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Riyadh looks to reset its regional defence outlook Administrator11 September 2026
Saudi Arabia may not have suffered as many Iranian missile and drone strikes as some of its neighbours – Bahrain, Jordan and Kuwait have all had to contend with many more during this year’s conflict – but it still feels exposed. Like other Gulf countries, Riyadh has learnt that its deep defence and economic ties to the US, which were meant to provide security and deter aggressors, have in some ways merely made it a target for Tehran.
The threats are not just from direct Iranian strikes, though. In late July, Saudi Arabia joined with the US to attack Iraqi militia groups alleged to have targeted Saudi energy sites in the preceding days.
Yemen’s Houthis are also re-emerging as a serious threat. After several years in which the conflict in Yemen was largely in abeyance, the Yemeni group has in recent months repeatedly launched attacks on Saudi airports and refineries, as well as on ships passing through the Bab El-Mandeb Strait.
From mid-July to mid-August, the Houthis carried out 16 attacks against Saudi assets, including seven oil facilities and six oil tankers, according to the conflict monitoring group Armed Conflict Location & Event Data (ACLED). Riyadh responded with hits on Houthi targets; most notably on weapons depots and other infrastructure in the port city of Hodeidah on 24 July.
The Houthis stepped up their attacks on 8 August, firing dozens of ballistic missiles and drones at Saudi Aramco facilities in Abha, Jaqzam, Khamis Mushait and Najran. The Saudi authorities said 73 civilians were injured. Major General Turki Al-Malki, a spokesman for the Saudi-dominated Coalition to Support Legitimacy in Yemen, described the Houthi attacks as “a dangerous escalation” and said Riyadh would take “all necessary operational measures” to deter further attacks.
So far, a return to a full-scale war in Yemen has been avoided, but ACLED’s Middle East analyst Sherwan Hindreen Ali warned in a report in August that, if both sides continue to escalate, the “chances for renewed full-scale war increase exponentially”.
New partnerships
The increasingly volatile nature of the region has prompted Riyadh to reevaluate its approach to security and to develop new defence partnerships with allies.
The first major step came in late July, when Saudi Arabia launched the Multinational Maritime Defence Coalition with an initial band of 13 other countries; more are expected to sign up in the coming months. The group is designed to protect shipping in the Red Sea, the Gulf of Aden and nearby waters, with Saudi Arabia’s Rear Admiral Abdullah Bin Salem Al-Shehri as its commander.
That was followed by a trilateral mutual defence pact with Pakistan and Turkiye signed in Mecca on 7 August. Their joint defence agreement includes a provision that an attack on any one of them will be considered an attack on all three. At a meeting in Istanbul on 31 August, the partners agreed to set up a secretariat in Riyadh.
There have been other, smaller steps too. In late August, Saudi Arabia signed an agreement to expand defence co-operation with France, during a visit by Crown Prince Mohammed Bin Salman Al-Saud to Paris (pictured). And on 1 September, Saudi Arabia’s National Cybersecurity Authority signed a memorandum of understanding with Pakistan to strengthen cybersecurity cooperation.
Diplomatic tracks
For Riyadh, enhancing its security capabilities to deter Iran and the Islamic Republic’s allies in Yemen and Iraq is a critical issue. However, the Iran war looks unlikely to be resolved by military means alone. Indeed, Saudi officials have repeatedly emphasised their preference for a negotiated, diplomatic solution to the conflict.
The regional diplomatic efforts have been spearheaded by Pakistan, Oman and Qatar, but Saudi Foreign Minister Prince Faisal Bin Farhan Bin Abdullah Al-Saud has also spoken on several occasions to his Iranian counterpart Abbas Araghchi – most recently on 6 September.
One issue where Riyadh is less keen to publicly engage is in relation to Israel. When Saudi Arabia signed an agreement with the US in July covering the development of a civil nuclear power programme, the deal made no mention of Riyadh having to normalise links with Israel – a condition that previous US administrations had insisted on. That was a notable win for Saudi Arabia, although it was thrown into doubt when US President Donald Trump insisted in the following days that the deal would only proceed if Riyadh signed up to the Abraham Accords.
Trump sent the proposed nuclear deal to the US Congress for approval in late August, but administration officials reiterated at the time that the pact would only go into effect if Riyadh normalised relations with Israel – something that, in the current environment, looks extremely unlikely.
Alliance strains
Saudi Arabia’s close ties with the US have been a central element in the kingdom’s regional positioning for decades – but the combination of the Iran war and the volatile nature of the Trump administration means the strength and direction of those ties are now a matter of speculation.
The situation is made more complex by the rivalry between Riyadh and Abu Dhabi, with their differing approaches to regional conflicts and diplomatic initiatives creating a strain within the GCC bloc.
Both sides have tried to change the narrative. In July, Saudi Media Minister Salman Al-Dosary and the UAE’s National Media Authority (NMA) chairman Abdulla Bin Mohammed Al-Hamed issued similar statements on social media denying any rupture between the two governments, with Al-Dosary writing that the countries were “united by a shared history and heritage, and wise leadership”.
On the broader regional stage, Saudi Arabia remains unable to fully insulate itself against the Iran war. On 31 August, the Saudi oil tanker SIDR was hit by Iranian projectiles while transiting the Strait of Hormuz, resulting in the death of two crew members. On the same day, another Saudi oil tanker, the Amzan, was hit by Yemen’s Houthis off the coast of Yanbu, in the Red Sea.
Coupled with the wave of Houthi attacks on 8 September, it suggests that Saudi Arabia’s efforts to create new layers of deterrence have yet to make their mark.
Photo credit: SPA
MEED’s October special report on Saudi Arabia also includes:
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflicthttps://image.digitalinsightresearch.in/uploads/NewsArticle/19583845/main.gif -
Consultant wins Dubai Al-Maktoum airport metro link Administrator11 September 2026
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US-based engineering firm Aecom has won a design contract for the Route 2020 extension, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.
Dubai’s Roads & Transport Authority (RTA) awarded the contract.
The extension will run about 3 kilometres (km) and include two stations.
MEED understands the invitation to bid was issued in January, with a submission deadline in mid-March.
The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
The RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.
The RTA also selected Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4, in October last year, as MEED reported.
The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.
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Saudi Arabia sets October deadline for Mecca metro design Administrator11 September 2026
The Royal Commission for Makkah City & Holy Sites (RCMC) has set a deadline of 14 October for a contract covering the initial design studies for its long-planned metro network in the holy city.
The scope includes reviewing existing studies, preparing a concept design, conducting land acquisition studies, developing an integration concept for future phases and other related studies.
The notice was issued in May, with an initial submission deadline of 5 August, as MEED reported.
In September last year, RCMC invited contractors to attend an early market engagement meeting for the project.
In an explanatory document inviting companies to attend the event, the RCMC’s General Transport Centre said it was seeking to gauge market interest in the multibillion-dollar project and obtain feedback on its proposed procurement approach.
MEED exclusively reported in June last year that the project was restarting. Current plans envisage a four-line network, named lines A-D, with 89 stations and three depots, to be implemented over three phases between 2032 and 2045.
Project scope
Stage 1 focuses on lines B and C, involving 2.4 kilometres of tunnelling under the Masar project and integration with the existing Mashaer line.
The network will run just over 62km and comprise 31 stations, 21 of which will be underground, including three iconic stations. A total of 19.5km will run through tunnels, while 41.2km will be elevated, with the remainder at grade.
The 66 required trainsets are projected to provide a daily passenger capacity of about 450,000, equating to annual ridership of 171 million.
The 84.7km-long second phase, due to be operational by 2038, will extend the two lines towards the outskirts of Mecca and includes construction of the initial inner and central segments of lines A and D.
Comprising 61.1km elevated and 18.6km underground, Phase 2 is planned to add 45 stations serving the two new lines, as well as two depots and a potential interconnection with the planned Saudi Landbridge. The 59 trainsets for Phase 2 will increase the network’s projected total annual passenger capacity to more than 500 million.
Phase 3 covers the elevated 36km extension of lines A and D and involves procurement of a further 72 trainsets, increasing the network’s ultimate passenger capacity to 1.2 million daily and 642 million annually by completion in 2045.
Associated development
The metro plan also envisages several transit-oriented developments (TODs) at different points on the route. These will typically comprise commercial, residential and retail elements to maximise the investment case.
The client’s proposed procurement approach involves three distinct packages: civil and systems works, TODs, and operations and maintenance.
The initial concept calls for some of the project to be delivered on a public-private partnership (PPP) basis, wherein the private sector, through special purpose vehicles, will part-finance, build, operate and then transfer commercially viable elements of the scheme.
The then-called Mecca Mass Rail Transit Company (MMRTC) first launched the metro project in 2013; however, the scheme has faltered for more than a decade due to funding issues, land acquisition challenges and scope changes.
The relaunch of the procurement process raises hopes that the project will now come to fruition, although it is likely to be at least 18 months before any definitive works start.
Mecca is home to Saudi Arabia’s first metro, the nine-station, 18km-long Mashaer line, which opened in 2010. It operates only seven days a year during Hajj, but carries more than 2 million pilgrims during that time.
Some 30 million pilgrims visit the city each year, with this number set to grow. A known, quantifiable and growing demand base will help facilitate the use of a PPP mechanism if the framework is adopted.
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Consortiums submit bids for Sadara cogeneration plant Administrator11 September 2026
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At least three consortiums have submitted bids for the contract to develop and operate a cogeneration steam and power plant catering to the Sadara petrochemicals complex in Saudi Arabia.
The planned independent steam and power plant (ISPP) project will have a capacity for 400MW-450MW of combined-cycle electricity generation and 550-700 tonnes an hour of steam.
According to sources, bids were submitted for the contract at the end of August.
The consortium bidders include:
- Abu Dhabi National Energy Company (Taqa) / Samsung C&T (South Korea)
- Al-Jomaih Energy & Water (Saudi Arabia) / Albawani (Saudi Arabia) / Sepco 3 (China)
- Acwa (Saudi Arabia), Korea Electric Power Corporation (Kepco) / Doosan Enerbility (South Korea)
Sadara Chemical Company (Sadara) is the project client. It is the downstream joint venture of Saudi Aramco and US-headquartered Dow Chemical.
The estimated $500m project includes construction of a power plant, substations, a seawater intake system and associated switchyards and switchgear.
The project will also include gas turbines and a back-pressure steam turbine, as well as facilities for steam production.
In 2024, MEED exclusively reported that Sadara had prequalified potential bidders for the project. It is understood that the request for proposals was issued towards the end of last year.
The first units at the $20bn Sadara petrochemicals complex in Jubail began production in 2016, and the complex became operational in 2017.
The Sadara complex is designed to produce more than 3 million tonnes a year (t/y) of chemicals and performance plastics, including polyurethanes, propylene oxide, propylene glycol, elastomers, polyethylene, glycol ethers and amines.
Construction is also continuing on the Najim cogeneration facility, which will supply the Amiral petrochemicals complex with up to 475MW of power and approximately 452 tonnes an hour of steam.
Previously known as the Amiral cogeneration independent steam and power plant, the project is being developed by a team comprising Abu Dhabi National Energy Company (Taqa) and Japanese power generation company Jera.
South Korean contractor Samsung C&T is the engineering, procurement and construction contractor for the project.
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UAE plans 150km Boring Company tunnel network Administrator11 September 2026
The UAE plans to build more than 150 kilometres of underground tunnel with US tunnelling firm The Boring Company, in a programme backed by a $3bn funding round the UAE led.
The Series D round values the Boring Company at $23bn, about four times the $5.7bn it was worth after a 2022 funding round. The UAE and affiliated investment entities led the round, which will accelerate a partnership to deploy underground infrastructure across the UAE, the firm said.
The 150km target marks a substantial expansion of the company’s footprint in the country, extending work already committed through the Dubai Loop project. It contrasts sharply with what has been contracted so far. The Boring Company has signed a construction contract with Dubai’s Roads & Transport Authority (RTA) for the pilot phase of Dubai Loop, covering a 6.4km route and four stations linking Dubai International Financial Centre (DIFC) and Dubai Mall. The pilot is expected to cost about AED565m ($154m), with tunnelling due to begin in the second half of this year.
The 150km figure therefore represents an ambition for the wider partnership rather than a contracted volume, with the bulk of the network yet to be tendered, designed or awarded. No timeframe has been attached to the target.
A second Dubai Loop phase will connect Dubai World Trade Centre and DIFC with Business Bay, extending the tunnels to 22km across 19 stations. The total cost across both phases is expected to be about AED2bn ($545m), with completion scheduled within three years. The pilot route is projected to carry about 13,000 passengers a day, rising to about 30,000 a day across the full route.
Other investors in the round include Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal Holding and Baron Capital. The proceeds will also fund hiring, the scaling of the company’s Loop transit systems in the US cities of Las Vegas and Nashville, and further development of its Prufrock tunnel-boring machines, which it says can operate in both soft ground and hard rock.
The RTA and the Boring Company signed a memorandum of understanding in February last year to explore developing the Dubai Loop, and the construction contract followed in February this year. In May, US engineering firm Parsons was appointed as programme manager for the pilot phase, with a scope covering independent design verification, permitting and multidisciplinary design reviews.
The appointment comes amid a broader shift towards underground construction across the Gulf, as metro, sewerage and highway works in the UAE, Saudi Arabia and Qatar increasingly default to tunnelling.
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Heisco wins $359m oil contract in Kuwait Administrator11 September 2026
Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco) has been awarded a contract worth KD111.05m ($359m) to develop storage tanks for Kuwait’s Jurassic Light Oil (JLO) export facilities, according to a stock market filing.
The scope of the contract includes civil, mechanical, electrical and instrumentation works, as well as engineering, procurement and construction (EPC) services for the tanks.
The contract was awarded by India’s Larsen & Toubro (L&T), the main contractor for a broader project to develop JLO storage and export facilities in Kuwait, as well as upgrade Kuwait Oil Company’s (KOC’s) existing export network.
The $979.2m main contract for this broader project was awarded to L&T on 15 July.
The contract for Heisco’s scope of work has a time period of 42 months, according to its stock market filing.
Oil crisis
Kuwait’s oil and gas sector is currently in crisis due to the regional war that started after the US and Israel attacked Iran on 28 February.
The war has severely disrupted exports through the Strait of Hormuz, which Kuwait relies on in order to ship crude exports.
It has also disrupted imports of equipment and materials for projects, raising project costs.
Sheikh Nawaf Saud Al-Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation (KPC), the country’s national oil company, has described the current conflict as the biggest oil crisis the country has faced since Iraq’s 1990 invasion.
Despite the significant reduction in crude exports, Kuwait’s state-owned oil companies have continued to tender some projects.
Export facilities
The scope of work under the contract awarded to L&T in July includes the EPC of six new crude oil storage tanks, each with an operating capacity of 618,000 barrels, along with associated facilities, the Mumbai-headquartered company said on 29 July.
The project also involves “the installation of new pipelines and comprehensive upgrades to Kuwait’s existing crude loading and export network, to seamlessly accommodate increased production and enhance the country’s crude handling capabilities”, the Bombay Stock Exchange-listed company said.
L&T also said that the contract will be executed on a lump-sum turnkey basis.
Only two companies submitted bids for the contract in October last year:
- L&T (India): KD303.5m ($988m)
- Petrofac (UK): KD310.6m ($1.01bn)
Following bid submission, KPC discussed the potential cancellation of the tender due to bids coming in significantly over budget and Petrofac becoming ineligible to win contracts in Kuwait.
The contractor was temporarily barred from participating in tenders in Kuwait’s oil and gas sector in December last year.
Petrofac received the ban after the company announced it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa region.
Despite discussions about cancelling the tender, KPC ultimately decided to proceed with the award process because it considered the project a high priority.
One source previously told MEED: “Around the same time, projects worth around $8bn were cancelled because of bids coming in over budget, but this one has gone ahead because KPC sees it as an essential project.”
The project was originally tendered in November 2024, with a bid deadline of 1 December the same year. The bid deadline was extended several times before bids were ultimately submitted.
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Abu Dhabi eyes digital requirements for utility projects Administrator11 September 2026
Abu Dhabi is set to place greater emphasis on digital and data capabilities in the procurement of future energy and water projects as the emirate prepares for the next expansion phase of its infrastructure network.
Speaking to MEED, Ahmed Mohammed Al-Rumaithi, undersecretary of the Department of Energy, said: “Future utility projects in Abu Dhabi are expected to increasingly include clear digital and data requirements as a core part of the procurement process, alongside the delivery of physical infrastructure.”
The move comes as Abu Dhabi plans to invest more than AED300bn ($81.7bn) in energy and water infrastructure over the next decade under the Department of Energy’s Strategic Framework for the Energy and Water Sector through to 2050.
“Projects will be expected not only to construct assets, but also to demonstrate how operational data is generated, cleansed, governed and exchanged across the full asset lifecycle,” Al-Rumaithi said.
Procurement frameworks are also expected to “prioritise digital readiness, interoperability, cybersecurity and adherence to common data standards” so that new assets can operate as part of an integrated and connected energy and water ecosystem.
AD.WE roadmap
The approach builds on the Department of Energy’s experience with AD.WE, an artificial intelligence (AI)-powered platform that brings together live and historical data from across Abu Dhabi’s energy and water systems.
The department unveiled AD.WE’s development roadmap in October last year, including the full rollout and expansion of the platform beyond electricity and water to district cooling and petroleum products.
The roadmap initially targeted the rollout of phase three of the platform’s development by the fourth quarter of this year, identifying applications including farm irrigation optimisation, intelligent leak detection, consumption intelligence and network planning.
Al-Rumaithi said AD.WE provides a shared operational view of the system and supports operational and regulatory decision-making through agentic AI-driven optimisation and planning.
The platform enables 20% to 30% efficiency gains across capital expenditure (Capex) and operating expenditure (Opex) in targeted parts of the network, according to Al-Rumaithi.
AI planning
AI is also being used to improve long-term infrastructure planning as electricity demand grows, including demand associated with digital infrastructure.
Abu Dhabi’s power demand is expected to double by 2050, with total installed capacity projected to rise from about 25GW to 50GW, according to the Department of Energy.
“AI is reshaping infrastructure planning in two ways. It is driving new electricity demand through digital infrastructure, while also providing more sophisticated tools to understand how demand for energy and water will evolve over time,” Al-Rumaithi said.
AI enables more accurate forecasting, scenario modelling and network analysis, allowing planners to assess future requirements across electricity generation, transmission, water production, cooling and supporting infrastructure.
The strategic framework is supported by an investment of approximately AED35bn a year in “sector development and operations”, Al-Rumaithi said.
He said the increasing use of digital systems will require greater focus on data governance, cybersecurity, transparency and accountability to ensure innovation strengthens the resilience and reliability of essential services.
For utilities, developers and technology providers, Al-Rumaithi said preparation should focus on “high-quality data, robust governance, cybersecurity and workforce capabilities needed to manage increasingly connected infrastructure”.
“Equally important,” he said, “is designing systems that can exchange information securely and operate within a wider digital ecosystem. This enables better coordination between utilities, technology providers and regulators, improving both operational performance and long-term planning.”
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Saudi Arabia tenders next phase of King Saud Air Base Administrator10 September 2026
Saudi Arabia’s Ministry of Defence & Aviation has started the tendering process for the next phase of the King Saud Air Base in the kingdom.
Contractors have been given until 20 October to submit their bids.
The scope of works covers the construction of the headquarters building, administrative buildings, operations and maintenance area, police camp facilities, weapons and ammunition area, residential facilities, airfield facilities and other associated facilities.
The project duration is three years.
The air base spans an area of 383 square kilometres (sq km) in the Hafr Al-Batin area of the kingdom’s Eastern Region.
Contracts worth about SR6.6bn ($1.8bn) for the project’s first phase were awarded early last year.
The joint venture of local firms Isam Khairi Kabbani Group and Alfanar Projects was appointed as the main contractor for the first package, which was worth about SR2.9bn ($783m).
The consortium comprising Riyadh-based Albawani, Shibh Al-Jazira Contracting and Kuwait’s Alghanim International won the second package, worth about $1bn.
According to GlobalData, Saudi Arabia’s defence budget is projected to grow from $68bn in 2027 to $86.3bn by 2031, representing a compound annual growth rate (CAGR) of 6.1%.
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/19544241/main.jpg -
Sabic awards $3.47bn contract for ammonia and urea complex Administrator10 September 2026
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Sabic Agri-Nutrients, an affiliate of chemicals giant Saudi Basic Industries Corporation (Sabic), has awarded the main engineering, procurement and construction (EPC) contract for its seventh project in Saudi Arabia’s Jubail Industrial City, which will significantly expand its ammonia and urea production capacity.
South Korea’s Samsung E&A has won the contract for the project known as San VII, valued at $3.465bn, Sabic Agri-Nutrients said in a filing with the Saudi Exchange (Tadawul) on 10 September. It added that its board approved the final investment decision on the project on 9 September.
The San VII project in Jubail Industrial City, in the kingdom’s Eastern Province, will have a production capacity of about 1.2 million metric tonnes a year (t/y) of conventional ammonia and 2.6 million metric t/y of urea. The complex will also feature a post-combustion carbon capture unit.
Sabic had earlier announced receiving approval for feedstock allocation from the Saudi Ministry of Energy in March for the project, which will expand Sabic Agri-Nutrients’ urea production capacity by 54%, from approximately 4.8 million metric t/y to 7.4 million metric t/y.
The San VII project replaces a previously planned low-carbon or blue ammonia project with a conventional ammonia and urea facility. The project, which was previously known as San VI, was slated to produce 1.2 million metric t/y of low-carbon ammonia and 1.1 million metric t/y of urea and specialised agri-nutrients.
Before being restructured into its current form, MEED reported in March last year that Samsung E&A was the frontrunner to win the main EPC contract for the project.
Sabic Agri-Nutrients expects construction on the San VII project to begin in Q4 2026, with commissioning scheduled to start in Q3 2030. The commissioning period will last four months, ahead of the start of commercial production and completion of the project in Q4 2030.
The San VII project “is also expected to represent a significant step toward enhancing the company’s competitiveness and sustainability through the integration of advanced carbon capture technologies and the reduction of emissions intensity across its operations. This will contribute to reducing the carbon footprint of its products, supporting the company’s sustainability and carbon neutrality ambitions”, Sabic Agri-Nutrients said in its Tadawul filing.
“The project is considered one of the key pillars of the company’s 2040 strategy, which aims to strengthen the kingdom’s position in the agricultural nutrients export market and contribute to global food security, in line with the objectives of Saudi Vision 2030,” it added.
Sabic Agri-Nutrients
Formerly Saudi Arabian Fertiliser Company (Safco), Sabic Agri-Nutrients was the first petrochemicals company to be established in Saudi Arabia in 1965.
Sabic Agri-Nutrients, in which Sabic owns the majority 50.1% share, is one of the leading global fertiliser producers, with a portfolio that includes urea, ammonia, phosphate and other specialised products.
For the second quarter of 2026, the company reported a sharp decline in profitability, primarily driven by a drop in revenue and lower sales volumes compared with both the previous quarter and the same period last year.
Sabic Agri-Nutrients saw its net profit fall by 64.25% to $101m, compared with $282.66m in the second quarter of last year, and by 69.11% on a quarter-on-quarter basis.
The company’s Q2 revenues were down by 26.65% year-on-year at $643m, and by 16.11% quarter-on-quarter. Earnings before interest, taxes, depreciation and amortisation (Ebitda) in Q2 stood at $165m, a drop of 51% year-on-year and 55% quarter-on-quarter.
Sabic Agri-Nutrients further said its profitability suffered from a 31% quarterly decline in agri-nutrient sales volumes, recorded at 960,000 metric tonnes. Although global supply chain disruptions triggered a 27% price increase for agri-nutrients during the second quarter, the short-lived macro-driven bump was not enough to fully offset the slide in sales volumes.
In December 2022, Saudi Aramco and Sabic Agri-Nutrients delivered the world’s first commercial-grade blue ammonia cargo to South Korea. Locally based Lotte Fine Chemicals received the shipment of 25,000 metric tonnes of independently certified blue ammonia in the southern city of Ulsan.
Following that milestone, the company struck several deals in 2023 with customers worldwide to supply low-carbon ammonia and urea.
In April 2023, Sabic Agri-Nutrients shipped the first independently certified low-carbon ammonia from Saudi Arabia to Japan, where it is being used as fuel for power generation. The ammonia cargo was produced with feedstock from Saudi Aramco, sold by Aramco Trading Company to Fuji Oil Company and transported by Mitsui OSK Lines.
After that, Sabic Agri-Nutrients shipped 5,000 metric tonnes of low-carbon ammonia in May 2023 to a customer in India, Indian Farmers Fertiliser Cooperative.
The company then shipped 5,000 metric tonnes of low-carbon ammonia to Taiwan Fertiliser Company in June 2023.
Sabic Agri-Nutrients’ latest shipment is believed to have been in July 2023, when it shipped a 2,700-tonne cargo of low-carbon urea to Ravensdown, a New Zealand farmer-owned agricultural co-operative company.
Separately, Sabic Agri-Nutrients announced signing a memorandum of understanding (MoU) with Maaden Integrated Fertiliser Company (MIFC) on 18 August to explore potential collaboration opportunities.
The non-binding MoU, which is valid for three years, “aims to establish a general framework for cooperation between the two parties in developing and investing in opportunities within the integrated value chain of agri-nutrients, including the production and manufacturing of value-added products”, Sabic Agri-Nutrients said in a Tadawul disclosure.
MIFC is a limited liability company wholly owned by Saudi Arabian Mining Company (Maaden). MIFC serves as the holding entity for all subsidiaries within Maaden’s phosphate business vertical.
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Contractor wins Riyadh airport sewage plant deal Administrator10 September 2026
The local Safari Company has been selected to build a sewage treatment plant at the King Salman International airport (KSIA) development in Riyadh.
The contract for the facility is yet to be formally signed with King Salman International Airport Development Company (KSIADC), a source close to the project told MEED.
The facility will have a treatment capacity of 92,000 cubic metres a day and is estimated to be worth SR700m ($187m).
In July, MEED reported that Safari was one of seven contractors awaiting a decision on a contract to build the sewage treatment plant.
It is understood that bids were submitted in March, following the tender’s release earlier this year.
The plant will treat wastewater generated by the airport and surrounding developments, including passenger terminals, runways, residential districts, commercial facilities and logistics areas.
The bidders (all local) are:
- Al-Rawaf Trading & Contracting
- Almajal Alarabi
- Nesma Water & Energy
- Safari Company
- Saudi Services for Electro-Mechanic Works
- Washnah Contracting
- Water & Environment Technologies (Wetico)
The project scope includes the construction of the treatment plant, the installation of preliminary, secondary and tertiary treatment systems, sewage collection and conveyance pipelines, pumping stations, and electrical and control systems.
US-headquartered Jacobs is acting as the main project consultant. Commercial operations for the plant are scheduled for 2029.
The sewage treatment plant is one of several water infrastructure packages planned for the airport. KSIADC is also evaluating bids for a separate $30m engineering, procurement and construction (EPC) contract covering potable water and fire water tanks and an associated pumping station. The same seven companies submitted bids for that package.
Earlier in July, MEED exclusively reported that a joint venture of Beijing-headquartered China Civil Engineering Construction Corporation and Dammam-based Mofarreh AlHarbi & Partners had won a deal to undertake the enabling and substructure works for Terminal 6 at KSIA.
That same month, MEED exclusively reported that contract details were being finalised for the main construction contract for the expansion of Hail airport. It is understood that Safari Company was appointed as the contractor for this project.
The terminal expansion works include the south expansion, which encompasses the construction of a new building covering 5,600 square metres. This building will connect to the existing terminal from the southern side.
The expansion will increase the airport’s capacity to about 1.7 million passengers a year by 2030.
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