Saudi construction project ramp-up accelerates
8 March 2023

Saudi Arabia’s construction projects market is charting an ever-more dynamic growth trajectory, underpinned by progress on the kingdom’s mega and gigaprojects.
The country was the GCC’s most active projects market for construction contractors for the third year running in 2022, with $32.4bn-worth of construction and transport contracts awards, according to MEED Projects.
It was also the third consecutive year of growth for Saudi construction contract awards, which rose by 58 per cent last year, up from $20.6bn in 2021. This, in turn, was up 38 per cent from the $14.8bn-worth of awards in 2020.
Construction sector awards accounted for 58 per cent of the total $55bn-worth of Saudi contract awards in 2022 across all sectors.
Gigaprojects drive
After the 2022 reveal of The Line, the 170-kilometre-long structure planned for the $500bn Neom project, February 2023 saw the kingdom launch New Murabba, a masterplan to create the world’s largest modern downtown in Riyadh.
As its centrepiece, the masterplan will feature a cubic skyscraper titled the Mukaab, a Najdi-inspired landmark that will be one of the biggest buildings in the world upon completion, at 400 metres high, 400 metres wide and 400 metres long.
The overall development will cover an area of 19 square kilometres, nearly five times the size of Dubai’s downtown, which spans two square kilometres and was built at an estimated cost of AED73bn ($20bn). While the total budget for the Riyadh scheme is not yet announced, its estimated cost could exceed $100bn.
Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund (PIF), is also considering plans for a 2km megatower in Riyadh. The proposed tower would be more than double the height of the world’s tallest building – Dubai’s Burj Khalifa, which is 828 metres tall. Depending on the final design, contractors that have priced megatall towers in the region say a 2km-tall structure could cost about $5bn to construct.
New Murabba will be developed by the New Murabba Development Company, which is backed by the PIF. It could also be added to the official list of PIF gigaproject developments, alongside Neom, the Red Sea Project, Qiddiya, Roshn and Diriyah Gate.
According to MEED’s Saudi Gigaprojects report, the kingdom's gigaprojects could award up to $569bn-worth of contracts from 2021 through 2025, financing and contracting capacity permitting.
However, even a fraction of such a total would be a step change for the regional projects market, which saw $172bn-worth of work awarded from 2016 to 2021.
Saudi Arabia’s contract awards in the last quarter of 2022 were dominated by Neom’s infrastructure and earthworks packages. Five of the top 10 largest construction awards in 2022 and 2023 so far have been for Neom projects.
Other dynamic projects include the $30bn King Salman International airport; the $15bn Al-Ula development; the Royal Commission for Riyadh City's $23bn King Salman International Park, Green Riyadh and Sports Boulevard projects; Saudi Entertainment Ventures' (Seven) $5bn entertainment complexes; the $3bn Asir project; and Neom's $2bn Trojena lake project known as ‘The Vault’.
Urban regeneration
Alongside the redevelopment of Riyadh, the kingdom is also pursuing a much broader series of regeneration schemes across its major cities as part of Saudi Vision 2030.
In February, the country kicked off a major Jeddah waterfront project, part of a 15-year Historic Jeddah Revitalisation programme. The same month, US-headquartered Parsons was awarded a $15m contract to provide construction project management consultancy and contract administration services (PMCM) for the Rua al-Madinah project in Medina city.
The Rua al-Madinah project represents the first phase of the Madinah Central Area development and is projected to add $37bn to Saudi’s GDP and create 93,000 jobs. Rua al-Madinah Holding Company, another PIF subsidiary, is developing the scheme.
Last October, PIF invited firms, through its Saudi Downtown Company (SDC), to submit bids for contracts to provide project management services for 12 $500m urban downtown redevelopment schemes in cities across the kingdom.
Prospects for 2023
With more than $120bn-worth of projects in the pipeline for 2023, the outlook remains strong for the construction and transport sectors. Alongside Saudi Arabia’s masterplans, there are also a variety of public transport projects, logistics platforms and railways in the procurement process as part of the kingdom’s National Transport and Logistics Strategy.
The planned rise in government capital expenditure to SR1,114bn in 2023, up from SR955bn in 2022, supports the ramp-up in project activity.
The Ministry of Finance’s key 2023 budget spending objectives in construction include building affordable housing for 120,000 families, developing nearly 1 million sq m of parks, and building 176 ready-made industrial units together with the infrastructure for a further 56 million sq m of industrial plots. The affordable housing plans are part of a Ministry of Housing Sakani programme to raise the home-ownership ratio to 70 per cent by 2030.
The Saudi budget also affirmed that by 2025, PIF plans to invest SR1tn in new projects.
Amid subdued activity in neighbouring countries, Saudi Arabia has become the prevailing focus for GCC contractors, with local and international contractors pivoting towards the kingdom and away from Qatar and the UAE.
“We are focusing on projects in Saudi Arabia. The job is there, not elsewhere anymore,” says a contracting source from a UAE national company.
Locally, the build-up of construction activity will be spearheaded by the creation of national champions in the contracting sector, with PIF investing $1.3bn in four local construction companies: Al-Bawani Holding Company, Almabani General Contractors Company, El-Seif Engineering Contracting Company and Nesma & Partners Contracting Company.
Image: Red Sea Global signs hotel management agreement with Fairmont to operate resort in first phase of development at the Red Sea Project
Exclusive from Meed
-
Contractors compete for Riyadh airport Terminal 6 work2 November 2026
-
Contractors prepare bids for Morocco power line2 November 2026
-
Adnoc Onshore allows more time for Bab gas cap well tie-in bids2 November 2026
-
Gulf ministers insist Hormuz is still essential2 November 2026
-
Bahrain’s Gateway Gulf brings $20bn of deals2 November 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Contractors compete for Riyadh airport Terminal 6 work2 November 2026

Contractors are preparing bids for the main construction contract for Terminal 6 at King Salman International airport (KSIA) in Riyadh.
MEED understands that the consortiums have been given until January to submit their proposals.
The participating consortiums are:
- Al-Gihaz Holding / TAV Construction / Webuild (local/Turkiye/Italy)
- Modern Building Leaders / Powerchina / Metallurgical Corporation of China (loca/China/China)
- UCC Holding / Consolidated Contractors Company (Qatar/Greece)
Last month, MEED exclusively reported that contractor teams have completed the early contractor involvement phase of the project.
Under the completed phase, the shortlisted teams submitted detailed construction methodologies and technical design proposals.
King Salman International Airport Development Company (KSIADC) is a subsidiary of Saudi sovereign wealth vehicle the Public Investment Fund.
Terminal 6 is planned to boost the airport’s annual capacity by 40 million passengers. KSIADC aims to complete the terminal ahead of Expo 2030 Riyadh.
In May 2025, MEED reported that US-based Bechtel had been appointed as delivery partner for the passenger terminals at KSIA.
UK-based Foster + Partners designed the masterplan, including the terminals, six parallel runways and a multi-asset real estate district.
US-based engineering firm Jacobs is providing specialist consultancy services for the masterplan and runway design, while UK-headquartered Mace is acting as delivery partner for the broader development. Local firm Nera secured the airspace design consultancy contract.
The KSIA project covers about 57 square kilometres (sq km) and incorporates the existing terminals at King Khalid International airport. The scheme will feature 12 sq km of airport support facilities, residential and recreational zones, retail assets and logistics parks.
The development is targeted to handle up to 120 million passengers a year by 2030 and 185 million passengers by 2050, in addition to an annual cargo throughput of 3.5 million tonnes by 2050.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21087339/main.jpg -
Contractors prepare bids for Morocco power line2 November 2026

Contractors are preparing bids for a 160-kilometre (km), 400kV transmission line linking Guercif and Fes East in Morocco, following a site visit on 1 October.
The project is being developed by the Office National de l'Electricite et de l'Eau Potable (Onee) to connect the Saka solar photovoltaic power plant to the national electricity grid.
According to sources, at least eight contractors attended the site visit last month, including:
- Butec (Lebanon)
- CEEC Northeast Electric No.2 (China)
- Cegelec (France)
- EPME Electric (Morocco)
- Hideleco (Egypt)
- Kec International (India)
- PowerChina (China)
- Transrail (India)
The project comprises two lots. The first involves a 90km transmission line between Guercif and Taza, while the second covers a 70km section between Taza and Fes East.
The scope of work includes the construction of tower foundations, installation of transmission supports and conductors, and associated high-voltage equipment. It also includes optical fibre cables for communications and monitoring, access roads and other supporting infrastructure.
The tender was issued in September with bids originally due by 21 October. The deadline has now been extended to 25 November.
The project is part of a wider programme by Onee to expand Morocco's electricity transmission network and accommodate additional renewable energy capacity.
In June, the utility commissioned a 274km, 400kV transmission line linking Chemaia and Mediouna, near Casablanca.
Onee plans to expand its high- and extra-high-voltage transmission network from more than 30,700km to 37,000km by 2030.
In August, it approved a $26.4bn investment programme for the 2026-30 period, covering electricity and drinking water infrastructure.
The programme has allocated about $21.9bn to electricity projects and $4.5bn to drinking water infrastructure, with about 72% of the investment to be financed by the private sector, according to Onee.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21083507/main1257.jpg -
Adnoc Onshore allows more time for Bab gas cap well tie-in bids2 November 2026

The onshore business of Abu Dhabi National Oil Company (Adnoc Onshore) has allowed contractors more time to prepare proposals for a project to tie in gas-producing and injection wells at the gas cap reservoirs of Abu Dhabi’s onshore Bab field.
The well tie-in scope, estimated to be worth more than $800m, forms part of Adnoc Group’s wider integrated Bab gas cap development programme.
The overall programme is being led and overseen by Adnoc Gas, another Adnoc Group subsidiary. Its central element is the construction of gas-processing infrastructure to handle incremental gas output expected from developing the Bab gas caps.
Adnoc Onshore issued the main tender for engineering, procurement and construction (EPC) works on the project in late September, MEED previously reported.
Contractors have been given until 16 November to submit technical bids for the project, according to sources. The previous deadline was 29 October.
MEED previously reported that Adnoc Onshore issued an expressions of interest (EoI) notice for the Bab gas production and injector well tie-in project on 13 May, with contractors submitting responses by 20 May.
The scope of work on the project covers the following:
- Tie-in of 99 new wells from Bab gas cap reservoirs KH-2, SH-1 and LK-1 (60 gas producers and 39 gas injectors);
- Installation of well gathering structures: 10 gas pads, six well bays and three virtual pads;
- Installation of a gas gathering network and a gas injection network;
- Rerouting of the LK-3 production from the existing trunkline in Remote Manifold Station 3 (RMS-3) to the project’s production trunkline, Bab Gas TL-2;
- Demolition of the existing 10-inch trunkline from RMS-3 to onshore gas development phase one.
In the EoI document, Adnoc Onshore said it intends to award the EPC contract in the last quarter of the year, with a 45-month duration of works.
Bab gas cap project infrastructure
As part of its 2030 upstream production increase goals, Adnoc Group is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field development – Thammama A, Thammama B, Thammama F and Thammama H.
While the Thammama A, B and H reservoirs are estimated to collectively produce 1.45 billion cubic feet a day (cf/d) of gas, output from the Thammama F gas cap is expected to be at a rate of 396 million cf/d.
Existing trains at the Habshan processing complex in Abu Dhabi will be unable to handle the new gas volumes. Therefore, Adnoc Gas is required to build new facilities to process an additional volume of up to 1.85 billion cf/d of raw gas.
Adnoc Gas is planning to build a gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi, along with associated pipeline networks and other ancillary units, as part of the broader Bab gas cap development project. It has divided the EPC scope of work on the project into four packages:
- EPC package 1 – Main Bab gas cap plant
- EPC package 2 – Early civil works
- EPC package 3 – Pipelines
- EPC package 4 – Non-process area works
Abu Dhabi Securities Exchange-listed Adnoc Gas issued the tender for the main Bab gas cap plant on 25 June and set an initial deadline of 17 July for contractors to submit technical bids. The company then extended the technical bid submission deadline by four months, until 16 November, MEED previously reported.
Following a reshuffle of the consortiums gearing up to bid for the main Bab gas plant EPC package, estimated to be worth more than $6bn, the following teams have formed to compete in the main contract tendering round:
- Larsen & Toubro Energy Hydrocarbon (India) + Petrofac Emirates (UAE)
- Technip Energies (France) + JGC Corporation (Japan) + Sinopec (China)
- Tecnimont (Italy) + China Petroleum Engineering and Construction Corporation (CPECC)
The other three packages of the Bab gas cap project are also in the main contract tendering stages.
Prior to issuing the EoIs for the project packages, Adnoc Gas completed an early engagement process with contractors in September and October last year, as MEED previously reported.
In December last year, Adnoc Gas awarded the front-end engineering and design (feed) works for the development project to Australia-based consultancy Worley. The feed contract has a duration of more than 1.2 million man-hours, making it the largest-ever engineering job awarded by Adnoc Gas.
Bab Gas Cap concession
In addition to Adnoc Gas overseeing the main EPC tendering exercise for the gas processing plant, Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) awarded concession agreements in June for the development and production of the Bab gas cap reserve.
Adnoc will hold the majority 60% participating interest in the concession. The remaining stakes will be held by France’s TotalEnergies (10%), the UK’s BP (10%), China National Petroleum Corporation International (8%), Japan Oil Development Company Onshore (5%), China ZhenHua Oil (4%) and Korea GS E&P (3%).
According to the SCFEA, the Bab gas cap development and production concession represents the largest gas cap development project of its kind globally, the Abu Dhabi Media Office said in a report.
A gas cap refers to the free natural gas that sits above an underlying oil reservoir – in this case, the Bab onshore oil field in Abu Dhabi.
The project, operated by Adnoc Onshore, is expected to have a production capacity of approximately 1.5 billion cf/d of natural gas, equivalent to about 15% of Adnoc Gas’ total operational gas processing capacity.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21083343/main.jpg -
Gulf ministers insist Hormuz is still essential2 November 2026
Register for MEED’s 14-day trial access
Senior Gulf officials have rejected suggestions that new pipelines and rail links will allow the region to do without the Strait of Hormuz, arguing that the waterway will remain essential to the GCC and the global economy.
Speaking at the Gateway Gulf investment forum in Manama on 1 November, GCC secretary-general Jasem Mohamed Albudaiwi said keeping the strait open is the responsibility of the international community, not of any one country or group of partners. "We hear some voices that maybe we should seek alternatives to Hormuz," he said. "Fine, we will get the pipelines. We will get the GCC railway. But that doesn't mean Hormuz is nobody's business."
Albudaiwi called for the strait to remain open in line with international law, including the 1982 UN Convention on the Law of the Sea.
Shipping through the strait has been severely restricted since the US and Israel launched strikes on Iran on 28 February and Iran retaliated with attacks on GCC states and commercial vessels.
Bahrain's Finance & National Economy Minister, Sheikh Salman Bin Khalifa Al-Khalifa, said building redundancy makes sense, but treating the strait as dispensable does not. He said the waterway carries 30% of global liquefied natural gas (LNG) exports, 20% of aluminium exports and 30% of fertiliser exports. "Any thinking about the alternative of Hormuz, as in we won't need it, is illogical, because we will need it for the world economy," he said.
UAE Economy & Tourism Minister Abdulla Bin Touq Al-Marri said that "Hormuz matters, and Hormuz will keep mattering", adding that an economy dependent on a single trade route is exposed if that route closes.
Sheikh Salman said the crisis has compressed years of GCC customs negotiations into weeks. During the conflict, containers cleared at Jeddah with final destinations in Bahrain or Kuwait moved on without further checks, and the same applied to cargo routed through Salalah and Fujairah, he said. GCC ministers have since agreed to make these emergency measures permanent.
He also cited Gulf Air operating out of Saudi airports for more than 40 days without a written agreement, and a $5bn swap between the UAE and Bahraini central banks to stabilise currencies.
Bin Touq said the bloc should use 2027 and 2028 to push through reforms, including removing remaining customs barriers between member states.
Albudaiwi said GCC leaders meeting in Jeddah on 28 April had tasked the secretariat with advancing water connectivity, expanding the GCC electricity grid, planning new logistics infrastructure including ports, accelerating the GCC railway and enhancing oil and gas pipeline links.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21080732/main4958.jpg -
Bahrain’s Gateway Gulf brings $20bn of deals2 November 2026
More than 110 announcements worth over $20bn will be made at the Gateway Gulf Investment Forum in Bahrain, according to the country's finance minister.
"Over the next two days at Gateway Gulf, more than 110 announcements worth over $20bn will be made," Sheikh Salman Bin Khalifa Al-Khalifa, Finance & National Economy Minister, said at the opening of the forum's fourth edition on 1 November in Bahrain.
He said the announcements will cover new partnerships, investments, projects and jobs. Sheikh Salman addressed an audience that included Bahrain's Crown Prince and Prime Minister, Prince Salman Bin Hamad Al-Khalifa.
The minister said the region's economies have been "tested as never before" since the previous edition of the forum a year earlier.
"In the face of unprecedented attacks, we did not waver," he said. He added that Bahrain has chosen to work more closely with its allies and partners to defend what it has built.
Sheikh Salman said the Gulf economy has grown to $2.4tn in GDP. Non-oil sectors account for more than 86% of Bahrain's GDP and more than 77% across the Gulf, he said.
He said Gulf banks hold more than $4tn in assets, while the region's sovereign wealth funds manage more than $5tn of investments. "These numbers describe a region that has chosen to build a more stable, a more prosperous future for its people," he said. "Bahrain is the gateway to that region."
The minister said Bahrain is focusing on regulation, infrastructure and people to attract investment.
He said the country has developed a regulatory framework over several decades that is "clear, modern and fast", allowing investors to commit with confidence.
On infrastructure, he highlighted logistics, connectivity, digital networks and industrial land as areas where Bahrain is building the foundations for businesses to expand. He also named finance, logistics, tourism, manufacturing, technology and telecommunications, and oil and gas as the sectors into which he expects domestic, regional and international capital to flow.
He said the investments will create jobs for young graduates and support the growth of family businesses.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21080593/main2015.jpg
