Neom issues Gulf of Aqaba infrastructure tender
19 March 2024
Register for MEED's guest programme
Saudi Arabia’s Neom has issued a tender inviting companies to bid for a contract to develop the basic infrastructure for its Gulf of Aqaba development.
The tender for the infrastructure works for District Six, also called Southern Gateway, was issued on 27 February.
The deadline for bid submission is 19 March.
The scope of the contract involves the road works for a 20-kilometre coastal road and Wadi culverts.
The Southern Gateway district is further divided into three zones (zone 14, zone 15 and zone 16).
The district has a coastline of approximately 24km with a total land area of about 65 sq km.
US-based engineering firm Aecom is the Gulf of Aqaba project consultant.
Last week, MEED reported that Neom had issued a tender for the infrastructure works on District Four, also called Jungle Club.
Neom is implementing a series of projects as part of its infrastructure development programme for the region, including the existing coastal road network comprising the Gulf of Aqaba coastal road from Ras El Sheikh, Ras El Sheikh road, Magna road, Al Bada road and Highway 5.
These roads play a vital role in serving future Neom assets along the Gulf of Aqaba coast, including recently announced schemes such as Leyja, Epicon, Siranna, Utamo, Norlana, Aquellum, Zardun and Gidori.
Gulf of Aqaba progress
Neom has already made progress on the development of its Gulf of Aqaba destination.
In September last year, MEED reported that Neom had selected a joint venture of the local Al-Ayuni Investment Company and Turkish contractor Limak Holding to deliver the early works for the Cube mountain resort at the Gulf of Aqaba in Neom.
The scope of work includes enabling works, drilling of vertical and inclined boreholes, a drill-and-blast construction access tunnel, excavation works at the top of the mountain and other associated works.
The Cube will be built on top of a mountain overlooking the Gulf of Aqaba. Each side of the Cube building will be about 100 metres.
The Gulf of Aqaba is a 120km-long coastal strip at Neom with an average width of 3.5km. The total land area is about 430 square kilometres.
MEED's April 2024 special report on Saudi Arabia includes:
> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects
Exclusive from Meed
-
QatarEnergy gives North Field West topside bidders more time2 October 2026
-
Egypt implements oil and gas storage projects worth $1.1bn2 October 2026
-
Saudi pre-budget leans on borrowing to fund projects2 October 2026
-
Jordan begins prequalification for Shallala wastewater plant2 October 2026
-
Neom’s industrial pivot gathers pace1 October 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
QatarEnergy gives North Field West topside bidders more time2 October 2026

QatarEnergy has granted contractors more time to prepare bids for a tender covering the engineering, procurement, construction and installation (EPCI) of large platforms for the North Field gas field in Qatari waters.
Contractors now have until 12 October to submit technical bids for the project, according to sources. Commercial bids are currently due on 10 November.
The following contractors, among others, are understood to be bidding for the North Field West (NFW) production deck modules (PDMs) tender:
- China Offshore Oil Engineering Company (China)
- Larsen & Toubro Energy Hydrocarbon (India)
- McDermott (US)
- Saipem (Italy)
The core scope comprises the EPCI of four PDMs and associated structures. The PDMs will increase gas production from North Field reservoirs and provide additional gas feedstock for the NFW liquefied natural gas (LNG) development.
The tender, issued earlier this year, forms part of the wider NFW project, the third and final phase of the state enterprise’s North Field LNG expansion programme.
The previous deadlines for technical bids were 30 August, 15 September and 28 September, while commercial bids were previously due on 25 October, as MEED reported.
Before issuing the PDMs tender, QatarEnergy awarded US firm McDermott a contract for the EPCI of four offshore jackets that will also support gas feedstock supply for the NFW LNG project. The contract is estimated to be worth about $200m, MEED reported in January.
North Field LNG expansion
QatarEnergy is advancing the three phases of its estimated $40bn North Field LNG expansion project. EPC works on all three projects are progressing.
QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028.
QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.
In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.
Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.
QatarEnergy took the final investment decision on NFW earlier this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting in February.
Chiyoda carried out the front-end engineering and design work for the NFW LNG project.
The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.
In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and liquefied petroleum gas.
With all three phases under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers in the long term.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20208200/main.jpg -
Egypt implements oil and gas storage projects worth $1.1bn2 October 2026
Egypt is implementing oil and gas storage projects worth a total of £E54bn ($1.1bn), according to a statement released by the country’s cabinet.
Active developments include expanding El-Hamra Petroleum Port in El-Alamein on the Mediterranean coast, as well as building a jet-fuel storage and transport hub at the Badr depot in Cairo.
Other projects include constructing new storage tanks at refinery complexes in Amreya, Alexandria; Assiut; and Cairo.
Over the past 12 years, Egypt has built 84 petroleum storage facilities with a total capacity of 5.2 million tonnes, the cabinet statement said.
Egypt has invested £E42.7bn ($880m) in developing these facilities, with the aim of bolstering domestic energy security.
Completed infrastructure projects include facilities in Sohag (Upper Egypt) and Alexandria.
They also include offshore terminal and storage facilities, a liquid bulk station in Ain Sokhna, and strategic crude oil storage tanks across the country.
Storage facilities have become a strategic priority for Egypt since the US and Israel attacked Iran on 28 February, triggering a regional war that has disrupted shipping through the Strait of Hormuz.
The disruption has made imports of hydrocarbon products into Egypt less predictable, increasing the importance of strategic stockpiles.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20208195/main.jpg -
Saudi pre-budget leans on borrowing to fund projects2 October 2026
Saudi Arabia plans to spend SR1.39tn ($371.2bn) in 2027, according to the Finance Ministry’s pre-budget statement. That is 3% less than the estimated outturn for 2026, after regional conflict and the closure of the Strait of Hormuz pushed this year’s expenditure well past its allocation.
The ministry now expects 2026 spending to reach SR1.44tn, which is SR122bn or 9.3% above the SR1.31tn approved in the budget. Revenues are estimated at SR1.19tn, SR43bn above budget, leaving a deficit of SR245bn, equal to 4.9% of GDP. The original budget assumed a SR165bn deficit, or 3.3% of GDP.
For 2027, the statement projects revenues of SR1.2tn and a deficit of SR191bn, or 3.6% of GDP. Expenditure is forecast to rise to SR1.48tn in 2028 and SR1.54tn in 2029, with deficits of SR177bn and SR192bn projected for those years. On the ministry’s figures, the kingdom will run cumulative deficits of SR560bn ($149.3bn) between 2027 and 2029.
The economic backdrop has deteriorated sharply. The ministry expects real GDP to contract by 3.6% in 2026, driven by a 21.8% fall in oil activity, while non-oil activity grows by 3.2%. It forecasts a rebound to 12.8% real growth in 2027.
Capital spending
The statement does not publish a capital expenditure figure or a sector breakdown. Those will follow with the budget in Q4. It does signal that project spending will continue. As Vision 2030 enters what the statement calls its third phase, the government says efforts will focus on “accelerating the pace of delivery and capitalising on growth opportunities through continued government capital expenditure”. It also wants a stronger role for the Public Investment Fund (PIF) and the National Development Fund in stimulating domestic investment.
The ministry says it will “implement infrastructure-related programmes” and direct resources “towards priority programmes and projects”. It also commits to “maximise the utilisation of existing government assets and investments”. That wording points to a sharper focus on completing and monetising existing schemes rather than launching new ones.
The medium-term debt strategy is designed to ensure “the continuity of the implementation of priority projects without being linked to the fluctuations of the economic cycle”, according to the statement.
The government’s revenue scenarios hold expenditure at SR1.39tn in all three cases. Under the lowest revenue case of SR1.13tn, the deficit widens to SR259bn. The highest case of SR1.26tn narrows it to SR132bn. Any change falls on borrowing rather than on spending.
The ministry says debt will deliberately rise by the end of 2027, and the borrowing plan will be disclosed by the end of this year. Alongside bonds, sukuk and loans, the government plans to expand “alternative government financing, including financing of projects, infrastructure and export credit agencies” in 2027 and over the medium term.
Private capital
The statement presents private investment as a growing share of project delivery. Investment in privatisation and public-private partnership (PPP) projects reached about SR180bn by the end of 2025. The National Privatisation Strategy was approved in November 2025. Ten privatisation and PPP projects have been launched under it in the first half of 2026, including the Prince Naif Bin Abdulaziz International Airport PPP in Qassim. Contracts were signed for the Sabic Mental Health Hospital and the Jubail Container Terminal, taking the total to 83 partnership contracts. Private capital investment has exceeded SR56.2bn, against a target of SR240bn by 2030.
The National Infrastructure Fund has committed SR10.5bn since 2022 to projects with a combined value of about SR59.3bn, of which SR44.1bn is private investment. Projects it has backed include the Neom green hydrogen project, the Shuaibah solar photovoltaic plants, the Prince Mohammad Bin Abdulaziz Airport expansion, the Jubail-Buraidah independent water transmission pipeline and the Ezditek data centre. The fund plans to expand into healthcare, education, sports and artificial intelligence.
PIF’s domestic investments totalled about SR750bn between 2021 and 2025. The statement lists several recent contracts across its portfolio. Diriyah Company, the PIF-owned developer of the Diriyah gigaproject, awarded a SR1.8bn contract to a consortium of local companies to build the Saudi Museum of Contemporary Art. PIF-owned Soudah Development signed a SR1.3bn agreement with National Grid SA, the transmission subsidiary of Saudi Electricity Company, to deliver electricity infrastructure for the Soudah Peaks project. Saudi Entertainment Ventures, also owned by PIF, plans 14 destinations across 13 cities, with investment of more than SR45bn. The Saudi Export-Import Bank plans to provide SR41.6bn of financing and insurance to non-oil exporters in 2027.
Logistics investment has also become a priority since the disruption to Gulf shipping. The share of non-oil exports passing through Red Sea ports rose to 40.7% during the crisis, from 19.3% before it. In July, the General Ports Authority signed contracts worth up to SR1bn for seven logistics centres at Jeddah Islamic Port and Al-Khumrah. A separate logistics corridors initiative connects Gulf ports to the Red Sea by road and rail.
The final 2027 budget is due for approval in Q4.
MEED’s October 2026 report on Saudi Arabia includes:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> 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 conflict
> DATABANK: Saudi data indicates project spending shiftTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20206117/main.gif -
Jordan begins prequalification for Shallala wastewater plant2 October 2026
Jordan’s Water Authority has invited contractors to prequalify for a contract to rehabilitate and expand the Shallala wastewater treatment plant in Irbid governorate.
The European Bank for Reconstruction & Development (EBRD) issued the invitation for prequalification on 28 September.
The project will increase the plant’s average treatment capacity from 13,700 cubic metres a day (cm/d) to 30,500 cm/d. It is designed to accommodate projected population growth and increased wastewater flows associated with the National Water Carrier project.
EBRD is financing the project via a sovereign loan, along with a European Union grant and Jordanian government funding for operation and maintenance (O&M) components.
Submissions are due by 16 November, with a contract award scheduled for June 2027.
The works will involve constructing a new treatment train based on activated sludge processing and biological nutrient removal. The scope also includes tertiary filtration, disinfection, sludge treatment and biogas utilisation.
The contractor will also rehabilitate and optimise the existing treatment facilities after flows have been diverted to the new treatment train.
Design-build contract
The design-build contract covers engineering, procurement and construction works, commissioning and a 36-month O&M period. It is divided into four sections.
Section one covers the design and construction of the new treatment train, while the second section covers rehabilitation of the existing plant.
The third section includes 12 months of O&M for the new treatment train and a training programme for staff at Yarmouk Water Company (YWC), which currently operates the facility.
The fourth section covers 24 months of O&M for the fully integrated plant, alongside a secondment programme for YWC staff.
The project is intended to improve treated wastewater quality and enable reuse for unrestricted irrigation, with the existing plant remaining operational during most of the construction period.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20180486/main.jpg -
Neom’s industrial pivot gathers pace1 October 2026
Commentary
Colin Foreman
EditorReprioritisation has been the buzzword in Saudi Arabia over the past two years and nowhere has that been more evident than at Neom.
The slowdown of development at The Line and the postponement of the 2029 Asian Winter Games at Trojena have dominated international headlines. As these projects scale back, Oxagon’s industrial and logistics base has become the $500bn gigaproject’s flagship development. There are tangible results: in August, the $8.5bn Neom Green Hydrogen project was commissioned, marking Neom’s most significant completion to date. Construction activity elsewhere at Oxagon supports this trend. The AI data-centre campus being developed by Humain and DataVolt has broken ground on its first 100MW phase, backed by $5bn of investment and targeted for service in 2028. Neom has issued an expression of interest for a rail line linking the Port of Neom to Saudi Arabia Railways’ North-South network, tenders are out for an industrial wastewater plant and the upgrade of Highway 55, and the port itself is advancing towards a 2030 capacity target of 1.5 million TEUs.
The regional conflict that began in February has strengthened the business case by giving Oxagon’s Red Sea port added strategic weight as a second maritime gateway outside the Strait of Hormuz, at a time when Riyadh has committed to directing about 80% of the Public Investment Fund’s portfolio into domestic investment.
These developments reflect a kingdom recalibrating rather than retreating
Elsewhere, Saudi Arabia’s wider projects market is holding steady despite conflict-related disruption, with contract awards reaching $68bn so far this year. The regional power market is also diversifying, with Aljomaih, EDF and Kepco all more than tripling net capacity in recent years as Acwa retains its lead.
These developments reflect a kingdom recalibrating rather than retreating, with priority given to projects capable of delivering commercial returns.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20178338/main.gif