Tabuk steel factory to start operations in 2024
13 November 2023
Register for MEED's guest programme
MS-Metals is building a fully computerised and automated factory for metal solutions in Tabuk, Saudi Arabia. Construction work has already started, and the factory is expected to be operational by March 2024.
The plant aims to capitalise on the growth of Saudi Arabia’s construction projects market, which registered $10.3bn in contract awards in the first half of 2023 and is on course for an all-time record by the end of the year. As well as the total value of contract awards rising, the increase in the scale and complexity of projects such as Neom has spurred innovation in the manufacturing construction sector.
The total area of the planned MS-Metals plant is 33,400 square metres (sq m). It has 13,500 sq m of production facilities and 12 assembly lines to serve its product range.
Once operational, the factory will supply light gauge steel (LGS) structures for modular and prefabricated buildings, bathroom and kitchen pods and containerised modular units for construction projects in Saudi Arabia and the wider GCC region.
Using a manufacturing method known as computer numerical control, the Tabuk-based factory will use preprogrammed software to automate its machines.
“This facility will mark a milestone in Saudi Arabia,” company representatives told MEED. “It boasts fully computerised production lines, ensuring faster and more efficient production and assembly.”
“MS-Metals has employed a comprehensive automation strategy in its upcoming factory, featuring 12 guided production lines, including the LGS section and the production machines for roofing and side bending, all fully computerised."
Strategic location
The surge in project activity in the kingdom, together with rising demand, has incentivised manufacturers and suppliers to focus on efficient delivery, especially given the challenges posed by the high costs of materials and transportation.
The manufacturer emphasises the potential for contemporary metal solutions, including LGS buildings and modular construction, within Saudi Arabia.
"Saudi Arabia presents a huge opportunity for modern metal solutions,” says MS-Metals. “Since fulfilling the kingdom's ambitious construction plans will require vast resources, proximity to the projects will be instrumental in saving time, costs and resources."
The upcoming factory is strategically situated within 180 kilometres (km) of all the Neom projects and is 480km from the Red Sea Project.
This location enables MS-Metals to ensure a stable and timely supply for ongoing and future projects, the manufacturer says.
“The economic boom in the kingdom has prompted several upcoming projects to be located in close proximity to the Tabuk area, which works to the advantage of MS-Metals. This factory is strategically situated close to key gigaprojects such as Neom, Amaala and the Red Sea Project, creating a highly efficient and cost-effective supply chain for construction materials.”
“One of the primary benefits is the capability to offer same-day deliveries to projects such as Neom, The Line, Trojena, Oxagon, Amaala, the Red Sea Project and Al-Ula.
“Additionally, products such as bathroom and kitchen pods, which are not readily available in Saudi Arabia and are typically imported, will now be manufactured and assembled closer to the projects. This shift will help our clients to reduce costs and decrease their dependence on imports.”
Off-site construction
The manufacturer will produce prefabricated modules in its factory and assemble them on site.
MS-Metals emphasises the advantages of this approach, saying: “By using off-site fabrication and advanced assembly techniques, we will offer the fastest production and delivery times for the gigaprojects.
“Our factory will also have the unique capability to construct light gauge warehouses reaching up to 30 metres in width, a feat that is unheard of in the Middle East.”
According to the firm, this factory will also be the only facility in the kingdom with the capacity to construct modular and LGS buildings with up to five storeys.
Exclusive from Meed
-
Egypt faces complex economic reality
13 March 2025
-
LIVE WEBINAR: GCC Projects Market 2025
13 March 2025
-
Dubai property market rebounds in February
13 March 2025
-
Siemens Energy wins $1.6bn Saudi deal
13 March 2025
-
Chinese builders go global
13 March 2025
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends

Related Articles
-
Egypt faces complex economic reality
13 March 2025
MEED’s March 2025 special report on Egypt includes:
> COMMENT: Egypt battles structural issues
> GOVERNMENT: Egypt is in the eye of Trump’s Gaza storm
> ECONOMY: Egypt’s economy gets its mojo back
> OIL & GAS: Egypt gas project activity collapses amid energy crisis
> POWER & WATER: Egypt’s utility projects keep pace
> CONSTRUCTION: Coastal city scheme is a boon to Egypt constructionhttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483136/main.gif -
LIVE WEBINAR: GCC Projects Market 2025
13 March 2025
Topic: GCC Projects Market 2025
Date & time: 11:00 AM GST, 20 March 2025
Agenda:
- Introduction and overview of the GCC projects market
- Data-driven historical and current performance
- Top clients and contractors
- Assessment of main market drivers
- Summary of the Saudi gigaprojects programme
- Market overview by country and sector
- Market pipeline and outlook for 2025 and beyond
- Key trends, opportunities and challenges
- Selected major projects to watch
- Q&A session
Hosted by: Edward James, head of content and analysis at MEED
A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13483162/main.gif -
Dubai property market rebounds in February
13 March 2025
Property prices in Dubai rebounded in February following a decline in January. Average property prices hit a record high of AED1,505 ($410) per square foot, reflecting a month-on-month increase of 1.41% or a rise of AED20.94 compared to January 2025, according to a statement from property agent Better Homes.
The report also said there was a 17% increase in sales volume, reaching AED41bn across 14,929 transactions, marking a 15% month-on-month rise. This resurgence underscores Dubai's resilience and enduring appeal as a global property investment hub.
The rebound comes just a month after a slight decline in property prices, which had marked the first decrease in over two years.
In January, average prices fell by 0.57% to AED1,484 per square foot, raising concerns about market stabilisation. The February figures indicate that the market has quickly regained its momentum, driven primarily by a surge in off-plan properties, which accounted for 59% of all sales.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13483150/main.jpg -
Siemens Energy wins $1.6bn Saudi deal
13 March 2025
Register for MEED’s 14-day trial access
Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
The Rumah 2 and Nairiyah 2 CCGT plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.
The value of the contract Siemens Energy won is $1.6bn.
Siemens Energy will supply six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, two SGen6-2000P generators and associated auxiliary equipment for each site.
The power plants are designed to replace ageing oil-fired stations, reducing carbon dioxide emissions by up to 60% compared to traditional oil-based power generation.
The project includes long-term maintenance agreements to support the plants’ operational reliability over the next 25 years, Siemens Energy said.
It added: “Core components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently expanding to increase local production capacity and support Saudi Arabia’s energy sector.”
MEED reported in November last year that a developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company had partnered with Siemens Energy for the projects’ gas turbines contract.
The consortium tapped Harbin Electric to undertake the projects’ EPC.
The power generation projects will be developed using a build, own and operate (BOO) model over 25 years, with principal buyer Saudi Power Procurement Company (SPPC) as the sole offtaker.
SPPC previously indicated that the four power plants will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.
SPPC’s transaction advisory team for the Rumah 1 and Nairiyah 1 and Rumah 2 and Al-Nairiyah 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie.
Photo credit: Siemens Energy
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF
Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global
13 March 2025
Commentary
Colin Foreman
EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.
In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.
The region’s active projects market has created unprecedented demand for contractors. Most notably, project clients in Saudi Arabia have been actively courting international construction companies to come and work in the kingdom.
Many international contractors exited the region over the past decade, which has meant Chinese contractors have had little competition as they stepped in to fill the void and deliver crucial projects.
On top of exploiting the shifting competitive landscape, Chinese successes have been able to meet the budgetary requirements of many projects, offering cost-effective solutions and even providing financing.
At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.
The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.
Register for MEED’s 14-day trial access
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF
Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483117/main.gif