Traffic drives construction underground
3 April 2025

On 14 February, Dubai construction was thrust again onto the global stage when Elon Musk, the world’s richest man, announced plans to explore the development of an underground Dubai Loop transportation system, along the lines of the Las Vegas Convention Centre Loop project in the US.
Dubai has typically made headlines globally by constructing the world’s tallest towers. As the city becomes increasingly congested on the surface, it is taking some of its largest construction projects underground.
With Musk’s backing, the Dubai Loop scheme is the most high-profile tunnelling project launched to date. It involves carving a futuristic transport system underneath Dubai. The initial phase of the project is currently being studied by Dubai’s Roads & Transport Authority (RTA) in partnership with The Boring Company, which is owned by Musk. It will cover 17 kilometres (km) and have 11 stations, with the capacity to transport over 20,000 passengers an hour.
The project highlights the importance of expanding underground infrastructure in the Middle East region. This is mostly necessitated by the pressure that rapidly growing cities have put on existing transport and utility networks, particularly in major urban centres such as Dubai, Riyadh and Doha.
Underground opportunities
Projects that involve tunnelling, such as metro rail systems, underground highways and pedestrian walkways, are deemed key enablers in reducing congestion and optimising land use.
The recently completed metro systems in Riyadh and Doha are examples of how underground rail networks can facilitate efficient urban mobility, and more such schemes are planned.
Without these subterranean projects, cities risk being stuck in a permanent state of gridlock, with longer commute times and decreased productivity. At the same time, tunnelling allows urban planners to integrate sustainable transport solutions, as well as large-scale utilities networks, without disturbing existing cityscapes, thereby enhancing connectivity and economic growth.
These developments signal a major shift in engineering priorities, with regional governments investing in underground transport, sewerage and metro extensions to accommodate their growing populations and infrastructure needs.
While the tower crane-dotted skylines of urban centres in the GCC attract attention, delivering major projects underground is an equally impressive engineering feat. Tunnelling under busy cities requires advanced excavation techniques, careful planning and coordination to avoid disruptions.
More tunnelling work is expected as Dubai takes another significant step forward in tackling its ongoing traffic problems [with] a new metro link
UAE tunnelling projects
Tunnelling work forms a significant portion of the Dubai Metro Blue Line extension. Awarded in December for AED20.5bn ($5.5bn), the project includes 15.5km of underground track and five subterranean stations. When operational in 2029, the Blue Line will significantly expand Dubai’s metro capacity, linking major residential and commercial hubs.
More tunnelling work is expected as Dubai takes another significant step forward in tackling its ongoing traffic problems by starting the procurement process for its next metro link: the Gold Line.
Although the technical details of the project have yet to be revealed, it is expected that tunnels will form a major component of the scheme given that the new line will run through busy urban areas where there is little space to build overground.
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.
As a first step, the RTA has sent a request for proposals to companies for the lead consultancy role on the multibillion-dollar project.
The UAE’s Etihad Rail also began a study of the tunnels required for the high-speed railway line connecting Abu Dhabi and Dubai in January. The survey works are ongoing on the Jaddaf and Dusup tunnels that will serve the high-speed rail link. Initial plans for the project include tunnelling works totalling 31km.
Another major tunnelling project in the UAE is the $22bn Dubai Strategic Sewerage Tunnels scheme. The client, Dubai Municipality, is preparing to tender its first packages, which include deep tunnels that will stretch 42km in Jebel Ali and 16km in Warsan.
The project will be delivered under a public-private partnership model, with international consortiums competing for contracts. Once completed, these tunnels will replace the traditional wastewater network, reducing energy consumption and enhancing long-term sustainability.
Saudi schemes
In Saudi Arabia, Riyadh is preparing to expand its metro network with the addition of a Line 7 and an extension to the existing Line 2.
The total length of Line 7 will be about 65km, of which 47km will be underground. The line will have 19 stations, 14 of which will be underground.
The project involves constructing a metro line linking the Qiddiya entertainment city development, King Abdullah International Gardens, King Salman Park, Misk City and Diriyah Gate.
In March, the Royal Commission for Riyadh City (RCRC) gave consortiums until 15 June to submit their bids for a design-and-build contract for the construction of Line 7.
The planned Line 2 extension is 8.4km long, of which 7.1km is underground, and three out of its five stations will be built underground. The RCRC is expected to award the construction contract this year.
In January, the kingdom also completed the phased roll-out of the Riyadh Metro network. The current network comprises six lines spanning about 176km, of which 74km is constructed underground.
These numbers indicate that over 42% of the overall network is underground, highlighting the growing importance of tunnels in the kingdom’s plans to improve infrastructure in its most densely populated cities.
Tunnelling works are also a key component of the plans to improve the stormwater drainage system in Jeddah, where the municipality is preparing for the construction of the King Abdullah Road-Falasteen Road tunnel.
The three-year scheme involves constructing 5.3km of tunnels with an internal diameter of 7.2 metres using tunnel boring machines (TBMs) and another 3.4km of tunnels with a diameter of 3.5 metres driven by pipe jacking or TBMs.
At the kingdom’s Neom gigaproject, city planners are looking to find solutions to many of the problems faced in existing cities and, as a result, tunnels and large-scale underground utilities corridors are being built at the beginning of the project. For example, the development’s Delta Junction tunnels will serve as a railway junction connecting the Spine infrastructure corridor with the Neom Connector rail link to the Oxagon industrial zone.
The project involves 26.5km of tunnelling work that will be split into a north and a south lot. The construction works are expected to begin this year as the client is evaluating the revised proposals submitted by firms in November last year.
Kuwait Metro will feature extensive tunnelling … ensuring minimal disruption to existing roads while integrating with future transport networks
Further tunnel projects
Beyond the Gulf, Egypt has a long history of tunnelling projects, as it has had to deal with crippling congestion and urban overcrowding for decades. In the 1980s, work was completed on two major projects that involved tunnelling: the first phase of the Cairo Metro system and the Greater Cairo wastewater project, which involved the construction of sewage tunnels on the east and west banks of the Nile.
Today, Cairo’s tunnelling projects include the Cairo Metro Line 4 project. Spanning 42km with 39 stations, it involves over 20km of tunnels.
Meanwhile, in Morocco, national railway operator L’Office National des Chemins de Fer (ONCF) is constructing a tunnel project in Rabat.
In February, ONCF announced a 3.3km tunnel to be constructed under the Bou Regreg river at an estimated cost of MD1.4bn ($140m). The tunnel will connect the Sale and Agdal stations in an effort to alleviate traffic.
Similarly, the long-awaited Kuwait Metro will feature extensive tunnelling to navigate the dense urban fabric of Kuwait City, ensuring minimal disruption to existing roads while integrating with future transport networks.
Qatar’s expansion of Doha Metro, meanwhile, requires additional underground infrastructure to connect developing areas and support the country’s vision for a comprehensive public transport system.
Mecca Metro, already serving millions of pilgrims, is also set for further expansion, likely involving significant tunnelling to facilitate smoother access to holy sites while overcoming geographic constraints.
In Oman, the Muscat Metro project is likewise expected to link key districts while preserving the city’s landscape and avoiding disruptions to arterial roads by introducing underground sections.
All of these projects show that tunnels will play an important role in the region’s future as it strives to create cities with more efficient and environmentally sustainable transit and utilities systems.
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Saudi Arabia is seeking investors to fund a SR511m ($136m) ferris wheel project, known as the Hijaz Eye.
The project will be located in Medina and will cover an area of more than 33,000 square metres (sq m).
According to information listed on the Invest Saudi platform, a database of about 2,200 state investment opportunities, the project is expected to have a significant impact on the local economy, offering an internal rate of return (IRR) of over 25%, with a payback period of seven years.
The tender prospectus does not disclose the ferris wheel's height.
The pitch to investors describes it as "the best destination to get a bird's eye view of the city", and frames it as an attraction aimed at pilgrims, with the project designed to "enrich the experience of pilgrims" and address a "growing need to increase cultural communication among pilgrims".
The Hijaz Eye project is part of a broader initiative to establish Saudi Arabia as a leading tourism hub in the Middle East, and reflects Riyadh's growing push to lean on private capital, rather than public financing, for large-scale tourism infrastructure.
Ain Dubai parallels
The Hijaz Eye would not be the first giant observation wheel to be built in the region. The UAE's Ain Dubai, on Bluewaters Island, is currently the world's tallest observation wheel, standing 250 metres high – nearly twice the height of the London Eye.
It is designed to carry up to 1,750 visitors in 48 air-conditioned cabins.
Ain Dubai's budget was originally estimated at about $272m. The attraction opened in October 2021, coinciding with Expo 2020 Dubai.
The project used about 9,000 tonnes of steel, more than was used in the construction of the Eiffel Tower, and required some of the world's largest cranes to lift its 1,805-tonne hub and spindle assembly, which is comparable in weight to four Airbus A380 aircraft.
Despite its scale, Ain Dubai's post-opening record has been uneven. The attraction has closed and reopened several times since its debut, including a widely publicised reopening in December 2024.
For the Hijaz Eye, the experience of Ain Dubai underlines a message that operational reliability will be central to whether the project can deliver on its projected 25%-plus IRR.
Project positioning
The Hijaz Eye is being positioned as an anchor for a specific strategic gap, which includes extending the time and spending of religious visitors to Medina beyond prayer and pilgrimage.
Domestic and religious tourism sit at the core of the kingdom's Vision 2030 strategy, and the numbers underline why Medina, rather than a leisure hub like Riyadh or Jeddah, is a logical testing ground for private-capital tourism infrastructure.
In 2025, Saudi Arabia's Tourism Ministry recorded 14 million overseas visitors that visited the kingdom for religious purposes, roughly twice the number of leisure travellers and seven times that of business travellers.
A further 14 million domestic tourists travelled for religious purposes, of which 6.5 million visited Medina specifically.
Image credit: www.cranebriefing.com
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17576184/main.jpg -
Worley announces Aramco project management consultancy deal7 July 2026
Australian engineering firm Worley has announced it has been awarded a long-term agreement (LTA) by Saudi Aramco to support its projects within Saudi Arabia, mainly by providing project management consultancy (PMC) services.
The five-year agreement is intended to support Aramco’s extensive capital programme – one of the largest sources of project investment globally, across the energy, chemicals and resources sectors, Worley said in a statement.
Under the LTA, Worley will provide PMC services, including engineering and design, project development studies, detailed engineering, procurement support, project and construction management and technical expertise. It will also support capability building for local talent in Saudi Arabia.
Worley was one of 11 local and foreign engineering firms selected by Aramco to create a new pool of PMC service providers, MEED reported in May.
The Saudi energy giant signed LTAs with several companies for the PMC service providers pool at a ceremony at its Dhahran headquarters on 30 April. The agreements have a duration of five years, with an option to extend for a further three years. These companies were:
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- Fluor (US)
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- Kent (UAE)
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- Technip Energies (France)
- Tecnicas Reunidas (Spain) / TR Saudia (local branch)
- Wood (UAE)
- Worley (Australia)
“Importantly, this agreement supports Aramco to ensure critical infrastructure for ongoing energy, chemicals and resources supply for the domestic market in the Kingdom of Saudi Arabia as well as global markets,” Sydney-headquartered Worley said in a statement.
Services will be delivered through Worley’s offices in Saudi Arabia and the UK, with support from global offices including the Global Integrated Delivery team.
“The agreement requires Worley to leverage its digital capabilities, including artificial intelligence, augmented and virtual reality, digital twins, robotics and automation, digital scanning, and smart energy solutions, to improve engineering delivery efficiency in compliance with Aramco’s engineering and information security standards,” the Australian Securities Exchange-listed company added.
Pool of brownfield EPC contractors
In addition to selecting firms for its PMC services pool, Aramco also created a group of brownfield engineering, procurement and construction (EPC) contractors.
Aramco awarded LTAs to the following 18 contractors for the brownfield EPC services at the same ceremony in Dhahran on 30 April:
- Abdulhasan Group (Saudi Arabia)
- Archirodon (Greece)
- Bin Quraya (Saudi Arabia)
- China Petroleum Engineering & Construction Corporation (China)
- Engineering for the Petroleum and Process Industries (Egypt)
- Engineering Procurement & Project Management (Tunisia)
- Gas Arabian Services (Saudi Arabia)
- GS Engineering & Construction (South Korea) / GS Construction Arabia (local branch)
- Kalpataru Projects International (India)
- Kent (UAE)
- Larsen & Toubro Energy Hydrocarbon (India)
- M R Al-Khathlan Company for Contracting (Saudi Arabia)
- Max Streicher (Germany/Italy)
- National Basics Company (Saudi Arabia)
- New Horizons Contracting & Maintenance Company (Saudi Arabia)
- Sinopec (China) / Sinopec Nanjing Engineering Company (China)
- Technip Energies (France)
- Tecnicas Reunidas (Spain) / TR Saudia (local branch)
The scope of services covered under the LTA for brownfield EPC contractors includes the following activities across the kingdom’s Eastern Province and Shaybah areas:
- Onshore oil/gas/water well tie-ins and hookups
- Miscellaneous and capital projects
- Site preparation
- Power, communication, control, and security projects including Supervisory Control and Data Acquisition (Scada) systems and remote terminal units (RTUs)
- Project management, engineering, fabrication, coating, procurement, material management and direct construction services
- Testing, pre-commissioning, commissioning and mechanical completion
- Camp and office construction, operations and maintenance
- Modifications, improvements and upgrades to existing onshore facilities
- Fencing and general onshore civil and structural works
The LTAs for brownfield EPC works span seven geographical zones:
- Northern Area Zone NA-1: Includes plants, pipelines, wells and miscellaneous projects in Manifa, Safaniyah, Wasit, Abu Hadriyah, Fadhili and Khursaniyah.
- Northern Area Zone NA-2: Encompasses plants, pipelines, wells and miscellaneous projects in Berri, Abu Ali Island and Qatif.
- Southern Area Zone SA-1: Covers plants, pipelines, wells and miscellaneous projects in Dammam, Abqaiq, Aindar, Shedgum and Farzan.
- Southern Area Zone SA-2: Comprises plants, pipelines, wells and miscellaneous projects in Haradh and Harmaliyah.
- Southern Area Zone SA-3: Spans plants, pipelines, wells and miscellaneous projects in Khurais/Mazalij/Abu Zifan, Central Arabia/Hawtah/Layl, and Nuayyim.
- Southern Area Zone SA-4: Incorporates plants, pipelines, wells and miscellaneous projects in Hawiyah and Uthmaniyah.
- Shaybah Area Zone SHYB-1: Focuses on plants, pipelines, wells and miscellaneous projects in Shaybah.
In addition to the newly created LTA pools for PMC services and brownfield EPC works – and excluding the GES+ engineering group – Aramco maintains two LTA contractor groupings for offshore and onshore oil and gas capital projects.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17576189/main4243.jpg -
Saudi Arabia sets July deadline for Taif International airport7 July 2026

Saudi Arabia’s Matarat Holding, in collaboration with the National Centre for Privatisation & PPP (NCP), has set a deadline of 24 July for a contract to develop the new Taif International airport project in Mecca Province.
The client has opted for a 30-year build-transfer-operate (BTO) contract model, including the construction period.
In January, MEED reported that four consortiums and one standalone company had been prequalified to proceed to the next stage of the bidding process.
These were:
- Kalyon Insaat / AlBawani (Turkiye/local)
- Mada International Holding / TAV Airports (local/Turkiye)
- Tamasuk / Bengaluru International Airport (local/India)
- Vision Invest / Asyad / DAA International (local/local/Ireland)
- GMR Airports (India)
The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport and will have a capacity of 2.5 million passengers by 2030.
In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.
The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.
The new airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of the city of Taif and its surrounding areas, in line with the kingdom’s National Aviation Strategy.
It is also expected to meet the needs of Umrah pilgrims, as an alternative within the region’s multi-airport system, which includes King Abdulaziz airport in Jeddah, Prince Mohammed Bin Abdulaziz airport in Medina and Prince Abdulmohsen Bin Abdulaziz airport in Yanbu.
Previous tenders
The Taif, Hail and Qassim airport schemes were previously tendered and awarded as public-private partnership (PPP) projects using the BTO model.
Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.
A team of Turkiye’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.
A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.
However, these projects stalled following the restructuring of the kingdom’s aviation sector.
Saudi Arabia has already privatised airports including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17574264/main2939.jpg -
KBR wins Iraq pipeline contract7 July 2026
US-based KBR has been awarded a consultancy contract for a planned pipeline project that will extend from Basra in the south of Iraq to Haditha in Al-Anbar Governorate.
Iraq’s cabinet, which met under Prime Minister Ali Al-Zaidi, has approved the award, according to a cabinet statement.
State-owned Basra Oil Company (BOC), which manages the majority of Iraq’s southern oil fields, is now expected to sign a contract with KBR for the project.
In April, Iraq announced the allocation of $1.5bn for the project, which is part of a larger scheme, estimated to be worth $5bn.
The wider project includes additional pipeline links that will extend to Kirkuk in Northern Iraq and to Jordan.
Earlier in July, Iraq's cabinet approved BOC signing a ​heads of agreement and a non-disclosure agreement with a consortium of companies to explore possible future oil pipeline projects, including the Basra-Haditha connection.
The consortium includes US-based companies Chevron and TI Capital, as well as Qatar’s UCC.
The consortium will prepare technical and financial feasibility studies for strategic export pipeline projects, according to a statement from Iraq’s cabinet.
In June, Prime Minister Ali Al-Zaidi and US Special Presidential Envoy Tom Barrack agreed to advance the memorandum of understanding with TI Capital to rehabilitate a disused pipeline that extends from Kirkuk to Baniyas in Syria.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17570453/main.jpg -
Oman outlines grid plan for four 1GW solar IPPs7 July 2026
The Oman Electricity Transmission Company (OETC) has outlined the planned grid connection schedule for four 1GW solar independent power projects (IPPs) that will support the sultanate's renewable energy expansion through 2030.
The projects are detailed in OETC's Five-Year Annual Transmission Capability Statement (2026-30), which sets out the transmission infrastructure required to integrate new generation capacity into the national grid.
According to the report, the first of the four gigawatt-scale projects, the Adam solar IPP, is scheduled for integration in 2028.
Oman’s Nama Power & Water Procurement Company (Nama PWP) issued a request for qualification for the development of the Adam solar IPP in June.
OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.
Before the gigawatt-scale projects are connected, several smaller utility-scale solar schemes are expected to enter service.
The first is the 500MW Ibri 3 solar project, supported by the Al-Sebkha 400kV switching station. Construction began on Ibri 3 in January.
The report says this will be followed by the Al-Kamil 1, Sinaw and Marsa solar IPPs.
The power purchase agreement for the 500MW Al-Kamil IPP was recently signed by a separate consortium comprising France's EDF Power Solutions, Oman National Engineering & Investment Company and the local OQ Alternative Energy.
Nama PWP has issued a supervisory consultancy tender for the 280MW Marsa IPP in North Al-Batinah Governorate, with a bid submission deadline of 26 July.
The transmission statement says about 70 transmission projects are expected to enter service between 2026 and 2030.
The programme is intended to increase transmission capacity, connect new renewable generation, strengthen grid reliability and support electricity demand growth across the sultanate.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17564537/main.jpg