Legacy building at Diriyah
1 August 2024
It is impossible to talk about Saudi Arabia’s history without referencing Diriyah. Founded in 1446 in the Wadi Hanifa valley on the western outskirts of Riyadh, the historic town was the first capital of the Al-Saud dynasty and the launchpad for the kingdom’s unification campaign at the turn of the 20th century. In recognition, its central Turaif district was inscribed as a Unesco World Heritage site in 2010.
Today, the mud-brick settlement, built in the distinctive Najdi architectural style, has lent its name to one of the world’s most ambitious transformative developments. Sensitively conserving and building on its historical importance, it has created a unique cultural, educational, residential and tourism hub in the capital.
With an official budget of some $63bn, Diriyah is one of Saudi Arabia’s five official gigaprojects. It has held this label since early 2023, when responsibility for its development was handed to Diriyah Company, a project company formed as a Public Investment Fund (PIF) subsidiary a year earlier.
Covering an area of 14 square kilometres, Diriyah is targeting a population of 100,000 by its stated completion date of 2030. With more than 40 hotels, nine museums, 400 luxury boutiques, 100-plus restaurants and multiple educational institutions, it hopes to draw in more than 50 million annual visits.
Progress since ground was first broken four years ago has been rapid. As of May 2024, more than SR53bn ($14.1bn)-worth of construction contracts had been awarded. Today, visitors to the area can see hundreds of mobile cranes, plant and piling equipment rising over the boundary wall.
“We are in a good place,” says Mohammed Saad, Diriyah Company’s chief development officer. “We’ve finished our essential underground infrastructure and civil works, the super basement and all the tunnels that connect the basements together.”
But the real work has only just begun. Saad says a further SR30bn-35bn is scheduled to be awarded by the end of 2024, rising to SR40bn-45bn in 2025. By the end of this year, the public can expect to see substantial above-ground construction, particularly on the western side of the gigaproject, providing more tangible evidence of its advancement, which until now has been primarily below ground.
This is not to say that any vertical assets will be particularly tall. Because of the district's traditional low-rise nature, any building must be no higher than the historic structures. It should also emulate the Najdi style. For the same reason, most of the essential infrastructure, utilities and roads are hidden below ground.
Major project scopes
A significant step was made in early July when Diriyah Company awarded an estimated $2bn contract to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District. The deal, the largest let on the gigaproject to date, covers multiple assets, including hotels, the King Salman Foundation Library, King Salman University and the House of Saud Museum.
The work was originally planned as multiple construction packages until Diriyah Company took the commercial decision last year to bundle them into one contract. The decision to adopt super packages was driven by a dynamic market in which contractors have been almost overwhelmed with the volume of tenders from various gigaprojects and where cost inflation is taking hold.
“You will not get the attention of the big contractors if you offer small contracts,” Saad explains. By consolidating projects, contractors can focus their resources more effectively and efficiently and provide more competitive pricing.
“We have a hotel, we have an office building, we have a museum, and when we tendered them as one super package, there was a very solid response and interest from the big players because they could focus their resources and pricing and more efficiently engage their supply chains and subcontractors.”
The approach appears to be working. In late July, another estimated $2bn super package was awarded to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject. Featuring a mix of residential, residential farm plots, hotels, branded hotel villas, a golf course, an equestrian and polo club, and other leisure and entertainment facilities, including Aman, Chedi, Faena and Six Senses-branded hotels, Wadi Safar is positioned as the most upscale and exclusive development in Riyadh and indeed the kingdom as a whole.
The consolidated contract packages strategy reflects the supercharged nature of the Saudi projects market. With various clients, including the gigaprojects, all competing for a limited amount of contracting, material and labour resources, more innovative procurement strategies need to be adopted.
This is particularly critical for Diriyah and its enormous material requirements. For example, it has previously said that it will ultimately need some 350,000 doors, 1.5 million square metres of tiles, 1.2 million tonnes of rebar and 140,000 HVAC units.
Supply-side obstacles
Despite the progress, the project faces challenges related to contracting, engineering and material supply. The high demand for key materials, coupled with global supply chain disruptions, poses a significant conundrum. However, the delivery team has proactively secured and signed framework agreements with manufacturers to ensure a steady flow of required materials.
Transparent demand signalling is a core component of this. “We’ve analysed our material needs up to 2030 and prepared comprehensive requests for proposals for all key items,” says Saad. “We went out to the manufacturers and the supply chain in general to let them see the pipeline is tangible and secure. We are listening to vendors in order to speed things up and to lock down prices.”
Saad lists specific materials not naturally available in Saudi Arabia, such as finishing stones, as items that may be in short supply, in addition to some specialised MEP equipment that is only manufactured abroad. Overall, he is optimistic about the market’s ability to adapt. “The market will adjust itself,” he states. “Of course, there are challenges, but there are also opportunities for manufacturers to up their game.”
Likewise, contractors are being brought into discussions at earlier stages of contract planning. Diriyah is adopting strategies such as early contractor involvement in the design process to help better understand and manage construction risk. “We’re engaging with contractors and delivery partners as early as the concept design stages to get their feedback on the project’s constructability,” says Saad. “Later, these contractors can be invited to bid for the contract, which makes it easier for them and so they can be aware of any issues.”
Financial constraints
Another increasingly evident challenge is financing. As the gigaprojects programme steps up a gear, there have been growing strains on funding the huge costs associated with it, expenditure which in some cases is considerably higher than when first estimated during the initial master planning stages due to cost inflation and disruptions in the supply chain.
As with the other gigaprojects, Diriyah’s initial work has been fully funded by its PIF parent, but later phases will likely require other financing mechanisms. While some of this will come from the $100m in revenues it expects to make over the next year, the client company has been actively tapping into the capital markets, following in the footsteps of other gigaprojects such as Neom and Red Sea Global, which have concluded sizeable borrowing deals in the past two years.
This includes all options up to and including an initial public offering (IPO). The market consensus is that eventually all the PIF project company subsidiaries will go public when the time is right, and Diriyah is unlikely to be an exception.
For the same reason, the client is also exploring public-private partnerships (PPPs) to enable the private sector to take on some of the financial burden. For instance, City Cool Cooling Company recently won a $186m 25-year build-own-operate (BOO) concession to develop a 72,000-refrigeration-tonne district cooling plant. Future opportunities may include expansion of cooling capacity, other utilities and car parking operations.
“PPPs are a key component of our strategy,” says Saad. They provide a platform for private investors to participate in Diriyah's growth while leveraging the expertise and resources of the public sector. We realise we cannot build 10 million square metres alone. We need the private sector to participate and partner with us and give them an opportunity to be part of this journey.”
Another funding source will be off-plan property sales once its real estate offering comes to market. Based on the development plans, this is expected to be significant. With a mix of some 30,000 villas, apartments and townhouses, the ambition is to attract both local and expatriate residents, if or when the kingdom opens its property market to non-nationals.
Investment pathway
Eventually, third parties will also need to invest in the various real estate elements of the gigaproject. Diriyah Company, as a master developer, is actively seeking to attract other developers, family offices and financial institutions to develop land parcels for mixed-use, residential, hospitality, commercial, education and healthcare assets.
“We are already opening up to investors and meeting developers who are interested in partnering with us or buying land,” notes Saad. “It’s a good problem to have – there’s more interest than we can handle right now, which speaks volumes about the project's attractiveness.”
This is just as well. One criticism of the gigaprojects programme has been the shortfall in both local and international investment to date. A lack of understanding of what the gigaprojects are and will be, demand uncertainty, timeframe ambiguities and general market hesitancy have been identified as the stumbling blocks.
Diriyah is determined to change this situation. It is focusing on increasing public and investor awareness of the potential opportunity through initiatives such as its two-day Bashayer event last November, which showcased the masterplan and construction progress to selected key stakeholders. There has also been a push for greater transparency and publishing more specific details about the overall development to make it stand out from the crowded market.
The giant gigaproject is not being developed in isolation. Experience from successful developments worldwide highlights that connectivity and coordination with other government stakeholders are key. Diriyah is planned to be connected to an extension of Riyadh Metro’s Line 2 and a planned Line 7 linking it with King Khalid International airport and another gigaproject, Qiddiya. In total, four metro stations are planned for the development.
At the same time, talks are under way for Diriyah to be one of the main stations on the planned Q-Express high-speed rail link between the airport and Qiddiya, which will complement the metro network. For those arriving by car, there will be the opportunity to use the three-level, 1 million square-metre underground ‘super basement’ car park, which, with a capacity for 10,500 vehicles, will be the fifth-largest parking facility in the world, and by far the biggest in the region.
As Diriyah’s construction accelerates, it is already starting to define its identity more clearly. Building on the kingdom’s historical roots, it is set to create a new legacy for future generations.
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Kuwait utilities investment shifts towards water11 August 2026

China State Construction Engineering Corporation recently signed a contract for Kuwait’s North Kabd wastewater treatment plant, the country’s largest wastewater infrastructure project to date.
The award, following more than a decade of planning, propelled Kuwait’s water sector contract awards to more than $4bn as of early August, according to regional project tracker MEED Projects.
The facility will have a treatment capacity of up to 1 million cubic metres a day (cm/d), with the $3.3bn contract covering the design, construction, operation and maintenance of the plant over a 10-year period.
It marks a significant recovery for the sector after several years of subdued activity and the first time since 2020 that annual water awards have exceeded $1bn.
North Kabd is the largest of several major water projects awarded this year, alongside contracts covering desalination and the expansion and rehabilitation of water distribution infrastructure.
Desalination and distribution
These include a $316m contract awarded to local firm United Gulf Construction (UGC) by the Ministry of Electricity, Water & Renewable Energy (MEWRE) for the rehabilitation and expansion of the Doha water distribution complex.
The five-year project includes a new pump station and will add about 130 million imperial gallons of storage capacity, while increasing pumping capacity to 220 million imperial gallons a day (MIGD).
UGC was also selected in February to upgrade the Hawally water distribution complex in Kuwait’s Hawalli Governorate. The facility serves one of Kuwait’s most densely populated governorates, with the project intended to address chronic low water pressure, particularly during peak summer demand, and improve continuity of supply.
The upgrade will increase freshwater storage capacity by 66 million gallons and raise potable-water pumping capacity to 54.5 million gallons a day.
In April, Kuwait’s Central Agency for Public Tenders approved MEWRE’s recommendation to award a $371m contract for phase two of the Doha seawater reverse osmosis (SWRO) desalination plant.
A joint venture of Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco) and India’s VA Tech Wabag will carry out the project, which will have a capacity of about 272,000 cm/d.
Upcoming water awards
Meanwhile, Kuwait’s Ministry of Public Works (MPW) has been progressing several tenders for major water infrastructure projects covering rainwater drainage and treated water systems in the country’s southern and northern regions.
In July, local Combined Group Contracting submitted the lowest bid for a contract to develop a major treated water system in the southern region. The contractor submitted a price of about $515m for the scheme, according to a company disclosure.
For the smaller northern treated water system, Contractor General Trading & Contracting submitted the lowest bid of $169m.
In what is already a standout year for Kuwait’s water sector, further awards could push activity significantly higher. More than $1bn of water projects are currently under bid evaluation, indicating further evidence of a sustained recovery in the months ahead.
Power sector activity
Kuwait’s power sector recorded just $271m of contract awards by early August, according to MEED Projects, putting activity well below recent annual levels.
This compares with a record full-year total of $5.5bn in 2025 and $2.7bn in both 2024 and 2023.
Several large-scale generation projects have been slow to advance, with deadline extensions a notable feature in recent months. The outlook is stronger, however, with these projects now progressing through procurement and significant awards expected in the months ahead.
Kuwait is advancing the 1,800MW Al-Khairan phase one independent water and power project (IWPP), for which two developer consortiums led by Abu Dhabi National Energy Company (Taqa) and Saudi Arabia’s Acwa submitted bids in June.
The project will also include a desalination plant with a capacity of 125 MIGD. A second phase of the Al-Khairan IWPP, estimated at $750m, is understood to include a further 1,800MW of generation capacity through a combined-cycle gas-fired power plant. The project remains in the early development stages, with tendering not expected until at least 2027.
Renewable energy programme
The Kuwait Authority for Partnership Projects (Kapp) is also progressing the Al-Dibdibah power and Al-Shagaya renewable energy programme in partnership with Kuwait’s MEWRE.
The contract to develop the 1,100MW phase three, zone one solar photovoltaic (PV) project is expected to be confirmed soon, with a consortium led by Abu Dhabi Future Energy Company (Masdar) previously reported to be the frontrunner.
A separate 500MW solar PV project is also being procured under phase three, zone two of the same programme, with bids submitted on 26 July. If the contract is awarded by the end of the year, the two Shagaya contracts would add about $2bn to the value of power sector awards.
Another notable development was the 25-year energy conversion and water purchase agreement signed in February for the Al-Zour North IWPP phases two and three. The signing marked a key step towards financial close on the estimated $4bn project. Once completed, the facility will add 2,700MW of power and 120 MIGD of desalinated water to Kuwait’s supply network
The Shagaya, Khairan and Zour North projects form a key part of Kuwait’s generation portfolio. The country is aiming to reach 22,100MW of installed renewable energy capacity by 2030, under a 20-year strategy announced in March 2025 that extends to 2050.
Kuwait is also continuing to invest in existing generation plants. MEWRE is evaluating bids for the $1.7bn upgrade of the Subiya power and water plant, including the conversion of units from open-cycle to combined-cycle operation and the modernisation of existing facilities.
Battery energy storage systems
In the near to medium term, more than $10bn-worth of power projects are under bid evaluation. This includes several battery energy storage system projects with a planned total storage capacity of 1.5GW.
In June, Kuwait approved sites in Al-Mutlaa and Jaber Al-Ahmad cities for the development of the projects. The projects will be implemented in phases, with the first phase providing 500MW of storage capacity. The first facilities are expected to be operational by summer 2027 and will supply stored energy to the electricity grid during periods of peak demand.
Elsewhere, MEWRE continues to evaluate offers from Shanghai Electric Group and local firm Heavy Engineering Industries & Shipbuilding Company (Heisco) for the estimated $400m engineering, procurement and construction contract to rehabilitate and modernise eight boilers at the Subiya power generation and water distillation station. The bid bond validity has been extended to 23 August, indicating that the procurement process remains ongoing.
MEED’s September 2026 report on Kuwait also includes:
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> BANKING: Necessity is the mother of invention for Kuwaiti lenders
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Syrian court gives death penalty to Bashar Al-Assad11 August 2026
A Syrian court has sentenced former president Bashar Al-Assad to death after trying him in absentia, convicting him of crimes committed during the country’s nearly 14 years of civil war.
It is the first such ruling under Syria’s transitional authorities, who ousted Al-Assad in December 2024 and vowed justice and accountability for crimes committed under his rule.
Al-Assad fled to Moscow as Islamist-led forces closed in on Damascus after a lightning offensive.
In a Damascus court, Judge Fakhr Al-Din Al-Aryan convicted Al-Assad of crimes including “premeditated murder, the intentional killing of more than one person, the intentional killing of children under 15 years … torture, torture leading to death, and deprivation of liberty on multiple occasions” — acts the court classified as crimes against humanity and war crimes.
“He is therefore sentenced to death,” the judge said in his ruling.
The court also sentenced six former military and security officials to death in absentia, including Al-Assad’s brother Maher, who ran the army’s elite Fourth Division and also fled the country.
Those convicted included former defence minister Fahd Al-Freij and Louay Al-Ali, who headed military intelligence in Daraa province in 2011.
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The officials were convicted of crimes including murder, incitement to murder, torture leading to death and repeated deprivation of liberty, also classified as crimes against humanity and war crimes.
Former security official Atif Najib – the only defendant tried in person – was also sentenced to death for crimes against humanity committed while he headed political security in Daraa province, the cradle of the country’s 2011 uprising.
Najib, a cousin of Al-Assad who was arrested in January last year, was convicted of crimes including murder, the intentional killing of children under 15 and torture leading to death.
The acts attributed to him are “crimes against humanity”, the court said as it handed down “the harshest punishment … which is the death penalty”.
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Syria began proceedings in April against Al-Assad and other officials, accused both in person and in absentia of atrocities during the civil war, which erupted after the former authorities’ brutal repression of pro-democracy protesters.
More than half a million people were killed and millions displaced, while tens of thousands disappeared, many into the country’s brutal prison system.
The uprising began in Daraa in March 2011 after 15 students were arrested for allegedly writing anti-government slogans on the city’s walls.
Residents said the students were tortured, prompting protests demanding their release that ended in bloodshed.
Security forces suppressed demonstrations and fired live ammunition to disperse sit-ins at several locations.
Najib was dismissed after the crackdown as protests spread to other provinces.
Judge Al-Aryan said Najib had denied the charges and shown “no remorse”.
Al-Assad took power in Syria in 2000 in an unopposed election following the death of his father, Hafez Al-Assad, who was president from 1971.
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Oman extends deadline for $150m water transmission project11 August 2026

State-owned Nama Water Services (NWS) has extended the bid submission deadline for a contract to build a $150m water distribution network project in Jalan Bani Bu Ali Wilayat in Oman’s South Sharqiyah Governorate.
The new deadline is 24 August. The original deadline was 17 August.
The engineering, procurement and construction (EPC) contract covers the development of water distribution infrastructure in the JBBA North and JBBA Coastal areas.
The scope includes new water storage reservoirs, elevated tanks, booster pump stations and transmission and distribution pipelines.
The project includes two reservoirs in the JBBA North area with a capacity of 40,000 cubic metres, along with about 58 kilometres of ductile iron distribution pipelines and 343km of high-density polyethylene (HDPE) pipelines.
The JBBA Coastal works include reservoirs at Asilah, Ashkarah, Wadi Sal and Khabbah, as well as elevated tanks and pump stations. The scope also includes about 38.5km of 400mm-diameter ductile iron transmission pipeline.
NWS issued the main contract tender on 4 June. UK-headquartered Mott MacDonald is the main consultant on the project.
The project is one of three water distribution schemes being tendered under a wider $350m masterplan covering Jalan Bani Bu Hassan, Jalan Bani Bu Ali, and Al-Kamil and Al-Wafi wilayats.
The Jalan Bani Bu Hassan scheme includes a new 40,000-cubic-metre ground reservoir at Al-Sayah Al-Sharqi 4, a pump station and associated transmission and distribution pipelines. It will also include a pump station serving the Industrial Area and an inline booster pump station supplying Al-Mintajjah and Sariq Haryah.
The projects covering Jalan Bani Bu Ali and Al-Kamil and Al-Wafi wilayats are estimated to cost £100m each. The bid submission deadline for both projects is 17 August.
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Medina invites bids for major stormwater project11 August 2026

Saudi Arabia’s Madinah Municipality has issued a tender for an engineering, procurement and construction (EPC) contract to upgrade the city’s rainwater drainage network.
According to regional project tracker MEED Projects, it is the first main contract tender the municipality has issued for a major water infrastructure project since 2022.
The $30m project covers the construction of rainwater drainage networks and the repair of existing stormwater pipelines across major roads and corridors within the urban area of Medina.
It aims to improve the performance of the city’s stormwater drainage system, reduce surface flooding, and protect roads and nearby assets during heavy rainfall.
The bid submission deadline is 5 September.
According to MEED Projects data, Madinah Municipality completed two rainwater drainage network projects in Medina in 2024.
The local Al-Ayuni Investment & Contracting was the EPC contractor for both Phase 1 and Phase 2 projects. Saudi contractor Azmeel Contracting also previously submitted bids for both projects.
The municipality is also understood to be nearing completion of a separate Phase 1 rainwater drainage network project in Al-Rawabi in Al-Madinah province. This project was tendered in 2022 and awarded to Al-Naeim Contracting (Saudi Arabia) in 2023.
Meanwhile, Madinah Municipality received prequalification documents at the beginning of the year for two stormwater drainage projects in Yanbu. It is unclear if the main contract tender will be issued this year.
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Adnoc Gas expects Habshan to hit full capacity in 202711 August 2026
Adnoc Gas hopes to restore full output capacity at its Habshan gas processing facility in Abu Dhabi by the second quarter of next year, following attacks on the facility in March and April during the US-Iran conflict.
Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), said it has already restored 85% of the Habshan facility’s capacity, surpassing the year-end target set in May.
The Habshan complex is one of the largest gas processing facilities in the UAE and the wider Middle East and North Africa region. It has a processing capacity of 6.1 billion cubic feet a day. The complex comprises five trains and 14 processing units that receive gas feedstock from onshore and offshore fields in Abu Dhabi.
The Habshan facility was struck at least three times in March and April by Iranian drones and missiles. On 19 March, UAE authorities suspended operations at Habshan after it was affected by debris falling from Iranian missiles intercepted by the country’s air defence systems.
Adnoc Gas then announced on 23 March that operations were continuing safely across its asset base, after similar missile and drone attacks by Iran on facilities owned by its parent, Adnoc Group, although it did not specifically mention the Habshan plant.
The worst of the attacks on Habshan took place on 3 April, when Iranian drones intercepted by the UAE’s air defence systems caused damage at the site, resulting in the death of an engineer working at the facility for Egyptian contractor Petrojet during an evacuation. Four other contractors sustained minor injuries, but were later discharged from hospital after receiving treatment.
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On 8 April, Abu Dhabi authorities said three people – two Emiratis and an Indian national – sustained minor injuries after debris fell at the Habshan gas complex following a successful interception by the UAE’s air defence systems.
The debris also sparked several fires at the facility, prompting a temporary suspension of operations as safety and response teams assessed the situation.
“Adnoc Gas responded swiftly to the security-related incidents at the Habshan site on 3 and 8 April, prioritising safety and minimising disruptions to customers,” the company said on 10 August.
“The company has concluded its technical assessment of the impact from these incidents and recovery has progressed ahead of schedule, with gas supply already restored to 85%,” Adnoc Gas said as part of its announcement of financial results for the second quarter of 2026.
During a press conference to discuss Adnoc Gas’ Q2 2026 results, Peter Van Driel, the company’s chief financial officer, said: “At the moment, we have progressed to 85% of supply being reinstated, so the balance will be reinstated between now and the first half of 2027.
“If I look at the cost impact, we are still firming up our estimates. There are uncertainties around the pricing of certain items that we need to install as part of the final reinstatement.
“If we look at the key driver for our results in the second half, the 85% reinstatement of supply is definitely important. We’re encouraged by the fact that the 85% was delivered ahead of schedule,” Van Driel told journalists.
Fatema Al-Nuaimi, Adnoc Gas’ CEO and board member, said: “If I may add one point: it might be 85%, but in reality, today we are supplying 100% of our customers’ requirements locally.”
She added: “On exports, of course, we try our best to satisfy requirements and work closely with customers. But in terms of gas supply to the UAE, we are at 100%.”
Role of robotics and AI
Responding to a question about the deployment of robotics and artificial intelligence (AI) to carry out damage assessment and repair work at the Habshan gas processing facility, Al-Nuaimi said: “One of the technical challenges in restoring the facilities quickly was that we had to inspect a significant part of our assets – some 600 kilometres of piping of different sizes across the facilities.
“If we had done this in the conventional way, we would have spent around 100 additional days putting up scaffolding and sending people to conduct manual and visual inspections.”
The CEO continued: “Instead, we used robotics supported by AI-driven software, which enabled us to shorten the inspection and response time and carry out repairs faster.
“It was not just about time; it was also about safety. It spared us from sending our people into critical areas that might not yet have been safe.”
She added: “We also used robotics in responding to fires and accessing certain parts of the assets.
“When we talk about AI, it is not a headline. It is real work and real value that we see every day in our business,” Al-Nuaimi further remarked.
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