EXCLUSIVE: Saudi Arabia plans 2km megatall tower in Riyadh
7 December 2022
Saudi Arabia’s Public Investment Fund (PIF) is considering plans for a 2-kilometre megatall tower as part of an 18-square-kilometre masterplanned development to the north of Riyadh.
The proposed tower will be more than double the height of the world’s tallest building – Dubai’s Burj Khalifa, which is 828 metres tall. Contractors that have priced megatall towers in the region say that depending on the final design, a 2km-tall structure could cost about $5bn to construct.
A design competition with a participation fee of $1m is underway for the record-breaking tower, according to multiple sources close to the contest.
The sources add that about eight firms have been invited to participate in the competition. The firms involved include some of the world’s leading names in architecture, which have been selected based on their experience working on other megatall towers and iconic designs around the world.
The prospective participants include US-based firms Skidmore, Owings & Merrill (SOM), Adrian Smith & Gordon Gill Architecture, Kohn Pedersen Fox (KPF) and Gensler; 10Design, which is part of France’s Egis; and Dubai-based Killa Design.
The project site is located west of the existing King Khalid International airport, and EY conducted the feasibility study for the development.
For the Burj Khalifa in Dubai, the cost of the tower was justified because it enhanced the land values of the surrounding Downtown district.
The developer of the Burj Khalifa, Dubai-based Emaar, used the strategy again when it launched The Tower at Dubai Creek Harbour in April 2016 to boost property sales of the surrounding Dubai Creek Harbour development. That tower, planned to be at least 928 metres tall, has not progressed beyond the raft foundation.
Riyadh’s proposed tall tower is just one major project planned for the northern outskirts of Riyadh. On 28 November, a masterplan for an expansion to the airport was announced.
It will be known as King Salman International airport, and if completed on time in 2030, it will become the largest airport in the world in terms of passenger capacity. It will cover an area of about 57 square kilometres, allowing for six parallel runways, and will include the existing terminals at King Khalid International airport.
Other tall buildings are planned elsewhere in Saudi Arabia, and the scale of the structures reflects Riyadh’s confidence as it moves to deliver the objectives set out by Vision 2030 with a series of self-styled gigaprojects.
WATCH: Saudi Arabia gigaprojects market outlook
At Neom, the first modules of the 170km-long buildings known as The Line are 500 metres tall. Other structures, such as the two hotel towers for the Gas Station Hotel at the Gulf of Aqaba, are planned to be 500 metres tall.
Saudi Arabia has planned tall buildings before. PIF was considering plans for a tower of up to 1.2km in height at King Abdullah Financial District (KAFD) on a plot known as KAFD X. Consultants were preparing designs for the project in 2019.
Another tall tower planned for Saudi Arabia is the 1,008-metre Jeddah Tower Scheme. Construction work on that tower began about 10 years ago and subsequently stalled after the structure reached about 70 storeys.
Attempts to revive the project have not proceeded as companies are reluctant to take on any liabilities from contractors and consultants that had previously worked on the scheme.
According to the Council on Tall Buildings and Urban Habitat (CTBUH), a supertall building is over 300 metres tall, while one that measures over 600 metres is considered megatall. Currently, there are 173 supertalls and only three megatalls completed globally, says the CTBUH.
According to tall building database Emporis, only two completed structures in the Middle East are megatall: the Burj Khalifa and the 601-metre-tall Mecca clock tower.
The PIF did not respond to a request to comment on the 2km-tall tower plans.
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Regional chemicals spending set to soar
29 August 2025
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This does not mean that regional energy producers have curtailed their spending on refinery expansions or greenfield projects, however. A total of $21.62bn was spent on Mena downstream oil projects in 2024, with capital expenditure (capex) at nearly $7bn so far this year, according to data from regional projects tracker MEED Projects.
Mena energy producers have also ramped up their investment in expanding gas processing potential, as global demand for natural gas – especially from the power generation sector – rises exponentially.
The region invested a total of $25.67bn in gas processing projects in 2024, and in 2025, MEED Projects puts that figure at $9.3bn year-to-date.
Meanwhile, the surge in petrochemicals projects in the Mena region over the years has also been significant.
The drive among regional players to increase petrochemicals output capacity is being facilitated by a rapid rise in chemicals demand from various industries and supply chains, as well as by the fact that converting oil and gas molecules into high-value chemicals is economically rewarding for hydrocarbons producers.
Preparing for growth
Global petrochemicals capacity is poised to grow significantly by 2030. Asia is set to dominate this, driven by a high demand for petrochemicals in the automotive, construction and electronics industries, according to UK analytics firm GlobalData.
The Middle East is also set to undergo an increase in production capacity, with a total capacity of 122.1 million tonnes a year (t/y) projected in 2025-30. Capex on production plants is expected to reach $69bn in the coming years, according to a recent report by GlobalData.
Steady spending
An estimated $17.8bn was spent on engineering, procurement and construction (EPC) contracts for chemicals projects in 2024, with spending year-to-date of about $5.8bn, MEED Projects says.
The region’s biggest chemicals project under EPC execution is the $11bn Amiral project in Saudi Arabia, which represents the expansion of Saudi Aramco Total Refining & Petrochemical Company (Satorp) in the petrochemicals sector.
Satorp, in which Saudi Aramco and France’s TotalEnergies hold 62.5% and 37.5% stakes, respectively, operates a
refinery complex in Jubail that has the capacity to process 465,000 barrels a day (b/d) of Aramco’s Arabian Heavy crude oil grade to produce refined products such as diesel, jet fuel, gasoline, liquefied petroleum gas, benzene, paraxylene, propylene, coke and sulphur.Integrated with the existing Satorp refinery in Jubail, the Amiral complex will house one of the largest mixed-load steam crackers in the Gulf, with the capacity to produce 1.65 million tonnes a year (t/y) of ethylene and other industrial gases.
This expansion is expected to attract more than $4bn in additional investment in several industrial sectors, including carbon fibres, lubricants, drilling fluids, detergents, food additives, automotive parts and tyres.
Another large-scale project under execution is the Al-Faw integrated refinery and petrochemicals project in Iraq. State-owned Southern Refineries Company brought on board China National Chemical Engineering Company in May 2024 to develop the estimated $8bn project.
The Al-Faw project is being implemented in two stages. The first phase involves developing a refinery will have a capacity of 300,000 b/d and will produce oil derivatives for both domestic and international markets. The second phase relates to the construction of a petrochemicals complex with a capacity of 3 million t/y.
EPC works are also progressing on the $6bn Ras Laffan petrochemicals complex in Qatar, which will have an ethane cracker that will be the largest in the Middle East and one of the largest in the world.
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The Ras Laffan petrochemicals complex is expected to begin production in 2026. It consists of an ethane cracker with a capacity of 2.1 million t/y of ethylene. This will raise Qatar’s ethylene production potential by nearly 70%.
The complex includes two polyethylene trains with a combined output of 1.68 million t/y of high-density polyethylene polymer products, raising Qatar’s overall petrochemicals production capacity by 82%, to almost 14 million t/y.
A JV of South Korean contractor Samsung Engineering and CTCI of Taiwan was awarded the EPC contract for the ethylene plant, which is understood to be valued at $3.5bn. The EPC contract for the polyethylene plant was awarded to Italian contractor Maire Tecnimont, which announced that the value of its contract was $1.3bn.
Chemicals uptick
While the downstream hydrocarbons sector in the Mena region has so far seen significant capex allocated to refinery modification and expansion projects, and robust spending on gas processing projects, chemicals schemes are set to dominate spending going forward.
Data from MEED Projects suggests that the value of planned chemicals projects in the Mena region is four times greater than the combined value of downstream oil and gas projects.
Saudi Arabia’s liquids-to-chemicals programme, which aims to attain a conversion rate of 4 million b/d of Saudi Aramco’s crude oil production into high-value chemicals, accounts for the majority of planned chemicals projects in the region.
Aramco has divided its liquids-to-chemicals programme in Saudi Arabia into four main projects. It has made progress this year by signing JV investment agreements with international partners for these projects:
- Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery. Front-end engineering and design on the project is under way and is being performed by Samsung E&A.
- Conversion of the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. China’s Sinopec is a JV partner in the project.
- Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. US oil and gas producer ExxonMobil has signed a memorandum of understanding with Aramco to potentially invest in the project.
- Building a crude oil-to-chemicals complex in Ras Al-Khair in the kingdom’s Eastern Province. Progress on this project remains slow.
Separately, Aramco subsidiary Saudi Basic Industries Corporation (Sabic) is in advanced negotiations with bidders for a project that involves building an integrated blue ammonia and urea manufacturing complex at the existing facility of its affiliate, Sabic Agri-Nutrients Company, in Jubail.
The $2bn-$3bn project, which is known as the low-carbon hydrogen San VI complex, is part of Sabic’s Horizon 1 low-carbon hydrogen programme that will be developed at Sabic Agri-Nutrients’ facility in Jubail Industrial City.
The planned San VI complex will have an output capacity of 1.2 million metric t/y of blue ammonia and 1.1 million metric t/y of urea and specialised agri-nutrients.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14568180/main.gif - Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery. Front-end engineering and design on the project is under way and is being performed by Samsung E&A.
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Kuwait’s political hiatus brings opportunity
29 August 2025
Commentary
John Bambridge
Analysis editorAfter Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah took the unusual step of suspending Kuwait’s parliament in May 2024, the country anticipated a rush of reforms and the unblocking of the project pipeline.
In March 2025, the government delivered on the most significant part of that, passing the long-awaited new public debt law, allowing $65bn in sovereign and Islamic bonds to be issued over the next 50 years. In June, Kuwait began moving ahead with plans to issue bonds worth an estimated KD2bn ($6.6bn) to cover its projected financing needs for the 2025-26 fiscal year.
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The Al-Zour North independent power and water plant phase 2 & 3 is a case in point, having travelled through several planning iterations from the point of its launch in 2006 up until its final award in August. This comes despite Kuwait’s rapid approach to the limits of its own power generation capacity – limits it then exceeded in April 2025, when soaring temperatures caused demand for electricity to outstrip supply, bringing power cuts.
Despite all this, the award of the long-awaited Al-Zour North scheme is a hopeful sign that Kuwait is on the move once again – as it will need to be. With an enfeebled private sector, atrophied contracting industry and mounting public wage bill, the policy needs of the day are great in Kuwait.
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> GOVERNMENT: Kuwait looks to capitalise on consolidation of power
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GlobalData forecasts Egypt construction growth
29 August 2025
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Egypt’s construction industry is poised for significant growth, with GlobalData projecting a real-term increase of 4.7% in 2025.
This growth is expected to be fuelled by a surge in net foreign direct investment (FDI) and substantial government spending on renewable energy and industrial construction projects. According to the Central Bank of Egypt, net FDI rose by 9.3% year-on-year in the first half of the 2024/25 financial year, increasing from E£278.6bn ($5.5bn) in July-December 2023 to E£304.5bn during the same period in 2024.
The influx of foreign capital is anticipated to strengthen the construction sector, which is further supported by the government’s 2025/26 budget, approved in June 2025. The budget allocates total expenditure of E£4.6tn, marking an 18% increase over the previous fiscal year. Key allocations include E£100bn for the electricity and renewable energy sector, E£77bn for water and wastewater projects, and E£5.2bn for railways.
Looking ahead, the construction industry’s output is projected to grow at an average annual rate of 7.4% between 2026 and 2029. This growth will be driven by investments in housing, renewable energy and transport infrastructure, alongside the government’s target of developing 10GW of renewable energy capacity by 2028.
Sector-specific forecasts point to a promising outlook across various construction segments.
The commercial construction sector is expected to grow by 6% in 2025 and at an average annual rate of 6.6% between 2026 and 2029, supported by a rebound in tourism and hospitality.
The industrial construction sector is anticipated to expand by 12.2% in 2025, with robust average annual growth of 9.1% through 2029, driven by investments in manufacturing and rising external demand.
Infrastructure construction is projected to grow by 3.6% in 2025 and at an average annual rate of 6.9% from 2026 to 2029, underpinned by investment in roads, rail and ports – including the construction of 1,160 bridges by 2030.
The energy and utilities construction sector is expected to grow by 3.7% in 2025, with an average annual rate of 7.8% between 2026 and 2029, driven by investments in renewable energy and water infrastructure.
Institutional construction is forecast to grow by 4.2% in 2025 and at an average annual rate of 6.6% from 2026 to 2029, supported by public investment in education and healthcare.
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UAE firm begins Yemen 120MW solar expansion
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Feed progresses on Libya oil field project
29 August 2025
US oilfield services provider Haliburton is continuing to work on the front-end engineering and design (feed) for Libya-based Waha Oil Company’s project to rehabilitate the country’s Al-Dhara oil field, according to sources.
The project is estimated to be worth $1bn, and is expected to considerably increase oil production from the field.
The Al-Dhara field is currently producing 24,000 barrels a day (b/d) of oil, sources said.
One source said: “Locally run projects have managed to increase production from zero to 24,000 b/d and that’s a massive achievement – but the project that Haliburton is working on is likely to be much more significant.”
Sources expect that the Haliburton project could boost the production of the Al-Dhara field and neighbouring PL6 field to 130,000 b/d.
The engineering, procurement and construction (EPC) scope of work on the project is understood to include:
- Drilling of wells
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The Al-Dhara field is generating revenues of around $450m a month, sources said, and this money has been earmarked to fund the rehabilitation of the field and phased work to increase production.
The oil field in central Libya has suffered from years of poor maintenance and was sabotaged by Islamic State militants in 2015.
Waha Oil Company announced in August 2022 that it had restarted test operations at the Al-Dhara oil field after a seven-year hiatus.
Waha Oil Company is a joint venture of Libya’s National Oil Corporation, US-based ConocoPhillips and France’s TotalEnergies.
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