meed-logo

line1 line2 line3
SIGN IN / REGISTER

Neom’s top five projects

11 October 2023

Neom has awarded major contracts over the past two years, indicating the kingdom's flagship development project is moving ahead as planned. It has also attracted local and international investment partners for the implementation of these projects.

Except for the Neom Green Hydrogen project, the majority of the contracts that have been awarded so far are for basic infrastructure such as roads, staff accommodation and utilities.

Below is a round-up of the top five projects that are under construction at Neom.

  1. NGHC Green Fuels Renewable Energy Project

Saudi Arabia’s Neom Green Hydrogen Company (NGHC), a consortium of Neom, Saudi utility developer Acwa Power and the US' Air Products is developing a green fuels renewable energy facility, which will produce hydrogen to be synthesised into carbon-free ammonia for export exclusively by Air Products to global markets.

The planned facility will integrate 4GW of renewable power from solar, wind and storage that will be used for the production of 650 tonnes a day of hydrogen and nitrogen and 1.2 million tonnes a year of green ammonia.

In June 2022, Indian contractor Larsen & Toubro (L&T) secured a major engineering, procurement, and construction (EPC) contract worth $2.7 billion from NGHC for the renewable energy package of the programme.

L&T has since awarded several sub-contracts for different elements of the project. These include the supply contract for the wind turbines to China's Envision Energy, the supply of 380 kV gas-insulated substations to US-based GE Grid Solutions, the supply of solar trackers to Spanish PV Hardware and, most recently, the contract to inverter skid solutions to Chinese company Sungrow.

  1. NEOM Community Villages: Wave 1

In June, Neom finalised SR21bn ($5.6bn) of public-private partnership (PPP) housing deals for worker accommodation. The developers for the first phase of its residential communities, also known as Wave I, include local companies Alfanar Global Development, Almutlaq Real Estate Investment Company, Nesma Holding Company and Tamasuk, which is involved through two separate partners, Al-Majal al-Arabi Group Company and Saudi Arabian Trading & Construction Company (Satco).

The scheme involves building ten communities across Neom, adding capacity for 95,000 more occupants once the project's first phase is completed. The temporary accommodation needed during Neom's construction period is being built sustainably as relocatable modular units that can be repurposed once the communities are no longer required.

The tender for a second phase of the project, known as Wave II, is expected to be issued to the market in the coming months.

 

  1. NEOM Backbone Infrastructure: Drill and Blast Running Tunnels

Tunnel projects worth over $4.6bn are in the execution phase at Neom. These include the backbone infrastructure tunnels for The Line project, which involve constructing two railway tunnels in parallel using the drill-and-blast method, one for passengers and the other for goods.

In June 2022, Neom awarded $2.7bn-worth of main contracts to the joint venture of Shibh al-Jazira Contracting, China State Construction Engineering and FCC Construction for lots two and three of this scheme.

A separate contract worth about $1.8bn was awarded by Neom for lots four and five to a team of Archirodon, Samsung Engineering and Hyundai Engineering.

Beijing-based China Railway Construction Corporation (CRCC) was awarded a contract in 2021 for the adits and portals package serving the bored tunnels.

  1. NEOM Oxagon Connector South

In May, Neom awarded a joint venture of Italy-based Webuild and Riyadh-headquartered Shibh al-Jazira Contracting (Sajco) an estimated $2bn contract to build the Connector South rail line that will link Oxagon with The Line at Neom.

The contract involves the construction of a 75-kilometre railway line, including earthworks, 14 viaducts, seven roads, nine rail underpasses, 152 culverts (pipe and box culverts), a freight line, infrastructure maintenance depots and associated facilities.

The infrastructure corridor will run south from The Line to Neom City Station through Neom Bay Mansions, Neom Bay airport and on to Oxagon.

  1. NEOM Oxagon Port

Crown Prince Mohammed bin Salman launched Oxagon in late 2021. It includes onshore elements as well as floating structures offshore. Construction works on the 48 square-kilometre, eight-sided industrial city have already started.

In January, Neom awarded a contract to deliver the first phase of the port expansion. A team of Boskalis, Besix and the local Modern Building Leaders (MBL) was awarded that estimated SR3bn ($800m) contract in mid-January.

It was followed by another $1bn contract award in October to Belgium’s Deme with Greece’s Archirodon to complete phase two of the Duba port expansion at Oxagon industrial city.

The scope of the Duba port expansion package includes excavation and dredging, revetments for channel widening, demolition, container terminal quay expansion and earthworks, in addition to the development of a flexible quay, a roll-on/roll-off (RoRo) berth and quay walls to a marine services berth and a coast guard facility.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11209234/main.jpg
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Rua Al-Madinah signs hotel operations agreement

    26 November 2025

    Saudi Arabia’s Rua Al-Madinah, the Public Investment Fund (PIF) subsidiary tasked with Medina’s tourism and cultural development, has signed a hotel operations and management agreement with Adeera Hospitality for its Rua Al-Madinah project.

    Adeera Hospitality, which PIF also backs, will operate two buildings comprising 250 hotel rooms and 120 residential units under its Alia brand within the Rua Al-Madinah project, which is being developed near the Prophet’s Mosque.

    Adeera joins Rua Al-Madinah’s roster of hotel operators, which includes leading global hospitality brands such as Marriott, Hyatt, Accor and Hilton.

    The Rua Al-Madinah development includes the construction of 18 hotels under three categories – three-star, four-star and five-star – as well as secondary infrastructure.

    The towers will range in height from 11 to 21 storeys.

    Rua Al-Madinah estimates that superblock five will require 430,000 cubic metres of concrete, 875,000 square metres of block wall, 423,000 sq m of drywall, 74,000 tonnes of steel rebar, 215,000 sq m of tiles, and 228,000 sq m of facades, curtain walls and windows.

    The hotels, which will mainly provide accommodation for pilgrims visiting the holy city, will have a built-up area of about 65,000 sq m.

    In February last year, the client awarded two contracts worth SR300m ($80m) to international consulting firms for work on the superblocks four and five components of the Rua Al-Madinah project.

    Rua Al-Madinah signed a contract with US-based engineering firm Jacobs for design consultancy services for 12 hotels and other infrastructure for superblock four of the project.

    Another contract was signed with US-based KEO International Consultants to oversee the implementation of the superblock five project.

    Other consultants working on superblock five include US-based Perkins Eastman and Singapore-based Meinhardt. 

    UAE-based Ema Design is the interior designer.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15158923/main.jpg
    Yasir Iqbal
  • Meraas confirms $517m The Acres villas contract award

    26 November 2025

    Dubai-based real estate developer Meraas, now part of Dubai Holding Group, has confirmed that it has awarded a AED1.9bn ($517m) contract to build 642 three-, four- and five-bedroom villas as part of the first phase of its residential community, The Acres, in Dubailand.

    The contract was awarded to the local firm United Engineering Construction Company.

    MEED exclusively reported in August that Meraas had awarded the contract for the project.

    The Acres project is designed by local architectural practice U+A Architects.

    The masterplan includes 1,200 villas ranging from three to seven bedrooms.

    It also features a nursery, school, clinic, mosques, clubhouses, a retail zone, a 2,000-square-metre garden, walking and biking trails, an outdoor gym, children’s playgrounds, swimming pools and sports facilities.

    The latest announcement follows Meraas awarding a AED440m ($120m) contract for the construction of the Northline residential project in the Al-Wasl area of Dubai.

    The contract was awarded to the local GCC Contracting Company.

    The project includes the construction of three residential buildings. Construction work is expected to begin shortly, and the project is slated for completion by 2027.

    Meraas’ latest project contract awards in Dubai are backed by heightened real estate activity in the UAE’s construction market. Schemes worth over $323bn are in the execution or planning stages, according to UK analytics firm GlobalData.

    The company forecasts that the output of the UAE’s construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities, as well as residential construction projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15158561/main.jpg
    Yasir Iqbal
  • December deadline for Riyadh airport fourth runway

    26 November 2025

     

    King Salman International Airport Development Company (KSIADC) has allowed firms until 3 December to bid for the design-and-build contract for the fourth runway at King Salman International airport (KSIA) in Riyadh.

    The tender was first floated on 17 April. The previous bid submission deadline was 28 October.

    It is understood that the third and fourth runways will add to the two existing runways at Riyadh’s King Khalid International airport, which will eventually become part of KSIA.

    KSIADC, which is backed by Saudi Arabia’s Public Investment Fund, prequalified firms in September last year for the main engineering, procurement and construction packages; early and enabling works; specialist systems and integration; specialist systems, materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; local content; and environmental, social, governance and other services.

    The entire scheme is divided into eight assets. These are:

    • Iconic Terminal
    • Terminal 6
    • Private aviation terminal 
    • Central runway and temporary apron
    • Hangars
    • Landside transport
    • Cargo buildings
    • Real estate

    In August last year, KSIADC confirmed it had signed up several architectural and design firms for the various elements of the project.

    US-based firm Bechtel Corporation will manage the delivery of three new terminals, including the terminal for commercial carriers, Terminal 6 for low-cost carriers and a new private aviation terminal with hangars.

    Parsons, also of the US, was chosen as the delivery partner for two packages. One covers the airside infrastructure, including the runways, taxiways, air traffic control towers, fuel farms and fire stations. The other involves the infrastructure connecting the airport to the rest of the city, including utilities and roads.

    UK-based Foster+Partners will design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.

    US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.

    UK-based engineering firm Mace was appointed as the project’s delivery partner and local firm Nera was awarded the airspace design consultancy contract.

    Project scale

    The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.

    If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.

    The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.

    Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation (Gaca), aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.

    It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15158546/main.jpg
    Yasir Iqbal
  • Chinese contractor appointed for Algerian refinery project

    26 November 2025

    China’s Sinopec Guangzhou Engineering Company has signed a contract for the construction of a heavy naphtha catalytic processing unit at the Arzew refinery in Algeria.

    The contract was signed with the Algerian national oil and gas company Sonatrach.

    The contract uses the engineering, procurement, construction and operation model.

    Under the terms of the contract, Sinopec Guangzhou Engineering Company will handle the entire project lifecycle, from initial design to long-term management and operation.

    The project will be completed over 30 months, according to a statement from the Algerian Ministry of Hydrocarbons & Mines.

    The unit will have an annual capacity of 738,000 tonnes of heavy naphtha and will enable the refinery to increase gasoline production from 550,000 tonnes to 1.2 million tonnes a year.

    Algeria’s Ministry of Hydrocarbons & Mines said this represented “a significant step” that will strengthen the national capacity for gasoline production and help meet demand across various regions, particularly in the west and southwest of the country.

    Sinopec Guangzhou Engineering Company is a subsidiary of China Petroleum & Chemical Corporation (Sinopec), which is listed on stock exchanges in Hong Kong, Shanghai and New York.

    The project is part of Sonatrach’s wider programme to modernise and expand national refining capacities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15157814/main.jpg
    Wil Crisp
  • Egypt seeks to accelerate progress on chemicals facility

    26 November 2025

    Egypt’s government is attempting to accelerate progress on the country’s $680m project to develop a new soda ash production facility.

    The country’s cabinet has granted state-owned Egyptian Soda Ash Company a so-called “golden licence” to develop the plant, which will also produce derivatives of soda ash.

    The golden licence is a single approval given by the cabinet that consolidates multiple permits into one, in an effort to speed up project progress.

    The golden licence includes permits relating to land allocation, construction, operation and management of the project.

    In February this year, China National Chemical Corporation was appointed as the main contractor for the project.

    The plant is set to produce 600,000 tonnes of soda ash and derivatives annually, making it one of the largest industrial projects of its kind in the region.

    The project is being developed on a 1.12 million-square-metre plot in the industrial zone of New Alamein City.

    It will create 600 direct jobs and 2,000 indirect jobs, according to a statement from the cabinet.

    The factory is expected to be completed by mid-2027, with an investment cost exceeding $680m.

    Soda ash is a basic, alkaline industrial chemical used in large volumes worldwide.

    The project aims to meet local market demand for soda ash and to expand related industries, such as glass, detergents, paper, metals and pharmaceuticals.

    The local component of production inputs will be no less than 50% per tonne of the finished product, in terms of both value and quantity.

    Egyptian Soda Ash Company is a subsidiary of Egyptian Petrochemicals Holding Company (Echem), which was established in 2002 to develop, manage and expand the North African country’s petrochemicals sector.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15157812/main.jpg
    Wil Crisp