meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia seeks Taif airport PPP interest

5 December 2024

Register for MEED's 14-day trial access 

Saudi Arabia’s Matarat Holding, through the National Centre for Privatisation & PPP (NCP), has invited firms to express interest in bidding for a contract to develop and operate a new international airport in Taif in the country’s Mecca province.

The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport, with a capacity to accommodate 2.5 million passengers by 2030.

Matarat and NCP expect to receive expressions of interest from companies by 10 January 2025.

The invitation is open to interested private sector entities via a public-private partnership (PPP) model under a 30-year build-transfer-operate (BTO) contract, including the construction period.

The BTO project scope includes the new airport. 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 Taif International airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of Taif city 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 a viable 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.

Other airport PPPs

Three other airports, in addition to the Taif International project, comprise the first stage of Saudi Arabia’s latest plan to modernise and privatise its international and domestic airports.

The other planned airport PPP schemes are in Abha, Hail and Qassim.

Matarat and NCP recently prequalified three consortiums and one company that can bid for a contract to develop and operate a new passenger terminal building and related facilities at Abha International airport.

The companies that have been prequalified to bid for the Abha airport PPP contract are:

  • GMR Airports (India)
  • Mada TAV: Mada International Holding (local) / TAV Airports Holding
  • Touwalk Alliance: Skilled Engineers Contracting (local) / Limak Insaat (Turkiye) / Incheon International Airport Corporation (South Korea) / Dar Al-Handasah Consultants (Shair & Partners, Lebanon) /  Obermeyer Middle East (Germany/ Abu Dhabi)
  • VI Asyad DAA: Vision International Investment Company (local) / Asyad Holding (local) / DAA International (Ireland)

Located in Asir province, the first phase of the Abha International airport PPP project is set for completion in 2028. It will increase the airport terminal area from 10,500 square metres (sq m) to 65,000 sq m. 

The contract scope includes a new rapid-exit taxiway on the current runway, a new apron to serve the new terminal, access roads to the new terminal building and a new car park area.

The scope also includes support facilities such as an electrical substation expansion and a new sewage treatment plant.

    The transaction advisory team for the client on the Abha airport PPP scheme comprises UK-headquartered Deloitte and Ashurst as financial and legal advisers, respectively, and ALG as technical adviser.

    Previous tenders

    The Taif, Hail and Qassim airport schemes were previously tendered and awarded as PPP projects using a 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 Tukey’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.

    The latest plan entails transferring the ownership of 35 airports from Gaca to the Public Investment Fund (PIF).

    This is in line with transforming Gaca, which previously managed and operated the airports, into a legislator and regulator.

    The construction, operation and management work for the airports is being referred to Matarat, prior to being transferred to PIF.

    Matarat Holding Company is a subsidiary of Gaca. 

    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.

    Related read: Saudi Arabia to issue third national carrier licence

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13067762/main.jpg
    Jennifer Aguinaldo

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

    Click here to register
    Exclusive from Meed
    Related Articles
    • Egypt signs gas deal with Qatar Energy and Exxon Mobil

      22 May 2026

      Egypt’s Ministry of Petroleum & Mineral Resources has signed a preliminary gas agreement with state-owned QatarEnergy and US-based Exxon Mobil.

      The memorandum of understanding (MoU) focuses on cooperation in the development of natural gas discoveries in Cyprus.

      The plan involves transporting gas from offshore discoveries in Cypriot waters to Egypt via pipelines.

      In a statement, Egypt’s Ministry of Petroleum & Mineral Resources said that the deal would strengthen the North African country’s status as a regional hub for natural gas trading.

      The agreement was witnessed by Egypt’s Prime Minister Mustafa Madbouli.

      It was signed by Muhammad Al-Bajouri, from the legal affairs department of the Ministry of Petroleum & Minerals, and Kanan Nariman, vice-president for the development of liquefied natural gas (LNG) at Exxon Mobil.

      It was also signed by Ali Immunae, director of international exploration and production at QatarEnergy.

      Commenting on the MoU signing, Saad Sherida Al-Kaabi, the minister of state for energy affairs, and president and chief executive of QatarEnergy, said: “This MoU represents an important step in advancing regional energy cooperation across the Eastern Mediterranean through unlocking the long-term commercial potential of natural gas resources across that region.”

      Egypt’s Ministry of Petroleum & Mineral Resources said the agreement paved the way for QatarEnergy and Exxon to take advantage of existing Egyptian infrastructure in the gas sector, especially the country’s existing LNG export terminals.

      Under the terms of the agreement, a study will be conducted to analyse the feasibility of linking the gas discoveries in Cyprus to Egypt’s gas facilities.

      The signatories will also establish a commercial framework aimed at achieving “the maximum possible benefit from natural gas resources in both Egypt and Cyprus”.

      Egypt’s Minister of Oil and Gas Karim Badawi said the ministry has been working with ExxonMobil to explore cooperation on the development of gas discoveries in Cyprus.

      He said the partnership with Egypt would help QatarEnergy and Exxon reduce the cost of developing the discoveries while allowing Egypt to achieve an economic return.

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

      Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

      Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
      To see previous issues of MEED Business Review, please click here
      https://image.digitalinsightresearch.in/uploads/NewsArticle/16944918/main.jpg
      Wil Crisp
    • Wasl Group launches Cedarwood Estates South villas

      21 May 2026

      Dubai-based real estate developer Wasl Group has announced the launch of Cedarwood Estates South, the newest addition to its expanding freehold portfolio in Dubai.

      The project is located within The Next Chapter, Wasl’s development in the Jumeirah Golf Estates area.

      Cedarwood Estates South features 74 villas in four-, five- and six-bedroom layouts.

      The launch follows Wasl Group’s award of a contract to Beijing-headquartered China State Construction Engineering Corporation to develop the overall infrastructure for The Next Chapter.

      The masterplan spans 4.68 million square metres across six districts: Central Park, The Village, Town Centre & Grand Lake, Golf Course North, Golf Course South and Equestrian Village.

      The development will offer 780 villas, 62 mansions, 97 branded residences, 752 estate homes and 10,654 apartments.

      It will also include a five-star Mandarin Oriental resort, a tennis stadium, an 18-hole golf course and academy, an equestrian centre, a school, retail centres and other associated facilities.

      Wasl Group is one of Dubai’s largest real estate development and asset management entities, established in 2008 by the Dubai Real Estate Corporation.

      The company was set up to consolidate and manage a significant portfolio of government-owned real estate assets.

      Headquartered in Dubai, Wasl operates across residential, commercial, hospitality and mixed-use segments, and is known for masterplanned communities and urban regeneration projects.

      Over the years, Wasl has delivered several mid- to large-scale developments and partnered with international hospitality brands through its Wasl Hospitality arm, helping to expand Dubai’s hotel inventory and support the city’s wider tourism and economic growth agenda.

      According to data from regional projects tracker MEED Projects, Wasl Group has a portfolio of over 128 projects, valued at about $18bn.

      Wasl’s major developments include Wasl1, Wasl Gate, Wasl Village and Wasl 51.

      Its asset portfolio includes notable landmarks such as the Mandarin Oriental Hotel, One & Only The Palm, One & Only Royal Mirage, Nikki Beach, Grand Hyatt Dubai, Le Meridien Mina Seyahi Beach Resort & Marina, the Westin Dubai Mina Seyahi Beach Resort & Marina, Dubai Creek Golf & Yacht Club and Emirates Golf Club.

      > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

      https://image.digitalinsightresearch.in/uploads/NewsArticle/16936615/main.jpeg
      Yasir Iqbal
    • Foundations progressing for Iraq gas gathering project

      21 May 2026

       

      The construction of foundations is ongoing for the $1.61bn project to develop a gas processing complex at Iraq’s Ratawi oil and gas field, according to industry sources.

      In May last year, China Petroleum Engineering & Construction Corporation (CPECC) was awarded the engineering, procurement and construction (EPC) work for the project.

      The Ratawi gas processing complex is one of four projects constituting Iraq’s Gas Growth Integrated Project (GGIP), which is being developed by French energy major TotalEnergies and its partners. TotalEnergies is the main operator of the GGIP scheme. Basra Oil Company (30%) and QatarEnergy (25%) are the other stakeholders.

      The consortium formalised the investment agreement for the project with the Iraqi government in September 2021.

      The GGIP is estimated to have a total value of $27bn, and the first phase of the project is worth about $10bn.

      When commissioned, the planned facility is expected to process 300 million cubic feet a day (cf/d) of gas. Its capacity is expected to double when a second expansion phase comes online.

      The Ratawi gas processing facility project aims to improve Iraq’s electricity supply by capturing associated gas that would have otherwise been flared at several oil fields, including:

      • Luhais
      • Majnoon
      • Ratawi
      • West Qurna 2
      • Tuba

      Large volumes of gas are flared from these oil fields, causing significant environmental damage. Collecting and processing flared gas will generate increased hydrocarbon revenues and reduce ecological damage.

      The gas tapped and processed from the oil fields will then be used to supply power plants, helping to reduce Iraq’s power import bill.

      As well as supplying to Iraq’s national gas network to generate electricity, the Ratawi gas processing complex will increase the production of gas products, including liquefied petroleum gas and condensates.

      US-based consultant KBR has performed the front-end engineering and design work on the project.

      GGIP masterplan

      The GGIP programme is focused on developing four major projects in Iraq:

      • The Common Seawater Supply Project (CSSP)
      • The Ratawi gas processing complex
      • A 1GW solar power project for Iraq’s electricity ministry
      • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

      The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

      In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

      Civil works and piping work have started for the project to develop a second central processing facility (CPF) at Iraq’s Ratawi oil and gas field as part of the AGUP portion of the GGIP.

      In September, Turkiye’s Enka signed a contract to develop the second CPF at Iraq’s Ratawi field as part of the second phase of the field’s development.

      Enka has yet to give a value for the contract, but it is believed to be worth more than $1bn.

      In November, US-based KBR was selected by Enka to provide detailed design services for the project.

      Enka’s contract covers the engineering, procurement, supply, construction and commissioning of the CPF for the project.

      The aim of the project is to process oil and associated gas from the Ratawi oil field to increase production capacity to 210,000 barrels a day of oil and 154 million standard cf/d of gas.

      The 1GW Ratawi solar scheme will be developed in phases, with each phase coming online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

      The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

      Separately, in June, TotalEnergies awarded China Petroleum Pipeline Engineering an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

      Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April 2025, worth a combined $11m, under the GGIP scheme.

      The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

      One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 barrels a day of oil on completion of the first phase, according to a statement by Wood.

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

      Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

      Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
      To see previous issues of MEED Business Review, please click here
      https://image.digitalinsightresearch.in/uploads/NewsArticle/16934508/main.png
      Wil Crisp
    • WEBINAR: Iraq Projects Market 2026

      20 May 2026

      Webinar: Iraq Projects Market 2026 
      Thursday 4 June | 11:00 AM GST  |  Register now

      Agenda:

      • Overview of the Iraq projects market landscape
      • 2025-26 projects market performance
      • Value of work awarded 2026 YTD
      • Assessment of key current and future projects
      • Key drivers, challenges and opportunities
      • Summary of the key clients, contractors and consultants
      • Size of future pipeline by sector and status
      • Ranking of the top contractors and clients
      • Short and long-term market outlook
      • Audience Q&A

      Hosted by: Edward James, head of content and analysis at MEED

      A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today, he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

      Click here to register

      https://image.digitalinsightresearch.in/uploads/NewsArticle/16925011/main.gif
      Edward James
    • Surbana Jurong to lead Jeddah airport expansion

      20 May 2026

      Register for MEED’s 14-day trial access 

      Singapore-based engineering firm Surbana Jurong is expected to lead the future expansion and development plans of Jeddah Airports Company (Jedco).

      Surbana Jurong's group CEO, Sean Chiao, met with Jedco's CEO, Mazen Bin Mohammed Johar, earlier this week to explore expanded cooperation.

      The meeting focused on leveraging Surbana Jurong’s international expertise in delivering and managing major projects to help King Abdulaziz International airport (KAIA) scale towards more than 90 million passengers annually by 2030.

      Both sides also discussed talent development for Saudi engineers through Surbana Jurong Academy programmes, mentorship and participation in international airport projects, alongside establishing a joint governance framework and progressing towards a memorandum of understanding.

      Surbana Jurong is delivering project management consultancy services for over 100 capital projects at KAIA, valued at SR3bn ($800m).

      These upgrades will boost KAIA’s annual capacity from 29 million to 114 million passengers by 2030, supporting Saudi Arabia’s Vision 2030 and National Aviation Strategy, and enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

      According to data from regional project tracker MEED Projects, Surbana Jurong is involved in several major projects in the kingdom, including Red Sea Global's Amaala masterplan, the Trojena dams scheme, Oxagon, King Salman International airport and Saudi Arabia Railway's North-South Phosphate Railway 3.

      The firm has also been part of projects in the wider region, including the West Link project, Etihad high-speed rail and Abu Dhabi airport's Midfield Terminal.

      The firm has also secured masterplan project contracts from Abu Dhabi's Department of Municipalities & Transport and Abu Dhabi Ports.

      MEED’s April 2026 report on Saudi Arabia includes:

      > COMMENT: Risk accelerates Saudi spending shift
      > GVT &: ECONOMY: Riyadh navigates a changed landscape
      > BANKING: Testing times for Saudi banks
      > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
      > DOWNSTREAM: Saudi downstream projects market enters lean period
      > POWER: Wind power gathers pace in Saudi Arabia
      > WATER: Sharakat plan signals next phase of Saudi water expansion
      > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
      > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

      To see previous issues of MEED Business Review, please click here
      https://image.digitalinsightresearch.in/uploads/NewsArticle/16922013/main.jpg
      Yasir Iqbal