Saudi Landbridge construction to start in 2025

9 October 2024

Register for MEED's 14-day trial access 

Saudi Arabia is preparing to start work on the $7bn Saudi Landbridge project early next year as the negotiations for the final cost and financing of the project reach the closing stages.

“The final arrangements are being sorted out and the project is expected to be live early next year,” a source close to the project told MEED.

Last year, Transport and Logistics Minister Saleh Al-Jasser told a forum in Riyadh that Saudi authorities were negotiating with the Saudi China Landbridge Consortium (SLCC) to determine the project’s final cost and financing.

The SLCC signed a memorandum of understanding to implement the project on a public-private partnership basis in October 2018. The SLCC was formed by Saudi Railway Company (SAR) and China Civil Engineering Construction Company.

Al-Ayuni Contracting was named the consortium’s local partner. Other members include French firms Systra and Thales, Canada’s WSP, Aldhabaan & Partners, the local partner of UK legal consultancy Eversheds & Sutherland, ALG Infrastructure and Calx Consultancy.

Landbridge lines

The Saudi Landbridge project is one of the largest infrastructure projects planned in Saudi Arabia. The scheme is being implemented by SAR.

It comprises six lines. The first line involves upgrading the Jubail Industrial City internal network, which is under construction. It will require building 10 kilometres (km) of track.

The second line entails upgrading the Jubail to Dammam railway line, which is also under construction. It will require building 35km of track.

The third line involves upgrading the Dammam to Riyadh railway line, with 87km of track to be built. 

The fourth line, known as the Riyadh bypass, runs from the existing network in the north of the city to the south. It is split into two packages: the first has 67km of track, and the second has 35km.

The fifth line is a link from Riyadh to Jeddah and then on to King Abdullah Port with three stations at Jamuma, Moya and Al-Doadmi. The Riyadh to Jeddah line will have 920km of track and the Jeddah to King Abdullah Port link will have 146km of track.

The sixth line is a new 172km line from King Abdullah Port to Yanbu Industrial City.

There will also be seven logistics centres: Jubail Industrial City Logistics Centre, Damman Logistics Dry Port, a relocated Riyadh Dry Port, King Khalid Airport Logistics Centre in Riyadh, Jeddah Logistics Dry Port, King Abdullah Port Logistics Centre and Yanbu Industrial City Logistics Centre.

In December 2023, MEED reported that the team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the estimated $7bn Saudi Landbridge project.

The Landbridge is one of Saudi Arabia’s most anticipated infrastructure projects. Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud confirmed the government’s commitment to the Landbridge project in June 2021, when he launched the National Transport & Logistics Strategy.

Plans to develop the Landbridge were announced in 2004, but put on hold in 2010. They were revived again in 2011.

MEED previously reported that Saudi Arabia and China will continue working together on the Saudi Landbridge project.

In a joint statement at the end of Chinese President Xi Jinping’s visit to Saudi Arabia on 9 December 2022, the two countries said: “Regarding the transportation and logistics field, the two sides stressed the importance of enhancing cooperation and joint action on developing the air and sea transport sectors, modern transport modes and railways, and expediting the completion of studies on the Saudi Landbridge project.”

Photo credits: Maximilian Dörrbecker

https://image.digitalinsightresearch.in/uploads/NewsArticle/12674371/main.jpg
Yasir Iqbal
Related Articles
  • Oman’s Barka 5 IWP solar plant begins full operations

    1 May 2026

    Spain’s GS Inima has begun permanent operations at the solar photovoltaic (PV) plant serving the Barka 5 independent water project (IWP) in Oman.

    The solar facility is the third of its kind in Oman to power a large-scale desalination facility through a self-supply model.

    In a statement, GS Inima said it will provide up to 50% of the desalination plant’s electricity needs during daytime operations, improving efficiency and reducing reliance on external power sources.

    The PV plant has an installed capacity of 6.5MWp. It is designed to optimise energy consumption at the adjacent reverse osmosis desalination facility.

    The project was developed by GS Inima in collaboration with local firm Nafath Renewable Energy as the engineering, procurement and construction (EPC) contractor. China-based OCA Global provided owner’s engineering services.

    The Barka 5 IWP has a desalination capacity of approximately 100,000 cubic metres a day.

    GS Inima won the contract to develop the Barka 5 IWP project in November 2020. As previously reported, financial close was reached in 2022, and construction of the facility was completed in 2024.  

    The self-supply solar PV plant is equipped with 10,504 bifacial modules supplied by China’s Jinko Solar. These are mounted on fixed structures provided by Mibet Energy.

    Power is managed through 18 Sungrow inverters with a total capacity of 320kWac each, while electricity is fed into the desalination plant through an 11kV connection.

    The integration of solar power supports the efficiency of the Barka 5 facility, which has an energy consumption rate of 2.7kWh per cubic metre. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16645971/main.jpg
    Mark Dowdall
  • Qiddiya receives high-speed rail PPP prequalifications

    1 May 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, received prequalification statements from firms on 30 April for the public-private partnership (PPP) package of the Qiddiya high-speed rail project in Riyadh.

    This follows the submission of prequalification statements for the engineering, procurement, construction and financing (EPCF) package on 16 April, as reported by MEED.

    The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.

    The Qiddiya high-speed rail project, also known as Q-Express, will connect King Salman International airport and the King Abdullah Financial District (KAFD) with Qiddiya City. The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of the city.

    In November last year, MEED reported that more than 145 local and international companies had expressed interest in developing the project, including 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16641057/main.gif
    Yasir Iqbal
  • Bid deadline extensions hint at tighter project market

    1 May 2026

    Commentary
    Mark Dowdall
    Power & water editor

    There has been a steady run of bid deadline extensions across major power and water projects in recent weeks.

    The latest is the Al-Dibdibah and Al-Shagaya solar independent power producer (IPP) plant in Kuwait, where the submission date has been moved again to 31 May, following an earlier shift from February to the end of April. Similarly, bidding for the first phase of the Al-Khairan IWPP has also been extended.

    In Bahrain, bidding for the 1.2GW Sitra IWPP has been pushed back by another month to 17 May, having already been under main contract tender since last August.

    Meanwhile, in Dubai, contractors have been given additional time to submit bids for both the Jebel Ali sewage treatment plant expansion and a dams rehabilitation project in Hatta.

    Individually, these shifts are not unusual, and extensions are a routine part of the procurement cycle, especially with large, capital-intensive schemes.

    However, amid regional tensions and increasingly complex risk profiles, stakeholders are having to weigh up how much they can absorb, whether that is performance guarantees, financing exposure or delivery risk.

    For contractors and developers, this could mean looking more closely at supply chains, insurance costs and the potential for disruption. Lenders, too, are likely taking a more measured view on long-term exposure.

    This caution can show up in the bid process. More internal approvals, more conservative pricing, and in some cases, perhaps a hesitation to commit altogether.

    At the same time, strong pipelines across the GCC mean contractors are not short of work. Firms can afford to be selective, focusing on projects where risk and return are better aligned.

    Clients, in turn, face a choice. Push ahead with more limited competition or extend and try to draw in stronger participation. Most appear to be opting for the latter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16640998/main.jpg
    Mark Dowdall
  • Saudi Arabia launches $2bn Jawharat Al-Arous project

    1 May 2026

    Saudi Arabia has launched Jawharat Al-Arous, an SR8bn ($2bn) private-sector-led residential development in north Jeddah.

    The scheme covers 107 million square metres and comprises 18 residential neighbourhoods planned to accommodate more than 700,000 residents. It will provide more than 80,000 residential and commercial plots.

    The masterplan also includes 41 government-backed infrastructure and service zones to support large-scale urban expansion.

    The project was unveiled by Mecca Region Governor Khalid Al-Faisal and will be overseen by Saud Bin Mishaal Bin Abdulaziz.

    According to a recent report by real estate firm Cavendish Maxwell, Jeddah’s residential stock stood at about 1.09 million units at the end of 2025, following the completion of around 4,000 units that year.

    An expanding pipeline of about 18,000 units in 2026 and 22,000 units in 2027 is expected to bring total stock to around 1.14 million units by 2027, gradually adding supply without destabilising market equilibrium.

    GlobalData expects the Saudi construction industry to grow by 3.6% in real terms in 2026, supported by increased foreign direct investment (FDI) and investment in the housing and manufacturing sectors.

    The residential construction sector is forecast to grow by 3.8% in real terms in 2026 and to record an average annual growth rate of 4.7% between 2027 and 2030, supported by Saudi Vision 2030’s goal of increasing homeownership from 65.4% in 2024 to 70% by 2030, including through the delivery of 600,000 homes by 2030.


    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/16640863/main.png
    Yasir Iqbal
  • Damage to US bases in region expected to cost more than $15bn

    1 May 2026

    The $25bn estimate a Pentagon official gave US lawmakers on 29 April did not include the cost of repairing damage to US bases in the Middle East, and the real cost of the war is likely to be between $40bn and $50bn, according to CNN.

    That would put the cost of repairing bases and replacing destroyed assets at between $15bn and $25bn.

    Jules Hurst III, the Pentagon official serving as the agency’s comptroller, told the House Armed Services Committee that “most” of the $25bn he cited had been spent on munitions. Defence Secretary Pete Hegseth declined to say whether the figure included repairs to damaged US bases.

    Iranian strikes across the Gulf in the early days of the war significantly damaged at least nine US military sites in 48 hours, hitting facilities in Bahrain, Kuwait, Iraq, the UAE and Qatar.

    Six US servicemembers were killed in an attack on a command post in Kuwait, and 20 more were injured.

    Three sources told CNN that the figure provided to the House Armed Services Committee did not include the cost of rebuilding US military installations and replacing destroyed assets.

    One source said the true cost would likely be between $40bn and $50bn.

    US contractors such as KBR and Fluor, as well as local firms, are likely to be among the leading contenders for contracts to repair and rebuild US bases in the region.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16638663/main.gif
    Wil Crisp