meed-logo

line1 line2 line3
SIGN IN / REGISTER

Maghreb construction sector brightens

5 July 2024

 

The Maghreb remains an active market for construction companies, with $22.1bn of construction and transport projects at the execution stage in the region, excluding major rail schemes, according to regional projects tracker MEED Projects.

Algeria and Morocco are the two most active markets, with $9.6bn and $8.9bn of projects under execution, respectively. The Tunisia and Libya construction markets are much smaller, with $2.3bn and $1.7bn under execution.

At the same time, the value of new project awards has been subdued of late, with only about $2.9bn-worth of major construction and transport contracts awarded over the past two years across the four countries outside the rail sector.

During that period, the Maghreb region has only had two significant contract awards with a value exceeding $400m.

The largest was an $800m contract to build the Tunis governorate’s La Perle du Lac 2 smart city. The project is being undertaken by a joint venture of Societe Bouzguenda Freres and Bonna Tunisie, and is being developed by Tunisian investment firm Al-Buhaira Invest.

The other scheme was the $440m expansion of the Ibn Batouta stadium in Morocco, for which Moroccan contractor Entreprise Moussadak Bouchta secured the contract.

Moroccan optimism

With few significant projects awarded over the past two years, construction companies are eagerly looking to the horizon for future opportunities. Morocco’s hosting of the 2030 World Cup should certainly help its prospects in the mid-term.

In March 2023, King Mohammed VI announced Morocco’s plans to join Spain and Portugal’s bid to host the 2030 tournament, and in September 2023, the bid went through uncontested.

To facilitate hosting the event, Morocco plans to build a 93,000-seat stadium in Casablanca and upgrade at least five existing stadiums.

In March, Morocco appointed the US-based architectural firm Populous and French Oualalou + Choi to design the Casablanca stadium. The state-owned fund Caisse de Depot et de Gestion has signed a deal worth around $500m to finance the stadium’s construction.

Construction work is expected to begin in 2025, and the stadium is anticipated to be ready by 2028.

The five stadiums to be upgraded are the Prince Moulay Abdallah stadium in Rabat, the Ibn Battuta stadium in Tangier, and stadiums in Fez, Agadir and Marrakesh. A stadium in Tetouan may also be upgraded.

In May, Morocco kicked off work on its Mohammed VI International University Hospital in Rabat. Bymaro, the Moroccan subsidiary of French construction firm Bouygues Construction, announced that it had been awarded the €450m ($487m) main contract to build the hospital.

The scope of the contract covers the construction of four six-storey buildings and a 25-storey tower over an area of about 275,000 square metres.

Algerian spending

In December last year, Algeria revealed its Finance Bill 2024, which outlined increasing capital expenditure by 19% to AD2.9tn ($20.8bn).

Of the total, AD848bn ($6.1bn) was allocated to the health sector and AD313.5bn ($2.3bn) was budgeted to construct around 460,000 housing units.

The construction sector’s future pipeline comprises significant projects, including Dunia Park – a theme park planned by the UAE’s Emaar with a multibillion-dollar budget – the $650m Economic Capital City scheme and the $250m Blida Hospital.

Algeria approved the construction of a new university hospital centre in Tizi-Ouzou in June. President Abdelmadjid Tebboune approved the project during a cabinet meeting the previous week.

The project falls under the housing ministry, through the representation of the Public Equipment Directorate of Tizi-Ouzou Province, which has awarded the local contractor Cosider Group the main contract to build the hospital.

Further opportunities

There are also some upcoming opportunities in Libya and Tunisia.

For Libya, there were indications in 2023 that the country could soon begin to put its decade-long conflict behind it, but progress on this and a project market revival has been unsteady.

Looking forward, the big upcoming piece of work is the $2.4bn Lot 4 of the Emsaed Rasejdeer Motorway programme, which is under bid evaluation. The lot’s three packages are set to be awarded in August. The scheme’s $1.2bn Lot 2 and $2.1bn Lot 3 are also under study.

Among Tunisia’s upcoming schemes are plans to award a $150m contract to construct hospitals in the Ghardimaou, Makhtar, Jelma and Haffouz areas. The prequalification for this project was completed in October last year, and the main contract tender is now awaiting issuance.

The country is also prequalifying contractors for the development of the $85m King Salman Ben Abdelaziz University Hospital in Kairouan after Saudi Arabia agreed to provide funding for the project in February. Construction work on the scheme is slated to begin in the second half of 2024.

On the slightly more distant horizon, two highway expansion schemes worth a combined $550m are currently being studied in Tunisia and are expected to be awarded in 2026.

Across the region, recent project activity in the construction and transport sector outside of rail has been disappointing in the past two years, but schemes financed by both the public and private sectors are now progressing through pre-execution in a way that promises better things to come.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12038288/main.gif
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Contractor wins $105m Medina university hospital deal

    22 September 2026

     

    Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

    The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

    Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

    The contract duration is three years, with delivery targeted for late 2029.

    The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

    The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

    Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

    Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19870032/main.jpg
    Yasir Iqbal
  • Oman tenders Thumrait Industrial City infrastructure

    22 September 2026

     

    Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

    The tender was issued on 14 September, with bids due by 12 November.

    The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

    In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

    The first phase of the development will cover about 120,000 square metres (sq m).

    Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

    The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

    In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

    According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

    The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

    Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19866218/main.jpg
    Yasir Iqbal
  • Kuwait halves drilling contractor pool

    22 September 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

    Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

    The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

    The full list of contractors that are now qualified to participate in tenders is:

    • Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
    • Kuwait Drilling Company (Kuwait)
    • Sun Drilling Kuwait (Kuwait)
    • TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
    • United Precision Drilling (Kuwait)
    • Abraj Energy Services (Oman)
    • Adnoc Drilling Company (UAE)
    • Arabian Drilling Company (Saudi Arabia)
    • Anton Oilfield Services (China)
    • China Oilfield Services (China)
    • Egyptian Drilling Company (Egypt)
    • CNPC Bohai Drilling Engineering Company (China)
    • Great Wall Drilling Company (China)
    • John Energy (India)
    • Kerui Oilfield Service (China)
    • KCA Deutag Drilling (Germany)
    • Mohammed Al-Barwani Petroleum Services (Oman)
    • Nabors Drilling International (US)
    • National Drilling & Services Company (Oman)
    • Sea & Land Drilling Contractors (Oman)
    • Sinopec International Petroleum Service Corporation (China)
    • Karamay Jianye Energy (China)
    • Modern Drilling Company (Egypt)
    • Grey Wolf Drilling International (US)

    An earlier list, which was published on 11 February, included 51 qualified companies.

    The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg
    Wil Crisp
  • Abu Dhabi expects 45% emissions cut as electricity demand rises

    21 September 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

    The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

    The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

    Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

    The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

    According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

    This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

    It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

    As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

    The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec. 

    The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19849749/main.jpg
    Mark Dowdall
  • Seven bid for Bahrain highway upgrade

    21 September 2026

    Register for MEED’s 14-day trial access 

    Seven contractors have submitted bids for the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade project.

    According to results published by the Bahrain Tender Board, the firms that have submitted bids include:

    • Nass Contracting Company
    • Haji Hassan Group
    • Almoayyed Contracting Group
    • Mohammed Abdulmohsen Al-Kharafi & Sons
    • Eastern Asphalt & Concrete Production
    • Cebarco Bahrain
    • Kingdom Asphalt

    The contract scope includes expansion works on 2 kilometres of the highway. It consists of a four-lane dual carriageway with service roads on both sides.

    The scope of works also includes excavation and backfill work, construction of stormwater drainage networks, a pumping station, installation of ducts for future utilities, upgraded street lighting, traffic signs and directional signage.

    The project aims to improve traffic capacity, reduce congestion and enhance safety along the transport corridor linking Manama with industrial zones.

    In April, MEED reported that Bahrain had approved a financing agreement framework to fund the construction of the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade.

    In March last year, the Kuwait Fund for Arab Economic Development and the Bahraini government signed a KD10m ($32.4m) loan agreement to fund the second phase of the project, which is expected to cost about $404m.

    This was followed in September 2025 by the appointment of US-based Parsons Corporation on a $1.5m contract to provide pre-contract engineering consultancy services for the project.

    According to data from regional project tracker MEED Projects, construction of the first phase was completed in 2020.

    A joint venture of local firm Nass Contracting and Kuwait’s KCC Engineering & Contracting undertook the main construction works.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19847073/main.png
    Yasir Iqbal