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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Slow year for Maghreb power and water awards
7 July 2025
The Maghreb region has experienced a slow 2025 in terms of power and water project contract awards. Hopes for the year now rely on a strong second half if the sector is to match the performance of previous years.
As of early July, the total value of power project contract awards had reached $663m, according to regional projects tracker MEED Projects. This means that by the end of the year, the market is expected to fall significantly short of the peaks of $3.8bn in 2023 and $4.5bn in 2024.
Libya’s recovery was a major driver in 2023, accounting for $2.9bn of the total for that year, while Algeria contributed $430m and Morocco $210m. There are no recorded power contract awards for Algeria or Libya in 2025. Morocco and Tunisia contributed $353m and $310m, respectively.
The total value of contract awards for water projects has also declined significantly. For the first six months of 2025, the total reached $189m, which is tracking behind the $815m of water project contract awards recorded in 2024.
Both 2025 and 2024 are far behind the peak of $3.6bn registered in 2022, when Algeria alone accounted for $1.8bn of contract awards, followed closely by Morocco with $1.6bn.
For upcoming power and water contract awards, there are over $6bn of contracts in the bid or prequalification stage that are expected to be awarded within the next year.
In the water sector, Libya leads with $210m of soon-to-be-awarded contracts, followed closely by Tunisia at $260m. In the power sector, Morocco stands out with an impressive projected contract value of $5.3bn, while in Tunisia, there are $300m of upcoming power contract awards.
Xlinks disappointment
There have been some notable project developments in the power and water sectors across the Maghreb region over the past year. Most recently, at the end of June, the UK government withdrew its support for the Xlinks Morocco-UK power project.
The UK Department for Energy Security and Net Zero decided not to consider a contract for difference for this large-scale renewable energy initiative, which aimed to deliver 3,600MW of renewable energy from Morocco to the UK via a 4,000-kilometre high-voltage direct current cable system.
Sir Dave Lewis, chair of Xlinks, expressed disappointment, emphasising the project’s potential to significantly lower wholesale electricity prices in the UK.
Power progress
Other projects in Morocco are proceeding. The Ministry of Energy Transition & Sustainable Development has issued an invitation for expressions of interest for a major liquefied natural gas (LNG) infrastructure project at Nador West Med Port. This project includes an LNG import terminal, pipelines and a gas power station with a capacity of approximately 1,200MW. The project aims to enhance Morocco’s energy security and diversify its energy sources.
Additionally, Morocco’s National Office for Electricity and Drinking Water has invited firms to submit expressions of interest for contracts to build three gas-fired power stations with a total capacity of between 300MW and 450MW. These plants are expected to be commissioned by the summer of 2026, further contributing to the country’s energy infrastructure.
Water advancements
In the water sector, Algeria has inaugurated the El-Tarf desalination plant, which has a production capacity of 300,000 cubic metres a day. This facility is part of Algeria’s broader desalination programme, which aims to address water scarcity issues exacerbated by climate change. The Algerian government has allocated $3bn for the second phase of its desalination capacity expansion, with plans to build six new plants by 2030.
Morocco is also advancing its water infrastructure, with Veolia undertaking the detailed design for a new seawater reverse osmosis plant near Rabat. This facility is expected to treat up to 822,000 cubic metres of seawater daily and will cater to regions particularly affected by drought.
Policy focus
For policy, governments have been manoeuvring as they respond to the global challenge of climate change.
Morocco is progressing with its green hydrogen initiatives, which are closely linked to its water projects. The country has set ambitious targets to produce 52% of its energy from clean sources by 2030, with plans to develop large-scale green hydrogen projects. These projects will require significant water resources for electrolysis, further intertwining the power and water sectors.
Morocco also aims to increase its renewable capacity to 10,000MW by 2030, with a focus on solar, wind and hydroelectric power. Despite the recent Xlinks setback, the country is also exploring opportunities for exporting electricity to Europe, which could significantly enhance its energy market.
Algeria is pursuing other avenues in its quest to diversify its energy sources. In April, Algerian Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, met with Wang Yongge, president of the China National Nuclear Corporation (CNNC), in Algiers. The two reviewed the ongoing cooperation between Algeria’s Commissariat for Atomic Energy (Comena) and CNNC, focusing on the peaceful use of nuclear energy, its medical applications and prospects for future development.
The Algerian government also plans to invest heavily in desalination projects to ensure a sustainable water supply, with desalinated water expected to account for 60% of drinking water by 2030.
Main image: Noor electric power station close to Ouarzazate, Morocco
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Iraq to retender Baghdad Metro PPP project contract
7 July 2025
Iraq intends to retender the contract to develop and operate the Baghdad Metro project, following the award of the estimated $2.5bn contract last year.
According to local media reports, Nasser Al-Assadi, adviser to Prime Minister Mohammed Sudani, stated that the previous developers had overestimated the project budget; therefore, the government will relaunch the entire process to implement the project.
Iraq’s National Investment Commission (NIC) awarded an estimated $2.5bn contract to develop and operate the Baghdad Metro project in July last year.
The contract was awarded to a consortium comprising France’s Systra, Societe Nationale des Chemins de fer Francais (SNCF) and Alstom; Spain’s Talgo and Sener; and Turkish contractors.
Germany’s Deutsche Bank was the project finance adviser.
The project will be developed as a public-private partnership (PPP) scheme using a design, build, operate, maintain, finance and transfer model.
Malaysian consulting firms ConsultantHSS and HSS Engineering were working on the project.
Project scope
The Baghdad Metro project is one of the largest infrastructure schemes in Iraq.
It will comprise seven main lines totalling 150 kilometres (km), 64 metro stations, four workshops and depots for trains, two metro train control and management centres and power generation stations.
The Green Line will extend 19km and run from the Al-Alawi terminal to the Doura terminal. The Red Line will be 27.7km long and will run from the Al-Alwai terminal to Maisaloun Square.
The Blue Line will run 22km from the Al-Shaab terminal to Al-Zafaraniya. The Purple Line will be 14.5km long and will connect Al-Tayaran Square to Al-Shaab.
The Yellow Line will extend 30km from Al-Baladiyat to Adan Square. The White Line will be 23km long and will run from Al-Kadhimiya to Al-Bayaa, while the Airport Line will run 12km from Baghdad airport to Al-Qadisiya.
Each line will comprise a total of eight stations.
The trains will include a gold-class cabin, a special cabin for women and children, and tourist cabins.
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Ibri 3 construction deal implies Masdar win
7 July 2025
A Chinese consortium of China Energy Engineering International Corporation (CEEC), China Power Construction Group East China Survey & Design Institute Company (East China Institute) and China Energy Construction Group Hunan Thermal Power Construction Company (Hunan Thermal Power) says it has won an early works contract to build the Ibri 3 solar independent power plant (IPP) in Oman.
The engineering, procurement and construction (EPC) contract was awarded by Abu Dhabi Future Energy Company (Masdar), implying it has won the IPP’s development concession.
Masdar, alongside Korea Midland Power (Komipo) and the local Al-Khadra Partners, was one of four groups to bid for the contract to finance, construct and operate the IPP in February.
Under the terms of the EPC contract, the CEEC consortium will build the 500MW solar photovoltaic (PV) power plant together with an associated 150MWh battery energy storage unit.
It will also install a 400kV substation and two 400kV overhead transmission lines as part of the deal, it says.
The client, Nama Power & Water Procurement Company (Nama PWP), received prequalification applications for the Ibri 3 solar PV IPP contract in March last year.
Previous projects
The sultanate’s first 500MW solar IPP scheme, Ibri 2, came onstream in September 2021 and was officially inaugurated in January 2022.
The Manah 1 and Manah 2 solar IPP projects, each with a capacity of 500MW, were recently inaugurated.
A team comprising France’s EDF and South Korea’s Korea Western Power Company (Kowepo) won the contract to develop the Manah 1 solar PV IPP project.
A team of Singapore’s Sembcorp Industries and China-headquartered Jinko Power Technology was awarded the second 500MW solar PV IPP contract.
In September last year, Nama PWP tendered the contracts to develop two wind IPPs.
The Jalan Bani Bu Ali wind IPP will cater to Oman’s Main Interconnection System (MIS), while the Dhofar 2 wind IPP will cater to the smaller Dhofar Power System (DPS).
Three other wind IPPs are expected to be tendered separately. They are:
- Duqm wind IPP: Located in Ras Madrakah in Duqm, the project will have a capacity of 234MW-270MW, with commercial operations expected in Q4 2027
- Mahoot wind 1 IPP: Located in Mahoot in the Al-Wusta Governate, the wind farm will have a capacity of 342MW-400MW, with a commercial operation target of Q4 2027
- Sadah wind IPP: Located in Sadah in the Dhofar Governorate, it will have a capacity of 81MW-99MW and is due for commercial operation in Q4 2027
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14211645/main.gif -
Kuwait tenders renewables substation job
7 July 2025
Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE) has tendered a contract for the construction of the Shagaya Z 400/132/11kV substation to serve the Shagaya solar power complex.
Interested prequalified firms have until 5 August to bid for the contract, which has an estimated value of $120m. A date of 20 July has been set for the pre-bid meeting.
MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), issued a request for proposals in June for the contract to develop the state’s first utility-scale solar photovoltaic plant at Shagaya.
Prequalified developers have until 14 September to submit technical and commercial bids for the Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP), which will have a total power generating capacity of 1,100MW.
Kapp issued the request for qualifications for the developer concession in January 2024, with six prequalified companies and consortiums announced the following August.
Unlike the solar project, the Shagaya Z substation is being procured on an engineering, procurement and construction (EPC) basis directly by the ministry. Associated transmission and distribution work often form part of the developers’ scope of work, but will not be the case in this instance.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14211467/main.gif -
Riyadh tenders first Expo 2030 construction work
7 July 2025
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Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Riyadh Expo 2030 venue, has tendered a contract to build the site offices required for the initial construction works at the project site in Riyadh.
MEED understands that the contract was tendered on 29 May, with bids due in the first week of July.
The announcement follows the establishment of ERC as a wholly owned subsidiary of the Public Investment Fund (PIF) that will build and operate facilities for Expo 2030 in June.
In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”
The masterplan for Expo 2030 Riyadh encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo. Situated to the north of the city, the expo site will be located near the future King Salman International airport, providing direct access to various landmarks within the Saudi capital.
Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions, contributing to the event’s legacy. This initiative is expected to create opportunities for business and investment growth in the region.
The expo is projected to attract over 40 million visitors. After the event concludes, ERC plans to convert the expo’s secured area into a global village, to serve as a multicultural centre for retail and dining. This development will also feature an international residential community with a range of amenities, with a focus on sustainable tourism practices.
Expo 2030 Riyadh will run from 1 October 2030 to 31 March 2031.
Last month, MEED reported that the PIF had named Talal Al-Marri as the CEO of ERC.
Al-Marri has previously held several senior executive roles at Saudi Aramco, including president and CEO of Aramco Europe, senior vice-president of community services and senior vice-president of industrial services.
In May, MEED exclusively reported that Riyadh had begun talks with stakeholders in preparation for the commencement of construction work for the event.
The discussions were understood to have been held with the Royal Commission for Riyadh City and the PIF.
German architectural firm Lava Architects and US-based engineering firm Jacobs are assisting with the project masterplan and the design of infrastructure for the site.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14211012/main.jpg