Region puts its priorities first
30 April 2024
Commentary
Colin Foreman
Editor
Read the May 2024 issue of MEED Business Review
Contractors enjoyed a record year in 2023. In the GCC, there were $205bn of deals signed. The best total on record was achieved largely due to high levels of activity across all major markets.
At the start of this year, hopes were high that new records would be set again in 2024. Those aspirations look like they may be realised. According to regional projects tracker MEED Projects, by the end of the first quarter of this year there had been $47bn of awards in the GCC, some $10bn more than the $37bn of awards during the same period of 2023.
The strong start to the year comes despite some tempering of project ambitions, most notably in the region’s largest market, Saudi Arabia. In January, the kingdom’s Energy Ministry instructed Saudi Aramco to halt plans to increase its production capacity to 13 million barrels of crude oil a day.
The negative impact of that decision on the projects market, will be offset by gas projects. Gas is considered a vital transition fuel, and strong global demand growth is allowing Gulf producers to develop new projects worth billions of dollars each and consolidate their position as the world’s leading gas exporter. The best example is the $7.7bn of engineering, procurement and construction contracts awarded by Saudi Aramco in early April to expand the Fadhili gas plant.
For the construction sector, there has been a prioritisation of construction work for Saudi Arabia’s gigaprojects. As construction work in the kingdom ramps up, developers are focusing efforts on delivering the components of their projects that they consider to be a strategic priority, and are scaling back work on other elements.
Developers are also more proactively seeking external investment to help ease the spending burden of their vast projects.
As we move deeper into 2024, the key question will be whether these priority projects will be sufficient to achieve another record year. Unlike 2023, not everything is moving ahead, but very large projects are still proceeding.
Must-read sections in the May 2024 issue of MEED Business Review include:
> AGENDA: Region boosts LNG spending; Gulf players secure future of LNG projects
> CURRENT AFFAIRS: Algerian downstream sector faces setback; Progress on Kuwait oil mergers is overdue; Iranian attack on Israel rattles globe
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INDUSTRY REPORT: |
> SOUTH KOREA: South Korean appetite for Saudi projects grows
> IRAQ: Iraq remains tough to sell
> INTERVIEWS: Saudi Arabia's Hail capitalises on heritage; Northern emirates’ energy transition gathers pace
> GAS SPENDING: Aramco in hot pursuit of 2030 gas production goal
> UAE MARKET REPORT:
> COMMENT: Non-oil activity underpins UAE economy
> GVT & ECONOMY: Non-oil activity underpins UAE economy
> BANKING: UAE banks seize the moment
> UPSTREAM: Adnoc oil and gas project spending sees steep uptick
> DOWNSTREAM: UAE builds its downstream and chemical sectors
> POWER: UAE marks successful power project deliveries
> WATER: Dubai tunnels project dominates UAE pipeline
> DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
> ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments
> MEED COMMENTS:
> Gulf of Aqaba moves beyond Instagram
> Net zero steps need recalibration
> Flooding spotlights Dubai construction
> Funding impacts Saudi projects
> GULF PROJECTS INDEX: Saudi market returns to growth
> MARCH 2024 CONTRACTS: Iran gas contract boosts value of deals signed
> MARKET SNAPSHOT: Mena data centre projects
> OPINION: Rainmaking in the world economy
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
Exclusive from Meed
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SAR tenders design review consultancy for GCC rail link18 September 2026
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Tender issued for Libyan gas project17 September 2026
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Nakheel awards $218m Dubai Islands buildings deal17 September 2026
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Aldar and Mubadala acquire Masdar City Square17 September 2026
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Neom tenders Oxagon highway contract17 September 2026
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SAR tenders design review consultancy for GCC rail link18 September 2026

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Saudi Arabia Railways (SAR) has issued a request for proposals (RFP) for a design management and review consultant to oversee engineering works on the GCC railway network, the latest step in advancing the long-delayed regional rail link.
The RFP was issued on 9 September, with a submission deadline of 18 October.
The tender seeks a consultant to manage, audit and verify deliverables produced by SAR's separately appointed design services consultant, rather than carry out the design itself. The tendering for the design services consultancy is currently in progress.
Construction will be tendered separately through competitive bidding once designs are approved.
The GCC railway will run for about 672 kilometres (km) inside Saudi Arabia, linking the kingdom's existing network to Kuwait, Qatar, the UAE and Bahrain, with four sections of about 141km, 200km, 151km and 21km, respectively.
The line is planned as a single-track, non-electrified corridor for mixed freight and passenger traffic, with a maximum axle load of 32.4 tonnes and passing loops for bidirectional working.
The appointed consultant will develop a design management and review plan covering governance, interdisciplinary coordination and stage-gate approvals, and will issue formal review and audit reports against SAR's requirements and international standards.
The scope also covers stakeholder engagement, interface management and oversight of land acquisition activity tied to the design consultant's land acquisition plan.
Key design stages are expected to take about 16 months: four months for concept design, six for preliminary design and six for issued-for-construction design, each with four weeks of contingency.
SAR has asked bidders to mobilise a core team from day one. These must include a project director, engineering and design manager, stakeholder manager and lead document controller, all based at SAR's offices, with minimum experience thresholds ranging from three years for junior operators up to 25 years, including 15 in rail, for the project director role.
GCC railway line
Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to cover about 2,186km in total.
The route length within each member state is as follows:
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- Saudi Arabia – 672km
- Oman – 306km
- Qatar – 283km
- Kuwait – 145km
- Bahrain – 36km
The railway is designed for passenger trains travelling at 220 kilometres an hour (km/h) and freight trains operating at 80km/h–120km/h.
With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.
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Tender issued for Libyan gas project17 September 2026
An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.
The bid submission deadline is 2pm today (17 September) Libyan time.
The scope of the project includes provision of:
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The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).
MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.
The joint venture owns and operates six major oil and gas fields across the North African country.
According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:
- Libyan environmental legislation
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The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.
The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.
It has six main packages:
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Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.
Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.
The existing onshore complex includes housing, processing units, storage facilities and export facilities.
It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.
The planned expansion of the complex will involve:
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- Installation of a sulphur recovery unit
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The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.
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Nakheel awards $218m Dubai Islands buildings deal17 September 2026
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Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.
The contract was awarded to the local firm Metac General Contracting Company.
It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.
Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.
The works are scheduled for completion in late 2028.
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Neom tenders Oxagon highway contract17 September 2026

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