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
  • Dewa raises Empower stake in $1.41bn deal

    12 February 2026

    Dubai Electricity & Water Authority (Dewa) has announced it has increased its stake in Emirates Central Cooling Systems Corporation (Empower) from 56% to 80%.

    The transaction was completed through the purchase of 2.4 billion shares and the transfer of the entire ownership of Emirates Power Investment (EPI), which is wholly owned by Dubai Holding.

    The total value of the deal is AED5.184bn ($1.41bn).

    Empower currently holds over 80% of Dubai’s district cooling market and operates 88 district cooling plants across the emirate.

    According to MEED Projects, the UAE’s district cooling sector currently has nine projects worth $1.29bn in the pre-execution phase.

    Empower has ownership in four of these projects, which have a combined value of $472m.

    This includes a $200 million district cooling plant at Dubai Science Park, with a total capacity of 47,000 refrigeration tonnes serving 80 buildings.

    Empower signed a contract to design the plant last August, with construction scheduled to begin by the end of the first quarter of 2026.

    The utility is also building a district cooling plant at Dubai Internet City.

    UAE-based TMF Euro Foundations was recently appointed as the enabling and piling subcontractor for the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15635949/main.jpg
    Mark Dowdall
  • Saudi cabinet approves Qatar high-speed rail link

    12 February 2026

    Saudi Arabia has approved the establishment of a proposed high-speed rail line connecting Riyadh and Doha.

    The approval was granted during a cabinet session chaired by King Salman Bin Abdulaziz Al-Saud in Riyadh on 10 February.

    The high-speed railway line will cover 785 kilometres (km) and will pass through Hofuf and Dammam, while also linking King Salman International airport and Hamad International airport.

    Saudi Arabia and Qatar signed an agreement in December last year to build a high-speed rail line.

    The agreement was inked by Saudi Arabia’s Transport & Logistics Services Minister, Saleh Al-Jasser, and Qatar’s Transport Minister, Sheikh Mohammed Bin Abdulla Bin Mohammed Al-Thani.

    Trains will reach speeds exceeding 300 kilometres an hour, reducing the travel time between the two capitals to about two hours.

    The project is slated for completion in six years. It is expected to serve over 10 million passengers annually and create more than 30,000 direct and indirect jobs.

    Riyadh and Doha relaunched the proposed rail link between the two countries in 2022, after agreeing to set a date to begin studying the connection. 

    In July of that year, France’s Systra was selected to conduct a feasibility study on the proposed scheme, as MEED reported.

    A rail link connecting Saudi Arabia and Qatar was planned before the diplomatic dispute that froze relations between Riyadh and Doha from 2017 until the Al-Ula Declaration was signed in January 2021.

    In 2016, Qatar Railways Company (Qatar Rail) planned to tender a design-and-build contract for the construction of regional railways in Qatar, including a link to the Saudi border.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15635582/main.jpg
    Yasir Iqbal
  • Bidders line up for Saudi sewage treatment contract

    12 February 2026

     

    Six bidders are competing in the next phase of Saudi Arabia’s long-term operations and maintenance (LTOM) sewage treatment programme, as National Water Company (NWC) moves closer to awarding a contract.

    The contract covers the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11) and has an estimated value of about $211m.

    The project involves the construction and upgrade of two sewage treatment plants with a combined capacity of about 440,000 cubic metres a day (cm/d).

    As MEED understands, the companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • United Water (China)
    • Kuzu Group (Turkey)
    • VA Tech Wabag (India)
    • Aguas de Valencia (Spain)

    LTOM11, also known as the North Western A Cluster, forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component.

    The scope also includes a pumping station, surplus discharge lines, SCADA installation and associated infrastructure.

    The main contract was tendered last year, with an award initially expected by the end of 2025.

    It is now understood that NWC is preparing to offer the main contract in this quarter.

    LTOM programme

    LTOM11 follows a series of earlier awards under the programme.

    In January, a consortium of United Water (China), Prosus Energy (UAE) and Armada Holding (Saudi Arabia) won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    This has an estimated value of about SR203m ($54.1m).

    NWC previously awarded $2.7bn-worth of contracts for the first phase of its LTOM programme. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years.

    As MEED reported, local contracting firm Alkhorayef Water & Power Technologies won three contracts with a combined capacity of 2.04 million cm/d, nearly half of the awarded total. These three contracts are worth more than SR5.53bn ($1.47bn).

    A consortium of France’s Suez and the local Al-Awael Modern Contracting Group, with its affiliate Civil Works Company (CWC), won two packages worth a combined SR1.84bn.

    A consortium comprising France’s Veolia and Awael-CWC won a single package worth SR1.26bn, and local utility developer Miahona won one package worth SR392m.

    In 2024, a joint venture of CWC and Al-Awael Modern Contracting was awarded a $211m contract for LTOM9.

    As part of the second phase, the main contract bids for LTOM12 (North Western B Cluster) have also been submitted.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15635292/main.jpg
    Mark Dowdall
  • Indian firm wins Dubai Latifa Bint Hamdan road project

    12 February 2026

    Indian contractor Larsen & Toubro (L&T) has won a contract to construct the first phase of the Latifa Bint Hamdan Street development project in Dubai.

    The contract value is between $110m and $275m, according to L&T’s contract classification.

    This project covers 12.2 kilometres of road network from its intersection with Al-Khail Road to Emirates Road.

    The project also includes 8.1km of bridges and will add capacity for about 16,000 vehicles an hour in both directions.

    The scope also involves widening the two-lane dual carriageway to four lanes in each direction.

    The project is scheduled for completion within 36 months.

    The contract was awarded by Dubai’s Roads & Transport Authority (RTA).

    The project is part of the RTA’s estimated AED16bn ($4.3bn) 2024-27 Main Roads Development Plan, which includes 22 projects across Dubai’s road network, as announced in November 2024.

    The development plan includes the construction of new roads and bridges to alleviate traffic congestion at several key locations across Dubai.

    Planning for growth

    The Dubai 2040 Urban Master Plan was launched in March 2021. Its launch referenced studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension also forms part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims to ensure that residents can meet 80% of their daily needs within a 20-minute walk or bike ride. This goal will be achieved by developing integrated service centres with the necessary facilities and by increasing population density around mass transit stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15635237/main.gif
    Yasir Iqbal
  • SAR tenders Riyadh section of Saudi Landbridge

    12 February 2026

     

    Saudi Arabia Railways (SAR) has tendered a design-and-build contract for the construction of a new railway line, the Riyadh Rail Link, which will run from north to south Riyadh.

    The tender was issued on 29 January, with a bid submission deadline of 29 March.

    The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South Railway to the Eastern Railway network.

    The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.

    The project is expected to form a key component of the Saudi Landbridge railway.

    Last month, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium for the construction of the project, as MEED reported.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements and that the project will now be delivered in several phases under a different procurement model.

    The project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it through a public-private partnership.

    Al-Malik said that the project cost is about SR100bn ($26.6bn).

    It comprises more than 1,500 kilometres (km) of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

    Other key sections include upgrading the existing Riyadh-Dammam line, a bypass around the capital called the Riyadh Link, and a link between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later. Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

    In April last year, MEED exclusively reported that SAR had issued a tender for the lead design consultancy services contract on the Saudi Landbridge railway network.

    MEED understands that the scope covered the concept design and options for the preliminary and issued-for-construction design stages on the network.

    MEED reported that the launch of a design tender directly by SAR suggested that Riyadh was looking at other options to develop it alongside the Chinese proposal.

    In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.

    If it proceeds, the Saudi Landbridge will be one of the largest railway projects ever undertaken in the Middle East and one of the biggest globally. Based on typical design timeframes, tenders for construction are likely to be ready by mid-2026, although the question of how it will be financed will need to be answered before it can proceed to the next step.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15635220/main.jpg
    Yasir Iqbal