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
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Redefining the region’s arbitration landscape27 March 2026

In the midst of increasing international investments and commercial transactions in the Middle East, arbitration remains a key component for the resolution of complex commercial disputes. Its effectiveness, however, depends not only on arbitral tribunals, but also on how national courts define their roles in oversight and enforcement.
Recent trends in the Middle East have shown a more disciplined judicial approach with a clearer delineation of roles between courts and arbitral tribunals.
Enforcement: a narrower approach
Enforcement of foreign awards has been a key area of development.
In the UAE, the Committee for the Unification of Federal and Local Judicial Principles ruled in Petition No. 1 of 2025 that an award shall be valid and enforceable provided the arbitrators sign only the final page. Referring to earlier Dubai Court of Cassation decisions (1), the Committee noted that procedural rules should not be used to defeat substantive rights and that legal procedures are meant to serve justice, not to create technical barriers.
The Dubai Court of Cassation adopted the same approach, confirming that arbitrators are not required to sign every page of the award and that issues already examined during arbitration, including signatory capacity, cannot be reopened at the enforcement stage. (2)
A similar emphasis on clarity can be seen in Saudi Arabia, where the Arbitration Law is currently under review, with the aim of modernising the legislative framework and enhancing predictability. The draft reform includes clearer provisions regarding court–tribunal interaction, permits courts to stay annulment proceedings or enforcement challenges for up to 60 days to enable tribunals to cure defects, and confirms that partial and interim awards have the authority of a final judgment and are directly enforceable.
The ADGM and Dubai Courts have also introduced a system of reciprocal enforcement of ratified arbitral awards without the need to re-examine the underlying award.
These developments therefore suggest a narrower approach and a reduced scope for expansive review at the enforcement stage.
Recent trends have shown a more disciplined judicial approach with a clearer delineation of roles between courts and arbitral tribunals
Judicial intervention: limits of review
Courts have also refined the scope of annulment and supervisory review.
The Abu Dhabi Court of Cassation clarified that annulment is not an appeal on the merits. Courts may not reweigh evidence or revisit a tribunal’s interpretation of the law. The grounds of annulment remain limited to the statutory grounds set out in the Federal Arbitration Law. (3)
Egyptian courts likewise limit grounds for annulment to exhaustively listed statutory grounds, excluding reassessment of the merits.
In the wider regional landscape, Morocco’s arbitration reform demonstrates a similar trajectory. The updated framework modernises the regime and clarifies the supportive role of domestic courts, reinforcing a structured balance between oversight and arbitral autonomy.
Across these jurisdictions, review powers are increasingly exercised within defined legal parameters rather than through re-examination of arbitral reasoning.
Public policy: a limited exception
Public policy continues to be a ground for refusing enforcement, but recent decisions suggest it is applied with greater restraint. For instance, in the UAE, the imposition of compound interest is not considered to be in contravention of public policy. (4) At the DIFC level, the Court specified that the refusal on public policy grounds is subject to a high standard and is only justified where enforcement would “violate the forum state’s most basic notions of morality and justice”. (5)
Saudi Arabia recognises sharia compliance and public policy as potential grounds for refusal. While rooted in the foundations of its legal system, they operate within defined statutory boundaries.
Public policy therefore functions as a defined safeguard rather than a vehicle for broad review.
Implications for cross-border activity
Where enforcement review is confined to the grounds set out in the New York Convention and annulment remains limited to statutory bases, the interaction between tribunals and courts becomes more predictable. In disputes involving assets across multiple states, this delineation contributes to greater certainty at the post-award stage.
The complementary role of the ICC
Institutional practice operates alongside these developments.
The ICC Court and its Secretariat ensure proceedings are conducted with care, independence, impartiality and integrity, in strict compliance with the Court’s obligations and duties under its rules. In doing so, the Court and the Secretariat monitor cases to safeguard due process and procedural fairness.
One of the distinctive features of ICC arbitration and a cornerstone of the Rules is the Court’s scrutiny of all draft awards. Such a process serves to enhance the quality of the award, improve its general accuracy and persuasiveness; and maximise its legal effectiveness by identifying any defects that could be used in an attempt to have it set aside at the place of arbitration or resist its enforcement elsewhere.
In complex, multi-contract and multi-jurisdictional disputes, this scrutiny plays an important role in safeguarding enforceability across different jurisdictions.
As courts continue to define the limits of intervention, institutional discipline and judicial oversight increasingly operate side by side, reinforcing confidence in arbitration across the Middle East.
1. Dubai Court of Cassation – Cases No. 109/2022 and No. 403/2020 2. Dubai Court of Cassation – Appeals Nos. 778 and 887 of 2025 3. Abu Dhabi Court of Cassation – Cases Nos. 1115/2024 and No. 166/2024 4. Dubai Court of Cassation – Appeals Nos. 778 and 887 of 2025 5. DIFC Court of Appeal’s decision dated 9 January 2025
About the author
Laetitia Rabbat is deputy counsel, ICC International Court of Arbitration, Abu Dhabihttps://image.digitalinsightresearch.in/uploads/NewsArticle/16145450/main.gif -
Algeria tenders multibillion-dollar railway construction27 March 2026
Algeria’s state railway company, the Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has tendered two contracts worth more than $2.5bn for the construction of the Laghouat-Ghardaia-El-Meniaa railway line.
The contract scope covers the construction of 495 kilometres (km) of railway in two sections, the acquisition of rolling stock and other associated works.
The tenders were issued on 25 March, with bids due by 24 May.
The first line will run between Laghouat and Ghardaia, covering 265km. It will include 21 viaducts, one tunnel, 55 pipe crossings and five stations.
The project is split into four sections:
- Section A: Laghouat-Bellil (72.6km)
- Section B: Bellil-Bouzbier (40.4km)
- Section C: Bouzbier-Oued N’chou (69km)
- Section D: Oued N’chou-Metlili (47km)
Passenger trains will operate at up to 220 kilometres per hour (km/h), and freight trains at up to 100km/h. The railway will largely follow national road RN01.
The construction cost of this section is expected to be about $1.4bn.
The second line will run from Ghardaia to El-Meniaa. The 230km railway will start at Metlili station and extend south to El-Meniaa.
The line will serve Mansourah, Hassi Lefhel and El-Meniaa, as well as the planned new town of Hassi El-Gara.
It will comprise six viaducts, 35 railway structures and three stations.
Passenger trains will operate at up to 220km/h, while freight trains will run at up to 100km/h.
This section is expected to cost $1.2bn.
Earlier this month, MEED reported that Anesrif had formally started the procurement process for its multibillion-dollar Laghouat-Ghardaia-El-Meniaa railway project.
International and local firms were given until 8 March to submit expressions of interest for the overall client’s engineer role on the 495km development.
Consultancies were also given until 12 March to bid for two separate contracts covering project supervision and control of the first 265km section between Laghouat and Ghardaia, and the 230km line between Ghardaia and El-Meniaa.
The project received major backing in December last year when the African Development Bank approved a €747.32m ($870m) loan to finance it.
In September last year, MEED reported that Algeria’s Prime Minister, Nadir Larbaoui, had signed an executive decree that “formalised the declaration of public utility of two strategic sections of the future Algiers-Tamanrasset railway line”.
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Dubai Municipality tenders Hatta dams rehabilitation project27 March 2026
Dubai Municipality has invited contractors to bid for an engineering, procurement and construction (EPC) contract for a major dam rehabilitation project in Hatta.
The tender was issued by the Sewerage and Recycled Water Projects Department and covers the rehabilitation and construction of four dams: Hatta, Ghabra, Al-Khattem and Suhaila.
The bid submission deadline is 16 April.
The Hatta, Ghabra, Al-Khattem and Suhaila dams are designed to capture seasonal rainfall, regulate wadi flows and reduce the risk of flash flooding. The dams also support groundwater recharge in the surrounding area.
It is understood that exposure to heavy rainfall and natural wear has affected key structural elements over time and rehabilitation works are required to restore structural integrity.
The project scope involves concrete repairs and leakage control. The contractor will carry out grouting, structural strengthening and downstream protection works, including gabions, shotcrete and erosion control.
The upgrades also include the installation of advanced dam safety instrumentation and monitoring systems. These systems will be connected to SCADA.
Separately, the Ministry of Energy & Infrastructure has been planning a major dam and canals project involving 13 residential areas across the UAE.
The project, approved in 2024 by the Executive Committee for the President’s Initiatives, includes nine water dams, the expansion of two existing ones and the creation of several embankment barriers.
According to MEED Projects, the $100m project will have a total storage capacity of up to 8 million cubic metres.
The project is still in the early stages of development and is forecast to be tendered in 2027.
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Roshn tenders Marafy residential plots in Jeddah27 March 2026

Saudi gigaproject developer Roshn has tendered a contract inviting firms to bid for the development of two mixed-use residential plots at its Marafy project in Jeddah.
The first plot comprises low-rise residential buildings covering more than 92,000 square metres (sq m). The development will feature about 304 residential units.
The second plot comprises canal-side low-rise buildings offering more than 357 residential units across an area of over 96,000 sq m.
The bid submission deadline is 19 April.
Roshn began construction on its Marafy project in February 2024.
The mixed-use development, launched in August 2023, will serve over 130,000 residents and feature an 11-kilometre-long man-made canal.
In October 2023, Roshn awarded a SR690m ($184m) early works contract to the local Projects Company for Marine Services. The contract scope includes ground excavation and shore protection works.
Marafy will comprise several districts, including Roshn’s existing Alarous integrated residential development.
MEED previously reported that Roshn had appointed US-based Jacobs and Wimberly Allison Tong & Goo as the project consultants.
In a statement, Roshn said the Marafy districts will connect to each other and to the rest of Jeddah via an intermodal transport system including water taxis, bus lines, a dedicated metro station and a direct canal link to King Abdulaziz International airport.
Established in 2018, Roshn aims to increase homeownership among Saudi citizens to 70%. The company plans to develop more than 395,000 residential units in Riyadh, Mecca, Asir and the Eastern Region.
Roshn is developing the Sedra community in northeast Riyadh, which is masterplanned to include 30,000 homes built in eight phases.
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