Saudi Arabia must rein in emissions

5 February 2024

Commentary
Jennifer Aguinaldo
Energy & technology editor

The successive and pending tenders for gas-fired, renewable energy and, potentially, battery storage plants in Saudi Arabia speak of the urgency of the kingdom's need to keep its carbon emissions in check while delivering the economic targets of Vision 2030.

The principal buyer issued the request for proposals for the country's next combined-cycle gas turbine (CCGT) plants to be located in Riyadh and the Eastern Region on 31 January, barely three months since it awarded the contracts for four CCGT independent power projects (IPPs) in Taiba and Qassim.

The schemes, split into eight contracts, will deliver 14.4GW of gas-fired power generation capacity by 2027, if everything goes to schedule.

This adds to about 10.5GW of solar photovoltaic (PV) capacity under construction and 1.8GW of wind projects under bid evaluation, and over 40GW more that is expected to be tendered and directly procured between now and 2030.

These projects, along with the recent directive by the kingdom’s energy ministry to stop Saudi Aramco's oil production capacity expansion drive – which some experts say has to do with propping up oil prices in the current environment – could have increasing emissions reduction as an unintended consequence, if implemented.

Source: World Bank

As it is, the region's largest economy and projects market faces the challenge of delivering projects across all economic and industrial sectors in line with Vision 2030 while keeping to its sustainability objectives by lowering greenhouse gas emissions and setting the stage for achieving net-zero carbon emissions by 2060.

According to regional projects tracker MEED Projects, the Saudi market enjoyed its best year on record in 2023 with $95bn of contract awards across all sectors. With a net project value of $181bn of deals at the tender stage, more contract awards are expected in 2024.

Data from the World Bank shows that Saudi Arabia's carbon dioxide emissions per capita peaked in 2015, and have since declined significantly from 2015 to 2020.

The absence of data for 2021 and 2022 – when the projects and economic activities started to ramp up following the Covid-19 pandemic, and as the multibillion-dollar gigaprojects reached their execution stage – precludes the conclusion that the kingdom is on its way to decoupling economic expansion from emissions, a trend that has been quite visible in developed economies.

However, the urgency in the kingdom's procurement of greener and cleaner electricity to enable its economic programmes, in addition to the separate measures that are embedded in the Saudi Green Initiative and circular carbon economy ethos, indicates that Riyadh is aware that there are not many other options going forward. 


MEED's October 2023 special report on Saudi Arabia includes: 

> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORTSaudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
BANKSSaudi banks track more modest growth path
> UPSTREAMAramco focuses on upstream capacity building

> DOWNSTREAMSaudi chemical and downstream projects in motion
> POWERRiyadh rides power projects surge
> WATERSaudi water projects momentum holds steady
> GIGAPROJECTSGigaproject activity enters full swing
> TRANSPORTInfrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWERJeddah developer restarts world’s tallest tower

https://image.digitalinsightresearch.in/uploads/NewsArticle/11488819/main.jpg
Jennifer Aguinaldo
Related Articles
  • WEBINAR: Mena Oil & Gas Projects Market 2025-26

    10 July 2025

    Register now

    Date & Time: Tuesday 29 July 2025 | 11:00 AM GST

    Agenda:

    1. Summary of the Mena oil, gas and petrochemicals projects market

    2. Summary description of the main megaprojects, including project programmes

    3. Analysis of active contracts and spending to date

    4. Analysis of top contracts by work already awarded

    5. Long-term capital expenditure outlays and forecasts

    6. Highlights of key contracts to be tendered and awarded over the next 18 months

    7. Top contractors and clients

    8. Breakdown of spending by segment, ie, oil, gas, petrochemicals – upstream, downstream, onshore and offshore

    9. Q&A session

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14241705/main.gif
    Indrajit Sen
  • New Murabba signs up South Korean firm for design works

    10 July 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s New Murabba Development Company (NMDC) has signed a memorandum of understanding (MoU) with South Korea’s Heerim Architects & Planners to explore further design works on assets at the 14 square-kilometre New Murabba downtown project.

    According to an official statement: “Heerim Architects & Planners will explore distinctive architectural plans that complement the development’s masterplan, with special focus on anchor assets, linear parks and smart city features.”

    New Murabba CEO Michael Dyke signed the agreement last week during the company’s Investment and Partnership Forum in Seoul.

    At the event, NMDC also signed an MoU with South Korea’s Naver Cloud Corporation to explore technological solutions for delivering the New Murabba downtown project.

    According to an official statement: “The three-year agreement covers exploring innovative technology and automation to support the delivery of New Murabba, including robotics, autonomous vehicles, a smart city platform and digital solutions for monitoring construction progress.”

    NMDC is in Seoul to examine technological offerings, assess financing options and showcase the investment opportunities available for the New Murabba downtown development.

    The statement added that the excavation works for The Mukaab, the centrepiece of the overall development, have now been completed.

    The Mukaab is a Najdi-inspired landmark that will be one of the largest buildings in the world. It will be 400 metres high, 400 metres wide and 400 metres long. Internally, it will have a tower on top of a spiral base and a structure featuring 2 million square metres (sq m) of floor space designated for hospitality. It will feature commercial spaces, cultural and tourist attractions, residential and hotel units, and recreational facilities.

    Downtown destination

    The New Murabba destination will have a total floor area of more than 25 million sq m and feature more than 104,000 residential units, 9,000 hotel rooms and over 980,000 sq m of retail space.

    The scheme will include 1.4 million sq m of office space, 620,000 sq m of leisure facilities and 1.8 million sq m of space dedicated to community facilities.

    The project will be developed around the concept of sustainability and will include green spaces and walking and cycling paths to promote active lifestyles and community activities.

    The living, working and entertainment facilities will be developed within a 15-minute walking radius. The area will use an internal transport system and will be about a 20-minute drive from the airport.

    The downtown area will feature a museum, a technology and design university, an immersive, multipurpose theatre, and more than 80 entertainment and cultural venues.


    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:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14239016/main.jpg
    Yasir Iqbal
  • Chinese firm wins Mid Island Parkway tunnelling deal

    10 July 2025

     

    Register for MEED’s 14-day trial access 

    Beijing-headquartered China Railway Tunnel Engineering Group has won a $60m subcontract for the tunnelling works on package 1B of the Mid Island Parkway project in Abu Dhabi.

    Package 1B entails the construction of a cut-and-cover tunnel to cross the Khor Laffan Channel, which is the area between the Saadiyat and Um-Yifeenah islands.

    The tunnel, which will be between 900 metres and 1 kilometre (km) long, is being constructed on a design-and-build basis and will tie in to packages 1A and 1C.

    The project is being jointly constructed by a joint venture of local firm Yas Projects (Alpha Dhabi Holding) and Beijing-based China Railway International Group.

    In June last year, MEED exclusively reported that Abu Dhabi's Department of Municipality & Transport had awarded contracts for three packages for phase one of the Mid Island Parkway Project (MIPP), as part of the Plan Capital urban evolution programme.

    Phase one will start at the existing Saadiyat Interchange, which will connect the E12 road to the MIPP, and will end with the recently constructed Um-Yifeenah Highway. 

    It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works. 

    MIPP phase one is further divided into packages 1A, 1B and 1C, which were awarded separately.

    The project ownership has been transferred from Aldar Properties to Abu Dhaibi's Department of Municipalities & Transport.

    Previously, it was transferred from Abu Dhabi General Services Company (Musanada) to Aldar Properties, and the project was included in the Abu Dhabi Investment Office's public-private partnership project pipeline.


    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:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14238039/main3047.gif
    Yasir Iqbal
  • Iraq tenders Baghdad airport PPP project

    9 July 2025

    Register for MEED’s 14-day trial access 

    Iraq’s Ministry of Transport and the General Company for Airport & Air Navigation Services have released a tender inviting firms to bid for a contract to develop Baghdad International airport on a public-private partnership (PPP) basis.

    The notice was issued in July, and the submission deadline is in September.

    According to an official statement posted on its website, Iraq’s Ministry of Transport said that 10 out of 14 international consortiums that expressed interest in the project earlier this year have been prequalified to compete for the tender.

    The scope of the estimated $400m-$600m project involves rehabilitating, expanding, financing, operating and maintaining the airport. It is the first airport PPP project to be launched in Iraq.

    The initial capacity of the airport is expected to be around 9 million passengers, which will be gradually increased to 15 million passengers.

    The International Finance Corporation (IFC), a member of the World Bank Group, is the project’s lead transaction adviser.

    Iraq is already developing the Baghdad and Najaf-Karbala metro projects using a similar PPP model.

    Earlier this month, MEED reported that 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.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14229008/main.jpg
    Yasir Iqbal
  • Contractors prepare revised bids for Roshn stadium

    9 July 2025

     

    Register for MEED’s 14-day trial access 

    Saudi gigaproject developer Roshn has invited firms to submit revised commercial proposals by 24 July for a contract to build a new stadium adjacent to the National Guard facilities to the southwest of Riyadh.

    Known as the National Guard Stadium, it will be delivered on an early contractor involvement (ECI) basis. It will cover an area of over 450,000 square metres and be able to accommodate 46,000 spectators.

    The scope of work also covers the construction of auxiliary facilities, including training academy offices and two hotels, as well as retail and food and beverage outlets.

    The firms had initially submitted bids on 8 April for the contract.

    The stadium is scheduled to host 32 Fifa World Cup tournament games in 2034.

    In August last year, MEED reported that Saudi Arabia plans to build 11 new stadiums as part of its bid to host the 2034 Fifa World Cup.

    Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

    The proposal outlines an additional 10 cities that will host training bases. These are Al-Baha, Jazan, Taif, Medina, Al-Ula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

    The bid proposes 134 training sites across the kingdom, including 61 existing facilities and 73 new training venues.

    The kingdom was officially selected to host the 2034 Fifa World Cup through an online convention of Fifa member associations at the Fifa congress on 11 December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14228507/main.jpg
    Yasir Iqbal