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  Projects show resilience in 2026

  30 January 2026

  

   

  While priorities may have shifted over the past two years, the region’s projects market continues to display resilience and will offer opportunities in 2026 in areas including Saudi Arabia’s gigaprojects progamme, regional rail schemes and other strategic sectors.

  Despite much having been written over the past two years about the reprioritisation of Saudi Arabia’s gigaprojects, work is continuing. 

  “They are still going, all the gigaprojects,” says Pierre Santoni, president – infrastructure for Europe, Middle East and Africa (Emea) at US-based Parsons. 

  “Even Neom, where the slowdown has been widely publicised, we still have people there working on Oxagon, and we still have people on the Line. All the other ones are still ongoing,” he adds. “We just signed a contract to design all the infrastructure around the Mukaab for New Murabba. We have live tenders and are designing the public realm for Diriyah Gate 2. We are on Sports Boulevard, King Salman Park and the expansion of King Abdullah Financial District. All of those are ongoing.”

  Another focus for the region is rail. Parsons led the Riyadh Metro Transit Consultants joint venture that project managed the first six lines of Riyadh Metro, which opened in late 2024. 

  “Riyadh Metro was a great success for Parsons and our partners, and all the people involved. That was the original gigaproject. At one point, there were 50,000 workers on Riyadh Metro every day,” says Santoni.

  The success of this project, and of earlier schemes such as Dubai Metro and Doha Metro, combined with high-level governmental backing, have given the rail sector in the region unprecedented momentum. 

  “Rail is a major market in the region at the moment,” says Santoni. “The UAE is a good example – you have the freight railway and the opening of passenger traffic. The high-speed rail project has also started. In Abu Dhabi, the tram on Yas Island was launched last year. In Dubai, the Blue Line is in full construction mode with delivery firmly scheduled for 2029. It is a major undertaking, and the intention of the Roads & Transport Authority is to continue with further extensions, which is much needed given the growth in population.”

  Roads and airports are two other areas of focus for Parsons. The company continues to work as the lead consultant for major road schemes in the UAE, and it secured delivery partner roles in 2025 for the airside and landside infrastructure at Riyadh’s King Salman International airport.

  Operations and maintenance 

  The infrastructure market is not just about building new projects. As the region’s infrastructure ages, operations and maintenance (O&M) has become a central pillar of Parsons’ strategy, Santoni notes.

  “The game is not just about building new infrastructure; it’s about making existing infrastructure perform better,” he says. 

  “A lot of O&M considerations are coming to the forefront. We are deploying technology like iNET, which is Parsons’ proprietary intelligent traffic management system. We did the initial feasibility study last year and managed to improve transit times through 320 intersections in Riyadh. We just signed a contract to fully deploy the system. 

  The game is not just about building new infrastructure; it’s about making existing infrastructure perform better

  “It’s not just physical infrastructure; it’s the management of all that through technology-enabled tools.” 

  Santoni says this technological “brain” is also being applied to the King Salman Park project, which involves developing the world’s largest urban park and requires a highly complex O&M system to manage it effectively. Automated management of soil and water for hundreds of plant species will remove the need for a vast on-site workforce.

  Traditionally known for core engineering and transport, Parsons is increasingly recognised for work in other sectors, including hospitality and defence. The firm is currently managing over 30,000 luxury hotel keys in the region, a surge driven by Saudi Arabia’s tourism goals.

  “We became recognised, sort of unknowingly, for these complex, niche-type hospitality projects where it’s about preserving heritage and respecting culture, but doing so in the most modern and technologically advanced way possible. This is going to be a very nice market for us in the future,” Santoni says. 

  “We also signed two major contracts last year for confidential defence clients in Saudi Arabia to deliver infrastructure.”

  Capacity crunch

  As the industry faces a talent shortage, Santoni highlights Parsons’ internal mobility as a competitive advantage. While competitors have struggled with project transitions, Parsons has focused on relocating staff to sustain its growth.

  “We did see a lot of people either exiting Saudi Arabia or relocating within,” Santoni says. “We have been very good at relocating people. This is one of our strengths. When projects changed pace, we made a conscious effort to relocate people, give them options and extend them on the job until something else came up. Last year alone, about 350 people were relocated internally within the region. We are still in hiring mode.”

  Being a multidisciplinary firm present in several countries gives flexibility. “In Saudi Arabia, most of Parsons’ work has traditionally been project management consultancy (PMC), although we have had for a number of years now a growing design office in Riyadh with an offshoot in Dammam and one in Jeddah. 

  “We currently have almost 300 people in our design office in Saudi Arabia, which is slightly less than 10% of our workforce in the kingdom. The rest are doing PMC work. In Dubai, Abu Dhabi, Doha, it’s mostly the more traditional model of design and construction supervision work with some PMC,” says Santoni. 

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  Colin Foreman
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  Chinese contractor appointed for Oman wind IPP

  29 January 2026

  

   

  China Energy Engineering Corporation (CEEC) Shanxi Institue has won the engineering, procurement and construction (EPC) contract for the 125MW Dhofar 2 wind independent power project (IPP) in Oman.

  The main construction includes the design, equipment procurement, construction, commissioning and after-sales services for the wind farm.

  The contract also comprises the construction of a new 400kV substation and a 3.7-kilometre-long transmission line.

  In November, state offtaker Nama Power & Water Procurement Company (Nama PWP) awarded the developer's contract to Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) under a 20-year power purchase agreement (PPA).

  Under the PPA, Sembcorp and OQAE will build, own and operate the wind farm, which will supply power to Nama PWP once operational.

  As MEED previously reported, Sembcorp will have 75% equity in the project and OQAE will own the remaining 25%.

  The project is expected to begin commercial operations in the third quarter of 2027.

  In October, CEEC, through its subsidiaries, signed EPC contracts for three major renewable energy projects in Saudi Arabia with a total capacity of 5GW.

  The agreements cover the 1GW Shaqra wind power project, the 2GW Starah wind power project and the 2GW Khulis solar photovoltaic project.

  The Dhofar 2 IPP is valued at about OR43m ($112m) and will be located on a 12-square-kilometre site in Dhofar Governorate.

  The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid with a 400kV substation.

  The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

  Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

  According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

  Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies".

  This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

  Oman aims to have 30% of its electricity generation from renewable sources by the same year.

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  READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

  Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

  Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

  > AGENDA: Saudi real estate to surge in 2026 > CITYSCAPE:  Investors focus on residential sector for new deals > TECH TRENDS: Key technology themes poised to shape 2026  > EVs: Middle East drives electric vehicle revolution > BATTERIES: Batteries shape the region's energy future > LEADERSHIP: Saudi Arabia accelerates its rail revolution  > INTERVIEW: Tabreed finishes the year on a high > CONTRACTORS: Managing risk in the GCC construction market > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch > AIRSHOW: Top deals signed at Dubai Airshow 2025 > MARKET FOCUS: Oman steadies growth with strategic restraint

  To see previous issues of MEED Business Review, please click here

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  Mark Dowdall
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  Dubai to build first robot-constructed villa

  29 January 2026

  Dubai Municipality has launched an initiative to build the world’s first residential villa constructed entirely using robotic building systems.

  The project will be delivered by a local and international partnership led by Dubai Municipality, bringing together more than 25 advanced technology companies and academic institutions.

  The initiative aims to develop scalable construction models that improve productivity, sustainability and build quality.

  The robot-constructed villa will be implemented in partnership with US-based Zacua Ventures and Germany's Wurth Group, with participation from construction robotics specialists, local contractors and engineering firms.

  The announcement was made at an event marking the opening of the Construction Innovation & Research Centre at Expo City Dubai.

  The centre will support the development of next-generation construction solutions, urban systems and future-ready city infrastructure.

  Dubai Municipality also launched the ConTech Working Group in collaboration with Dubai Chambers. The group convenes government entities, developers, contractors, technology providers, investors and researchers to drive innovation and improve efficiency in the construction sector.

  To further strengthen the ecosystem, Dubai Municipality signed three cooperation agreements with Zacua Ventures, the Dubai Future District Fund and US-based Lab Ventures. The agreements will support startups by improving access to projects; deepening engagement in the sector; and expanding research, development and investment in future technologies.

  Dubai Municipality, in collaboration with local developer Sobha Realty, also launched the 70-70 Strategy for 2030, which targets shifting 70% of construction to off-site manufacturing and achieving at least 70% automation within factories by 2030, supporting higher quality, efficiency and sustainability in the sector.

  Dubai Municipality also accredited Beijing-headquartered China State Construction Engineering Corporation for its modular construction system, marking a new milestone for smart construction standards and practices in Dubai.

  In addition, Dubai-based Group Amana will adopt modular construction systems to develop shared workspaces for youth within public facilities, providing flexible and integrated working environments.

  ---

  READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

  Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

  Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

  > AGENDA: Saudi real estate to surge in 2026 > CITYSCAPE:  Investors focus on residential sector for new deals > TECH TRENDS: Key technology themes poised to shape 2026  > EVs: Middle East drives electric vehicle revolution > BATTERIES: Batteries shape the region's energy future > LEADERSHIP: Saudi Arabia accelerates its rail revolution  > INTERVIEW: Tabreed finishes the year on a high > CONTRACTORS: Managing risk in the GCC construction market > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch > AIRSHOW: Top deals signed at Dubai Airshow 2025 > MARKET FOCUS: Oman steadies growth with strategic restraint

  To see previous issues of MEED Business Review, please click here

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  Yasir Iqbal
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  Dubai Municipality tenders water pipeline project

  29 January 2026

  Dubai Municipality has issued a request for qualification notice for a construction contract to develop a recycled water network project on the Dubai–Al-Ain road.

  The project will be delivered through the municipality’s Sewerage & Recycled Water Projects Department and covers a section of the road from Sheikh Zayed Bin Hamdan Road to Bukadra Interchange.

  The project, listed under the code IN 103-C, has a bid submission deadline of 19 February.

  The scope of work includes the construction of main recycled water pipelines with diameters of up to 1,200 millimetres. It also covers integration with existing and future infrastructure networks on a major strategic transport corridor.

  The scheme forms part of Dubai Municipality’s broader programme to expand water infrastructure capacity across the emirate.

  According to regional project tracker MEED Projects, the municipality has 25 water infrastructure schemes in its active project pipeline. Six of these are currently under bid evaluation, including a $250m contract for the construction of a stormwater network at Jebel Ali sewage treatment plant (phases one and two).

  Meanwhile, three packages under the $22bn Dubai Strategic Sewerage Tunnels (DSST) public-private partnership project are at the main contract bidding stage.

  The DSST programme includes more than 200 kilometres of sewer links, as well as the construction of two deep tunnel systems terminating at terminal pump stations at the Warsan and Jebel Ali sewage treatment plants.

  ---

  READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

  Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

  Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

  > AGENDA: Saudi real estate to surge in 2026 > CITYSCAPE:  Investors focus on residential sector for new deals > TECH TRENDS: Key technology themes poised to shape 2026  > EVs: Middle East drives electric vehicle revolution > BATTERIES: Batteries shape the region's energy future > LEADERSHIP: Saudi Arabia accelerates its rail revolution  > INTERVIEW: Tabreed finishes the year on a high > CONTRACTORS: Managing risk in the GCC construction market > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch > AIRSHOW: Top deals signed at Dubai Airshow 2025 > MARKET FOCUS: Oman steadies growth with strategic restraint

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/15533263/main.jpg

  Mark Dowdall
• 
  Contractors get more time for Dorra offshore gas project bids

  29 January 2026

  

   

  Al-Khafji Joint Operations (KJO) has allowed contractors more time to prepare bids for engineering, procurement and construction (EPC) work on a project to develop natural gas from the Dorra gas field, located in waters of the Saudi-Kuwait Neutral Zone.

  KJO, which is jointly owned by Saudi Aramco subsidiary Aramco Gulf Operations Company (AGOC) and Kuwait Petroleum Corporation (KPC) subsidiary Kuwait Gulf Oil Company (KGOC), has divided the project’s scope of work into four EPC packages – three offshore and one onshore.

  Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has won package one of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract awarded by KJO to L&TEH is estimated to be valued at $140m-$150m, MEED reported in October.

  KJO has extended the deadline for contractors to submit bids for the remaining three packages – offshore packages 2A and 2B and onshore package three – from 26 January to 16 February, sources have told MEED. KJO has extended the bid submission deadlines for these packages several times.

  The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables. Package three includes the EPC of onshore gas processing facilities.

  Saudi Arabia and Kuwait are pressing ahead with their plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field.

  The two countries have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, they have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.

  Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

  The Dorra facilities project is one of three multibillion-dollar projects launched by subsidiaries of Saudi Aramco and KPC to produce and process gas from the Dorra field to have been advancing in the past few months.

  AGOC onshore Khafji gas plant

  AGOC has extended the bid submission deadline for seven EPC packages as part of a project to construct the Khafji gas plant, which will process gas from the Dorra field onshore Saudi Arabia, until 22 April.

  MEED previously reported that AGOC issued main tenders for the seven EPC packages in 2025. Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for the submission of commercial bids, which was then extended by AGOC until 22 December.

  The seven EPC packages cover a wide range of works, including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems and main operational and administrative buildings.

  France-based Technip Energies has carried out a concept study and front-end engineering and design (feed) work on the entire Dorra gas field development programme.

  Progress has been hampered by a geopolitical dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.

  In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh of Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

  Since that show of strength and unity, projects targeting the production and processing of gas from the Dorra field have gained momentum.

  KGOC onshore processing facilities

  KGOC has initiated early engagement with contractors for the main EPC tendering process for a planned Dorra onshore gas processing facility, which is to be located in Kuwait.

  KGOC is at the feed stage of the project, which is estimated to be valued at up to $3.3bn. The firm is now expected to issue the main EPC tender in the second quarter of this year, MEED recently reported.

  The proposed facility will receive gas from a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.

  The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company.

  A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility and discussions regarding survey work are ongoing. The site may require shoring, backfilling and dewatering.

  The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company, for possible injection into its oil fields.

  Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.

  ---

  READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

  Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

  Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

  > AGENDA: Saudi real estate to surge in 2026 > CITYSCAPE:  Investors focus on residential sector for new deals > TECH TRENDS: Key technology themes poised to shape 2026  > EVs: Middle East drives electric vehicle revolution > BATTERIES: Batteries shape the region's energy future > LEADERSHIP: Saudi Arabia accelerates its rail revolution  > INTERVIEW: Tabreed finishes the year on a high > CONTRACTORS: Managing risk in the GCC construction market > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch > AIRSHOW: Top deals signed at Dubai Airshow 2025 > MARKET FOCUS: Oman steadies growth with strategic restraint

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/15533184/main4821.jpg

  Indrajit Sen