Saudi Arabia launches Landbridge design tender

4 April 2025

 

Register for MEED’s 14-day trial access 

Saudi Arabia Railways (SAR) has issued a tender for the lead design consultancy services contract on its long-planned Saudi Landbridge railway network.

Interested companies have until 15 May to bid for the work, which covers the concept design and options for the preliminary and Issued for Construction (IFC) design stages on the 1,000 kilometre (km)-plus network.

The estimated $7bn project comprises more than 1,500km of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

Other key sections include upgrading the existing Riyadh-Dammam line, a bypass around the capital, and a link between King Abdullah Port and Yanbu.

The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later. Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

More recently, the project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it on a public-private-partnership (PPP) basis. However, the launch of a design tender directly by SAR suggests that Riyadh is looking at other options to develop it alongside the Chinese proposal.

In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.

If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East and one of the biggest globally. Based on typical design timeframes, tenders for construction are likely to be ready by mid-2026, although the question of how it will be financed will need to be answered before it can proceed to the next step.


MEED’s April 2025 report on Saudi Arabia includes:

> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING:
 Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads up

https://image.digitalinsightresearch.in/uploads/NewsArticle/13611386/main.jpg
Edward James
Related Articles
  • Saudi Arabia eyes investors for $136m ferris wheel project

    7 July 2026

    Saudi Arabia is seeking investors to fund a SR511m ($136m) ferris wheel project, known as the Hijaz Eye.

    The project will be located in Medina and will cover an area of more than 33,000 square metres (sq m).

    According to information listed on the Invest Saudi platform, a database of about 2,200 state investment opportunities, the project is expected to have a significant impact on the local economy, offering an internal rate of return (IRR) of over 25%, with a payback period of seven years.

    The tender prospectus does not disclose the ferris wheel's height.

    The pitch to investors describes it as "the best destination to get a bird's eye view of the city", and frames it as an attraction aimed at pilgrims, with the project designed to "enrich the experience of pilgrims" and address a "growing need to increase cultural communication among pilgrims".

    The Hijaz Eye project is part of a broader initiative to establish Saudi Arabia as a leading tourism hub in the Middle East, and reflects Riyadh's growing push to lean on private capital, rather than public financing, for large-scale tourism infrastructure.

    Ain Dubai parallels

    The Hijaz Eye would not be the first giant observation wheel to be built in the region. The UAE's Ain Dubai, on Bluewaters Island, is currently the world's tallest observation wheel, standing 250 metres high – nearly twice the height of the London Eye.

    It is designed to carry up to 1,750 visitors in 48 air-conditioned cabins.

    Ain Dubai's budget was originally estimated at about $272m. The attraction opened in October 2021, coinciding with Expo 2020 Dubai.

    The project used about 9,000 tonnes of steel, more than was used in the construction of the Eiffel Tower, and required some of the world's largest cranes to lift its 1,805-tonne hub and spindle assembly, which is comparable in weight to four Airbus A380 aircraft.

    Despite its scale, Ain Dubai's post-opening record has been uneven. The attraction has closed and reopened several times since its debut, including a widely publicised reopening in December 2024.

    For the Hijaz Eye, the experience of Ain Dubai underlines a message that operational reliability will be central to whether the project can deliver on its projected 25%-plus IRR.

    Project positioning

    The Hijaz Eye is being positioned as an anchor for a specific strategic gap, which includes extending the time and spending of religious visitors to Medina beyond prayer and pilgrimage.

    Domestic and religious tourism sit at the core of the kingdom's Vision 2030 strategy, and the numbers underline why Medina, rather than a leisure hub like Riyadh or Jeddah, is a logical testing ground for private-capital tourism infrastructure.

    In 2025, Saudi Arabia's Tourism Ministry recorded 14 million overseas visitors that visited the kingdom for religious purposes, roughly twice the number of leisure travellers and seven times that of business travellers.

    A further 14 million domestic tourists travelled for religious purposes, of which 6.5 million visited Medina specifically.

    Image credit: www.cranebriefing.com


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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17576184/main.jpg
    Yasir Iqbal
  • Saudi Arabia sets July deadline for Taif International airport

    7 July 2026

     

    Saudi Arabia’s Matarat Holding, in collaboration with the National Centre for Privatisation & PPP (NCP), has set a deadline of 24 July for a contract to develop the new Taif International airport project in Mecca Province.

    The client has opted for a 30-year build-transfer-operate (BTO) contract model, including the construction period.

    In January, MEED reported that four consortiums and one standalone company had been prequalified to proceed to the next stage of the bidding process.

    These were:

    • Kalyon Insaat / AlBawani (Turkiye/local)
    • Mada International Holding / TAV Airports (local/Turkiye)
    • Tamasuk / Bengaluru International Airport (local/India)
    • Vision Invest / Asyad / DAA International (local/local/Ireland)
    • GMR Airports (India)

    The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport and will have a capacity of 2.5 million passengers by 2030.

    In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.

    The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.

    The new airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of the city of Taif and its surrounding areas, in line with the kingdom’s National Aviation Strategy.

    It is also expected to meet the needs of Umrah pilgrims, as an alternative within the region’s multi-airport system, which includes King Abdulaziz airport in Jeddah, Prince Mohammed Bin Abdulaziz airport in Medina and Prince Abdulmohsen Bin Abdulaziz airport in Yanbu.

    Previous tenders

    The Taif, Hail and Qassim airport schemes were previously tendered and awarded as public-private partnership (PPP) projects using the BTO model.

    Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.

    A team of Turkiye’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.

    A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.

    However, these projects stalled following the restructuring of the kingdom’s aviation sector.

    Saudi Arabia has already privatised airports including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.


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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17574264/main2939.jpg
    Yasir Iqbal
  • KBR wins Iraq pipeline contract

    7 July 2026

    US-based KBR has been awarded a consultancy contract for a planned pipeline project that will extend from Basra in the south of Iraq to Haditha in Al-Anbar Governorate.

    Iraq’s cabinet, which met under Prime Minister Ali Al-Zaidi, has approved the award, according to a cabinet statement.

    State-owned Basra Oil Company (BOC), which manages the majority of Iraq’s southern oil fields, is now expected to sign a contract with KBR for the project.

    In April, Iraq announced the allocation of $1.5bn for the project, which is part of a larger scheme, estimated to be worth $5bn.

    The wider project includes additional pipeline links that will extend to Kirkuk in Northern Iraq and to Jordan.

    Earlier in July, Iraq's cabinet approved BOC signing a ​heads of agreement and a non-disclosure agreement with a consortium of companies to explore possible future oil pipeline projects, including the Basra-Haditha connection.

    The consortium includes US-based companies Chevron and TI Capital, as well as Qatar’s UCC.

    The consortium will prepare technical and financial feasibility studies for strategic export pipeline projects, according to a statement from Iraq’s cabinet.

    In June, Prime Minister Ali Al-Zaidi and US Special Presidential Envoy Tom Barrack agreed to advance the memorandum of understanding with TI Capital to rehabilitate a disused pipeline that extends from Kirkuk to Baniyas in Syria.


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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17570453/main.jpg
    Wil Crisp
  • Oman outlines grid plan for four 1GW solar IPPs

    7 July 2026

    The Oman Electricity Transmission Company (OETC) has outlined the planned grid connection schedule for four 1GW solar independent power projects (IPPs) that will support the sultanate's renewable energy expansion through 2030.

    The projects are detailed in OETC's Five-Year Annual Transmission Capability Statement (2026-30), which sets out the transmission infrastructure required to integrate new generation capacity into the national grid.

    According to the report, the first of the four gigawatt-scale projects, the Adam solar IPP, is scheduled for integration in 2028.

    Oman’s Nama Power & Water Procurement Company (Nama PWP) issued a request for qualification for the development of the Adam solar IPP in June.

    OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.

    Before the gigawatt-scale projects are connected, several smaller utility-scale solar schemes are expected to enter service.

    The first is the 500MW Ibri 3 solar project, supported by the Al-Sebkha 400kV switching station. Construction began on Ibri 3 in January.

    The report says this will be followed by the Al-Kamil 1, Sinaw and Marsa solar IPPs.

    The power purchase agreement for the 500MW Al-Kamil IPP was recently signed by a separate consortium comprising France's EDF Power Solutions, Oman National Engineering & Investment Company and the local OQ Alternative Energy.

    Nama PWP has issued a supervisory consultancy tender for the 280MW Marsa IPP in North Al-Batinah Governorate, with a bid submission deadline of 26 July.

    The transmission statement says about 70 transmission projects are expected to enter service between 2026 and 2030.

    The programme is intended to increase transmission capacity, connect new renewable generation, strengthen grid reliability and support electricity demand growth across the sultanate.


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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17564537/main.jpg
    Mark Dowdall
  • Frontrunner emerges for Bahrain’s Al-Hidd IWP

    6 July 2026

     

    Saudi Arabia's Acwa has emerged as the frontrunner for a contract to develop and operate Bahrain’s Al-Hidd independent water project (IWP) following the disqualification of the only other bidder for the plant, a source has told MEED.

    The seawater reverse osmosis (SWRO) plant is the state's first IWP project. It is expected to have a production capacity of about 60 million imperial gallons a day (MIGD), equivalent to roughly 272,000 cubic metres a day of potable water.

    Acwa offered to develop the project at a levelised cost of water of BD0.276 ($0.73) a cubic metre, according to details published on Bahrain’s Tender Board on 2 July.

    GS Inima (South Korea/Spain) was the only other bidder for the project.

    Bids for the project had been submitted earlier this year.

    The source added that Acwa's financial bid is now under evaluation and has yet to be selected as the preferred bidder. This will only be determined "subject to compliance with the [request for proposal] requirements".

    Nine companies and consortiums had previously been shortlisted following the completion of the prequalification process last August.

    The facility will be developed on a brownfield site and is expected to be fully operational by 2029. It will be developed using a build, own and operate (BOO) model for 20-25 years and aims to help expand Bahrain’s water infrastructure to meet projected demand based on its 2030 masterplan.

    This includes doubling the state's installed power generation capacity to over 10GW by 2030, according to UK data analytics firm GlobalData.

    Sitra IWPP

    Bahrain's 1.2GW Sitra independent water and power plant (IWPP) project is also advancing, with two bids having been submitted for the plant in June.

    The offers were made by Acwa and Abu Dhabi National Energy Company (Taqa). The technical element of the bid was opened on 18 June.

    The Sitra IWPP is a combined-cycle gas turbine plant and is expected to have a production capacity of about 1,200MW of electricity. The project’s SWRO desalination facility will have a production capacity of 30 MIGD of potable water.

    The plant is Bahrain’s fourth IWPP, replacing the previously planned Al-Dur 3. The Sitra IWPP is expected to be fully operational by the second quarter of 2029.

    The Bahraini Electricity & Water Authority’s transaction advisory team for the two BOO projects comprises KPMG Fakhro as the financial consultant and Trowers & Hamlins as the legal consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17562089/main.jpg
    Mark Dowdall