas Araghchi – most recently on 6 September.
One issue where Riyadh is less keen to publicly engage is in relation to Israel. When Saudi Arabia signed an agreement with the US in July covering the development of a civil nuclear power programme, the deal made no mention of Riyadh having to normalise links with Israel – a condition that previous US administrations had insisted on. That was a notable win for Saudi Arabia, although it was thrown into doubt when US President Donald Trump insisted in the following days that the deal would only proceed if Riyadh signed up to the Abraham Accords.
Trump sent the proposed nuclear deal to the US Congress for approval in late August, but administration officials reiterated at the time that the pact would only go into effect if Riyadh normalised relations with Israel – something that, in the current environment, looks extremely unlikely.
Alliance strains
Saudi Arabia’s close ties with the US have been a central element in the kingdom’s regional positioning for decades – but the combination of the Iran war and the volatile nature of the Trump administration means the strength and direction of those ties are now a matter of speculation.
The situation is made more complex by the rivalry between Riyadh and Abu Dhabi, with their differing approaches to regional conflicts and diplomatic initiatives creating a strain within the GCC bloc.
Both sides have tried to change the narrative. In July, Saudi Media Minister Salman Al-Dosary and the UAE’s National Media Authority (NMA) chairman Abdulla Bin Mohammed Al-Hamed issued similar statements on social media denying any rupture between the two governments, with Al-Dosary writing that the countries were “united by a shared history and heritage, and wise leadership”.
On the broader regional stage, Saudi Arabia remains unable to fully insulate itself against the Iran war. On 31 August, the Saudi oil tanker SIDR was hit by Iranian projectiles while transiting the Strait of Hormuz, resulting in the death of two crew members. On the same day, another Saudi oil tanker, the Amzan, was hit by Yemen’s Houthis off the coast of Yanbu, in the Red Sea.
Coupled with the wave of Houthi attacks on 8 September, it suggests that Saudi Arabia’s efforts to create new layers of deterrence have yet to make their mark.
Photo credit: SPA
MEED’s October special report on Saudi Arabia also includes:
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflicthttps://image.digitalinsightresearch.in/uploads/NewsArticle/19583845/main.gif -
Consultant wins Dubai Al-Maktoum airport metro link11 September 2026

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US-based engineering firm Aecom has won a design contract for the Route 2020 extension, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.
Dubai’s Roads & Transport Authority (RTA) awarded the contract.
The extension will run about 3 kilometres (km) and include two stations.
MEED understands the invitation to bid was issued in January, with a submission deadline in mid-March.
The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
The RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.
The RTA also selected Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, in October last year, as MEED reported.
The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.
It will connect to Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger line.
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Saudi Arabia sets October deadline for Mecca metro design11 September 2026

The Royal Commission for Makkah City & Holy Sites (RCMC) has set a deadline of 14 October for a contract covering the initial design studies for its long-planned metro network in the holy city.
The scope includes reviewing existing studies, preparing a concept design, conducting land acquisition studies, developing an integration concept for future phases and other related studies.
The notice was issued in May, with an initial submission deadline of 5 August, as MEED reported.
In September last year, RCMC invited contractors to attend an early market engagement meeting for the project.
In an explanatory document inviting companies to attend the event, the RCMC’s General Transport Centre said it was seeking to gauge market interest in the multibillion-dollar project and obtain feedback on its proposed procurement approach.
MEED exclusively reported in June last year that the project was restarting. Current plans envisage a four-line network, named lines A-D, with 89 stations and three depots, to be implemented over three phases between 2032 and 2045.
Project scope
Stage 1 focuses on lines B and C, involving 2.4 kilometres of tunnelling under the Masar project and integration with the existing Mashaer line.
The network will run just over 62km and comprise 31 stations, 21 of which will be underground, including three iconic stations. A total of 19.5km will run through tunnels, while 41.2km will be elevated, with the remainder at grade.
The 66 required trainsets are projected to provide a daily passenger capacity of about 450,000, equating to annual ridership of 171 million.
The 84.7km-long second phase, due to be operational by 2038, will extend the two lines towards the outskirts of Mecca and includes construction of the initial inner and central segments of lines A and D.
Comprising 61.1km elevated and 18.6km underground, Phase 2 is planned to add 45 stations serving the two new lines, as well as two depots and a potential interconnection with the planned Saudi Landbridge. The 59 trainsets for Phase 2 will increase the network’s projected total annual passenger capacity to more than 500 million.
Phase 3 covers the elevated 36km extension of lines A and D and involves procurement of a further 72 trainsets, increasing the network’s ultimate passenger capacity to 1.2 million daily and 642 million annually by completion in 2045.
Associated development
The metro plan also envisages several transit-oriented developments (TODs) at different points on the route. These will typically comprise commercial, residential and retail elements to maximise the investment case.
The client’s proposed procurement approach involves three distinct packages: civil and systems works, TODs, and operations and maintenance.
The initial concept calls for some of the project to be delivered on a public-private partnership (PPP) basis, wherein the private sector, through special purpose vehicles, will part-finance, build, operate and then transfer commercially viable elements of the scheme.
The then-called Mecca Mass Rail Transit Company (MMRTC) first launched the metro project in 2013; however, the scheme has faltered for more than a decade due to funding issues, land acquisition challenges and scope changes.
The relaunch of the procurement process raises hopes that the project will now come to fruition, although it is likely to be at least 18 months before any definitive works start.
Mecca is home to Saudi Arabia’s first metro, the nine-station, 18km-long Mashaer line, which opened in 2010. It operates only seven days a year during Hajj, but carries more than 2 million pilgrims during that time.
Some 30 million pilgrims visit the city each year, with this number set to grow. A known, quantifiable and growing demand base will help facilitate the use of a PPP mechanism if the framework is adopted.
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Consortiums submit bids for Sadara cogeneration plant11 September 2026

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At least three consortiums have submitted bids for the contract to develop and operate a cogeneration steam and power plant catering to the Sadara petrochemicals complex in Saudi Arabia.
The planned independent steam and power plant (ISPP) project will have a capacity for 400MW-450MW of combined-cycle electricity generation and 550-700 tonnes an hour of steam.
According to sources, bids were submitted for the contract at the end of August.
The consortium bidders include:
- Abu Dhabi National Energy Company (Taqa) / Samsung C&T (South Korea)
- Al-Jomaih Energy & Water (Saudi Arabia) / Albawani (Saudi Arabia) / Sepco 3 (China)
- Acwa (Saudi Arabia), Korea Electric Power Corporation (Kepco) / Doosan Enerbility (South Korea)
Sadara Chemical Company (Sadara) is the project client. It is the downstream joint venture of Saudi Aramco and US-headquartered Dow Chemical.
The estimated $500m project includes construction of a power plant, substations, a seawater intake system and associated switchyards and switchgear.
The project will also include gas turbines and a back-pressure steam turbine, as well as facilities for steam production.
In 2024, MEED exclusively reported that Sadara had prequalified potential bidders for the project. It is understood that the request for proposals was issued towards the end of last year.
The first units at the $20bn Sadara petrochemicals complex in Jubail began production in 2016, and the complex became operational in 2017.
The Sadara complex is designed to produce more than 3 million tonnes a year (t/y) of chemicals and performance plastics, including polyurethanes, propylene oxide, propylene glycol, elastomers, polyethylene, glycol ethers and amines.
Construction is also continuing on the Najim cogeneration facility, which will supply the Amiral petrochemicals complex with up to 475MW of power and approximately 452 tonnes an hour of steam.
Previously known as the Amiral cogeneration independent steam and power plant, the project is being developed by a team comprising Abu Dhabi National Energy Company (Taqa) and Japanese power generation company Jera.
South Korean contractor Samsung C&T is the engineering, procurement and construction contractor for the project.
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