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
  • Regional rail industry emerges

    8 December 2025

    Commentary
    Colin Foreman
    Editor

    Read the December issue of MEED Business Review

    The GCC is experiencing a fundamental shift in its approach to rail infrastructure, as it moves from standalone projects to a self-sustaining regional industry. The transition is evident as local, national and regional projects advance across the region.

    The first wave of metro systems, in Dubai, Doha, and most recently, Riyadh, have reported stronger-than-expected ridership and demonstrated the viability of mass transit in the Gulf.

    Extensions to those networks are planned or under way, including Dubai’s Blue and Gold lines and Riyadh’s Line 2, alongside planned metros elsewhere such as Muscat and Bahrain.

    Projects are also planned and already being delivered at the national level. The UAE’s Etihad Rail and Saudi Arabian Railways are leading most of these efforts. The region’s first cross-border project is also progressing with the Hafeet Rail scheme linking the UAE and Oman.

    Other cross-border schemes are planned, including high speed links connecting Riyadh with Doha and Kuwait City, and rail links for Bahrain across causeways to Saudi Arabia and Qatar. The ultimate ambition is a GCC Rail network – a project that was reinvigorated by the Al-Ula accords in 2021.

    Sustained, simultaneous activity across the GCC is fostering the development of an indigenous regional rail industry. Rather than being executed as isolated endeavours, projects are creating ongoing demand for expertise, personnel and resources within the region.

    Project delivery capability will be complemented by the establishment of crucial ancillary services, including fabrication and servicing facilities.

    These operations will shift the GCC from a lucrative market for international contractors to a regional hub for the rail industry, capable of servicing and sustaining its growing network.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213797/main.gif
    Colin Foreman
  • Visa agrees to support digital payments in Syria

    5 December 2025

    Visa and the Central Bank of Syria have agreed on a strategic roadmap that will allow the US-based card and digital payments company to begin operations in Syria and support the development of a modern digital payments system.

    Under the agreement, Visa will work with licensed Syrian financial institutions under a phased plan to establish a secure foundation for digital payments.

    The early stages will involve Visa supporting the central bank in issuing Europay, Mastercard and Visa (EMV)-compliant payment cards and enabling tokenised digital wallets – bringing the country in line with internationally interoperable standards.

    Visa will also provide access to its platforms, including near-field communication (NFC) and QR-based payments, invest in local capacity building and support local entrepreneurs seeking to develop solutions leveraging Visa’s global platform.

    “A reliable and transparent payment system is the bedrock of economic recovery and a catalyst that builds the confidence required for broader investment to flow into the country,” noted Visa’s senior VP for the Levant, Leila Serhan. “This partnership is about choosing a path where Syria can leapfrog decades of legacy infrastructure development and immediately adopt the secure, open platforms that power modern commerce.”

    The move marks one of the most significant steps yet in Syria’s slow and uneven return to the formal global financial system and carries implications that reach beyond just payments technology.

    It lays the groundwork for overturning more than a decade of financial isolation in which Syria has operated largely outside global banking and settlement networks.

    Visa’s entry will not erase all existing barriers – as many restrictions remain in force and will continue to shape what is practically possible – but its support signals a reopening of channels that could smooth Syria’s reintegration into financial networks.

    The involvement of the US-based payments provider is also a further tacit sign of the US government’s enthusiastic bear hug of the new post-Assad Syrian government under President Ahmed Al-Sharaa.

    For investors assessing long-term opportunities, the presence of a globally recognised payments operator will provide reassurance that Syria’s financial system is returning to international norms, and the security and transparency that comes with it.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15207198/main3225.gif
    MEED Editorial
  • Meraas announces next phase of Nad Al-Sheba Gardens

    5 December 2025

    Dubai-based real estate developer Meraas Holding, which is part of Dubai Holding, has announced the eleventh and final phase of its Nad Al-Sheba Gardens residential community in Dubai.

    It includes the development of 210 new villas and townhouses and a school, which will be located at the northwest corner of the development.

    The latest announcement follows Meraas awarding a AED690m ($188m) contract for the construction of the fourth phase of the Nad Al-Sheba Gardens community in May, as MEED reported.

    The contract was awarded to local firm Bhatia General Contracting.

    The scope of the contract covers the construction of 92 townhouses, 96 villas and two pool houses.

    The contract award came after Dubai-based investment company Shamal Holding awarded an estimated AED80m ($21m) contract to UK-based McLaren Construction last year for the Nad Al-Sheba Gardens mall.

    The project covers the construction and interior fit-out of a two-storey mall, covering an area of approximately 12,600 square metres.

    The UAE’s heightened real estate activity is in line with UK analytics firm GlobalData’s forecast that the construction industry in the country will register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects. 

    The residential construction sector is expected to record an annual average growth rate of 2.7% in 2025-28, supported by private investments in the residential housing sector, along with government initiatives to meet rising housing demand.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206904/main.jpg
    Yasir Iqbal
  • Frontrunner emerges for Riyadh-Qassim IWTP

    5 December 2025

     

    Saudi Arabia’s Vision Invest has emerged as frontrunner for the contract to develop the Riyadh-Qassim independent water transmission pipeline (IWTP) project, according to sources.

    State water offtaker Saudi Water Partnership Company (SWPC) is preparing to award the contract for the IWTP "in the coming weeks", the sources told MEED.

    The project, valued at about $2bn, will have a transmission capacity of 685,000 cubic metres a day. It will include a pipeline length of 859 kilometres (km) and a total storage capacity of 1.59 million cubic metres.

    In September, MEED reported that bids had been submitted by two consortiums and one individual company.

    The first consortium comprises Saudi firms Al-Jomaih Energy & Water, Al-Khorayef Water & Power Technologies, AlBawani Capital and Buhur for Investment Company.

    The second consortium comprises Bahrain/Saudi Arabia-based Lamar Holding, the UAE's Etihad Water & Electricity (Ewec) and China’s Shaanxi Construction Installation Group.

    The third bid was submitted by Saudi Arabia's Vision Invest.

    It is understood that financial and technical bids have now been opened and Vision Invest is likely to be awarded the deal.

    The Riyadh-based investment and development company made a "very aggressive" offer, one source told MEED.

    In November, the firm announced it had sold a 10% stake in Saudi Arabia-based Miahona as part of a strategy to reallocate capital "towards new and diversified investments".

    The company did not disclose which projects the capital might be reallocated towards.

    As MEED recently reported, Vision Invest is also bidding for two major packages under Dubai's $22bn tunnels programme in a consortium with France's Suez Water Company.

    The Riyadh-Qassim transmission project is the third IWTP contract to be tendered by SWPC since 2022.   

    The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which was awarded to a team of Riyadh-based companies comprising Al-Jomaih Energy & Water, Nesma Group and Buhur for Investment Company.

    Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model.

    Commercial operations are expected to commence in the first quarter of 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206609/main.jpg
    Mark Dowdall
  • Adnoc creates new company to operate Ghasha concession

    5 December 2025

    Register for MEED’s 14-day trial access 

    The board of directors of Abu Dhabi National Oil Company (Adnoc Group) has approved the establishment of a new company to operate the Ghasha offshore sour gas concession in Abu Dhabi waters.

    The decision to create the new entity, to be called Adnoc Ghasha, was taken during a recent meeting of Adnoc Group’s board in Abu Dhabi, which was chaired by Sheikh Mohamed Bin Zayed Al-Nahyan, UAE President and Ruler of Abu Dhabi.

    Adnoc Group owns and operates the Ghasha concession, holding the majority 55% stake. The other stakeholders in the asset are Italian energy major Eni with a 25% stake, Thailand’s PTTEP Holding, which holds a 10% interest, and Russia’s Lukoil, owning the remaining 10% stake.

    The Ghasha concession consists of the Hail and Ghasha fields, along with the Hair Dalma, Satah al-Razboot (Sarb), Bu Haseer, Nasr, Shuwaihat and Mubarraz fields.

    Adnoc expects total gas production from the concession to ramp up to more than 1.8 billion cubic feet a day (cf/d) before the end of the decade, along with 150,000 barrels a day of oil and condensates. This target will mainly be achieved through the Hail and Ghasha sour gas development project.

    In October 2023, Adnoc and its partners awarded $16.94bn of engineering, procurement and construction (EPC) contracts for its Hail and Ghasha project – the biggest capital expenditure made by the Abu Dhabi energy company on a single project in its history.

    Adnoc awarded the onshore EPC package to Italian contractor Tecnimont, while the offshore EPC package was awarded to a consortium of Abu Dhabi’s NMDC Energy and Italian contractor Saipem.

    The $8.2bn contract relates to EPC work on offshore facilities, including facilities on artificial islands and subsea pipelines.

    The Hail and Ghasha development will also feature a plant that will capture and purify carbon dioxide (CO2) emissions for sequestration (CCS), in line with Adnoc’s committed investment for a carbon capture capacity of almost 4 million tonnes a year (t/y). The CO2 recovery plant will have a total capacity to capture and store 1.5 million t/y of emissions from the Hail and Ghasha scheme.

    Prior to reaching the final investment decision on the Hail and Ghasha project in 2023, the Ghasha concession partners, led by Adnoc, awarded two EPC contracts worth $1.46bn in November 2021 to execute offshore and onshore EPC works on the Dalma gas development project. The project will enable the Dalma field to produce about 340 million cf/d of natural gas.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206382/main2754.jpg
    Indrajit Sen