Related Articles

• 
  Iraq enters era of resilience, reform and rising risks

  11 May 2026

  

   

  Iraq’s projects market is at an inflection point. The country has built a sizeable and increasingly diverse projects pipeline, backed by ambitious national plans and an improving reform narrative. But according to MEED’s newly updated Iraq Projects Market report, the near-term outlook is now being tested by renewed regional volatility and persistent structural constraints at home.

  Iraq is the Middle East and North Africa’s fifth-largest economy by nominal GDP, yet it remains heavily exposed to the hydrocarbons cycle. Oil and gas generate about 90% of government revenues and more than 40% of GDP, a dependency that shapes annual capital spending and the bankability of public-private partnership (PPP) deals. Earlier this year, the IMF forecast GDP growth of 3%-4%. In light of the latest regional conflict dynamics involving the US and Israel with Iran, that growth outlook is expected to soften as investor risk perceptions rise and supply chains face renewed stress.

  Even so, Iraq’s projects market is not starting from a blank slate. By the end of March 2026, almost $120bn of contracts were in execution, with a further $300.4bn in the broader pipeline. The scale of that opportunity is underpinned by enduring reconstruction requirements, urgent energy-sector needs and a policy push to translate oil wealth into long-lived productive assets.

  Reconstruction needs

  Nearly a decade after the official end of the Islamic State conflict, Iraq’s reconstruction gap remains substantial. Estimates put the shortfall at about $88bn, reflecting the long tail of damage to housing, utilities, public buildings and transport links. Southern and central regions dominate the live pipeline, largely because they sit close to Iraq’s oil heartlands. Basra, in particular, is pivotal, anchoring major upstream activity and vital export infrastructure.

  At the policy level, Iraq Vision 2030 signals a long-term ambition to diversify into tourism, agriculture, industry and digital transformation. The government’s immediate delivery vehicle is the National Development Plan (NDP) 2024-28, which commits more than $17bn a year in capital expenditure and prioritises energy, transport, housing and water infrastructure. This shift is reinforced by Iraq’s Green Growth Framework (2026), indicating that future procurement may place greater weight on efficiency, emissions reduction and climate resilience.

  Macro risk

  Despite policy ambition, the most immediate determinant of Iraq’s fiscal room is the oil price. A $10-a-barrel drop can reduce government revenue by an estimated $7bn-$9bn annually. Such sensitivity matters because infrastructure spending is still largely funded by the public purse. Oil price swings affect project awards, payment cycles and the government’s willingness to assume up-front capex obligations.

  Iraq’s execution environment continues to be defined by bureaucratic delays, unclear land titles and opaque procurement processes. These factors can add 12-24 months to average delivery timelines. Nevertheless, there are signs of adaptation. PPP legislation is advancing, and developer-led models are gaining traction in large housing programmes. Furthermore, there is a growing reliance on international project management consultancy (PMC) firms—such as Hill International, Worley, and AtkinsRealis—to bridge capacity gaps and improve governance, cost control and scheduling.

  Hydrocarbon driver

  Oil and gas upstream remains the single largest driver of capital expenditure. Major developments, including the Gas Growth Integrated Project (GGIP) and Mansouriya, sit alongside a push to reduce gas flaring and expand downstream processing. The objective is to sustain export revenues while improving domestic fuel availability.

  The power sector is even more urgent. Iraq faces an estimated 8-10GW generation shortfall, which keeps electricity supply at the centre of political risk. This gap is driving rapid procurement of generation capacity and grid upgrade contracts. Beyond traditional infrastructure, Iraq is also moving on digital adoption. Smart city pilots and fibre rollouts are attracting regional technology investors, while AI-enabled data centre projects are beginning to emerge.

  Investment targets

  Foreign direct investment (FDI) remains below $3bn a year, a low figure relative to market size. The most active investors outside the oil sector include the UAE, Saudi Arabia and Kuwait. To convert interest into deals, the National Investment Commission (NIC) is pursuing streamlined licensing and investor-protection reforms. A “one-stop shop” approach has reportedly reduced registration timelines for foreign investors from months to weeks in key sectors.

  Investor protection mechanisms, such as access to international arbitration, are being strengthened, though enforcement remains a concern. Iraq’s three free zones—Basra, Karbala and Nineveh—offer additional incentives including tax holidays and customs exemptions, provided they can be paired with reliable utilities and bankable arrangements.

  Conflict premium

  The latest escalation involving the US and Israel with Iran has increased Iraq’s security risk premium. This is inflating materials costs and disrupting supply chains near eastern border zones. Even where projects are far from conflict areas, contractors are pricing in higher contingency for logistics and insurance. Iraq must also balance deep economic ties with Iran—particularly in energy—with Western investor expectations and sanctions-related compliance.

  With more than 60% of its population under 25, Iraq has a potential demographic dividend, but it also faces immediate employment pressure and a shortage of skilled technical labour. Iraq’s projects market outlook for 2026 is best described as cautiously constructive. The pipeline is deep and the need is undeniable, but delivery will hinge on whether Iraq can translate plans into predictable execution. If progress on procurement and contract enforcement continues, Iraq can sustain a broad-based market that extends beyond hydrocarbons.

  Click here to learn more about MEED’s newly updated Iraq Projects Market report

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16782507/main.gif

  Colin Foreman
• 
  Qiddiya seeks firms for light rail transit system

  11 May 2026

  

   

  Saudi gigaproject developer Qiddiya Investment Company (QIC) has requested contractors to express interest in a contract to design and build the first phase of the light rail transit system at Qiddiya Entertainment City.

  The notice was issued on 5 May, with firms given until 20 June to submit expressions of interest.

  The project, also known as the Primary Urban Axis, comprises a 22-kilometre automated, driverless rail line as part of its first phase.

  The contract scope includes about 16 stations – 11 elevated and five underground – along with 8km of tunnels, viaducts and other associated structures. It covers all civil, architectural, and mechanical, electrical and plumbing works.

  Stations will be located at Resort Core East Village, Grand Central Station, Anime Hub Integrated Station and Primary Urban Axis 1 & 2 Hub Station.

  A subsequent phase will extend the railway network by a further 11km.

  QIC is accelerating plans to develop additional assets at Qiddiya City.

  Separately, QIC, the Royal Commission for Riyadh City and the National Centre for Privatisation & PPP received prequalification statements from firms on 30 April for the public-private partnership (PPP) package of the Qiddiya high-speed rail project in Riyadh. This follows submission of prequalification statements for the engineering, procurement, construction and financing package on 16 April, as previously reported by MEED.

  The Qiddiya high-speed rail project, also known as Q-Express, will connect King Salman International airport and the King Abdullah Financial District (KAFD) with Qiddiya City. The line will operate at up to 250 kilometres per hour, reaching Qiddiya in 30 minutes.

  Contractors are also preparing bids for a 13 May deadline for a contract covering new infrastructure works at Qiddiya Entertainment City. The scope includes two infrastructure development packages for District 0, including the construction of four event park-and-ride facilities.

  QIC’s other major projects include an e-games arena, Prince Mohammed Bin Salman Stadium, a motorsports track, the Dragon Ball and Six Flags theme parks, and Aquarabia.

  QIC officially opened the Six Flags theme park to the public in December last year.

  The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

  The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16779176/main.jpg

  Yasir Iqbal
• 
  RCRC awards $1bn Sheikh Jaber Al-Sabah Road contract

  11 May 2026

  

   

  Register for MEED’s 14-day trial access 

  Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has awarded an estimated SR5bn ($1.3bn) contract for the construction of the Sheikh Jaber Al-Sabah Road project in Riyadh.

  The contract was awarded to the joint venture of Riyadh-based Al-Rashid Trading & Contracting Company (RTCC) and Turkiye’s IC Ictas.

  The project stretches 12 kilometres (km) from Khurais Road to Al-Thumama Road in Riyadh.

  The Sheikh Jaber Al-Sabah Road project is a key component of the Second Eastern Ring Road scheme. 

  The project includes the construction of five interchanges: Prince Bandar interchange, King Abdullah interchange, Imam Abdullah interchange, Dammam Road interchange and Al-Thumama interchange.

  The latest contract marks another significant project award to the RTCC-IC Ictas joint venture by RCRC. 

  In June 2024, RCRC awarded an estimated SR4bn ($1bn) design-and-build contract to upgrade the Wadi Laban cable bridge in Riyadh to the joint venture of RTCC and IC Ictas.

  The project aims to ease traffic congestion around the Western Ring Road in the area extending from Ibn-Hazm Road to Jeddah Road. The contract also covers the construction of an intersection at Jeddah Road.

  The construction of the bridge originally began in August 1993 and was completed in 1997.

  The existing bridge is 763 metres long and 35 metres wide, with two 14-metre-wide carriageways. 

  In 2021, Saudi Arabia’s Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud said the population of Riyadh would double to 15-20 million people by 2030. 

  He directed government entities to work closely with the RCRC to prepare the city’s development strategy.

  The RCRC’s major projects include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park, Green Riyadh and several road development projects in the capital.

  > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16775717/main.jpg

  Yasir Iqbal
• 
  Aecom to supervise Dubai Loop construction

  11 May 2026

  

   

  Register for MEED’s 14-day trial access 

  US-based Aecom has been selected for a contract to undertake design review and construction supervision services for the Dubai Loop transportation system.

  The contract was tendered by Dubai’s Roads & Transport Authority (RTA), which signed a construction agreement with Elon Musk-backed firm The Boring Company.

  The first phase comprises a 6.4-kilometre route with four stations, linking the Dubai International Financial Centre (DIFC) and Dubai Mall.

  Stations will be located at DIFC 2, ICD Brookfield Place, Dubai Mall Zabeel Parking and Burj Khalifa.

  The first phase is expected to cost about AED565m ($154m) and be delivered within one year of design work and other preparations being completed. Tunnelling is expected to begin in the second half of this year.

  The latest update follows the appointment of Parsons Corporation to deliver programme management services for the Dubai Loop transportation system.

  Next phase

  The second phase will connect the Dubai World Trade Centre and DIFC with Business Bay.

  The tunnels will extend up to 22km and include 19 stations.

  The total cost across both phases is expected to be around AED2bn ($545m), with completion scheduled within three years.

  The pilot route is expected to serve around 13,000 passengers a day, while the full route is projected to have a capacity of about 30,000 passengers a day.

  The RTA and The Boring Company signed a memorandum of understanding on the sidelines of the World Governments Summit in Dubai in February last year to explore the development of the Dubai Loop transportation system.

  The Dubai Loop is expected to be similar to The Boring Company’s Las Vegas Convention Centre (LVCC) Loop project. The LVCC Loop is a 2.7km underground tunnel system that connects different convention centre halls, reducing walking time across the site to about two minutes.

  The LVCC Loop has been in operation since 2021. It uses Tesla Model 3 cars to carry passengers between five stations. The Boring Company began construction in November 2019 at an estimated cost of $49m.

  > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16775632/main.jpg

  Yasir Iqbal
• 
  Contractors submit bids for Saudi gas processing plant project

  8 May 2026

  

   

  Register for MEED’s 14-day trial access 

  Contractors have submitted bids to Saudi Aramco subsidiary Aramco Gulf Operations Company (AGOC) for a project to build an onshore gas processing plant in Saudi Arabia’s Khafji that will draw and process gas from the Dorra offshore gas field, located in waters of the Saudi-Kuwait Neutral Zone.

  MEED previously reported that AGOC had divided the engineering, procurement and construction (EPC) on the Khafji gas plant project into seven packages, and issued the main tenders for those last year.

  Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for commercial bids. AGOC later extended the bid submission deadline to 22 December, and then until 22 April. A final deadline of 30 April was set, with contractors submitting bids by that date, according to sources.

  The seven EPC packages cover 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, with their breakdown as follows:

  • Package 1 – Open-art facilities
  • Package 2 – Licensed facilities
  • Package 3 – Industrial support facilities
  • Package 4 – Pipelines
  • Package 5 – Site preparation
  • Package 6 – Overhead transmission lines plus power supply (from Saudi Electricity Company)
  • Package 7 – Headquarters complex

  Saudi Arabia and Kuwait have been 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 Khafji gas plant project is one of three multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field that has advanced in recent months.

  Dorra field facilities project

  Al-Khafji Joint Operations (KJO), which is jointly owned by AGOC and KPC subsidiary Kuwait Gulf Oil Company (KGOC), has divided the scope of work on the Dorra field facilities project into four EPC packages – three offshore and one onshore.

  India’s Larsen & Toubro Energy Hydrocarbon (L&TEH) won the contract for 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.

  Additionally, Italian, Indian and Spanish contractors have emerged as the lowest bidders for the other three EPC packages that form part of the Dorra facilities project.

  A consortium of Italian contractor Saipem and L&TEH is understood to have submitted the lowest bid for offshore packages 2A and 2B, according to sources. The only other consortium understood to have submitted bids for packages 2A and 2B comprises Abu Dhabi-based NMDC Energy and South Korea’s Hyundai Heavy Industries.

  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.

  Spanish contractor Tecnicas Reunidas is understood to have emerged as the lowest bidder for onshore package three, sources told MEED. Package three covers the EPC of onshore gas processing facilities.

  KGOC onshore processing facilities

  The third component of the overall Dorra gas field development programme is a planned onshore gas processing facility to be built in Kuwait, which has been undertaken by KGOC.

  KGOC had been progressing with the front-end engineering and design (feed) work on the project, before the destabilising impact of the US-Israel conflict with Iran compelled the operator to put the project on hold, MEED reported in April.

  The proposed facility, estimated to be worth $3.3bn, 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 could 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.

  France-based Technip Energies has carried out a concept study and feed work on the entire Dorra gas field development programme.

  Progress has been hampered by a 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 between 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 to produce and process gas from the Dorra field have gained momentum.

  ---

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

  Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

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

  > AGENDA: War in the Middle East recalibrates global energy markets > REGIONAL LNG: War undermines business case for Middle East LNG > CAPITAL MARKETS: Damage avoidance frames debt issuance > IPOs: Regional IPO market dries up amid war  > MARKET FOCUS: Conflict tests UAE diversification > INTERVIEW: Desalination holds steady amid tensions, says Veolia CEO > LEGAL: Force majeure will not cure pre-existing construction industry breaches > BANKS:  GCC banks to feel the strain despite strong buffers > PIF STRATEGY: Public Investment Fund approves 2026-30 strategy

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

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16734353/main5834.jpg

  Indrajit Sen