meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi market offers long-term growth opportunities

8 September 2023

 

Register for MEED's guest programme 

As Saudi Arabia’s construction boom gathers pace, it is easy to forget that the kingdom has been a long-term market for several international companies. One such firm is US-based Parsons.

“Our first job was in 1956 at Dharan airport, and we have been in Yanbu since the 1970s, so we have been in the kingdom for more than 65 years,” Martin Boson, general manager of Parsons Saudi Arabia, tells MEED. 

Today, Saudi Arabia is a significant part of Parsons’ business. “More importantly, it’s a great growth-oriented market. If a company is looking for organic growth, Saudi Arabia is a good place to be,” says Boson.  

The company’s most recent win is a five-year contract to provide project and construction management services at King Abdullah Financial District. The contract joins a roster of major projects that Parsons is working on across Saudi Arabia.  

The right jobs

Despite being engaged on most gigaprojects and major construction programmes in the kingdom, Parsons has the appetite for more work.

“We are focusing on the jobs where we think we have an advantage and can deliver for the customer,” says Boson. 

“If we do not think we’re the right company for a particular project, we will not pursue it. We want to go for the jobs we think we can successfully deliver. It is a great market, but not every job is for everybody.” 

Design work

Growth can also be achieved by expanding the company’s range of services.

“Our work in Saudi Arabia is mostly as a PMC [project management consultant]. When I came on board [in the kingdom] two and a half years ago as the general manager, we did design, but just for our PMC customers. Now, we’re going after other design work,” says Boson. 

This is because the market has shifted, he says. “It used to be that design was only by local Saudi companies, and we could not compete in that marketplace. There are now huge design programmes that our competitors are delivering, but rather than do what they are doing, our strategy is different. Our strategy is local delivery, not offshore.” 

Design work allows Parsons to be involved in even more projects in Saudi Arabia.

“When you work as the PMC at the top of a major programme, you get conflicted out of everything else. That means we can’t go after the design work for many projects. But for the other projects, where we are not delivering PMC work, we can go after the design, which gives us another opportunity to work on the project,” says Boson.  

Talent pool

With abundant project opportunities, companies are entering the Saudi market, creating new competition for established players.

“In my view, the market is big enough for many more players,” says Boson. 

As well as companies, Saudi projects need people to deliver them.

“We are continually looking to hire the best talent to help us deliver for our clients. For the recruitment side of the machine, we are a big company with scale and a good reputation so we can attract people. We are focusing on retention and growing the talent pool,” says Boson.

“People are the company’s greatest asset, and investment should be in people.” 

Creating jobs

With a young population, a key area of focus for the Saudi government’s Vision 2030 is creating employment opportunities.

“We have a programme for Saudi nationals. Every six months, we bring in 12 top students from the local universities to undergo a training scheme and then get sent out for on-the-job training on projects. We have started taking on graduates from that programme,” says Boson. 

There are a lot of greenfield projects where you can implement sustainability from the masterplan, into design, through to construction, and then onto operations and maintenance
Martin Boson, Parsons Saudi Arabia

Another key area of focus is sustainability. “Talking from an engineering standpoint, we should not put out any designs or masterplans that are not sustainable,” he says.

“When we manage construction activities, there are so many things that you can do. This should just become something that we do because that is more cost-effective, better for the environment, and will deliver faster for the customer. 

“Saudi Arabia is a strong market with its big construction programmes. There are a lot of greenfield projects where you can implement sustainability from the masterplan, into design, through to construction, and then onto operations and maintenance,” he adds. 

Boson highlights how carbon emissions can be reduced by improving infrastructure design.

“The lifespan of an asset is being extended. We used to design bridges for 30-50 years. If you can design that for 100 years, then you have saved one whole bridge, and that means that even if you did not sustainably deliver the bridge, you still halve the carbon.”  

https://image.digitalinsightresearch.in/uploads/NewsArticle/11132947/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Engie completes refinancing of Oman power plants

    5 November 2026

    French developer Engie has announced that it has reached financial close on the refinancing of the Sohar 2 and Barka 3 independent power projects (IPPs) in Oman.

    The transaction follows 15-year extensions to the plants’ power purchase agreements (PPAs) in March, securing their long-term operations through to 2043.

    As previously reported by MEED, the new agreements for the 750MW Sohar 2 and 750MW Barka 3 IPPs will take effect on 1 April 2028. 

    The refinancing aligns the projects’ debt profiles with the extended PPA terms and establishes a long-term financing framework to support future capital expenditure. This includes refurbishment works aimed at improving the reliability and long-term performance of both assets.

    Al-Batinah Power Company and Al-Suwadi Power Company operate the Sohar 2 and Barka 3 power plants, respectively.

    According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle called Al-Suwadi Power Company.

    The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%)  and the Public Authority for Social Insurance (10%).

    In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21170932/main.jpg
    Mark Dowdall
  • Aramco seeks to expand East-West crude pipeline

    5 November 2026

    Saudi Aramco is planning to expand its East-West oil pipeline network, aiming to strengthen the kingdom’s ability to transport crude oil while bypassing the Strait of Hormuz.

    Aramco operates the 1,200-kilometre East-West pipeline from Abqaiq in the Eastern Province to Yanbu on the Red Sea coast. The pipeline currently has an oil transportation capacity of 7 million barrels a day (b/d).

    The pipeline was targeted by Houthi missiles in September and by Iran in April. Aramco resumed crude oil exports through the pipeline at the start of October.

    “With regard to the expansion to our East-West pipeline and the additional networks that we are building, this work has already started,” Amin Nasser, Aramco’s president and CEO, told analysts on a call following the company’s announcement of its Q3 2026 financial results on 3 November.

    Nasser had previously said in an interview with Al Arabiya Business that Aramco had begun engineering work on the East-West pipeline expansion project during the early stages of the US-Iran conflict.

    In October, Saudi Energy Minister Prince Abdulaziz Bin Salman said that the kingdom was looking to expand its crude oil export capacity by pipeline to as much as 10 million b/d. The plans would involve repurposing a domestic gas pipeline and investing in the existing East-West pipeline network.

    Aramco uses three main routes to export crude oil: the Gulf, via the Strait of Hormuz; the Red Sea, via the Bab El-Mandeb strait; and the Mediterranean, via Sidi Kerir in Egypt. The company also uses overseas oil-storage facilities in South Korea, Japan, the Netherlands and Sidi Kerir, and is working with partners to expand storage capacity, particularly in Asia.

    Aramco is also undertaking engineering work on additional export routes, Nasser said.

    He added that the company would not disclose details of the proposed routes until it made final investment decisions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21156806/main0615.jpg
    Indrajit Sen
  • SAR tenders railway track design framework

    5 November 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia Railways (SAR) has invited consultants to bid by 14 December for a framework agreement covering railway track design services.

    The state-owned operator is seeking to accelerate the delivery of smaller projects across its network.

    SAR has scheduled a pre-tender meeting for 12 November.

    Under the framework, SAR will appoint a panel of specialist consultants to carry out design work through work orders or task orders issued as required. This will remove the need for SAR to launch a separate tender for each project.

    SAR said a long-term contract with several specialist service providers would benefit all parties, particularly for smaller projects.

    SAR will detail the required works and communicate them to the selected consultants through each work order or task order.

    The scope covers engineering studies, as well as concept, preliminary and detailed design for railway infrastructure. Services will include surveys, alignment design, geotechnical assessments, cost estimation and construction support.

    Consultants will be expected to produce drawings, reports, risk registers, bills of quantities and other design documentation. All deliverables must comply with SAR standards for UIC 60 track systems and associated infrastructure.

    SAR said it is seeking partnerships with competent consultants to supply track and track infrastructure design services under the terms of the tender document.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21168500/main.jpg
    Yasir Iqbal
  • Aramco commissions Zuluf field oil increment project

    5 November 2026

    Saudi Aramco has announced the start of oil production at the Zuluf oil increment project in Saudi Arabia, on which it is estimated to have spent about $7bn in 2022.

    The Saudi energy company made the announcement as part of its third-quarter 2026 financial results, in which it reported adjusted net income of $31.2bn, up 9% year on year.

    The Zuluf oil increment project involved substantial onshore and offshore work at the field, located in the Gulf about 40 kilometres off Saudi Arabia’s northeastern coast.

    The engineering, procurement and construction (EPC) scope was divided into two onshore packages and five offshore packages.

    Aramco selected Japan’s JGC Holdings Corporation in May 2022 for the two main onshore packages of the Zuluf field development. Together, the packages were estimated to be worth up to $3.5bn.

    Package 1 was estimated to be the larger of the two onshore packages, with a contract value of about $2bn-$2.5bn. It covered EPC work to build hydrocarbon-processing facilities for the Zuluf development, principally an onshore gas-oil separation plant.

    Package 2 covered utilities and water-injection facilities and was estimated to be worth about $1bn.

    Before awarding the onshore contracts, Aramco had awarded more than $4bn of contracts across five main offshore engineering, procurement, construction and installation packages. The awards went to US-headquartered McDermott International; a consortium of India’s Larsen & Toubro Hydrocarbon Engineering and UK-headquartered Subsea7; and Abu Dhabi’s NMDC Energy, then known as National Petroleum Construction Company.

    Since the 2022 EPC awards, Aramco has invested further in maintaining and upgrading infrastructure at the Zuluf field. The work supports the company’s objective of maintaining its maximum sustained crude oil production capacity at 12 million barrels a day (b/d).

    Other upstream projects

    In its Q3 2026 results statement, Aramco also announced EPC progress on other key upstream oil and gas projects, including:

    Jafurah phase two – Aramco awarded 16 contracts, worth a combined total of about $12.4bn, on 30 June 2024 for the second expansion phase of the Jafurah unconventional gas development programme in the Eastern Province.

    The second phase aims to raise the field’s processing potential to up to 2 billion cubic feet a day (cf/d) of raw gas. The EPC scope of work includes constructing gas compression facilities and associated pipelines, and expanding the Jafurah gas plant, including the construction of gas processing trains, utilities, sulphur and export facilities, Aramco said in a statement.

    Fadhili gas plant expansion – Through the estimated $7.7bn project, Aramco aims to increase the Fadhili gas plant’s processing capacity from 2.5 billion cf/d to up to 4 billion cf/d. The expansion includes three new processing trains, each with a capacity of 500 million cf/d.

    Aramco awarded contracts for four main EPC packages of the Fadhili gas plant expansion project in April 2024 to South Korean contractors Samsung E&A and GS Engineering & Construction and Saudi contractor Nesma & Partners.

    Dammam development project – The project represents the second development phase of the Dammam field. Its objective is to install infrastructure, including pipelines, trunklines and pumps, to increase the field’s crude oil production capacity by 25,000 b/d and 50,000 b/d in separate phases.

    Al-Khobar-based Denys Arabia won the main EPC contract for the Dammam second field development phase in July 2024. The contract was estimated to be worth more than $500m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21156386/main4222.jpeg
    Indrajit Sen
  • BP and PetroChina cut budgets for Iraq oil projects

    5 November 2026

     

    London-headquartered BP and PetroChina have agreed with Turkish contractor Tekfen to reduce the monthly allocated budgets for two upstream oil projects at the Rumaila field, according to industry sources.

    Rumaila Operating Organisation (ROO) operates the Rumaila field.

    ROO is a joint venture formed by state-owned Basra Oil Company; Iraq’s State Oil Marketing Organisation (Somo); and Basra Energy Company, a joint venture owned by UK-based oil company BP and PetroChina.

    PetroChina is the listed arm of state-owned China National Petroleum Corporation.

    As part of the agreement between ROO and Tekfen, progress on the projects will continue at a slower pace.

    The two projects are both also suffering from delays due to problems importing equipment through the Strait of Hormuz, sources said.

    One source said: “These projects are really barely alive. They are progressing very slowly after the monthly budgets were cut by the client. The project is still continuing, but at a slow pace. The budgets are very limited.”

    Sources said that although the monthly budget payments were reduced, they were still being made on time.

    Most of the problems that the projects at the oil field are facing are connected to the regional war, which started on 28 February when the US and Israel attacked Iran.

    One source said: “The budget issues and financial problems are significant. There are also security concerns connected to reported US plans for a potential strategic nuclear strike on Iran and how that might impact operations at the Rumaila field, which is only around 60 kilometres from the Iranian border.”

    The two projects have a combined value of less than $100m, and the project scopes include developing new facilities as well as upgrading and repairing existing upstream infrastructure.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21153848/main.jpg
    Wil Crisp