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
  • Miral commits $3.2bn Yas Island investments

    14 September 2026

    Abu Dhabi’s Miral has announced plans to invest over AED12bn ($3.2bn) in Yas Island over the next five years.

    According to a statement, the investment will fund a pipeline of new projects, as well as expansions and enhancements to existing attractions, supporting Abu Dhabi’s Tourism Strategy 2030.

    The next phase of development will focus on expanding Yas Island’s theme parks and attractions, while introducing new immersive rides and experiences that reflect changing visitor expectations.

    The investment will also strengthen the island’s hospitality offering through additional hotel rooms and enhancements to its overall accommodation portfolio.

    The investment is separate from the previously announced Disney project. 

    Miral recently started the expansion works of its Harry Potter-themed expansion at the Warner Bros World Yas Island entertainment destination in Abu Dhabi.

    The scope of the Warner Bros World phase two expansion includes adding 63,000 square metres (sq m) to the existing theme park.

    This will include a Harry Potter-themed zone with three new rides called Diagon Alley, Hogwarts Castle and The Forbidden Forest, along with retail outlets and food and beverage facilities.

    Yas Waterworld

    Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island, working with several local and international contractors.

    In July last year, Miral opened a new 16,900 sq m expansion of its Yas Waterworld park to the public.

    The expansion added 3.3 kilometres of slide sections to the park. The addition of 18 new rides and attractions, bringing the total number of rides to more than 60, is expected to increase visitor capacity by 20%.

    Construction was carried out by local contractor Alec.

    Disney park

    The Walt Disney Company and Miral signed an agreement in May to build a Disney theme park resort on Yas Island.

    Disney, which is based in the US, said the Abu Dhabi site will be its seventh theme park resort. The others are in California and Florida in the US, Paris in France, Hong Kong and Shanghai in China, and Tokyo in Japan.

    In a statement, Disney noted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to one of the world’s busiest airline hubs, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

    The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, dining venues and retail experiences.

    In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.

    In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.

    Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam International of the Netherlands was the contractor for the arena and Germany’s Zublin was the contractor for Clymb.

    Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19645816/main.jpg
    Yasir Iqbal
  • Contractors prepare bids for Oxagon wastewater plant

    14 September 2026

     

    Contractors are preparing to submit bids to build a wastewater treatment plant for Oxagon, Neom’s industrial cluster.

    The industrial wastewater treatment package will have an initial capacity of 35,000 cubic metres a day (cm/d), supplied in modular trains of 5,000 cm/d each. A separate sanitary wastewater treatment package will have a capacity of 1,000 cm/d.

    The contract is structured as a design-build-operate project and covers the supply, installation and commissioning of industrial and sanitary wastewater treatment packages, as well as three years of operation and maintenance.

    Bids are due on 2 October, a source close to the project told MEED.

    It is understood that Neom’s water utility Enowa issued the request for proposals earlier this year. The plant is designed to provide “interim wastewater treatment” capacity for Neom’s Oxagon Industrial Quarter as industrial development in the area progresses.

    Enowa has described the treatment systems as interim and de-mountable, allowing them to be installed and subsequently removed or relocated as requirements at Oxagon develop. The plant can be expanded to a maximum of 45,000 cm/d.

    The tender documents also state that Neom may consider export credit agency (ECA) financing for the project, with the strength of bidders’ ECA financing proposals forming part of the commercial evaluation.

    The project follows an earlier tender for the Oxagon Village Water Recycling Plant, which was cancelled despite contractors submitting bids in 2024.

    MEED reported at the time that Beijing-based PowerChina, the local Alfanar Company and Cairo-headquartered Orascom had submitted bids for the project. It is understood that these firms are also likely to participate in the latest tender.

    The earlier scheme included truck receiving facilities, pretreatment, biological treatment using food chain reactor technology, tertiary treatment, sludge handling and recycled-water storage.

    The latest procurement appears to represent a reworked approach to wastewater treatment at Oxagon Industrial Quarter, with the previous engineering, procurement and construction scheme replaced by an interim, modular and de-mountable facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19640903/main.jpg
    Mark Dowdall
  • Saudi Arabia shuts East-West oil pipeline after drone strikes

    14 September 2026

    Saudi Arabia has temporarily closed its 1,200-kilometre East-West pipeline after it was targeted by multiple drones launched from Iraq, disrupting one of the kingdom’s most critical energy export routes and threatening global oil supplies already strained by conflict across the region.

    The Ministry of Energy said the pipeline, which connects the Abqaiq oil field in the east to the Red Sea port of Yanbu, was hit in the Riyadh and Medina regions on 12 September. Specialised teams have begun securing the facility and assessing damage. A Foreign Ministry statement said the attack resulted in injuries and “some damage that is currently being addressed”.

    The closure removes about 4 million barrels a day from the global market, representing 4% of world oil supply. The pipeline’s role has become increasingly critical since the US-Iran conflict forced a near-complete shutdown of flows through the Strait of Hormuz in March.

    Saudi Arabia has been using the East-West route to bypass the chokepoint, but the assault has left the kingdom dependent on substantially reduced Hormuz exports and Red Sea shipping routes now threatened by Iran-backed Houthi forces in Yemen.

    Iraqi Prime Minister Ali Al-Zaidi’s office confirmed the drone strike on the East-West Pipeline originated in the Maysan province, which borders Iran. The government formally condemned the attack, announced an investigation into the Maysan operations command and dismissed its commander. No armed group has claimed responsibility, but security analysts attribute the strike to Iran-backed militias operating from Iraqi territory.

    Riyadh said it was not retaliating “at this stage”, choosing instead to support Iraqi efforts to prevent further strikes from its territory. 

    The attack comes amid wider regional upheaval. Houthi forces have rapidly advanced along Yemen’s coast, seizing the strategic Mokha port and the Zuqar Island in the southern Red Sea, moving closer to the Bab El-Mandab strait. Saudi authorities said the group simultaneously launched dozens of drones and missiles at the southern kingdom on 11 September, striking civilian and economic targets and injuring 73 people.

    Oil analysts and traders reported that Yanbu’s storage capacity, estimated at around 35 million barrels, now holds supplies sufficient for only five to seven days of exports without pipeline operations. Storage facilities at Egypt’s Ain Sokhna and Sidi Kerir ports have similar constraints. Repair timelines remain uncertain, with sources citing estimates ranging from days to five or six weeks.

    The dual disruption of both the pipeline and Red Sea shipping has compressed global energy supplies. Energy analysts warned that without pipeline repairs, oil prices could return to the $120-a-barrel peak reached earlier in the regional conflict.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19641513/main.gif
    Colin Foreman
  • WSP wins Dammam airport expansion design works

    14 September 2026

    WSP Middle East, the regional arm of Canadian engineering firm WSP, has won a design contract to expand King Fahd International airport in Dammam, Saudi Arabia.

    Dammam Airports Company (DACO) awarded the contract.

    The scope includes designing passenger terminal expansions, facility upgrades, and improvements to airport entrances and access roads.

    It also covers the development of baggage-handling systems, digital services and other associated infrastructure.

    The expansion works will be carried out in line with the airport’s approved masterplan, which targets serving more than 19 million passengers a year by 2030.

    The plan also aims to increase air cargo capacity to more than 600,000 tonnes a year and raise aircraft operational capacity to 77 movements per hour, supported by comprehensive expansions to infrastructure, runways and general aviation facilities.

    This contract forms part of DACO’s ongoing efforts to strengthen the airport ecosystem, enhance operational efficiency, and support the Aviation Programme and Saudi Vision 2030 objectives.

    King Fahd International airport is the kingdom’s third-largest airport by annual passenger traffic, behind Jeddah’s King Abdulaziz International and Riyadh’s King Khaled International.

    DACO was formed in July 2017 to manage, operate and develop King Fahd International airport in Saudi Arabia’s Eastern Province.

    It was established as part of the broader Saudi Vision 2030 privatisation and economic reform programme to corporatise the aviation sector, increase operational efficiency, upgrade infrastructure, and transition state-run airports into commercially viable, world-class regional aviation hubs.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19639910/main.jpg
    Yasir Iqbal
  • Dubai seeks contractors for multibillion-dollar road scheme

    14 September 2026

     

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) is seeking contractors to design and build a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    MEED understands that the scope covers the construction of about 30 kilometres (km) of works.

    These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The RTA floated the expression of interest notice to contractors in early September, with a submission deadline of 10 October.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through-traffic while the existing at-grade lanes served local access.

    The plans ultimately progressed as standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19639621/main.gif
    Yasir Iqbal