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
  • Kuwait halves drilling contractor pool

    22 September 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

    Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

    The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

    The full list of contractors that are now qualified to participate in tenders is:

    • Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
    • Kuwait Drilling Company (Kuwait)
    • Sun Drilling Kuwait (Kuwait)
    • TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
    • United Precision Drilling (Kuwait)
    • Abraj Energy Services (Oman)
    • Adnoc Drilling Company (UAE)
    • Arabian Drilling Company (Saudi Arabia)
    • Anton Oilfield Services (China)
    • China Oilfield Services (China)
    • Egyptian Drilling Company (Egypt)
    • CNPC Bohai Drilling Engineering Company (China)
    • Great Wall Drilling Company (China)
    • John Energy (India)
    • Kerui Oilfield Service (China)
    • KCA Deutag Drilling (Germany)
    • Mohammed Al-Barwani Petroleum Services (Oman)
    • Nabors Drilling International (US)
    • National Drilling & Services Company (Oman)
    • Sea & Land Drilling Contractors (Oman)
    • Sinopec International Petroleum Service Corporation (China)
    • Karamay Jianye Energy (China)
    • Modern Drilling Company (Egypt)
    • Grey Wolf Drilling International (US)

    An earlier list, which was published on 11 February, included 51 qualified companies.

    The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg
    Wil Crisp
  • Abu Dhabi expects 45% emissions cut as electricity demand rises

    21 September 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

    The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

    The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

    Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

    The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

    According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

    This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

    It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

    As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

    The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec. 

    The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19849749/main.jpg
    Mark Dowdall
  • Seven bid for Bahrain highway upgrade

    21 September 2026

    Register for MEED’s 14-day trial access 

    Seven contractors have submitted bids for the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade project.

    According to results published by the Bahrain Tender Board, the firms that have submitted bids include:

    • Nass Contracting Company
    • Haji Hassan Group
    • Almoayyed Contracting Group
    • Mohammed Abdulmohsen Al-Kharafi & Sons
    • Eastern Asphalt & Concrete Production
    • Cebarco Bahrain
    • Kingdom Asphalt

    The contract scope includes expansion works on 2 kilometres of the highway. It consists of a four-lane dual carriageway with service roads on both sides.

    The scope of works also includes excavation and backfill work, construction of stormwater drainage networks, a pumping station, installation of ducts for future utilities, upgraded street lighting, traffic signs and directional signage.

    The project aims to improve traffic capacity, reduce congestion and enhance safety along the transport corridor linking Manama with industrial zones.

    In April, MEED reported that Bahrain had approved a financing agreement framework to fund the construction of the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade.

    In March last year, the Kuwait Fund for Arab Economic Development and the Bahraini government signed a KD10m ($32.4m) loan agreement to fund the second phase of the project, which is expected to cost about $404m.

    This was followed in September 2025 by the appointment of US-based Parsons Corporation on a $1.5m contract to provide pre-contract engineering consultancy services for the project.

    According to data from regional project tracker MEED Projects, construction of the first phase was completed in 2020.

    A joint venture of local firm Nass Contracting and Kuwait’s KCC Engineering & Contracting undertook the main construction works.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19847073/main.png
    Yasir Iqbal
  • Teams prepare bids for Oman PPP wastewater project

    21 September 2026

     

    At least three consortiums are preparing bids for a contract to develop and operate two major sewage treatment plants (STPs) in Oman.

    The public-private partnership (PPP) project covers expanding two Muscat-based plants: the Al-Ansab STP (phase three) and the Al-Amerat STP (phase two). It will be delivered under a build-own-operate-transfer model.

    At Al-Ansab, capacity will increase from 125,000 cubic metres a day (cm/d) to 207,000 cm/d. At Al-Amerat, capacity will rise from 18,000 cm/d to 54,000 cm/d.

    According to sources, the bidders for the project include:

    • Etihad Water & Electricity (UAE) / Metito (UAE)
    • Lamar Holding (Bahrain) / Tawzea (Saudi Arabia)
    • Civil Works Company (CWC, Saudi Arabia)  / Suez (France)

    The bid submission deadline is 5 January 2027.

    State-owned Nama Water Services (NWS) issued a request for proposals for the project in July, as exclusively reported by MEED.

    It is understood that Veolia (France), Miahona (Saudi Arabia) and Samsung E&A (South Korea) are also among the firms that prequalified for the project after the request for qualifications was issued last November.

    The project scope includes the design, financing, construction, operation and maintenance of the new facilities, alongside the long-term operation of the existing facilities.

    It has been over a decade since the Al-Ansab STP first entered full operation at a capacity of about 54,000 cm/d. In 2015, South Korea’s Doosan Ennerbility, formerly Doosan Heavy Industries, was awarded the main engineering, procurement, and construction contract for the phase two expansion, which increased the facility’s maximum flow capacity to 125,000 cm/d. This phase was completed in 2017.

    Phase one of the Al-Amerat STP was awarded to a joint venture of France’s Degremont (Suez) and local contractor Al-Ansari Trading Enterprise under a design, build and short-term operation contract valued at about €50m ($58.1m). The plant was developed for Haya Water and commissioned in 2019 as part of the Muscat wastewater scheme.

    Haya Water, the former wastewater utility, was later incorporated into NWS following a government restructuring programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19794912/main.jpg
    Mark Dowdall
  • Oman reveals Sohar airport and Salalah Thumrait Road plans

    21 September 2026

    Oman is planning a new passenger terminal at Sohar Airport to expand regional air connectivity and strengthen the airport’s role in the national aviation network.

    According to Said Bin Hamoud Al-Maawali, Oman’s minister of transport, communications and information technology, new routes are expected to be announced before the end of the year. Potential destinations include Dammam in Saudi Arabia, Gwadar in Pakistan, and southern Iran.

    The planned terminal and additional routes will give residents of northern Oman more travel options.

    Al-Maawali also provided an update on the long-delayed Salalah-Thumrait truck road, saying the project will be procured through a conventional tendering model rather than a public-private partnership (PPP).

    In August 2023, Oman shortlisted five of eight prequalified teams to compete for the Salalah-Thumrait truck road project, which was set to be the sultanate’s first PPP road project.

    The 67-kilometre road project is specially designed for heavy vehicles. 

    The road is a key link in Dhofar’s transport network, connecting Thumrait with Salalah and supporting movement between the interior and the governorate’s main urban and economic centre.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19794881/main.jpg
    Yasir Iqbal