The region’s most ambitious causeway projects
8 February 2023

The submission of feedback questionnaires and meetings with contractors for the planned second causeway connecting Saudi Arabia and Bahrain is the latest sign of potential progress on one of the region’s largest infrastructure projects.
Causeways have a chequered history in the region. The first causeway connecting Saudi Arabia and Bahrain was completed during the 1980s, and since then, it has had a transformative impact on the Bahraini economy.
The project’s success has inspired other causeways. But while these schemes remain ambitions for many in the region, construction progress has been limited. The hope is that a successful second causeway linking Saudi Arabia and Bahrain will foster the delivery of other longstanding causeway plans.
These are the most ambitious causeway schemes that the region has planned:
| Second Saudi Arabia-Bahrain causeway |
The second causeway between Saudi Arabia and Bahrain is the most likely to proceed. Planned by the King Fahd Causeway Authority, the $3.5bn project, which has been called the King Hamad Causeway project, is moving towards construction.
In 2021, senior government officials in Bahrain told MEED that the project was progressing towards tendering as financial studies had been completed.
The project was included in Bahrain’s $30bn Strategic Projects Plan that was announced later in 2021. As well as the causeway, the plan includes building new urban areas on five reclaimed islands to increase the country’s total land area by 60 per cent. It also comprises plans for a new airport.
The second causeway involves building a 25-kilometre road and rail crossing linking Saudi Arabia and Bahrain. It will follow the same alignment as the existing King Fahd Causeway.
It has been earmarked for delivery on a public-private partnership (PPP) basis. The King Fahd Causeway Authority appointed a consortium to provide transaction advisory services in late 2019.
The $8.9m consultancy agreement was signed with a consortium of Netherlands-headquartered KPMG, US-based Aecom and UK-based CMS. The team was tasked with working on developing the financing model, the required engineering specifications and design, as well as helping with the assessment and selection of the project’s developers.
Canada-based SNC Lavalin and UK-based consultancy firm PwC conducted the project due diligence study in 2017.
The existing King Fahd Causeway is operating at capacity. About 11.5 million cars cross the causeway every year, and the growth has been 6 per cent per annum over the past 10 years.

| Qatar-Bahrain causeway |
There have also been suggestions that the proposed causeway bridging Bahrain and Qatar may be revived. In March 2022, Manama called for work to restart on the causeway joining the two countries.
“We in the Kingdom of Bahrain renew the call for the start of bilateral talks between the two sides in accordance with the mechanisms agreed upon in the Al-Ula statement,” said Bahrain’s undersecretary for land transportation and post in an official statement published by the official Bahrain News Agency.
The estimated $4bn Qatar-Bahrain causeway project was put on hold and the contracting consortium demobilised in 2010.
A joint venture of state-owned developer Qatari Diar Real Estate Investment Company and French contractor Vinci Construction Grand Projets led the consortium. The other consortium members were Germany’s Hochtief, Athens-based Consolidated Contractors Company (CCC), Dredging International from Belgium and the local Middle East Dredging Company (Medco).
The planned 40km bridge includes a four-lane motor crossing scheduled for completion in 2013 and two railway lines forming part of the GCC rail network.
The project also comprises 22km of bridges and viaducts, 18km of embankments and two 400-metre cable-stayed bridges. The causeway connects Ras Ashairij on the west coast of Qatar to Askar on the east coast of Bahrain.
The project was also known as the Friendship Bridge and was to be jointly funded by the Qatari and Bahraini governments, which intended to recover some of the construction costs by implementing a toll system on the bridge.
The crossing would cut the journey time between the two countries, which currently involves a detour through Saudi Arabia, from five hours to just 30 minutes.
| Saudi Arabia-Egypt causeway |
The prospects for the causeway connecting the $500bn Neom project in Saudi Arabia and Egypt’s Sinai Peninsula across the Straits of Tiran improved last year after US President Joe Biden’s visit to Saudi Arabia.
After the visit, a joint communique issued by Washington and Riyadh referred to the development of Tiran Island.
“President Biden welcomed the arrangements by Saudi Arabia to remove the Multinational Force & Observers (MFO) from the Island of Tiran, including the removal of US troops there as part of the MFO mission, while preserving and continuing all existing commitments and procedures in the area,” it said.
“This area of the Red Sea will now be developed for tourism and economic purposes, contributing to a more secure, peaceful and prosperous region.”
The US-Egyptian-Israeli-backed MFO was founded in 1981 to oversee the terms of the 1978 Camp David Accords, which included the full Israeli withdrawal from the Sinai Peninsula.
In 2016, Egypt and Saudi Arabia agreed during a state visit to Cairo by King Salman bin Abdulaziz al-Saud to develop a causeway linking the two countries across the Red Sea.
The agreement was made as part of a broader deal that would also involve Egypt ceding the sovereignty of the two Tiran islands to Saudi Arabia.
While details of the proposed crossing were never revealed at the time, it was understood to be a revival of a $4bn project announced in 2011. That scheme involved building a 32km crossing stretching over the Straits of Tiran from Ras Humaid in Tabuk, in the northern region of Saudi Arabia, to Ras Nasrani, close to the Egyptian resort of Sharm el-Sheikh.
Plans to link Saudi Arabia and Egypt are far from new. The development of a causeway was first mooted as far back as 1988. However, the idea has received additional focus in recent years following the launch of the Neom development in northwestern Saudi Arabia, which includes Ras Humaid. Part of the Neom scheme, the 170km-long linear city known as The Line, will extend from the promontory inland to the city of Tabuk.
UK-based Arup was reported to have been selected in 2019 for the next stage of the feasibility study for the causeway.
Saudi Arabia was understood to be considering using a public-private partnership (PPP) model for the scheme, similar to other transport projects planned in and around the kingdom.
| Yemen-Djibouti causeway |
A 28.5km causeway was planned to connect Yemen and Djibouti before the scheme was put on hold in 2010 until the governments of both countries signed the framework agreement for the project. The civil war in Yemen means it is unlikely the scheme will make any progress soon.
The estimated $20bn first phase involved building the link between the Yemeni mainland to the island of Perim in the Red Sea. Phase two would have then connected Perim with Djibouti.
The wider project also involves building two cities at each end of the link. The total investment required to construct the cities and the bridge is $200bn.
Dubai-based Al-Noor Holding Investment Company was developing the project.
In 2009, the company said it expected to award a build-operate-transfer contract for the first phase of the bridge and that three companies had expressed interest in funding and building the road and rail link. Denmark’s Cowi prepared the preliminary design for the crossing.
| UAE-Qatar causeway |
In 2005, Abu Dhabi and Doha were reported to have been setting up a joint company to oversee the implementation of the proposed UAE/Qatar causeway.
The 40km causeway was expected to start near Sila in Abu Dhabi emirate and extend to the south of Doha.
The estimated $13bn crossing would have significantly cut journey times. At present, traffic between Qatar and the UAE has to pass through 125km of Saudi Arabian territory.
The scheme stalled shortly afterwards. Problems included difficulties with the route, which ran through Saudi Arabian territorial waters.
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Sabic awards $3.47bn contract for ammonia and urea complex10 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.
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“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.
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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 deal10 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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Azizi to announce $8bn Sharjah residential community10 September 2026
Dubai-based real estate developer Azizi Developments is preparing to launch Azizi Florence, a AED30bn ($8bn) masterplanned community in Sharjah.
Named Azizi Florence, the project will mark the developer’s first venture in the emirate of Sharjah.
The community will include 1,130 villas, over 6,000 townhouses and 3,500 apartments.
Planned as a fully integrated destination, Azizi Florence will combine residential, retail, hospitality, education, leisure, and wellness components, anchored by a 1.7 million-square-foot central park.
The development will be organised into six residential clusters, each featuring its own park, clubhouse, community centre and landscaped gardens.
Azizi Florence is another major addition to the developer’s UAE portfolio.
In April last year, Azizi announced plans to develop the Azizi Milan community in Dubai’s City of Arabia area.
According to media reports, the project will be developed at an estimated cost of AED75bn ($20bn) and will offer over 81,200 residential units.
The developer said the project will cover an area of about 40 million square feet, making it one of the largest mixed-use communities in the UAE.
In 2023, Azizi launched the Azizi Venice project in the Dubai South area. The estimated AED30bn ($8.17bn) mixed-use development will offer more than 30,000 residential units, including 100 mid-rise apartment complexes and 400 villas, two five-star hotels and an opera house.
The development will also include schools, a hospital, cycling and jogging tracks, a 3-kilometre-long swimmable lagoon, water features and landscaped parks.
Dubai real estate developments dominate the UAE’s construction market, with schemes worth over $323bn in the execution or planning stages.
This is in line with a forecast by GlobalData, which projects that the output of the UAE construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities and residential construction projects.
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Saudi Arabia’s power award activity slows10 September 2026

Saudi Arabia’s power market has seen a sharp fall in contract awards in 2026 following a major wave of renewable energy investment last year.
According to regional project tracker MEED Projects, about $3.38bn of power sector contracts were awarded in the kingdom as of early September, compared with $27.5bn in 2025, $54.2bn in 2024 and $26.1bn in 2023.
The relatively low level of contract awards this year has partly been influenced by a shift towards wider infrastructure such as battery energy storage systems (bess) and transmission projects, alongside delays in the procurement of renewable energy projects under the National Renewable Energy Programme (NREP) Round 7.
In September, Saudi Power Procurement Company (SPPC) awarded four Group 1 storage service agreements representing more than SR4.35bn ($1.16bn) of investment. The projects will provide a combined 2,000MW of capacity and 8,000MWh of storage.
Three bess projects, Al-Muwyah, Haden and Al-Kahafa, were awarded to a consortium of Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company. Another consortium of France’s Engie and Haji Abdullah Alireza & Co won the contract for the remaining Al-Khushaybi bess project.
Transmission awards
The battery storage projects are part of a broader shift towards the infrastructure needed to support Saudi Arabia’s expanding power system, with transmission accounting for most of the contracts awarded this year, reaching $3.35bn in new awards.
The largest is the estimated $500m contract awarded to Alfanar Projects in March for the 500kV overhead transmission line linking Saudi Arabia’s Eastern and Central operating areas. The 508-kilometre project will have a transmission capacity of 3,000MW.
Saudi Energy, formerly Saudi Electricity Company, is implementing a $58.7bn grid investment programme through 2030, including 130 high-voltage substations, about 12,900km of overhead transmission lines and 1,100km of underground cables.
Saudi Energy is the largest owner by value so far this year, accounting for about $1.9bn of contract awards, while SPPC has awarded more than $1.1bn in new contracts.
The focus on storage and transmission follows strong growth in renewable generation investment in 2025. Wind power contract awards reached $4.4bn, while 11 major solar contracts were also awarded.
In May 2025, developers signed $8.3bn of power purchase agreements with SPPC for five solar plants and two wind farms with a combined capacity of 15,000MW, somewhat inflating last year’s figures. The projects, backed by the Public Investment Fund, reached financial close in November.
Renewables projects
The next major phase of renewable procurement is now moving through the tender process. The seventh round of NREP, tendered in January, will add 5,300MW through four solar and two wind projects.
Based on the procurement timeline for the Round 6 projects, which were tendered and awarded in 2026, it was reasonable to expect Round 7 to follow a similar schedule.
However, according to one developer, rising supply costs have been a factor in recent deadline extensions for these projects, with those involved “waiting till these come down”.
With the latest bid submission deadlines set for September, the timing of the procurement process means contracts from NREP Round 7 may now fall into 2027 rather than materially lifting this year’s total.
The solar projects comprise the 1,400MW Tabarjal 2, 600MW Mawqqaq, 600MW Tathleeth and 500MW South Al-Ula independent power projects (IPPs). The round also includes the 1,300MW Bilgah and 900MW Shagra wind IPPs.
This helps explain why Saudi Arabia’s power sector contracting could remain relatively subdued in 2026 despite a substantial volume of projects progressing through procurement.
Project pipeline
According to MEED Projects, about $5.1bn of power projects are currently under bid evaluation and a further $7.3bn are at the main contract tender stage.
Solar projects make up the largest share, at about $5.1bn, or 41% of the total. There continues to be relatively strong diversification, with cable and overhead-line projects accounting for about $3bn, followed by wind at $2.2bn, oil and gas-fired power at $1.1bn and substations at about $1bn.
Renewable energy remains a particularly significant part of the development programme. Saudi Arabia raised its renewable energy target to 130GW by 2030 in 2023 and needs to add roughly 20GW of capacity a year to meet it.
Large-scale storage is also expected to continue expanding. The latest SPPC projects build on five bess facilities awarded by Saudi Energy through National Grid Saudi Arabia to Alfanar in 2025. The facilities have a combined capacity of up to 2,500MW, equivalent to about 10,000MWh.
SPPC has also issued the request for proposals for the second phase of its independent bess programme in Saudi Arabia. The Group 2 programme comprises six independent storage provider projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration. Developers are due to submit bids in October.
The timing means the Group 2 projects could contribute to contracting activity in 2027, alongside this next batch of renewable projects under NREP Round 7.
Nuclear power could provide another potential source of activity over the next 12 months. The US and Saudi Arabia signed a civil nuclear cooperation agreement in July, providing the legal foundation for a long-term, multibillion-dollar nuclear partnership.
While the agreement is unlikely to translate immediately into major contract values, further progress on Saudi Arabia’s nuclear programme could add another area of activity in the sector as the kingdom moves into 2027.
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