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• 
  SAR tenders $1bn phosphate rail track doubling package

  4 December 2025

  

   

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  Saudi Arabian Railways (SAR) has tendered a SR4bn-plus ($1bn) contract to add another track to its existing phosphate railway network, connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.

  The project will span about 100 kilometres from the AZ1/Nariyah Yard to Ras Al-Khair.

  The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

  The scope also covers support for signalling and telecommunication systems.

  The tender notice was issued in late November, with a bid submission deadline of 20 January.

  Switzerland-based engineering firm ARX is the project consultant.

  MEED understands that this is the first of four packages that SAR is expected to tender imminently for the phosphate railway line.

  The other packages expected to be tendered shortly include the second section of track doubling, the depot and the systems package.

  In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

  Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

  Adding a second track and the freight yards will considerably increase cargo-carrying capacity on the network and facilitate the development of increased industrial production. Project implementation is expected to take four years.

  State-owned SAR is also considering increasing the localisation of railway-focused materials and equipment, including the construction of a cement sleeper manufacturing facility.

  

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  Yasir Iqbal
• 
  Saudi Arabia accelerates its rail revolution

  4 December 2025

  Saudi Arabia stands at a pivotal moment. Its population – around 35 million and rising – is overwhelmingly young and increasingly urban. Major cities like Riyadh – approaching 8 million residents – and Jeddah are experiencing rapid growth in population and activity, increasing demand for efficient mobility solutions. After decades of car-focused development, there now exists an opportunity to introduce new modern multimodal transport solutions in line with the objectives of Vision 2030. 

  Rail offers an answer to urban and economic pressures. Each train can remove hundreds of cars from the roads, cutting congestion and commuting times. Rail also aligns with Saudi Arabia’s environmental commitments. 

  Efficient mobility is key to Riyadh’s ambition to rank among the world’s top city economies. A reliable metro bolsters productivity as workers spend less time in traffic, boosts retail and tourism, with easier access to malls and attractions, and increases real estate values around stations. It also expands access to opportunity by providing safe and convenient transportation for women and youth entering the workforce. Similarly, intercity rail links can unite labour markets and connect people to jobs and services across the region. 

  Rail development is also central to Saudi Arabia’s strategy to become a global logistics and tourism hub. Launched in 2021 as part of Vision 2030, the National Transport and Logistics Strategy (NTLS) explicitly prioritises expanding the rail network to connect key cities, ports and economic zones. The kingdom aims to roughly double its rail network, adding more than 5,000 kilometres of new tracks. Saudi Arabia can unlock economic potential in underdeveloped regions, facilitate domestic tourism (e.g. convenient travel to cultural and religious sites) and streamline freight movement. 

  An integrated rail system also enhances resilience by providing alternative transport modes to complement roads and aviation, making the overall economy more robust against shocks such as oil price fluctuations or air travel disruptions.

  The time is ripe for rail – it addresses urgent urban challenges and propels the kingdom towards its Vision 2030 objectives of sustainability, connectivity and diversified growth

  Current and planned projects

  Public transportation in Saudi cities is targeted to rise from 1% to 15% by 2030. Major investments are already under way or planned across both passenger and freight rail:

  Riyadh Metro: A flagship $22.5bn project, the new six-line Riyadh Metro network (176km, 85 stations) is set to carry more than a million passengers daily and reduce traffic volumes by an estimated 30%.

  Haramain High-Speed Railway: Completed in 2018, this 450km electric high-speed line connects the holy cities of Mecca and Medina via Jeddah at speeds up to 300km/h. The Haramain line, with a capacity of 60 million passengers a year, has already transported more than 20 million travelers – dramatically cutting travel times for pilgrims and residents while offering a comfortable, climate-friendly alternative to highway driving. 

  Saudi Landbridge Project: The Landbridge is a planned 1,300km railway linking the Red Sea coast to the Arabian Gulf. This new line will connect Jeddah’s port with Riyadh and onward to Dammam on the Gulf, including a spur to the industrial city of Jubail. By creating the first direct east-west rail corridor across Saudi Arabia, the Landbridge will revolutionise freight logistics. Transport times for containers and goods will shrink from days by truck or ship to mere hours by rail, slashing logistics costs. The Landbridge will also carry passengers, enabling fast travel between major cities. 

  GCC Regional Rail Connectivity: This 2,100+km network – slated for completion around 2030 – will tie together all six GCC states. Key corridors for Saudi Arabia include a line north to Kuwait City-Riyadh, and another south linking Riyadh with Doha, Qatar (via the Saudi-Qatar border at Salwa). There is also a planned connection from Dammam eastward via a new causeway to Bahrain. Saudi Arabia, by virtue of its geography, will host the largest share of the GCC rail route, effectively becoming the backbone of Gulf connectivity. 

  Q-Express to Qiddiya: Qiddiya, an upcoming entertainment city west of Riyadh and one of the Vision 2030 gigaprojects, will be connected to Riyadh’s King Khalid International airport by a high-speed rail line. Planners envision using cutting-edge technology such as magnetic-levitation (maglev) trains to whisk visitors from the airport to Qiddiya in record time. This roughly 40km connection, being structured as a public-private partnership (PPP), will enhance Qiddiya’s accessibility for international tourists and Riyadh residents, while showcasing futuristic transit tech. The Q-Express is part of a broader strategy to integrate new economic cities, such as Qiddiya, Neom and others, into the national transport grid from the outset, ensuring these developments are well-connected and sustainable.

  Financing Rail Projects in Saudi Arabia

  Given the Vision 2030 emphasis on private sector participation, Saudi Arabia has a diverse range of financing tools for its rail programme:

  PPPs: In a PPP, private consortiums can design, build, finance and often operate infrastructure, sharing risks and rewards with the public sector. Saudi authorities see PPPs as a way to deliver projects efficiently while conserving public capital for other priorities. The Riyadh Metro, while government-funded during construction, will involve private operators for its operations and maintenance contracts. More directly, the upcoming Qiddiya rail link is planned as a PPP concession, with international firms invited to invest and bring innovative technology. The long-delayed Landbridge project, after earlier attempts, is now also expected to be executed via a PPP/BOT (build-operate-transfer) structure, overseen by Saudi Railway Company (SAR) and the Public Investment Fund (PIF). 

  Islamic Finance: Saudi Arabia’s leadership in Islamic finance makes sharia-compliant funding mechanisms a natural fit for its rail investments. Project sponsors and government-related entities have the option to issue sukuk (Islamic bonds) or use Islamic project finance structures to fund rail construction. These instruments attract capital from local and regional banks and funds that prefer sharia-compliant assets. For example, the PIF has raised billions through sukuk to support infrastructure development. Rail projects – which generate steady long-term cash flows and tangible assets – are well-suited to Islamic finance principles like asset-backing and profit-sharing. This approach also resonates with the cultural and religious context, making public support for these projects even stronger.

  Sustainable Finance: Saudi Arabia is turning to sustainable finance to fund rail and transit as sustainability becomes a global investment theme. Green bonds and loans fund environmental projects and rail qualifies by cutting emissions. Through their green bond frameworks, the government and PIF have issued multibillion-dollars bonds that include clean transport. By identifying projects aiming to improve environmental outcomes, Saudi Arabia can tap into the growing pool of internal ESG-focused investors who are eager to finance low-carbon infrastructure.  This can potentially lower borrowing costs and enhance the kingdom’s image as a sustainable development champion.  Additionally, global development banks and export credit agencies have shown interest in supporting Gulf rail projects on climate grounds. For instance, a significant portion of the Riyadh Metro’s rolling stock and systems was financed via export credits, and future rail lines could attract sustainable development loans.

  Transforming transport

  The time is ripe for rail – it addresses urgent urban challenges and propels the kingdom toward its Vision 2030 objectives of sustainability, connectivity and diversified growth. As of October 2025, Saudi Arabia’s rail sector has a clear baseline: strong urban demand and Vision 2030 policy direction; a proven Haramain high-speed corridor; the six-line Riyadh Metro; and a pipeline centered on the Landbridge, GCC links and connectors such as the Q-Express. The kingdom has set targets to raise public transport’s share from 1% to 15% by 2030 and plans to add more than 8,000km of track under the NTLS. Financing pathways are established with early application on major assets. Together, these facts define the current state and provide a benchmark against which delivery, ridership, emissions and broader economic outcomes can be measured as projects move from plan to operation.

  

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• 
  King Salman airport tenders fuel facility PPP

  4 December 2025

  

   

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  King Salman International Airport Development Company (KSIADC) has started the procurement process for new and expanded aircraft fuel storage facilities, as well as a fuel distribution network and hydrant systems servicing new aircraft parking areas at the King Salman International airport (KSIA) in Riyadh.

  The closing date for bid submissions is 1 March.

  The project will be implemented as a public-private partnership on a design, build, finance, operate and maintain basis.

  The concession period is 30 years.

  The project assets include a new aviation fuel farm, a new into-plane (ITP) service facility and other associated equipment. 

  The core component of the project is the new fuel farm facility, which will comprise six above-ground storage tanks with a combined total capacity of 130,000 cubic metres by 2050; 24 fuel pumps with associated filter sets, control panels and instrumentation; and two fire protection water storage tanks with a capacity of over 25 million gallons.

  The other facilities include a loading/unloading gantry, a fueler loading facility, a control room, a receipt area, product recovery, waste product handling, a water treatment facility and a test rig.

  The project will complement and eventually integrate with the current fuel network and hydrant system servicing the existing aircraft parking areas at the airport.

  Interested bidders can send their credentials to affproject@ksia.com.sa

  The current network is operated by the state-owned oil company Saudi Aramco, which will continue to handle the existing facility until operations are transferred to the selected concessionaire.

  Saudi Aramco will continue to be the sole fuel supplier to the facility.

  Construction of the new facility will be undertaken in phases.

  KSIADC aims to achieve financial close of the project by the end of 2026.

  Construction works on the project’s first phase are slated for completion by early 2029.

  KSIADC is preparing the delivery of several key components of the KSIA project. In November, MEED exclusively reported that the client is targeting mid-2026 to award the contract for the construction of Terminal 6 at the airport.

  In August, MEED exclusively reported that KSIADC had invited contractors to submit their best and final offers for the first phase of Terminal 6 and the Iconic Terminal.

  The contract award is also imminent for the construction of the third runway of the airport.

  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.

  The airport aims to accommodate up to 100 million passengers by 2030. The goal for cargo is to process 2 million tonnes a year by 2030.

  Saudi Arabia plans to invest significantly in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, 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.

  

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  Yasir Iqbal
• 
  Momentum builds in Oman construction

  3 December 2025

  

   

  The Omani construction and infrastructure projects market has maintained its momentum this year, with more than $3.3bn-worth of contracts awarded by late November.

  The outlook for the remainder of the year is promising, supported by a further $1bn-worth of schemes expected to be awarded before year-end.

  If achieved, this would mark the second consecutive year in which the market has exceeded $4bn in awards since 2015, continuing the steady growth Oman has experienced since emerging from the Covid-19 pandemic in 2021 and following the leadership transition in 2020, when Sultan Haitham Bin Tariq Al-Said succeeded Sultan Qaboos Bin Said.

  Transport contracts

  A major milestone for Oman’s construction sector came in May, when three contracts worth over RO258m ($670m) were awarded for packages three, four and five of the Adam-Thumrait Road dualisation project.

  The contracts were awarded to joint ventures comprising local and Saudi-based firms.

  In November, the Ministry of Transport, Communications & Information Technology awarded a $117m contract to the local subsidiary of Austria’s Strabag for the construction of Al-Mouj Road and its connection to 18 November Street in Muscat.

  Several major road projects are expected to be awarded imminently as tendering progresses. In October, 13 firms submitted bids for the design-and-build contract for a dual-carriageway in Sohar in North Al-Batinah Governorate.

  A contract award is also expected soon for the remaining works on parts one and three-A of the Adam-Thumrait dualisation project, for which local contractor Al-Hashemi Al-Rawas Trading & Contracting submitted the lowest bid of $116.5m in September.

  Airport development is also moving forward. In July, the Civil Aviation Authority (CAA) prequalified 20 local and international firms for a tender covering enabling works at Musandam airport.

  The CAA also tendered engineering and design contracts for the Jabal Akhdar, Masirah and Sohar airports.

  These projects fall under the National Aviation Strategy 2030, which aims to attract $3.6bn of investment in airport cities over the next two decades.

  According to MEED Projects, Oman has a pipeline of more than $20bn-worth of infrastructure schemes, the largest of which is the Muscat Metro.

  In November, it was reported that studies for the proposed Muscat Metro scheme had been completed. The scheme is expected to span 55 kilometres with 36 stations and cost around RO1bn ($2.6bn).

  Real estate

  Real estate development is also gaining pace, with several masterplanned projects advancing. Since assuming leadership, Sultan Haitham has pushed forward a number of major schemes.

  Among them is the New Smart City Salalah development, a 7.3-square-kilometre project on Oman’s southern coast. In October, 20 local and international engineering firms expressed interest in bidding for the detailed design contract.

  Progress is also evident on Sultan Haitham City, the most high-profile masterplanned development in the sultanate, overseen by the Ministry of Housing & Urban Planning (MHUP).

  Since last year, the ministry has signed multiple agreements for infrastructure works, including roads, electricity, water, sewage, irrigation, telecommunications and district cooling networks.

  Tendering has also resumed on the Grand Blue City project, also known as Al-Madina Al-Zarqa, located along the Al-Sawadi seafront about 100km northwest of Muscat. Originally launched in 2005, the scheme stalled during the global financial crisis.

  Preparatory works are now expected to begin soon for phase one, which includes 100 luxury villas, 202 lagoon villas, a five-star hotel, 130 serviced apartments (from studios to three-bedroom units) and 270 residential apartments.

  Another major development near the capital is Al-Khuwair Downtown, close to Muscat International airport and also led by MHUP. The contract for the marina infrastructure package is expected to be awarded soon following bid submissions in August.

  MHUP is also progressing the Omani Mountain Destination at Jabal Al-Akhdar, located 150km from Muscat. The $2.4bn project includes 2,537 housing units, 2,000 hotel rooms and a health and wellness village at an altitude of 2,400 metres.

  Other major upcoming MHUP-led schemes include Al-Thuraya City in Muscat and the Khor Grama project in Sur in the Ash Sharqiyah South Governorate.

  Investment avenues

  Foreign investors are playing a role. Egyptian developer Talaat Moustafa Group Holding (TMG) recently announced RO1.5bn ($4bn) of investment across two real estate projects in Muscat.

  Public-private partnerships (PPPs) are also supporting growth. In November, Oman tendered three key road schemes on a PPP basis: the Salalah-Thamrait road, the Muscat-Al-Dakhiliyah road (Al-Maabela–Thumayd section) and the Bausher-Al-Amerat tunnel road, alongside the Al-Amerat-Dima Wattayeen road.

  All these subsectors are expected to generate opportunities for construction companies over the coming years. The market also has the potential to grow far beyond its achievements last year. While that growth was positive, analysis of the historical numbers shows that the Oman market can achieve much more. In 2014, when the market peaked, there were over $9bn of awards – more than double the last year’s total. 

   

   

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  Yasir Iqbal
• 
  LNG goals galvanise Oman’s oil and gas sector

  3 December 2025

  

   

  The Omani oil and gas sector, where large-scale, capital-intensive project investments are relatively rare, has been bolstered by progress on two major liquefied natural gas (LNG) developments.

  The government made headlines in July last year when it announced that majority state-owned Oman LNG would build a fourth train at its Qalhat LNG production complex in Sur.

  The new LNG train will have an output capacity of 3.8 million tonnes a year (t/y), increasing Oman LNG’s total capacity to 15.2 million t/y when it is commissioned in 2029.

  Oman LNG has recently made key progress on the expansion project, having shortlisted three bidders for the main engineering, procurement and construction (EPC) contract: a consortium of Chiyoda and South Korea’s Samsung C&T; Japanese contractor JGC Corporation; and a consortium comprising Italy’s Saipem and South Korea’s Daewoo Engineering & Construction.

  Technical and commercial bids are due in February and March 2026, respectively. The EPC tender process began less than a year after Oman LNG awarded the front-end engineering and design (feed) contract to US-based consultancy KBR.

  Separately, France’s TotalEnergies is studying a potential expansion of its Marsa LNG bunkering and export terminal in Oman. The move is significant, given that the first phase of the project is currently under construction in the sultanate’s northern industrial city of Sohar and will have an output capacity of 1 million t/y.

  TotalEnergies reportedly began an initial study on a potential second phase earlier this year. The French energy major may consider doubling the LNG complex’s capacity, although the plan has yet to be confirmed, according to sources.

  Earlier in the year, TotalEnergies appointed Technip Energies – already the main EPC contractor on the under-construction Marsa LNG terminal – to perform concept and feasibility studies on the proposed expansion phase.

  With Oman LNG advancing its fourth train and TotalEnergies assessing a potential doubling of LNG output, the sultanate is positioning itself to become a major global LNG player by 2030.

  Upstream pursuits

  Petroleum Development Oman (PDO), meanwhile, continues to advance projects aimed at maintaining and enhancing the sultanate’s oil and gas production capacity.

  PDO operates Block 6, Oman’s largest and most prolific hydrocarbons concession, spanning 75,119 square kilometres onshore and containing 202 oil fields and 43 gas fields.

  The government holds a 60% stake in PDO, with the remaining shares held by UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s PTTEP (2%).

  In September, PDO awarded the main contract for an integrated project to produce natural gas from the Budour and Tayseer fields. The project aims to expand the capacity of existing gas production and processing facilities at Tayseer as part of the field’s second development phase. PDO will also appraise, produce and process sweet gas from the Budour field, located about 50 kilometres west of Tayseer.

  Kuwait-based Spetco International Petroleum Company won the design, build, own, operate and maintain (DBOOM) contract for the combined Budour-Tayseer sour gas processing facility.

  PDO has also launched a solicitation of interest with contractors for feed work on the second phase of a project to increase oil production from the Rabab Harweel field in Oman’s southernmost Dhofar Governorate.

  PDO began production from the asset in 2019 following completion of the estimated $3bn Rabab Harweel Integrated Project (RHIP), on which UK-based Petrofac carried out the EPC works.

  The second tranche of the RHIP is an enhanced oil recovery project that involves raising miscible gas injection in additional reservoirs across several smaller fields within the wider development. Scheduled to come on-stream beginning in 2028, tranche two aims to expand oil production capacity and improve gas injection by utilising ullage at the existing Harweel Main Production Station (HMPS).

  The scope also includes sustaining condensate and gas supply by using ullage from the first phase of RHIP, installing a depletion compression facility by 2030, and expanding the off-plot gas supply network.

  According to the request for information document, PDO has yet to decide on the project execution model, with the majority state-owned company considering a feed-to-EPC approach. The scope of work on the RHIP tranche two project is primarily divided into an oil and a gas scope.

  Separately, PDO has begun prequalification for EPC works to develop key on-plot facilities as part of the early phase development of the Dhulaima onshore field.

  The Dhulaima Upper Shuaiba field, located in the Lekhwair cluster within Block 6, will be developed under an operations lease contract with a duration of five years.

  The project’s scope covers EPC activities and all associated civil, mechanical, piping, electrical, fabrication, instrumentation, control, testing, pre-commissioning, commissioning and de-commissioning works.

  PDO has also launched a prequalification exercise for a considerable scheme to appoint one or more contractors to build early production facilities for new appraisal exploration fields, enabling accelerated production and early monetisation.

  Boosting the energy value chain

  State energy conglomerate OQ Group is moving ahead with initiatives to expand natural gas liquids (NGL) production capacity, in line with trends across the Gulf’s national oil companies.

  OQ has launched prequalification for feed works on a project to build an NGL extraction facility in Saih Nihayda in central Oman, which will send condensates to Duqm for fractionation and export.

  Separately, Oman Tank Terminal Company (OTTCO), an OQ subsidiary, and Netherlands-based Royal Vopak signed a shareholder agreement in November to establish a new company in the Special Economic Zone at Duqm (Sezad).

  OTTCO will hold a 51% stake and Vopak the remaining 49%, with the new company set to develop and operate world-class energy storage and terminal infrastructure at Duqm.

  In addition, Energy Development Oman (EDO) has entered into a joint venture with Japan’s Sumitomo Corporation to establish a supply chain management company in the sultanate.

  The entity – set to be the first of its kind in Oman – will be based in Duqm, located in Al-Wusta Governorate on the sultanate’s geopolitically strategic Indian Ocean coast.

  The new company aims to provide supply chain management services to Oman’s energy sector, beginning with oil country tubular goods and later expanding to other products and services across the hydrocarbons value chain, renewables and other energy segments.

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  Indrajit Sen