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• 
  Saudi Landbridge rail scheme to be delivered by 2034

  21 January 2026

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  Saudi Arabia Railways (SAR) has said that it will deliver the Saudi Landbridge project through a "new mechanism" by 2034, after failing to reach an agreement with a Chinese consortium for the construction of the project.

  In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said that the consortium failed to meet local content requirements, and the project will now be delivered in several phases through a different procurement model.

  The project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it on a public-private-partnership basis.

  Al-Malik said that the project cost is about SR100bn ($26.6bn).

  It comprises more than 1,500 kilometres (km) 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 called the Riyadh Link, 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.

  In April last year, MEED exclusively reported that SAR had issued a tender for the lead design consultancy services contract on the Saudi Landbridge railway network.

  MEED understands that the scope covered the concept design and options for the preliminary and issued-for-construction design stages on the network.

  MEED reported that the launch of a design tender directly by SAR suggested that Riyadh was 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 Saudi 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.

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  Yasir Iqbal
• 
  Firms submit bids for Dorra gas scheme PMC

  21 January 2026

  

   

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  Engineering firms have submitted bids to Al-Khafji Joint Operations (KJO) for a tender covering project management consultancy (PMC) for the multibillion-dollar Dorra gas field facilities development project.

  MEED reported last March that KJO was pushing forwards with a project to produce gas from the Dorra offshore field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.

  KJO has divided the engineering, procurement and construction (EPC) scope of work on the project to produce gas from the Dorra field into four EPC packages – three offshore and one onshore.

  The broad scope of services under the tender involves providing PMC for EPC works for the Dorra gas facilities development project.

  Firms submitted bids for the PMC tender by the deadline of 19 January, sources told MEED.

  KJO issued the tender for PMC services for EPC works on the Dorra gas facilities development project on 29 September. Engineering firms were initially given until 24 November to submit bids for the tender, with that deadline then extended until 15 December and then finally until 19 January, according to sources.

  Sources said that the following firms, among others, are understood to be bidding for the PMC tender:

  • Fluor (US)
  • KBR (US)
  • Kent (Saudi Arabia/UAE)
  • Tecnicas Reunidas (Spain)
  • Wood (UK)
  • Worley (Australia)

  KJO hosted a job explanation meeting with the bidders for the tender on 15 October, the sources said.

  KJO offshore and onshore facilities

  KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company (AGOC) and KPC subsidiary Kuwait Gulf Oil Company (KGOC), is moving forward with its Dorra gas field facilities project. KJO has divided the project’s scope of work into four EPC packages – three offshore and one onshore.

  Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has won package 1 of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract awarded by KJO to L&TEH is estimated to be valued between $140m and $150m, MEED reported in October.

  Contractors are presently preparing to submit bids for the remaining three packages — offshore packages 2A and 2B, and onshore package 3 by 26 January, sources told MEED. KJO has extended the bid submission deadlines for these packages multiple times.

  The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables. Package 3 includes the EPC of onshore gas processing facilities.

  Saudi Arabia and Kuwait are pressing ahead with their ambitious plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field, located in the waters of their shared Neutral Zone. Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

  Saudi Arabia and Kuwait have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, both countries have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.

  The Dorra facilities project is one of three major multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field that have been advancing over the past few months.

  AGOC onshore Khafji gas plant

  Meanwhile, AGOC has extended the bid submission deadline for seven EPC packages as part of a project to construct the Khafji gas plant, which will process gas from the Dorra field onshore Saudi Arabia, until 22 April.

  MEED previously reported that AGOC had issued main tenders for the seven EPC packages earlier in 2025. Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for submission of commercial bids, which was then extended by AGOC until 22 December.

  The seven EPC packages cover a wide range of works, including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems, and main operational and administrative buildings.

  France-based Technip Energies has carried out a concept study and front-end engineering and design (feed) work on the entire Dorra gas field development programme.

  Progress has been hampered by a geopolitical dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.

  In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

  Since that show of strength and unity, projects targeting production and processing of gas from the Dorra field have gained momentum.

  KGOC onshore processing facilities

  KGOC has initiated early engagement with contractors for the main EPC tendering process for a planned Dorra onshore gas processing facility, which is to be located in Kuwait.

  KGOC is in the feed stage of the project, which is estimated to be valued at up to $3.3bn, and is now expected to issue the main EPC tender in the second quarter of this year, MEED recently reported.

  The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.

  The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).

  A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility, and discussions regarding survey work are ongoing. The site may require shoring, backfilling and dewatering.

  The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company (KOC), for possible injection into its oil fields.

  Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.

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  Indrajit Sen
• 
  Libya announces $2.7bn Misurata Port expansion

  21 January 2026

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  Libya has announced the $2.7bn expansion of Misurata Port, led by Terminal Investment Limited.

  The consortium comprises Switzerland's Mediterranean Shipping Company and Qatari firm Maha Capital Partners.

  The project is being implemented under a public-private partnership model, and is the first of its kind in the country's non-oil sector

  The expansion aims to increase the port's container-handling capacity to 4 million containers a year.

  Misurata Free Zone (MFZ) is Libya’s largest free zone, spanning an area of 2,576 hectares.

  According to an MFZ statement, the expansion includes:

  • Expanding container-handling capacity to accommodate larger vessels and more complex logistics chains;  
  • Integrating port operations with MFZ’s industrial ecosystem to support small and medium-sized entities, manufacturing and value-added services;
  • Deploying modern terminal equipment and digital systems;  
  • Enhancing safety, performance and environmental standards in line with global benchmarks;
  • Creating long-term employment opportunities.

  The Libyan Prime Minister’s Office said the expanded port is expected to generate around $600m in annual operating revenues, create about 8,400 direct jobs and support nearly 60,000 indirect jobs.

  The investment scope includes:

  • Five ship-to-shore (STS) gantry cranes
  • 10 mobile harbour cranes 
  • Eight rubber-tired gantry (RTG) cranes  
  • 32 reach stackers
  • Eight other pieces of equipment, like trucks and forklifts

  The project's first phase will raise container-handling capacity to 1.5 million 20-foot equivalent units (TEU), increase throughput by 7% and develop and manage berths to 2,000 metres in total.

  It also includes installing six RTG cranes and three STS cranes, developing 56 acres of container yards, building a 2,096-square-metre (sq m) refrigerated container warehouse and constructing an additional 7,500 sq m facility.

  An advanced terminal operating system will also be implemented.

  The second phase will add a further 2.5 million TEUs of capacity, construct a 2,500-metre breakwater, build a new 1,200-metre berth and a new 60-acre container yard, and deepen the port to 17 metres.

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  Yasir Iqbal
• 
  Consultants appointed for Oman mountain destination

  19 January 2026

  London-headquartered engineering firm TP Bennett, Australia’s Robert Bird Group and local firm NJP Oman have been appointed to the design team for Al-Jabal Al-Aali – previously known as the Omani Mountain Destination – a new development on Jabal Al-Akhdar, 150 kilometres from Muscat.

  The destination, being developed by Oman’s Ministry of Housing & Urban Planning, will be the country’s highest-altitude development, at 2,400 metres above sea level.

  Canadian engineering firm AtkinsRealis has prepared the masterplan for the $2.4bn destination, which will include 2,537 housing units, 2,000 hotel rooms, and a health and wellness village called ‘The Vessel’. 

  There will also be a biodiversity centre, health and wellness areas, a high-altitude sports training centre, amphitheatres, museum and parks, and public spaces.

  The development will also include Wadi Al-Harbi Park. It will be served by a new cable-car system and other transport infrastructure under way in the area, including a new access road from the north.

  Oman has launched a series of cities and destinations as part of its Vision 2040.

  These projects form part of the Oman National Spatial Strategy (ONSS), which Sultan Haitham Bin Tariq approved in March 2021 to guide urban growth in the sultanate for the next 20 years.

  The ONSS, which sits within the Ministry of Housing & Urban Planning, is responsible for ensuring projects are located appropriately and for overseeing the development of a new generation of cities across the sultanate.

  The Al-Jabal Al-Aali project began as an idea when Sultan Haitham visited his assets in the area shortly after becoming sultan in 2020. After the visit, he decided to use his land to create a global destination.

  The altitude is crucial because it offers a cooler retreat for those seeking to escape the Gulf’s extreme summer heat.

  Traditionally, property ownership on the mountain was restricted to people from Jabal Al-Akhdar. Under the new development, property will be sold to other Omanis as well as foreign nationals.

  ---

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

  Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

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

  > AGENDA: Saudi real estate to surge in 2026 > CITYSCAPE:  Investors focus on residential sector for new deals > TECH TRENDS: Key technology themes poised to shape 2026  > EVs: Middle East drives electric vehicle revolution > BATTERIES: Batteries shape the region's energy future > LEADERSHIP: Saudi Arabia accelerates its rail revolution  > INTERVIEW: Tabreed finishes the year on a high > CONTRACTORS: Managing risk in the GCC construction market > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch > AIRSHOW: Top deals signed at Dubai Airshow 2025 > MARKET FOCUS: Oman steadies growth with strategic restraint

  To see previous issues of MEED Business Review, please click here

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  Yasir Iqbal
• 
  Oman Ibri 3 solar IPP reaches financial close

  16 January 2026

  Abu Dhabi Future Energy Company (Masdar) and its consortium partners have achieved financial close on the Ibri 3 solar independent power project (IPP) in Oman.

  The project is the sultanate’s first utility-scale solar photovoltaic plant integrated with battery energy storage.

  In a statement, Masdar said financing has been secured from Natixis Corporate & Investment Banking and First Abu Dhabi Bank (FAB). The facilities will cover a substantial portion of the project’s total cost of about $300m.

  The Ibri 3 project will comprise a 500MW solar photovoltaic plant and a 100MWh battery energy storage system. It is being developed for Nama Power & Water Procurement (Nama PWP).

  The consortium developing the project includes Masdar, Korea Midland Power, and local firms Al-Khadra Partners and OQ Alternative Energy.

  The firms signed a power purchase agreement (PPA) with Nama PWP on 22 September, in a ceremony attended by Salim Bin Nasser Al-Aufi, energy and minerals minister.

  China Power Engineering Consulting Group (CPECC) signed the engineering, procurement and construction (EPC) contract for the project in November.

  Once operational, the plant is expected to generate enough electricity to power around 33,000 homes. It will also avoid approximately 505,000 tonnes of carbon dioxide emissions each year.

  The plant will be built in the wilayat of Ibri in Al-Dhahirah Governorate. It will be located on a 10 million-square-metre site next to the 500MW Ibri 2 solar IPP, which was inaugurated in January 2022.

  The project supports Oman Vision 2040, which includes a target to generate 30% of electricity from renewable sources by 2030.

  Commercial operations are scheduled for the first quarter of 2027.

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  Mark Dowdall