meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi gigaprojects propel construction sector

8 March 2024

Latest news on Saudi Arabia’s construction sector:

> Saudi’s Ceer and MBL confirm electric car plant deal
> Dogus and Aces sign Saudi data centres deal
> Four Seasons to develop Red Sea hotel
> Neom appoints architect for Gidori
> Qiddiya unveils Speed Park racetrack
> Foster & Partners wins 2km-tall tower
> PIF firm tenders Jeddah mixed-use project
> Saudi Arabia’s The Rig signs project agreement

 

Following one of the best years for project contract awards in Saudi Arabia, 2024 has so far lived up to expectations, with contracts worth over $8bn awarded in the kingdom’s construction sector in the first two months.

The majority of these awards are for work on the gigaprojects programme, which is backed by Saudi sovereign wealth vehicle the Public Investment Fund (PIF).

In early January, Italian contractor WeBuild secured a record-breaking $4.7bn contract to construct three dams that will create a lake at the centre of the Trojena mountain resort, located within the Neom gigaproject.

The project has an aggressive delivery schedule because the lake – and the surrounding resort and ski slopes – must be ready for the Asian Winter Games in 2029.

Many of Saudi Arabia’s projects have event-driven deadlines and will have to be prioritised and delivered on time.

For example, in February a joint venture of Belgian contractor Besix and local Albawani was awarded an estimated SR3.7bn ($1bn) contract to build a new football stadium in Dammam. The facility will host international tournaments such as the 2027 Asian Football Confederation (AFC) Cup and the 2034 Fifa World Cup.

Major 2024 awards

The other significant contract awards so far this year include a $1.8bn contract by Jeddah Central Development Company (JCDC) for the construction of Jeddah Central Stadium and an estimated SR4.6bn ($1.2bn) contract by Saudi electric car manufacturer Ceer to build its first electric vehicle production plant at King Abdullah Economic City on the kingdom’s Red Sea coast.

JCDC and local contractor Modern Building Leaders also signed two major contracts worth a combined $900m to build an opera house and an oceanarium in the first phase of the Jeddah Central project.

In January, Qiddiya Investment Company also awarded a SR1.8bn ($480m) contract for the construction of a racetrack and associated infrastructure at the Speed Park at the Qiddiya entertainment city gigaproject.

Looking ahead, contract activity is set to continue for both the gigaprojects and the broader Saudi market. According to data from regional projects tracker MEED Projects, schemes worth $56bn are in the bidding phase in the construction sector and are due for imminent award.

Major construction schemes for all five of the official gigaprojects are in the advanced stages. These include Neom’s $8bn community housing public-private partnership (PPP) programme and $6.4bn of construction work at the port at Oxagon.

The other schemes under negotiation include completing the remaining works on what will be the world’s tallest tower. Contractors were allowed until the end of February to submit their bids for the Jeddah Tower.

The market is also awaiting the tender for a contract to build the Mukaab district, the centrepiece of the New Murabba development in Riyadh. The estimated $5.5bn package will encompass the construction works on the Mukaab structure and the surrounding podium areas, covering about 1.7 million square metres.

The other significant gigaprojects-related schemes due for procurement in the coming months include the development of the Superblock Five cluster at Rua Al Madinah, which covers the construction of 18 hotels, and developing an offshore tourism destination in the Gulf called The Rig.

The market will be supported by the announcement that Saudi Arabia will host Expo 2030 in Riyadh. The kingdom has also emerged as the sole bidder to host the 2034 Fifa World Cup, in addition to the AFC Asian Cup in 2027, the Asian Winter Games in 2029 and the Asian Games in 2034.

Burgeoning opportunities

Amid subdued activity elsewhere in the broader GCC region, the kingdom’s construction market has become the prime target for local and international contractors, with its thousands of project packages in the pipeline expected to drive project spending and opportunities for many years to come.

Regional and international contractors are also expected to continue supporting the construction pipeline, while PPP-structured deals are likely to increase as the country’s burgeoning project expenditures and need for financing outstrip the PIF’s capacity.

As the activity ramps up in the country, bigger questions remain: how will Saudi Arabia deliver all of these projects, and does it have a big enough workforce with sufficient expertise to do so?

The PIF’s move to establish national champions in the contracting sector, capable of delivering its giant schemes, was the first step in the process, with the investment of $1.3bn in four local construction companies in February last year. This year, the PIF and National Infrastructure Fund (Infra) have created a construction finance programme to improve contractors’ cash flows and help the industry to deliver projects more effectively.

The changes under way in the Saudi construction sector are truly seismic. All the available assets in the sector – and more – will need to come together to realise the country’s 2030 project ambitions.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11568367/main.gif
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Consortiums prepare bids for Al-Khairan phase one IWPP

    14 May 2026

     

    Two developer consortiums are finalising bids for the first phase of Kuwait’s Al-Khairan independent water and power producer (IWPP) project, the deadline for which has been extended to 1 June.

    The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant. 

    The project is expected to run on Low Sulphur Fuel Oil (LSFO) as the primary fuel and to accommodate crude oil, gas oil, and natural gas as backup fuels. Later phases will further expand capacity.

    The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate, with the following groups currently preparing offers:

    • Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) 
    • Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)

    The two individual companies, Sumitomo Corporation (Japan) and Nebras Power (Qatar), are now “unlikely” to submit a bid, according to a source close to the project.

    It is also understood that the third consortium of China Power, Malakoff International (Malaysia) and Abdul Aziz Al-Ajlan Sons (Saudi Arabia) is no longer bidding for the contract.

    The project is being procured by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    The Al-Khairan IWPP project is part of Kuwait’s long-term plan to expand power and water production capacity through public-private partnerships (PPPs).

    The winning bidder will sign a set of PPP agreements covering financing, design, construction, operation and transfer of the project.

    The energy conversion and water purchase agreement is expected to cover a 25-year supply period.

    Upcoming awards

    Kuwait is also preparing to offer a contract to develop zone one of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    In January, three consortiums submitted bids for a contract to develop Kuwait’s first utility-scale solar photovoltaic (PV) plant.

    The Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP) will have a total power-generating capacity of 1,100MW.

    MEED understands that the preferred bidder announcement will happen after the bid closes for zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    The PPP authority is procuring the 500MW solar photovoltaic IPP in partnership with the ministry.

    The bid deadline for this project was recently extended to 31 May.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16835649/main.jpg
    Mark Dowdall
  • Bidders compete for new Dubai Metro line project

    14 May 2026

     

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) has held a pre-bid meeting for the Dubai Metro Airport Express Line with consultants understood to be competing for work on the project.

    It is understood that the RTA has requested firms to form joint ventures for the project. The firms that attended the meeting include:

    • Aecom (US)
    • Arup (UK)
    • ARX (Switzerland)
    • AtkinsRealis (Canada)
    • DB (Germany)
    • Egis (France)
    • Jacobs (US)
    • Mott Macdonald (UK)
    • Parsons (US)
    • Sener (Spain)
    • Surbana Jurong (Singapore)
    • Systra (France)
    • WSP (Canada)

    The consultancy contract covers the study and design of the Airport Express Line, which will extend from the Al-Garhoud area of the city to Al-Maktoum International airport (DWC) in the Jebel Ali area. The proposed line will stretch about 55 kilometres (km) and include five stations, providing passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    Consultants have been allowed until June to submit their proposals.

    The new line will run from the Red Line metro station at Dubai International airport through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC) before continuing on to DWC.

    There will be two spur lines. The first will run from the new JVC station to the Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch out towards Business Bay, where another station will be built.

    The new line appears to follow a similar route to the Etihad Rail high-speed railway project, which is now under construction and due to be completed by 2030.

    Route 2020 extension

    The Airport Express Line scheme is the latest metro project to be tendered by the RTA this year. Tendering activity is already ongoing for the Route 2020 extension, which will start from the Expo 2020 metro station and connect to DWC’s West Terminal.

    In April, MEED exclusively reported that consultants had submitted bids for the project.

    The extension to the line will run for about 3km and will feature two stations.

    The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    The RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.

    Gold Line

    Dubai’s plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to DWC. There are long-term plans for further extensions.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

    The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.

    There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services, as well as a high-speed rail connection.

    Blue Line

    In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.

    The Blue Line consists of 14 stations, including three interchange stations at Jaddaf, Rashidiya and International City 1, as well as a station in Dubai Creek Harbour.

    By 2040, the number of daily passengers on the Blue Line is projected to reach 320,000. It will be the first Dubai Metro line to cross Dubai Creek, doing so on a 1,300-metre viaduct.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16833450/main.jpg
    Colin Foreman
  • Local firm wins $100m Kuwait substation contract

    14 May 2026

     

    The local Al-Ahleia Switchgear Company has won an engineering, procurement and construction contract for a $100m substation project in Wafra in Kuwait’s Al-Ahmadi Governorate.

    According to a source, the firm has been appointed as the contractor for the Wafra 2Z substation 400/132/33kV project, with construction scheduled for completion in January 2029.

    The contract was awarded by US-headquartered Chevron, which is undertaking its first major power project in Kuwait, according to data from MEED Projects.

    It is understood that contractor bids for the project were first submitted in 2023 by National Contracting Company (Kuwait), Al-Ahleia Switchgear (Kuwait), Imco Engineering & Construction Company (Kuwait) and Larsen & Toubro (India).

    The tender was cancelled in 2024, and a new tender was issued last year.

    In April, Al-Ahleia Switchgear won a contract to build a 400/132/11kV substation at the South Surra township for Kuwait’s Public Authority for Housing Welfare.

    The firm also recently won a separate contract in Oman for the supply, installation, execution and maintenance of a main power substation.

    The contract was awarded by Oman’s Public Authority for Social Insurance as part of its affordable housing project, known locally as Al-Masaken Al-Muyassara.

    According to MEED Projects, Chevron owns about $11.2bn-worth of operational oil and gas projects across the Middle East and Africa. It also owns four major power generation projects in Saudi Arabia, valued at $810m.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16832909/main.jpg
    Mark Dowdall
  • Al-Ain breaks ground on Four Seasons Saadiyat

    14 May 2026

    Al-Ain Asset Management has held a groundbreaking ceremony for its Four Seasons Private Residences Abu Dhabi project at Saadiyat Beach.

    Due for completion in 2029, the gated beachfront scheme will comprise 116 ultra-luxury homes with direct beach access. The unit mix includes villas, beachfront mansions, suites and penthouses, alongside a range of bespoke amenities and Four Seasons-branded services, Wam reported.

    Al-Ain Asset Management said the majority of the residences have been sold, and that AED250m ($68m) of new villa sales were recorded within one week, underlining demand for ultra-prime homes in Abu Dhabi.

    The developer added that the development set new pricing benchmarks for the emirate’s luxury coastal real estate, achieving prices above AED14,000 a square foot. Total sales have exceeded AED4bn since the project launched less than a year ago.

    The groundbreaking ceremony was attended by senior leadership and key partners, including Four Seasons, Killa Design and Mirage Leisure & Development. LW Design Group is also involved in the development.

    Al-Ain Asset Management is also developing another residential scheme on Saadiyat Island. The Vida Residences development will comprise apartment units geared towards long-stay living, supported by hotel-style facilities and operational spaces. Mimar Architecture & Engineering is working as the consultant.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16833035/main.jpeg
    Colin Foreman
  • Aldar acquires Dubai Studio City development

    14 May 2026

    Abu Dhabi-based developer Aldar has acquired a residential and community retail development in Dubai Studio City from Dubai-based developer SRG for AED1.1bn ($300m).

    The deal is part of Aldar’s long-term strategy to build a high-quality, recurring-income portfolio and to scale its presence in the city.

    Scheduled for delivery in 2028, the project comprises six mid-rise buildings with 312 homes, including one-, two- and three-bedroom apartments and duplexes. It also includes a community mall with retail, leisure and food-and-beverage offerings, as well as a 16,000-square-metre park.

    “Dubai is a priority growth market for Aldar, and this acquisition reflects our belief in the city’s residential market and the central role that institutionally owned, professionally managed rental housing plays in meeting the needs of a growing population,” said Jassem Saleh Busaibe, CEO of Aldar Investment. 

    “Dubai Studio City’s established infrastructure, vibrant community and strong connectivity make it an excellent location for a high-quality, professionally managed living environment. This transaction is the latest step in a deliberate and broadening strategy to build a diversified portfolio of income-generating assets in Dubai, one that we expect to continue growing as the city attracts increasing global interest and talent,” he added. 

    The transaction expands Aldar’s activities in Dubai across a range of property types. Aldar Investment’s recurring-income portfolio in the emirate now includes residential, commercial, logistics and mixed-use assets. Key holdings include a mixed-use joint venture with Expo City Dubai, a signature office tower in Dubai International Financial Centre, a Grade A office building on Sheikh Zayed Road, and logistics facilities in National Industries Park and Dubai South.

    On the development front, Aldar’s partnership with Dubai Holding continues to gain traction, with three master-planned residential communities already launched and a pipeline exceeding 2.3 million sq m of new gross floor area. 

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16832033/main.jpg
    Colin Foreman