October deadline for Riyadh rail link prequalification

15 September 2025

 

Saudi Arabia Railways (SAR) has allowed contractors until 12 October to prequalify for a contract covering the construction of a new railway line, known as the Riyadh rail link, which will run from the north to the south of Riyadh.

The scope of work includes the construction of a 35-kilometre-long double-track railway line, connecting SAR's North-South Railway with the Eastern Railway network.

The contract also includes the procurement, construction and installation of associated infrastructure, including viaducts, civil works, utility installations, signalling systems and other associated works.

Last week, MEED reported that SAR had invited consultants to prequalify by 28 September for a contract covering design review and construction supervision for the Riyadh rail link project.

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

The Saudi Landbridge is an estimated $7bn project comprising more than 1,500km of new track. Its 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 upgrades to the existing Riyadh-Dammam line and a link between King Abdullah Port and Yanbu.

The start of the tendering activity for the Riyadh rail link project makes the construction of the Saudi Landbridge project even more likely. 

The project is one of the kingdom’s most anticipated infrastructure programmes. Plans to develop it were first announced in 2004, but the project was 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 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 Landbridge will be one of the largest railway projects ever undertaken in the Middle East – and among the biggest globally.

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Yasir Iqbal
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  • Transmission projects drive Saudi water sector growth

    16 September 2025

     

    Saudi Arabia’s water sector is on track for a strong year, driven by a surge in pipeline activity. 

    The market continues to be dominated by transmission projects, reflecting the kingdom’s focus on expanding networks to deliver water from supply facilities to cities and industrial hubs. 

    So far in 2025, $8.3bn of water contracts have been awarded, with pipelines accounting for $5.1bn, or more than 60% of total awards.

    Recent activity indicates that pipeline growth goes beyond awarded contracts, with major tenders pointing to more work ahead.

    Pipeline activity

    In September, Water Transmission Company (WTCO) opened bidding for the construction of two major water pipelines that will deliver over 1.38 million cubic metres a day (cm/d) of water across central and western Saudi Arabia. 

    The Jubail-Buraidah project, scheduled to begin construction in 2027, comprises approximately 348 kilometres of pipeline with a transmission capacity of 840,650 cm/d.

    The Ras Mohaisen-Baha-Mecca independent water transmission system project, which aims to supply the cities of Mecca and Al-Baha with desalinated water, has a maximum design flow rate of 542,000 cm/d. It requires a pipeline approximately 325km long, including four pumping stations. Both projects are being developed under the public-private partnership (PPP) model.

    Saudi Arabia also has even larger independent water transmission pipeline (IWTP) initiatives under way. 

    One such project, valued at $2.3bn, also linking Jubail and Buraidah, spans 587km and will carry 650,000 cm/d. In June, the local Mutlaq Al-Ghowairi Contracting Company secured the engineering, procurement and construction contract for this project.

    Pipeline activity is set to dominate in the short to medium term, with $6.9bn of projects under bid evaluation related to transmission networks, more than 60% of all bids. 

    This includes the Alshuqaiq to Jizan water transmission system: phase 4, for which an award is expected to be made by the end of the year, having first been tendered in 2023. 

    The project, valued at $3bn and procured by WTCO, will require a water pipeline of 523km in length with a capacity of 600,000 cm/d.

    Broader sector

    While pipelines clearly dominate, the wider water sector in 2025 is showing robust performance. Total awarded contracts in the sector stand at $8.3bn to date, highlighting sustained investment. 

    For context, total contracts awarded were $15.5bn in 2023 and $15.5bn in 2024, placing this year on track for another significant period of sector activity.

    Other segments continue to attract notable investment, with desalination projects contributing $2.4bn and water treatment plants accounting for $428m of awards so far.

    In June, construction work began on the second phase of the Shuaibah seawater reverse osmosis (SWRO) desalination plant, following the appointment of Al-Fatah Water & Power as the main contractor.

    Located on the Red Sea coast south of Jeddah, the $521m project involves the construction of a SWRO desalination plant, with a capacity of 545,000 cm/d, over an area of 25 hectares.

    In September, a consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding won a $500m (SR1.875bn) contract to develop an industrial wastewater treatment plant in Jubail Industrial City 2, located in Saudi Arabia’s Eastern Province.

    The project follows a concession-style model, similar to a PPP, where the developer consortium invests in building and operating the wastewater plant over a 30-year period. Construction is expected to begin by the end of the year.

    Key players

    Driving the market forward are a handful of key players, including Water Transmission & Technologies Company (WTTCO), which has awarded five contract awards worth $1.7bn in 2025.

    Saudi Water Partnership Company (SWPC) is also active at the top end, with three contracts valued at $2.75bn, often implemented under PPP models. 

    Saudi gigaproject developer Diriyah Company awarded one contract this year: a $1.1bn deal for a utilities relocation package for the King Saud University project located in the second phase of the Diriyah Gate development (DG2).

    The contract was awarded to the joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

    The deal involves the construction of several water infrastructure projects, including a district cooling plant, water storage facilities, a sewage treatment plant and irrigation water storage tanks.

    Saudi Water Authority, meanwhile, accounts for 20 awarded projects worth $1.46bn, reflecting its focus on more localised or smaller-scale works, as is the case with several other entities.

    The split of a few large, high-value megaprojects versus a larger number of smaller, lower-value contracts suggests opportunities for both top-tier players delivering megaprojects and mid-tier contractors participating in more localised or bundled works.

    Looking ahead, $26.9bn of water projects are currently out for tender, suggesting significant activity in the years ahead, with water pipeline work ($11.9bn) continuing to lead the way.


    MEED’s October 2025 special report on Saudi Arabia also includes:

    > ECONOMY: Riyadh looks to adjust investment approach
    > BANKING: New funding sources solve Saudi liquidity challenge
    > OIL & GAS: Aramco turns attention to strategic projects
    > GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
    > POWER: Saudi Arabia accelerates power transformation
    > CONSTRUCTION: Saudi construction pivots from gigaprojects to events
    > TRANSPORT: Infrastructure takes centre stage in Saudi strategy

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  • WEBINAR: GCC water projects market outlook and review

    15 September 2025

    Register now

    Date & Time: Wednesday 24 September 2025 | 11:00 AM GST

    Agenda:

    1. Latest updates on the GCC water sector projects market

    2. Summary of the key water sector contracts and projects awarded year to date

    3. Analysis of the key trends, opportunities and challenges facing the sector

    4. Highlights of key contracts to be tendered and awarded over the next 18 months

    5. Long-term capital expenditure outlays and forecasts

    6. Top contractors and clients

    7. Breakdown of spending by segment, i.e. desalination, storage, transmission and treatment

    8. The evolution of the PPP model framework in the delivery of water projects

    9. Key drivers and challenges going forward

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

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  • Alec set to launch IPO on Dubai Financial Market

    15 September 2025

    UAE-based Alec Holdings has announced that it will list 20% of its share capital on the Dubai Financial Market through an initial public offering (IPO).

    According to an official statement, the firm will offer 1 billion shares, representing 20% of its share capital. The subscription will be offered in three tranches and will open on 23 September and close on 30 September.

    The first tranche comprises individual subscribers, the second includes professional investors, and the third tranche is reserved for eligible employees of Alec and the Investment Corporation of Dubai (ICD).

    ICD, the investment arm of the Government of Dubai, is currently the sole shareholder of Alec. It will retain 80% of Alec’s issued share capital following the offering.

    Emirates NBD Capital and JP Morgan Securities have been appointed as joint global coordinators. Both firms, along with Abu Dhabi Commercial Bank and EFG Hermes, have been appointed as joint bookrunners.

    Moelis & Company is the independent financial adviser.

    Emirates NBD has been appointed as the lead receiving bank.

    Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al-Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Wio Bank have also been appointed as receiving banks.

    “Alec intends to distribute a cash dividend of AED200m, payable in April 2026, and a cash dividend of AED500m for the financial year ending 31 December 2026, payable in October 2026 and April 2027,” the statement added.

    “The company further intends to distribute cash dividends in April and October of each year, with a minimum payout ratio of 50% of the net profit generated for the relevant financial period, subject to the approval of the board of directors and the availability of distributable reserves,” Alec said.

    Alec Holdings’ core businesses include Alec Construction and Target Engineering.

    Other businesses include Alec Fitout, Alemco, Alec Data Centre Solutions, Alec Technologies, Alec Lite, Alec Facades, Linq Modular, Alec Energy and AJI Rentals.


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  • Kuwait sets October deadline for residential PPP bids

    15 September 2025

     

    Kuwait’s Public Authority for Housing Welfare (PAHW) has invited local and international firms to submit their statements of qualifications (SoQs) by 30 October for a tender covering the development of three residential cities under a public-private partnership (PPP) framework.

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    The projects include:

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    • West Saad Al-Abdullah and the commercial services strip in Jaber Al-Ahmad City (1.01 million sq m)

    Interested companies can collect the request for qualification (RFQ) documents between 18 September and 1 October.

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    According to local media, these projects include rail, road, water and electricity infrastructure, as well as the Grand Mubarak Port.

    The country invested over $45bn in construction and transport projects during 2015 and 2016, amid high oil prices. However, parliamentary gridlock and declining oil revenues since then led to a slowdown in contract awards.

    The sector has seen particularly low award levels since 2019, when the total fell below $2bn for the first time. Awards increased modestly in 2020 and 2021, but then dropped again to a low of $1.4bn in 2022.

    In contrast, 2023 marked a significant recovery, with awards reaching $3.6bn.

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  • Lowest bidders emerge for Oman Sinaw-Duqm road

    15 September 2025

     

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