meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia plans $1 trillion capital

26 July 2023

 

Register for MEED's guest programme 

In late June, a Saudi delegation led by Crown Prince Mohammed bin Salman visited Paris to present Riyadh’s bid for hosting Expo 2030 to the Bureau International des Expositions.

The reveal of the masterplan for the $7.8bn Expo site is the latest move by Riyadh to make the Saudi capital one of the world’s top 10 cities with a population of 15-20 million. 

Prince Mohammed set out the objectives in January 2021. “Our target is to have Riyadh become one of the top 10 largest city economies in the world.

“Today it is ranked among the top 40 largest city economies worldwide. Our target is to increase its population from 7.5 million to around 15-20 million in 2030,” he said in a broadcast interview with former Italian Prime Minister Matteo Renzi. 

Prince Mohammed explained the rationale for doubling the size of Riyadh. “There is no doubt that the world economies are not only based on countries but rather cities. Eighty-five per cent of the world economy comes from cities, and in the next few years, this number will increase to 95 per cent.” 

Riyadh’s assets

Developing Riyadh will build on its existing strengths. “Riyadh has very special features. Today Riyadh represents about 50 per cent of the non-oil economy in the Kingdom of Saudi Arabia,” said Prince Mohammed. 

“The cost of job creation is 30 per cent less than in other cities in Saudi Arabia. The cost of infrastructure and real estate development is 29 per cent less.”

Heading off any questions about Riyadh’s ability to deliver such ambitious plans, Prince Mohammed referred to the city’s historical growth.

“The infrastructure is already quite outstanding because of the work done by King Salman over a period of more than 58 years, during which he managed to grow a city of 150,000 residents into a metropolis of 7.5 million people,” he said. 

Turning these plans into reality will require massive investment. Speaking at the Expo presentation in June, Minister of Investment Khalid al-Falih revealed that $1tn of investment is planned for the Saudi capital. He said Saudi Vision 2030 targets national-level investments of over $3.3tn by the end of the decade, with at least 30 per cent allocated to the city of Riyadh. 

Construction boom

Riyadh is already experiencing an uptick in construction activity, according to data from regional projects tracker MEED Projects. Since bottoming out in 2017 during the austerity-driven years following the 2014 collapse in oil prices, the annual total of contract awards has been steadily climbing.

In 2022, there were $12.2bn in contract awards, the highest on record since 2013, when there were $32bn of awards. The total in 2013 was boosted by the $23bn of contract awards signed in one day for the Riyadh metro. Without those awards, 2022 would be Riyadh’s best year for project activity.

There were $12.2bn of awards in 2022, the highest since 2013

More awards are expected. There are nearly $9bn of contracts at the bid evaluation stage, which, if awarded this year, will push the annual total to over $20bn. Looking further ahead, there are another $9bn of contracts at the bidding stage and $6bn at prequalification. There are $110bn in design and $60bn under study. 

The future pipeline includes some of the most ambitious projects to be launched in Saudi Arabia over the past year.

In February, New Murabba Development Company was launched to develop the world’s largest modern downtown on 19 square kilometres of land at the intersection of King Salman and King Khalid roads to the northwest of the city. The project includes the cube-shaped Mukaab building, which will be 400 metres high, 400 metres wide and 400 metres long.

Contractors win New Murabba early works deals

In November last year, King Salman International airport was launched. If completed on time in 2030, it will become the world’s largest airport in terms of passenger capacity, accommodating up to 120 million passengers by 2030 and 185 million by 2050. It will cover an area of about 57 square kilometres, allowing for six parallel runways.

There are also projects that have not yet been announced. The Public Investment Fund is understood to be close to appointing an architect for a 2-kilometre-tall tower in the north of the city. Once the project is completed, it will be more than double the height of the world’s tallest building: Dubai’s 828-metre-tall Burj Khalifa.

Another major building programme could emerge if Riyadh succeeds in its bid to host football’s Fifa World Cup in 2030 with Egypt and Greece. 

These projects will join others that have moved into construction over the past few years, such as Diriyah Gate, King Salman Park, Sports Boulevard, Roshn’s Sedra and Warefa developments, Saudi Entertainment Ventures’ Exit 10 and Exit 15 projects and Qiddiya entertainment city. 

As the project workload builds, the race to deliver has started. Competition for resources has risen, putting upward pressure on prices. In its latest global construction costs report, UK consultant Turner & Townsend said the Riyadh market is already overheating and will warm further in the future. 

With so much activity pinned on Vision 2030 and possibly Expo 2030 and the 2030 World Cup, there are questions about what comes next. Unlike Doha after the 2022 World Cup, and to a lesser extent Dubai Expo, there are more major events coming to Riyadh, including the 2034 Asian Games, which it secured in December 2020.

Main image credit: Riyadh Expo 2030

https://image.digitalinsightresearch.in/uploads/NewsArticle/11030775/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Three bids submitted for Riyadh-Qassim IWTP

    18 September 2025

     

    Register for MEED’s 14-day trial access 

    State water offtaker Saudi Water Partnership Company (SWPC) has received three bids from the private sector for the development of the Riyadh-Qassim independent water transmission pipeline (IWTP) project.

    The bids were submitted by two consortiums and one individual company.

    The first consortium comprises Saudi firms Al-Jomaih Energy & Water, Al-Khorayef Water & Power Technologies, AlBawani Capital and Buhur for Investment Company.

    The second consortium comprises Bahrain/Saudi Arabia-based Lamar Holding, the UAE's Etihad Water & Electricity and China’s Shaanxi Construction Installation Group.

    The third bid was submitted by Saudi Arabia's Vision Invest.

    In August, MEED exclusively reported that SWPC had extended the bid submission deadline again for a contract to develop and operate the project. 

    The deadline for bids was 17 September.

    The project will have a transmission capacity of 685,000 cubic metres a day. It will include a pipeline length of 859 kilometres (km) and a total storage capacity of 1.59 million cubic metres.

    The scheme is the third IWTP contract to be tendered by SWPC since 2022.   

    The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which was awarded to a team of Riyadh-based companies comprising Al-Jomaih Energy & Water, Nesma Group and Buhur for Investment Company.

    Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model.

    Commercial operations are expected to commence in the first quarter of 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14691078/main.jpg
    Mark Dowdall
  • Saudi Arabia seeks firms for six renewable projects

    17 September 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), has invited interested companies to prequalify for the contracts to develop and operate solar photovoltaic (PV) and wind independent power producer (IPP) projects with a total combined capacity of 5,300MW.

    The following schemes comprise round seven of the kingdom's National Renewable Energy Programme (NREP):

    • 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf Province)
    • 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail Province)
    • 600MW Tathleeth solar PV IPP (Tathleeth, Aseer Province)
    • 500MW South Al-Ula solar PV IPP (Al-Ula, Medina Province)
    • 1,300MW Bilgah wind IPP (Bilgah, Medina Province)
    • 900MW Shagran wind IPP (Shagran, Medina Province)

    These projects are part of the NREP, which aims to achieve an optimal energy mix and supply 50% of the kingdom's electricity from renewable energy by 2030.

    Earlier rounds under the NREP have already put in place large capacities.

    Round six solicited around 4,500MW of solar and wind projects:

    • 1,500MW Dawadmi wind IPP  (Riyadh)
    • 1,400MW Najran solar PV IPP (Najran)
    • 600MW Samtah solar PV IPP (Jizan)
    • 600MW Al-Darb solar PV IPP (Jizan)
    • 400MW Al-Sufun solar PV IPP (Hail)

    In April, MEED reported that prequalified developers were forming teams to bid for the contracts to develop solar farms under the sixth round of the NREP.

    A separate set of bidders were prequalified for the 1,500MW Dawadmi wind farm, with contracts due to be awarded before the end of the year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14684103/main3708.jpg
    Mark Dowdall
  • Qatar tenders Smaisma infrastructure contract

    17 September 2025

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting construction firms to bid for the remaining works on roads and infrastructure in the small seaside town of Smaisma.

    The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.

    The scope of work includes the completion of the remaining works and remedial works on three zones. Each zone is further divided into three sub-zones.

    The scope also covers the remaining works on road C1017.

    The contract duration is two years from the start of construction works.

    The tender was floated on 15 September with a bid submission date of 28 October.

    The latest notice follows the tendering for the construction of roads and infrastructure in Wadi Al-Banat North (Zone 70).

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14682452/main.jpg
    Yasir Iqbal
  • Dragon Oil to boost exploration and production in Egypt

    17 September 2025

    Register for MEED’s 14-day trial access 

    Dubai-based Dragon Oil has signed a deal with the state-owned national oil company Egyptian General Petroleum Corporation (EGPC), agreeing to increase exploration and production activities in the Gulf of Suez.

    Under the terms of the agreement, Dragon Oil will make investments worth about $30m.

    This will fund activities including a programme to drill at least two new wells in the East El-Hamd area.

    Abdulkarim Ahmed Al-Mazmi, the acting chief executive of Dragon Oil, said: “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability.”

    Dragon Oil is wholly owned by Emirates National Oil Company, which is fully owned by the Government of Dubai.

    Al-Mamzi said that the new investments are part of Dragon Oil’s broader strategy to expand in regional markets and to strengthen its position in the oil and gas sector, in line with the directions of the government of the UAE, and in particular the Government of Dubai.

    The agreement was signed at the EGPC headquarters in Cairo.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680456/main.png
    Wil Crisp
  • Construction launched for final major projects of Iraq’s GGIP

    17 September 2025

    Register for MEED’s 14-day trial access 

    Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.

    The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).

    The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.

    Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.

    An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.

    In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”

    The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.

    Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.

    The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.

    The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.

    The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.

    In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.

    The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.

    An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.

    Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.

    “In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.

    “All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.

    “Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”

    Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680455/main.png
    Wil Crisp