News
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Neom’s industrial pivot gathers pace Administrator1 October 2026
Commentary
Colin Foreman
EditorReprioritisation has been the buzzword in Saudi Arabia over the past two years and nowhere has that been more evident than at Neom.
The slowdown of development at The Line and the postponement of the 2029 Asian Winter Games at Trojena have dominated international headlines. As these projects scale back, Oxagon’s industrial and logistics base has become the $500bn gigaproject’s flagship development. There are tangible results: in August, the $8.5bn Neom Green Hydrogen project was commissioned, marking Neom’s most significant completion to date. Construction activity elsewhere at Oxagon supports this trend. The AI data-centre campus being developed by Humain and DataVolt has broken ground on its first 100MW phase, backed by $5bn of investment and targeted for service in 2028. Neom has issued an expression of interest for a rail line linking the Port of Neom to Saudi Arabia Railways’ North-South network, tenders are out for an industrial wastewater plant and the upgrade of Highway 55, and the port itself is advancing towards a 2030 capacity target of 1.5 million TEUs.
The regional conflict that began in February has strengthened the business case by giving Oxagon’s Red Sea port added strategic weight as a second maritime gateway outside the Strait of Hormuz, at a time when Riyadh has committed to directing about 80% of the Public Investment Fund’s portfolio into domestic investment.
These developments reflect a kingdom recalibrating rather than retreating
Elsewhere, Saudi Arabia’s wider projects market is holding steady despite conflict-related disruption, with contract awards reaching $68bn so far this year. The regional power market is also diversifying, with Aljomaih, EDF and Kepco all more than tripling net capacity in recent years as Acwa retains its lead.
These developments reflect a kingdom recalibrating rather than retreating, with priority given to projects capable of delivering commercial returns.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20178338/main.gif -
Contractor wins Dammam airport water infrastructure deal Administrator1 October 2026
Saudi Arabia-based Alkhorayef Water & Power Technologies has won an SR80m ($21.3m) contract to rehabilitate water and wastewater infrastructure at King Fahd International airport in Dammam in the kingdom’s Eastern Province.
The contract was awarded by Dammam Airports Company (DACO), and work is scheduled to be completed within 18 months, the firm said in a disclosure to the Saudi Exchange (Tadawul) on 29 September.
The scope covers the design, construction, supply, installation, replacement, rehabilitation and integration of water and wastewater infrastructure.
It includes pumps, storage tanks and reservoirs, reverse osmosis facilities, piping and tie-ins, as well as electrical and instrumentation works.
The award comes as DACO advances a wider programme of investment at King Fahd International airport.
DACO signed more than SR1.2bn ($320m) in agreements in June covering airport infrastructure, including a new power station, a medium-voltage distribution network and upgrades to the existing electrical grid.
In September, it also appointed WSP Middle East, the regional arm of Canadian engineering firm WSP, to develop the airport’s expansion under its masterplan.
The expansion is intended to increase annual passenger capacity to more than 19.3 million by 2030, with a longer-term target of 32 million passengers.
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Kuwait tenders LNG project Administrator1 October 2026
State-owned Kuwait Integrated Petroleum Industries Company (Kipic) has tendered a project to develop a reliquefaction unit at the Al-Zour liquefied natural gas (LNG) import terminal.
The project focuses on developing a boil-off gas (BOG) unit at the terminal, with bids due on 22 December.
A meeting for contractors to discuss the project is scheduled for 18 October.
The project scope includes engineering, procurement and construction works, along with pre-commissioning, commissioning and performance testing services.
The list of prequalified companies is:
- Fluor (US)
- GS Engineering & Construction (South Korea)
- Tecnicas Reunidas (Spain)
- Larsen & Toubro (India)
- Hyundai Engineering (South Korea)
- CTCI Corporation (Taiwan)
- Daewoo Engineering & Construction (South Korea)
- Hyundai Engineering & Construction (South Korea)
- Saipem (Italy)
- Samsung Engineering (South Korea)
- Sinopec Engineering (China)
- JGC Holdings (Japan)
- KBR (US)
- China National Petroleum Corporation (China)
- Technip (France)
A BOG unit at an LNG facility captures, compresses and processes natural gas vapours that evaporate from cryogenic storage tanks, enabling the gas to be recycled back into the system rather than flared.
In April, MEED revealed that contractors expected the project to be worth about $200m.
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Riyadh approaches contractors for 2km tower Administrator1 October 2026
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Saudi Arabia’s Public Investment Fund (PIF) has reached out to contractors as part of a market-sounding exercise for the construction of the proposed 2-kilometre megatall tower project.
MEED understands that a PIF subsidiary, the Tower District Real Estate Development Company, is undertaking the process.
It is understood that several experienced international contractors, as well as some prominent local contractors, have been approached.
The latest development follows PIF receiving offers in June last year from firms seeking a contract to provide project management consultancy (PMC) services for a new central business district (CBD) on the outskirts of Riyadh, which includes the proposed 2km tower.
The PMC role covers both the tower and the surrounding district.
Firms understood to have been invited to bid include US-based Aecom, Jacobs, Parsons and Turner, as well as the UK’s Mace.
UK-based Foster & Partners is working as the architect for the tower after winning a design competition launched in late 2022.
Record breaker
The proposed tower would be more than double the height of the world’s tallest building, Dubai’s Burj Khalifa, which stands 828 metres tall. It is expected to be at least several hundred metres taller than the 1,000-metre-plus tower under construction in Jeddah.
Contractors that have priced megatall towers in the region say a 2km-tall structure could cost about $5bn to construct, depending on the final design.
The 2km tower and the surrounding CBD – known as Project Rise – sit within a larger masterplanned development to the north of Riyadh called the North Pole.
MEED’s October 2026 report on Saudi Arabia includes:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> 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 conflict
> DATABANK: Saudi data indicates project spending shiftTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20156496/main.jpg -
Singapore’s Temasek plans Middle East expansion Administrator1 October 2026
Singapore’s Temasek plans to open offices in Riyadh and Abu Dhabi early next year as it targets investment and partnership opportunities in Saudi Arabia, the UAE, Qatar and the wider region.
The state-owned investor had a net portfolio value of S$518bn ($401bn) as of 31 March 2026.
It said the new offices will serve as regional hubs for Temasek and its portfolio companies, with some businesses expected to co-locate to work more closely with partners and pursue deals alongside the group. The openings are subject to regulatory approvals.
Temasek said it will also step up engagement with institutions in Qatar, although it has not announced plans to establish an office there.
The company said the expansion reflects its confidence in the region’s long-term fundamentals and the economic transformation being driven by national diversification programmes.
It added that a presence in Riyadh and Abu Dhabi will also support investment activity beyond the region by improving access to opportunities across the wider Middle East, Central Asia and Africa.
Several Temasek-owned or Temasek-backed companies are already active in the GCC, providing a platform for the group’s planned expansion.
These include Singapore-headquartered engineering and consultancy firm Surbana Jurong, which has been involved in masterplanning and advisory work on major regional developments, alongside other portfolio companies with interests spanning infrastructure, logistics, financial services and technology.
According to data from regional project tracker MEED Projects, Surbana Jurong is involved in several major projects in Saudi Arabia, including King Abdulaziz International airport (KAIA) in Jeddah, Jeddah Islamic Port, Red Sea Global’s Amaala masterplan, the Trojena dams scheme, Oxagon, King Salman International airport and Saudi Arabia Railway’s North-South Phosphate Railway 3.
The firm has also worked on projects in the wider region, including the West Link project, Urban Loop, Musaffah Innovation District masterplan, Etihad Rail’s high-speed rail programme and Abu Dhabi airport’s Midfield Terminal.
Surbana Jurong has also secured masterplanning contracts from Abu Dhabi’s Department of Municipalities & Transport and Abu Dhabi Ports.
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Aldar and Arada to pursue Abu Dhabi projects Administrator1 October 2026
UAE-based developers Aldar Properties and Arada have signed a partnership agreement targeting about AED15bn ($4bn) in development opportunities on Yas Island and in Abu Dhabi’s Seih Sdeirah.
The deal includes a masterplan joint venture to develop a mixed-use community at Seih Sdeirah, on the Abu Dhabi-Dubai border, and Arada’s purchase of three residential plots on Yas Island from Aldar.
The Seih Sdeirah project will cover up to 1.5 million square metres (sq m) and will include villas, townhouses, and retail and leisure facilities.
Arada will lead development and construction management, while both firms will jointly brand and market the community.
On Yas Island, Arada has bought two canal-facing plots totalling more than 27,500 sq m, with nearly 130,000 sq m of gross floor area, as well as a third residential plot.
Aldar said the companies will explore further collaboration across sectors and locations in the UAE.
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Read the October 2026 MEED Business Review Administrator30 September 2026
Download / Subscribe / 14-day trial access For all the talk of cancellations and cutbacks, Neom is still building – and its biggest completed project to date offers a clue to where the $500bn gigaproject is heading. Our October Agenda feature examines how Oxagon is moving to the centre of Neom’s strategy, as investment shifts towards projects with the potential to generate tangible commercial returns, from green hydrogen and ports to AI data centres and logistics infrastructure.
Read the full analysis in the October issue of MEED Business Review.As Neom reshapes its priorities, Saudi Arabia’s wider project market continues to show resilience. Contract awards have reached $68bn in 2026, despite regional conflict and economic uncertainty, with activity spanning energy, infrastructure, power and the future economy.
But with $91.5bn of projects completed this year, new awards will be crucial to maintaining momentum into 2027.
This edition also includes MEED’s 2026 power developer ranking, revealing the companies driving the region’s rapidly expanding power market.
The issue also explores key trends shaping the region, from AI’s growing demands on grid capacity and the implications of ICE Futures Abu Dhabi’s wind-down for Gulf commodity markets, to how the Hormuz crisis is redirecting oil companies’ focus to North Africa. Our Leadership feature asks whether the future city really needs to hang above the ground.
We hope our valued subscribers enjoy the October 2026 issue of MEED Business Review.
Must-read sections in the October 2026 issue of MEED Business Review include:
> AGENDA: Oxagon takes centre stage at NeomINDUSTRY REPORT:
MEED’s 2026 power developer ranking
> Regional power market diversifies
> Battery storage broadens IPP market> POWER: AI is creating a grid capacity problem
> LEGAL: What IFAD’s wind-down means for Gulf commodity markets
> OIL: Oil companies focus on North Africa amid Hormuz crisis
> LEADERSHIP: The future city does not need to hang above the ground
> SAUDI ARABIA MARKET FOCUS:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> 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 conflict
> DATABANK: Saudi data indicates project spending shift> MEED COMMENTS:
> Dubai Inc steps in as developers turn cautious
> Saudi Arabia redirects towards AI
> Kuwait plans biggest oil and gas contract award in 10 years
> Saudi Arabia battery storage awards provide fresh lift> GULF PROJECTS INDEX: Saudi Arabia and UAE lead Gulf index gains
> AUGUST 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The boomers’ last act
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20134595/main.gif -
Aramco receives interest for major gas processing plant Administrator30 September 2026
Saudi Aramco has received expressions of interest from contractors to participate in the main tendering exercise for a project to expand the Alhada gas processing plant, located about 85 kilometres northwest of Jubail in Saudi Arabia’s Eastern Province.
The Alhada gas processing plant expansion is critical to Aramco’s goal of increasing gas production capacity by 80% by 2030 from a 2021 baseline.
Aramco issued a solicitation of interest document for the main tendering exercise in early September, with contractors submitting responses by 17 September, sources told MEED.
The engineering, procurement and construction (EPC) scope of work has been divided into three main packages, sources said.
The first EPC package relates to the main gas treatment facilities, primarily three processing trains, along with:
- Three acid gas removal units
- Triethylene glycol (TEG) dehydration unit
- Two high-pressure and two low-pressure flares
- Two flare gas recovery units
- Two T&l flares
- Two burn pits
- A digital twin
The acid gas removal units will treat sour gas by removing hydrogen sulphide and carbon dioxide to produce sales gas, as well as acid-gas feed for the downstream acid gas enrichment unit and sulphur recovery unit.
The acid gas removal units will also process gas from the flare gas recovery units through a dedicated amine contactor to meet specifications for use as fuel gas. The TEG dehydration unit will then remove water from the treated gas to meet sales-gas specifications.
The project’s second EPC package covers the sulphur recovery units. The third package involves inlet channels for monoethylene glycol, as well as common utilities and supporting structures.
ALSO READ: Contractors express interest in sixth Jafurah expansion phase
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Libya refinery expected to be worth more than $600m Administrator30 September 2026
The main contract for Libya’s planned South Refinery project is expected to be worth more than $600m, according to industry sources.
The project, located in Ubari in southern Libya, has gained momentum over the past year. The main contract is expected to be procured under an engineering, procurement and construction (EPC) model.
In March, US-based engineering company KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the project.
Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the project’s EPC phases.
The EPC work is expected to take 50 months, and the facility will be designed to process 30,000 barrels a day (b/d) of crude oil.
The refinery is expected to produce:
- Propane and butane for domestic and industrial uses
- Gasoline
- Kerosene
- Diesel
- Fuel oil
In March, KBR said that the project was aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.
Libya currently operates five main refineries with a combined nameplate capacity of 380,000 b/d, but actual throughput is closer to 180,000 b/d due to poor maintenance and damage from military clashes.
In addition to the South Refinery project, Libya also plans to upgrade the Zawiya refinery and carry out projects at the Serir, Brega, Tobruk and Ras Lanuf refineries.
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Joint venture wins $230m Ras El-Hekma buildings Administrator30 September 2026
A joint venture of UK-based Innovo Build and Egypt’s Redcon Construction has won a contract worth about E£12bn ($230m) to carry out infrastructure and construction works for the DP03 East package of the Wadi Yemm development at Ras El-Hekma on Egypt’s North Coast.
Wadi Yemm is being developed by the UAE’s Modon Development as the first phase of its Ras El-Hekma masterplan, which will comprise 17 planned districts.
DP03 East has a built-up area of 323,000 square metres and is scheduled for completion within 21 months.
The scope of work includes more than 660 residential units – comprising standalone villas and townhouses – as well as public service areas, lakes, a commercial mall, landscaping and roadworks.
The delivery of units at Wadi Yemm is expected to begin in the third quarter of 2029.
Ras El-Hekma is located on a spur of land on Egypt’s northern Mediterranean coast, about 240 kilometres west of Alexandria.
Abu Dhabi-based holding company ADQ appointed Modon Holding as master developer for the Ras El-Hekma project in 2024. Modon will oversee the overall development, which covers more than 170 million square metres (sq m).
Modon will develop the first phase, covering 50 million sq m. The remaining 120 million sq m will be developed in partnership with private developers, under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon.
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