Chinese firm to take on Taiba 1 and Qassim 1 work
25 October 2023
China’s Sepco 3 will undertake the engineering, procurement and construction (EPC) contract for the 1,800MW Qassim 1 independent power producer (IPP) and 1,800MW Taiba 1 IPP projects in Saudi Arabia.
The firm partnered with the team of Saudi Electricity Company (SEC) and Acwa Power, which won the contracts to develop the two IPP contracts.
MEED understands the US’ GE will supply the combined-cycle gas turbines (CCGT) for the power plants.
Saudi Arabia’s principal power buyer, Saudi Power Procurement Company (SPPC), announced the winning bidders that will develop and maintain four new thermal IPP projects in the kingdom on 24 October.
A team comprising the local Al-Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 IPP and 1,800MW Qassim 2 IPP schemes.
The four CCGT plants are valued at a combined estimate of SR29.2bn ($7.8bn).
Each project will be developed on a build-own-operate (BOO) basis by the winning consortiums, which will be 100 per cent owned by the successful bidders.
Each project company will enter a 25-year power purchase agreement (PPA) with SPPC.
MEED understands the Al-Jomaih-led consortium has partnered with Germany’s Siemens Energy for the supply of CCGT.
According to SPPC, the project will use the latest turbines, allowing the Saudi utility company to utilise carbon capture technologies.
Four consortiums proposed to develop the Qassim 2 and Taiba 2 IPPs in late July, and the Qassim 1 and Taiba 1 IPPs on 15 August, as MEED reported.
The other consortiums that bid for the contracts were:
- Taqa (UAE) / Jera (Japan)
- Nebras (Qatar) / Marafiq (local) / Kepco (South Korea)
SPPC qualified over 20 companies to bid for the contracts, MEED reported in February.
Packaged initially as two individual IPPs, each with a capacity of 3,600MW, the two projects have been split into four smaller schemes.
| Saudi growth dips while project activity soars |
Oil production cuts trim public sector growth, but private sector thrives
*=Year-to-date | Sources: IMF, MEED Projects, MEED
MEED’s October 2023 special report on Saudi Arabia includes:
> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORT: Saudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
> BANKS: Saudi banks track more modest growth path
> UPSTREAM: Aramco focuses on upstream capacity building
> DOWNSTREAM: Saudi chemical and downstream projects in motion
> POWER: Riyadh rides power projects surge
> WATER: Saudi water projects momentum holds steady
> GIGAPROJECTS: Gigaproject activity enters full swing
> TRANSPORT: Infrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWER: Jeddah developer restarts world’s tallest tower
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Exclusive from Meed
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Dar Global seeks firms for Dubai Trump tower and hotel4 February 2026
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Elon Musk-backed firm signs Dubai Loop construction deal4 February 2026
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Aramco to finalise long-term agreements with engineering firms4 February 2026
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Saudi Arabia extends deadlines for water PPPs3 February 2026
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Projects market goes back to basics3 February 2026
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Dar Global seeks firms for Dubai Trump tower and hotel
4 February 2026
Saudi Arabia-headquartered real estate developer Dar Global has asked contractors to express interest in a contract to build the Trump International Hotel and Tower project in Dubai.
Dar Global is developing the project in collaboration with the US-based Trump Organisation.
The 80-floor tower will be built next to the Shangri-La Hotel on Sheikh Zayed Road.
The tower will be among the tallest in Dubai, with an estimated height of approximately 350 metres.
In December last year, Dar Global appointed Dubai-based Edrafor Emirates to undertake the foundation works on the project.
Dar Global is also developing the estimated $1bn Trump Plaza Jeddah project in Saudi Arabia.
In November last year, Abu Dhabi-based contractor Arabian Construction Company won the estimated SR2bn ($532m) main contract to build the Trump Tower Jeddah.
The project comprises a mixed-use development of apartments, townhouses, offices, retail, food and beverage offerings, and a 4,000-square-metre club.
Dar Global, a subsidiary of Dar Al-Arkan, was one of the first Saudi brands to list on the London Stock Exchange.
According to an official statement, the project is the region’s first Trump International Hotel & Tower and represents the fifth collaboration between Dar Global and the Trump Organisation.
Dar Al-Arkan established Dar Global in 2017 to focus on developing projects in the Middle East and Europe. It has $12bn-worth of projects under development in six countries: the UAE, Oman, Qatar, Saudi Arabia, the UK and Spain.
It completed three developments – the Urban Oasis and Da Vinci towers in Dubai and the Sidra gated community in Bosnia – in 2023.
The company collaborates with global brands including Missoni, W Hotels, Versace, Elie Saab, Automobili Pagani and Automobili Lamborghini.
READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
> AGENDA: Mena upstream spending set to soar> INDUSTRY REPORT: MEED’s GCC water developer ranking> INDUSTRY REPORT: Pipeline boom lifts Mena water awards> MARKET FOCUS: Qatar’s strategy falls into place> CURRENT AFFAIRS: Iran protests elevate regional uncertainty> CONTRACT AWARDS: Contract awards decline in 2025> LEADERSHIP: Tomorrow’s communities must heal us, not just house us> INTERVIEW: AtkinsRealis on building faster> LEADERSHIP: Energy security starts with rethinking wasteTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15564796/main.jpg -
Elon Musk-backed firm signs Dubai Loop construction deal
4 February 2026
Dubai’s Roads & Transport Authority (RTA) has signed an agreement with Elon Musk-backed firm The Boring Company to begin construction of the Dubai Loop transportation system.
The agreement was signed on the sidelines of the World Governments Summit in Dubai on 3 February.
The first phase of the project comprises a 6.4-kilometre (km) route with four stations, linking the Dubai International Financial Centre (DIFC) and Dubai Mall.
The stations will be located at DIFC 2, ICD Brookfield Place, Dubai Mall Zabeel Parking and Burj Khalifa.
The first phase is expected to cost about AED565m ($154m).
This phase is anticipated to be delivered within one year following the completion of design work and other preparations.
The tunnelling works are expected to begin in the second half of this year.
Next phase
The second phase of the project will connect the Dubai World Trade Centre and DIFC with Business Bay.
The tunnels will extend up to 22km and include 19 stations.
The total cost of the project across both phases is expected to be around AED2bn ($545m), with completion scheduled within three years.
In a statement published by the Emirates News Agency (Wam), the RTA said the pilot route is expected to serve around 13,000 passengers a day. The full route is projected to have a total capacity of about 30,000 passengers a day.
The RTA and The Boring Company signed a memorandum of understanding on the sidelines of the World Governments Summit in Dubai in February last year to explore the development of the Dubai Loop transportation system.
The Dubai Loop is expected to be similar to The Boring Company’s Las Vegas Convention Centre (LVCC) Loop project. The LVCC Loop is a 2.7km underground tunnel system that connects different convention centre halls, reducing walking time across the site to about two minutes.
The LVCC Loop has been in operation since 2021. It uses Tesla Model 3 cars to carry passengers between five stations. The Boring Company began construction in November 2019 at an estimated cost of $49m.
READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
> AGENDA: Mena upstream spending set to soar> INDUSTRY REPORT: MEED's GCC water developer ranking> INDUSTRY REPORT: Pipeline boom lifts Mena water awards> MARKET FOCUS: Qatar’s strategy falls into place> CURRENT AFFAIRS: Iran protests elevate regional uncertainty> CONTRACT AWARDS: Contract awards decline in 2025> LEADERSHIP: Tomorrow’s communities must heal us, not just house us> INTERVIEW: AtkinsRealis on building faster> LEADERSHIP: Energy security starts with rethinking wasteTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15564682/main.jpg -
Aramco to finalise long-term agreements with engineering firms
4 February 2026
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Saudi Aramco is on course to finalise long-term agreements (LTAs) with prominent energy sector engineering firms, aiming to create a pool of consultants it can engage in future for project study- and design-related requirements.
The structure of this proposed pool of engineering consultants will be similar to Aramco’s existing general engineering services-plus (GES+) group, which provides project management and engineering services – including concept studies, pre-front-end engineering and design (pre-feed) and feed – to support Aramco’s capital programmes in Saudi Arabia across onshore greenfield and brownfield projects in gas, oil and new-energy infrastructure.
Aramco also maintains LTA pools with offshore and onshore engineering, procurement and construction (EPC) contractors, and the layout of the planned pool of engineering firms will be akin to those two bodies, sources told MEED.
According to sources, the following companies, among others, are understood to have submitted proposals to Aramco for the proposed LTA pool of engineering consultants:
- Bechtel (US)
- Fluor (US)
- KBR (US)
- Wood (UK)
- Worley (Australia)
Aramco received proposals from these firms last year and has since held several rounds of “discussions and negotiations” with them, sources said. The Saudi energy giant is now believed to have agreed with the bidders the terms and other aspects on which the proposed LTA engineering pool is to be built, sources added.
“If all goes to plan, we could see Aramco signing LTAs with the contractors to create the group within the first quarter [of 2026],” one source said.
While Aramco’s planned engineering LTA pool will be “largely similar” to its GES+ group, sources said a key distinguishing factor will be the ability of consultants in the new pool to bid for, and secure, engineering work for Aramco’s international projects, as well as to execute overseas work for Aramco’s in-kingdom projects.
The GES+ body, which comprises joint ventures between foreign and local firms, receives tenders from Aramco only for in-kingdom engineering studies. The GES+ pool consists of the following entities:
- KBR (US) / Abdulhadi & Al-Moaibed Consulting Engineering Company (AMCDE; local)
- SNC-Lavalin (Canada) / Fayez Engineering (local)
- Jacobs (US)
- Worley (Australia)
- Wood Group (UK) / Faisal Jamel Al-Hejailan Engineering (local) / Dar Al-Riyadh Engineering Consultants (DAR) / Petro-Infrastructure Engineering (PI Consult)
- Technip Energies (France) / Dar Al-Riyadh Engineering Consultants (local)
- Bechtel (US) / Arabian Consulting Engineering Centre (local)
ALSO READ: Aramco picks consultant for New Energies scheme
READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
> AGENDA: Mena upstream spending set to soar> INDUSTRY REPORT: MEED's GCC water developer ranking> INDUSTRY REPORT: Pipeline boom lifts Mena water awards> MARKET FOCUS: Qatar’s strategy falls into place> CURRENT AFFAIRS: Iran protests elevate regional uncertainty> CONTRACT AWARDS: Contract awards decline in 2025> LEADERSHIP: Tomorrow’s communities must heal us, not just house us> INTERVIEW: AtkinsRealis on building faster> LEADERSHIP: Energy security starts with rethinking wasteTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15560184/main1154.jpg -
Saudi Arabia extends deadlines for water PPPs
3 February 2026
Saudi Arabia’s Water Transmission Company (WTCO) has extended the bid submission deadline for engineering, procurement and construction (EPC) contracts for two major independent water transmission system projects.
The Jubail-Buraidah and the Ras Mohaisen-Baha-Mecca transmission projects were first tendered last September under the public-private partnership (PPP) model.
The initial deadlines for qualified contractors to submit technical and financial bids were 1 February and 5 February, respectively.
The new bid submission deadline for the Jubail-Buraidah project is 8 March.
Scheduled to begin construction in 2027, the scheme comprises an approximately 348-kilometre-long greenfield water transmission system with a capacity of 840,650 cubic metres a day (cm/d), delivering water from the Ashmasiah reservoirs to cities and towns in Al-Qassim province.
The project is large by WTCO standards. The company’s second phase of the Khobar-Hofuf system, completed in 2024, was 140km in length, with a capacity exceeding 530,000 cm/d.
For the Ras Mohaisen-Baha-Mecca water transmission system project, the new bid submission deadline is 15 March.
The project involves constructing an approximately 325-kilometre-long greenfield independent water transmission system with a capacity of 542,000 cm/d, delivering water from Ras Mohaisen to the Adham and Aradhiyah regions.
Prequalification for both projects closed on 15 January.
It is understood that local firms Alkhorayef Water & Power Technologies and Mutlaq Al-Ghowairi Contracting Company (MGC) are among the firms qualified to bid for the Ras Mohaisen contract.
Saudi Arabia also has even larger independent water transmission pipeline (IWTP) initiatives under way. One such project, also linking Jubail and Buraidah, spans 587km and carries 650,000 cm/d.
MGC secured the EPC contract for this project in June last year.
It will have a total cost of SR8.5bn ($2.2bn).
READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
> AGENDA: Mena upstream spending set to soar> INDUSTRY REPORT: MEED's GCC water developer ranking> INDUSTRY REPORT: Pipeline boom lifts Mena water awards> MARKET FOCUS: Qatar’s strategy falls into place> CURRENT AFFAIRS: Iran protests elevate regional uncertainty> CONTRACT AWARDS: Contract awards decline in 2025> LEADERSHIP: Tomorrow’s communities must heal us, not just house us> INTERVIEW: AtkinsRealis on building faster> LEADERSHIP: Energy security starts with rethinking wasteTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15559028/main.jpg -
Projects market goes back to basics
3 February 2026
Commentary
Colin Foreman
EditorRead the February issue of MEED Business Review
The Middle East projects market is recalibrating. After years of ambitious project launches that aimed to transform economies, 2025 marked a turning point as the regional projects market declined.
According to regional projects tracker MEED Projects, the total value of contract awards in the GCC fell by almost a third in 2025 compared to 2024, as spending in Saudi Arabia halved due to challenges with the gigaprojectsThe slowdown in contract awards has forced a return to basics. With budgets under pressure, project spending is now being allocated more selectively. Projects with clear returns on investment, either financial or social, are the ones now moving into construction and towards completion.
Upstream oil and gas sits within the back-to-basics narrative. Despite decarbonisation targets and the energy transition, oil remains structurally necessary to the global economy, and Mena producers, with low extraction costs, are uniquely positioned to supply it.
The second pillar is gas – both a transition fuel and an enabler of diversification. Reflecting that shift, upstream gas and LNG projects have accounted for close to 60% of total upstream spending in the region since 2020, in a pattern that looks set to continue.
Both trends explain why upstream project spending has continued to rise this decade — reaching about $51.6bn in 2025, even as Brent has softened from its 2022 highs.
For contractors and suppliers, the opportunity is huge. MEED Projects is tracking roughly $120bn of upstream schemes that have moved beyond the study phase and are expected to be awarded this year.
In a market focused on return on investment, upstream continues to stand out as a prospect for 2026 and beyond.
READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
> AGENDA: Mena upstream spending set to soar> INDUSTRY REPORT: MEED's GCC water developer ranking> INDUSTRY REPORT: Pipeline boom lifts Mena water awards> MARKET FOCUS: Qatar’s strategy falls into place> CURRENT AFFAIRS: Iran protests elevate regional uncertainty> CONTRACT AWARDS: Contract awards decline in 2025> LEADERSHIP: Tomorrow’s communities must heal us, not just house us> INTERVIEW: AtkinsRealis on building faster> LEADERSHIP: Energy security starts with rethinking wasteTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15558470/main.gif