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Saudi water sector hits sharp slowdown Administrator8 September 2026
Saudi Arabia’s water sector has recorded a sharp slowdown in contract awards this year, with $3.94bn of new contracts awarded as of early September.
According to regional project tracker MEED Projects, this is well below the $10.7bn recorded in 2025, $13bn in 2024 and a record $15.3bn in 2023.
The slowdown comes as several major projects remain in the procurement process, with some yet to reach financial close or contract award, while tender deadlines for other schemes have been pushed back.
Among the largest is the estimated $2bn Riyadh-Qassim independent water transmission pipeline. The 859-kilometre project will have a transmission capacity of 685,000 cubic metres a day (cm/d). Vision Invest was selected as the preferred bidder last December; however, more than eight months later, an official developer’s agreement has not yet been signed.
Similarly, the Arana and Hadda independent sewage treatment plant (ISTP) projects have yet to reach the financial close originally targeted for the second quarter. The two schemes will provide a combined treatment capacity of 350,000 cm/d.
Delays extend further down the procurement pipeline. The latest developer bid deadline for the estimated $150m Riyadh East ISTP is 29 September, almost a year after the request for proposals (RFP) was issued in October 2025.
Procurement for the main contracts for the Jubail-Buraidah and Ras Mohaisen-Baha-Mecca independent water transmission system projects could also slip into 2027, amid delivery-model changes by Water Transmission Company.
New awards
The market received a boost in September when Saudi Arabia’s National Water Company (NWC) announced it had signed a SR1.3bn ($347m) deal with a Saudi-Chinese consortium for package 10 of its long-term operations and maintenance programme.
The consortium – comprising China’s Jiangsu United Water Technology and Saudi-based Armada Holding – will rehabilitate, operate and maintain nine sewage treatment plants (STPs) with a combined design capacity of more than 337,000 cm/d. Based on the latest procurement timeline, it is unclear whether the selected consortium for package 11 will be formally announced this year. Packages 12 and 14 remain under tender while package 16 is next in line, with its RFP not expected to be issued before November.
NWC is the second-largest awarding entity by value in 2026, accounting for $1.09bn, or about 28% of the total. Saudi Aramco is the largest, with $2.15bn, meaning the two organisations account for more than 82% of awards so far this year.
Aramco’s activity has been led by two major oil field developments. In June, it awarded the $1.5bn Safaniya onshore surface facilities project: package 1 to a joint venture of Tecnimont and Consolidated Contractors Company. The package includes a water treatment and injection plant supporting upstream production.
It also awarded the second phase of its Zuluf water treatment project to a joint venture of Almar Water Solutions and AlJomaih Energy & Water. The project will add a 308,000-cm/d treatment facility at Tanajib in the Eastern Province, supplying water for injection at the offshore Zuluf oil field.
The concentration of awards in industrial projects this year has been notable. Against the slowdown in municipal water infrastructure procurement, much of the value awarded so far has been linked to the water requirements of oil and gas and mining developments.
The third-largest award is the $350m Taif Ar Rjum water pipeline project, being developed by Saudi Arabian Mining Company (Maaden) in Mecca. The project will support the Ar Rjum gold mining and processing facility and is being developed under a build-own-operate-transfer model.
By project type, treatment projects make up the largest share of awards, at $2.85bn or about 72% of the total. Transmission projects account for $980m and cooling projects for a further $110m, while no major desalination or water storage contracts have been awarded so far this year.
Project pipeline
The slowdown in awards appears to reflect the timing of projects moving through procurement rather than a fundamental weakening in demand for water infrastructure.
Saudi Arabia continues to face rising demand for desalination, wastewater treatment and water transmission as population growth and industrial expansion drive demand for water.
Sharakat, formerly Saudi Water Partnership Company, set out the next phase of the kingdom’s water investment programme in its latest seven-year statement, published in March.
The plan points to a significant expansion in desalination capacity. Capacity from Sharakat-procured projects is expected to increase from about 3.88 million cm/d in 2025 to roughly 7.18 million cm/d by 2031.
The increase will be supported by seven new independent water plants (IWPs) with a combined capacity of about 2.8 million cm/d, in addition to projects already operating, under construction or in procurement.
However, several of the planned projects have yet to move into active procurement, while others have seen their expected timelines pushed back.
Among the schemes affected are the Ras Al-Khair, Tabuk, Shuqaiq and Jizan IWPs, which have all progressed through prequalification, but have seen changes to their expected procurement schedules.
The largest is phase two of the Ras Al-Khair IWP, a 600,000-cm/d reverse osmosis desalination plant that has been in development for more than a decade.
The revised schedule indicates that the $400m Al-Shuqaiq 4 IWP is expected to be the first of the seven new plants to reach commercial operation. Its main contract had been expected to be tendered later this year, but it is now understood that the first RFP will not be issued until early 2027.
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Kuwait grants loan for GCC grid extension study Administrator8 September 2026
The Kuwait Fund for Arab Economic Development has signed a KD200,000 ($647,000) grant agreement with the GCC Interconnection Authority (GCCIA) to finance a feasibility study on extending the Gulf power grid to electricity networks outside the GCC.
The agreement was signed on 3 September by Ahmed Bin Ali Al-Ibrahim, CEO of the GCCIA, and Kuwait Fund acting director general Rashid Al-Bader.
The study will assess opportunities to expand the GCC power interconnection system to neighbouring countries. It will examine their electricity requirements and the technical and economic feasibility of connecting their national grids to the Gulf network.
The Kuwait Fund did not identify the countries or potential interconnection routes. However, it is understood that the study will identify potential phases for future expansion, determine priority projects and assess the most appropriate interconnection options based on technical and economic criteria.
It will cover the proposed project’s main components, costs, implementation arrangements and expected timeframe. The study will also assess the potential economic and social benefits for GCC member states and connected countries, as well as how the GCC network would operate alongside neighbouring national grids.
A preliminary assessment of the project’s potential environmental and social impacts will also be carried out, together with proposed mitigation measures.
The Kuwait Fund has previously provided three loans worth a combined KD78m ($252m) to GCCIA to support expansion of the GCC power interconnection system and its connection to southern Iraq’s electricity grid.
In August 2025, the fund announced two loans worth KD70m ($224m) for the expansion of the Gulf Power Interconnection Project. The financing included support for the Al-Wafra 400kV substation and infrastructure connecting Kuwait’s grid with Iraq.
The Al-Wafra substation facilitates electricity exchanges and enables Kuwait to access surplus power available through the GCC interconnection system.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19461053/main.jpg -
Chinese firm to set up $300m anode facility in the UAE Administrator8 September 2026
Beijing-headquartered Sunstone Development has signed a memorandum of understanding (MoU) with the UAE Ministry of Investment to develop an anode production facility in the UAE, with an estimated investment of about $300m.
The MoU follows Sunstone’s December 2025 joint-venture agreement with Emirates Global Aluminium (EGA) to build the project.
Upon completion, the plant is expected to replace most of EGA’s current anode imports and support the UAE’s ambition to become one of a limited number of global anode-exporting countries, aligning with the Make It In The Emirates initiative and Operation 300bn.
The ministry said the agreement reflects its role in helping strategic investors navigate the UAE’s investment ecosystem and convert commitments into long-term operations, in line with the National Investment Strategy 2031.
By localising a key stage in the aluminium value chain, the facility will reduce reliance on imported anodes, enhance the competitiveness of the UAE aluminium sector and support wider economic diversification.
The Ministry of Investment and Sunstone will establish a joint working group, chaired by the ministry, to oversee project delivery.
The project is expected to create skilled employment opportunities for UAE nationals and residents, while strengthening domestic manufacturing capacity and industrial capabilities.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19461120/main.jpg -
Riyadh tenders Expo 2030 Souq areas package Administrator8 September 2026
Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, has tendered a contract to deliver the Souq areas within the Expo site.
The tender was floated on 30 July, with a submission deadline of 9 October.
The Souq areas are divided into five distinct precincts, with a total development area of about 300,000 square metres (sq m).
The scope includes the five precincts and their associated vertical elements, infrastructure and public realm works.
The precincts comprise:
- Precinct 1 – The Icon: 41,417 sq m
- Precinct 2 – Place & Planet: 62,306 sq m
- Precinct 3 – Culture of Wisdom: 67,112 sq m
- Precinct 4 – Kingdom of Saudi Arabia: 45,967 sq m
- Precinct 5 – Adaptation & Innovation: 82,358 sq m
The package will interface with three public parks. It will also tie into the Natural Corridor, including bridges.
The Souq areas will form a mixed-use destination at the centre of Expo 2030 Riyadh, providing a central connection between the site’s iconic and thematic assets.
The development will include rented and partnership pavilions, alongside a range of food and beverage, retail and visitor-experience offerings.
Site progress
Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.
Earlier this month, Saudi Arabia’s Royal Commission for Riyadh City (RCRC) awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.
In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.
The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.
These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.
That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.
The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.
The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19457171/main.jpg -
Powering the next chapter with nuclear energy Administrator8 September 2026
Commentary
Colin Foreman
EditorNuclear energy is increasingly being viewed as essential around the world. It offers a non-CO2-emitting, steady baseload at a time when governments have made net-zero commitments.
In the Gulf, the UAE has spent the past 15 years building the Middle East’s first commercial nuclear plant, now supplying about a quarter of the country’s electricity. What is new is the breadth of ambition beyond Abu Dhabi. The civil nuclear cooperation deal signed between Saudi Arabia and the US in July is the most significant step in the kingdom’s nuclear programme for several years, and it lands as the region moves decisively towards atomic power.
The logic is clear. Electricity demand from industry, desalination and digital infrastructure is climbing, and governments want reliable low-carbon supply to meet it. Saudi Arabia is targeting up to 17GW of nuclear capacity by 2040. Its first plant at Khor Duwaiheen, comprising two 1.4GW reactors, represents only about a sixth of that goal, which points to a programme rather than a one-off.
What is new is the breadth of ambition beyond Abu Dhabi
The opportunity extends well beyond reactors. The UAE’s nuclear programme shows the scale of the economic impact. More than 2,000 local firms secured contracts worth over $6.7bn supporting construction, operations and maintenance.
Saudi Arabia’s ambitions reach further still, into small modular reactors, domestic uranium and elements of the fuel cycle. At the same time, Bahrain is studying a modular plant to power its industrial base, and Egypt’s 4.8GW El-Dabaa project is already under construction, with first generation expected in 2028.
For contractors, engineers and financiers, this is the beginning of a projects market that will unfold over decades. The reactor awards will grab the headlines, but the supporting ecosystem, from regulation and fuel supply to workforce development, is where much of the value lies.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19461185/main.gif -
WEBINAR: Mena Water & Wastewater Projects Market 2026 Administrator8 September 2026
Webinar: Mena Water & Wastewater Projects Market 2026
Thursday 24 September 2026 | 11:00 AM GST | Register now
Agenda:
- GCC water projects outlook
- Key water projects and contracts awarded year to date
- Market trends, opportunities and challenges
- Key tenders and awards over the next 18 months
- Long-term capital expenditure outlays and forecasts
- Top contractors and clients
- Spending by segment: desalination, storage, transmission and treatment
- Evolution of PPP models in water projects
- Key drivers and challenges going forward
- Audience Q&A
Hosted by: Mark Dowdall, MEED’s power & water editor
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Iraq and Turkiye plan to partner on oil refinery project Administrator8 September 2026
Iraq and Turkiye are planning to partner on developing an oil refinery project in the Turkish port city of Ceyhan, according to Ali Al-Shatri, director general of Iraq’s state organisation for marketing oil (Somo).
Ceyhan is the endpoint of the Iraq-Turkiye Pipeline (ITP), which is used to export oil from northern Iraq.
Speaking on Iraqi television, Al-Shatri said that Turkiye and Iraq are planning to sign a “comprehensive agreement” next year, which will cover terms for oil exports via the pipeline as well as plans for construction of the refinery.
In July, Turkiye and Iraq signed a temporary agreement to allow crude flows through the ITP for the next 12 months.
Before the temporary agreement was signed, the previous deal governing oil exports through the pipeline was due to expire on 27 ​July.
Speaking on Alawla TV, Al-Shatri said that the temporary deal was “a prelude” to a much bigger agreement planned for next year.
He said: “The new agreement will not be a mere pipeline pact as it will cover electricity, gas and other sectors … It also includes the construction of an oil refinery in Ceyhan to process Iraqi crude for export of refined products to Europe … We expect this project to generate more funds for Iraq along with the exported crude.”
Al-Shatri said oil exports through the ITP stood at around 180,000 barrels a day (b/d) in August.
The ITP has become increasingly important for Iraq amid disruption to shipping through the Strait of Hormuz due to the regional war, which started when the US and Israel attacked Iran on 28 February.
Prior to the conflict, Iraq relied on the Strait of Hormuz to export the majority of the oil produced in the country.
Over recent weeks, Iraq has managed to boost the volume of crude being exported through the waterway.
On 5 September, Oil Minister Basim Mohammed Khudair said that the country has been able to ship more than 3 million b/d since the start of this month.
Iraq’s crude exports fell from more than 3.3 million b/d before the war to a low of about 330,000 b/d in April, while exports from its southern terminals were temporarily halted altogether in March.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19442888/main.jpg -
Arabian Drilling wins $800m contract from SLB in Saudi Arabia Administrator8 September 2026
Saudi Arabia-based Arabian Drilling has announced it has secured a new five-year contract with US-based oilfield services major SLB, valued at SR3bn ($800m), to provide 11 land drilling rigs for gas lump sum turnkey (LSTK) operations in the kingdom.
Under the new contract, Arabian Drilling will provide 11 land rigs and associated drilling services to support SLB’s gas LSTK operations in Saudi Arabia.
The 11 rigs covered under the agreement are the incumbent units currently deployed under an existing gas LSTK project with SLB.
The contract is expected to begin contributing to Arabian Drilling’s revenues from the third quarter of 2026. The award will also support continued utilisation of the company’s land drilling fleet throughout the contract period.
“The rigs will be utilised for gas drilling activities, supporting the development of Saudi Arabia’s gas resources and the kingdom’s broader energy sector objectives,” Saudi Exchange (Tadawul)-listed Arabian Drilling said.
“The contract represents a major award for Arabian Drilling and strengthens the company’s long-term revenue visibility and operational backlog,” the company added.
Before winning this contract from SLB, Arabian Drilling signed a contract in August with Masirah Oil and Northern Offshore to drill two firm wells and two optional wells in Oman, marking the company’s entry into a new GCC market.
The contract was signed on 17 August and is worth less than 5% of Arabian Drilling’s 2025 total revenue, the company said in a 19 August addendum.
Operations are expected to begin before the end of Q3 2026, with the contract ending upon completion of the drilling operations. The financial impact is expected to be reflected in Arabian Drilling’s 2026 results.
The contract follows the early completion of the company’s first international offshore drilling contract and the redeployment of its jack-up rig to another GCC market.
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Conflict bolsters case for Saudi economic diversification Administrator7 September 2026
Billions of dollars’ worth of deals were announced at the Leap technology conference in the Saudi capital in late August and early September – a welcome fillip for an economy that is struggling to deal with the effects of the Iran war.
Among the biggest deals unveiled at the Riyadh Exhibition & Convention Centre were a $1.2bn investment in data centres by the local Al-Moammar Information Systems and an $880m commitment from NHC Innovation to develop data centres in Khuzam Digital Valley, to the north of the capital. There were numerous other, smaller financing commitments around cloud services, artificial intelligence (AI), and research and development centres.
Technology is a priority area for the Saudi government’s economic diversification efforts and, for now at least, the indicators are moving in the right direction. The Public Investment Fund’s AI subsidiary, Humain, has been particularly active in striking deals, and other bodies are also throwing their weight behind the sector. A few days before Leap got under way, the Royal Commission for Riyadh City launched the Riyadh Digital Innovation District, aimed at turning the capital into a technology and innovation hub.
Economic strains
The wider economic picture is, however, far more mixed. Figures issued by the General Authority for Statistics in mid-August revealed a 4.8% contraction in GDP in the second quarter of the year, compared with the same period a year earlier. The decline was driven by a 25% contraction in the oil sector.
Hydrocarbons remain the central pillar of the Saudi economy, and the Iran war has placed it under enormous pressure, with exports through the Strait of Hormuz difficult – if not impossible – for much of the past six months. The alternative route via the Red Sea has its own difficulties, thanks to Houthi attacks on shipping around the Bab El-Mandeb strait. As a result, Saudi oil cargoes heading to Asia are being diverted via the Suez Canal and around Africa – a route that adds weeks to the journey.
Lower oil revenues weaken the state’s fiscal position and are leading to larger budget deficits, which need to be funded through other means. On 1 September, the National Debt Management Centre (NDMC) announced it had sold $3.25bn-worth of sharia-compliant bonds (sukuk) to international investors. It said it had received orders for $16.5bn, indicating there remains strong appetite among overseas buyers.
In May, the NDMC said it had secured around 90% of the government’s funding needs for the year, even before the euphemistically named “geopolitical events” had broken out. It added at the time that, should additional financing be needed, it would turn to “private channels and local markets” as the main funding sources, while also monitoring international markets to see if “favourable opportunities arise”.
One positive element amid the gloom is that the non-oil private sector has proved relatively resilient and has continued to grow for most of the time since the war began in late February. The purchasing managers’ index (PMI) survey compiled by Riyad Bank shows the non-oil sector expanded each month from April to August. Reviewing the latest PMI data, Naif Al-Ghaith, chief economist at Riyad Bank, said it expected the Saudi non-oil economy to “maintain solid growth momentum through the second half of the year”.
However, there are warning signs. Job creation is relatively weak, and business confidence is fragile: in the August PMI survey, only one in five respondents said they expected increased activity over the next 12 months.
Other data points offer further reasons for caution. Saudi bank deposits fell slightly in July to SR3.11tn ($820bn) – the first drop since October last year – according to data from the central bank.
Exports are also struggling due to higher transport costs. Saudi Arabia’s total exports were 10% lower in the second quarter of the year than in the first. The government is reportedly weighing a scheme to reduce insurance costs for shipping companies in an effort to bolster exports, but Oxford Economics said it expects the kingdom’s exports “to remain weak through the rest of this year”.
Perhaps the biggest risk is uncertainty. The Iran conflict was relatively muted through much of August, but flared again in early September when Tehran and Washington exchanged fire. Saudi Arabia has not suffered as many hits from Iranian missiles as Bahrain, Kuwait or Jordan, but that could change.
Investor test
Against that backdrop, the push for economic diversification is as strong as ever. The Leap technology conference in August offered a sense of how things could develop. The Future Investment Initiative (FII) event in October will provide another litmus test of international investor appetite.
Riyadh is trying to build momentum ahead of the event, releasing a list of speakers in late August that included BlackRock chief executive Laurence Fink, Goldman Sachs chief executive David Solomon and JPMorgan Chase chief executive Jamie Dimon.
The past nine editions of FII have been a stage for billions of dollars in investment pledges – more than $50bn-worth of agreements were announced at last year’s event – but none has taken place against such a difficult geopolitical and macroeconomic backdrop. Riyadh’s policymakers will be hoping investors can look past the current crisis and provide further fillips for the economy.
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Saudi construction defies the headwinds Administrator7 September 2026
Despite a geopolitical backdrop that has unsettled contractors and financiers alike, Saudi Arabia’s construction sector is on course for one of its strongest years on record.
Contract awards in the kingdom’s construction sector hit $20bn in the first half of 2026, comfortably outpacing the $15bn recorded over the same period in 2025 and the roughly $17bn seen in the first half of 2024. These figures suggest that whatever recalibration the market has been going through, momentum is building again rather than fading.
The rebound is notable given the conditions in which it is occurring. The conflict in the Gulf that began in February introduced a fresh layer of risk into investment decision-making, at precisely the moment the kingdom is trying to attract private capital into its construction sector.
The major construction contracts awarded this year – including the Ministry of Defence headquarters, Rua Al-Madinah superblock 5, the Qiddiya racecourse, Qiddiya National Tennis Centre and Diriyah Waldorf Astoria superblock – suggest that awards have accelerated rather than stalled. This says as much about the underlying resilience of Saudi Arabia’s building programme as it does about the discipline with which it is now being managed.
Procurement pivot
The scale of the turnaround is easier to appreciate against the market’s recent trajectory. Construction contract awards fell 31% in 2025, dropping to $31bn from $45bn the year before, according to regional project tracker MEED Projects.
That contraction followed the boom years of 2021-24, when the Public Investment Fund (PIF) and its gigaproject subsidiaries drove aggressive, broad-based growth across its five official gigaprojects and a raft of other Vision 2030 schemes.
But 2025’s slowdown turned out to be a defining pivot. With the Finance Ministry projecting a budget deficit of SR165bn ($44bn) for 2026, Riyadh moved deliberately away from the scattergun procurement of the boom years and towards event-driven programmes with fixed deadlines: the 2034 Fifa World Cup, Expo 2030 Riyadh, and non-negotiable housing, healthcare and education commitments.
The postponement of the 2029 Asian Winter Games at Trojena, along with the scaling back of The Line and the Mukaab, showed that even flagship gigaprojects are no longer immune to scrutiny. The H1 2026 figures suggest that this prioritisation exercise is now paying off, translating into a leaner but faster-moving pipeline of awards.
Private delivery
Central to the sector’s next phase is what PIF officials have termed ‘escape velocity’: the point at which real estate, tourism and social infrastructure are mature enough for private capital to take over primary funding and delivery, freeing PIF to focus on enabling rather than financing.
That shift was formalised in April, when PIF’s board, chaired by Crown Prince Mohammed Bin Salman, approved the fund’s 2026-30 strategy.
While the 2021-25 phase was defined by rapid capital deployment and the launch of the gigaprojects, the new roadmap explicitly pivots towards value creation, investment efficiency and greater private sector participation, with PIF positioning itself increasingly as a platform creator and catalyst rather than the primary financier of every scheme.
For construction, the implication is that the state is not stepping back from the transformation agenda, but expects the private sector – and public-private partnership (PPP) structures in particular – to carry a growing share of the delivery load.
MEED’s coverage this year has tracked the expanding PPP pipeline overseen by the National Centre for Privatisation & PPP (NCP), which has around 200 projects in the pipeline worth roughly $190bn, spread across 17 sectors.
Recent examples bear this out, including the State Properties General Authority and NCP tendering the Quality Valley Riyadh scheme, a 32-year mixed-use concession that drew expressions of interest from 59 firms.
Elsewhere, the NCP is advancing a PPP to rehabilitate, operate and maintain 50 public parks across the Eastern Province, Jeddah and Medina. It has also selected preferred bidders to develop residential buildings at various land ports across the kingdom.
Tendering has also started for the King Fahd suburb boulevard project in Dammam on a 43-year concession, and for the construction and operation of the Umm Al-Qura University Hospital in Mecca. Each of these projects is a marker of how far the model has extended beyond its traditional water and power roots.
Market outlook
For all the momentum of the past six months, the more striking number may be the one still ahead. MEED Projects data puts the value of construction projects in Saudi Arabia’s pipeline at more than $400bn, underscoring how much of the kingdom’s Vision 2030 build-out remains unawarded.
Of that, around $65bn-worth of projects are currently at the bidding stage, a substantial near-term opportunity for contractors and PPP developers positioning themselves now.
The longer-term picture is arguably more compelling still. As the private sector’s share of funding grows and PPP structures extend into new sectors, Saudi Arabia’s construction industry is being reshaped from a state-financed, volume-driven business into a more diversified, investment-grade market – one in which the $400bn still sitting in the pipeline represents a long runway of opportunity for contractors.
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