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.
Exclusive from Meed
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NWC tenders package 14 of sewage treatment programme28 April 2026

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Saudi Arabia’s National Water Company (NWC) has tendered a contract for the construction of 10 sewage treatment plants as part of the next phase of its long-term operations and maintenance (LTOM) sewage treatment programme.
According to the original scope, the Eastern A Cluster (LTOM14) package will have a total treatment capacity of 184,440 cubic metres a day (cm/d) at an estimated cost of $180m.
The bid submission deadline is 30 September.
The tender follows recent contract awards for North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11) and the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).
MEED exclusively reported that a consortium comprising China’s Jiangsu United Water Technology, the UAE’s Prosus Energy and Saudi Arabia’s Armada Holding had been appointed as a contractor for each of these projects.
Package 11 will have a combined capacity of about 440,000 cm/d at an estimated cost of about SR211m ($56.3m).
Package 12 will have a combined treatment capacity of 337,800 cm/d at an estimated cost of about SR203m ($54.1m).
In April, NWC also opened finanical bids for North Western B Cluster (LTOM12) of its sewage treatment programme.
The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cm/d.
MEED previously reported that the following companies had submitted proposals:
- Alkhorayef Water & Power Technologies (Saudi Arabia)
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These bids are currently under evaluaton, with an award expected in the coming weeks, a source said.
The tender for the North Western C Cluster (LTOM13) project had been put on hold, although it is understood that this is now likely to be the next package to be tendered.
Under the original scope, this package covers the construction of 10 sewage treatment plants.
In total, the LTOM programme comprises 19 packages split into two phases. This contract for LTOM10 was the first to be awarded under the second phase of NWC’s rehabilitation of sewage treatment plants programme.
As MEED understands, there have been several discussions in recent months regarding changes in scope details and potential expansions. This involves potentially grouping some upcoming projects.
NWC previously awarded $2.5bn-worth of contracts in the first phase. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years. Phase two of the programme includes 10 packages covering 117 treatment plants.
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Construction begins on Aman Dubai Hotel and Residences28 April 2026
Dubai-based developer H&H Development and Switzerland’s Aman Group have broken ground on the Aman Dubai Hotel and Residences project in Dubai’s Jumeirah area.
The project’s enabling works contract has been awarded to local firm Swissboring.
Foundation works are expected to start this quarter.
The developers said ground improvement works have now been completed. Another local firm, DBB Contracting, carried out the works.
The project comprises a hotel, 78 branded residences and villas.
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Regional war deepens Kuwait oil sector’s tender crisis28 April 2026
Commentary
Wil Crisp
Oil & gas reporterContractors in Kuwait expect the regional conflict and disruption to shipping to worsen the country’s existing oil and gas tendering problems, causing long-term disruption in the sector.
In the months prior to the US and Israel attacking Iran on 28 February, contract tenders worth an estimated $9.1bn were cancelled after bids came in above the projects’ allocated budgets.
Contractors largely blamed the cancellations on long delays to tender processes after budgets had been set.
The delays, which often extended for several years, meant inflation drove up the cost of materials and labour, making it almost impossible for contractors to submit bids within the original budgets.
One industry source said: “The reason all of these contracts were cancelled was because the tender processes for large projects had started moving again after stalling for a long time.
“Bids came in and unfortunately they were over budget. It was then expected that tender processes would restart and these projects would ultimately be awarded – but now the war means that Kuwait is facing a whole new wave of project delays and nobody knows when it is going to end.”
War impact
Many industry insiders believe delays caused by the war and the closure of the Strait of Hormuz will once again seriously disrupt projects, just as many stakeholders believed the country was about to see an uptick in project progress.
One source said: “Bid bonds are going to have to be renewed and some bidders might just use that as an opportunity to drop out of the bidding process.
“It’s also possible that work that has already been done, like feasibility studies, will no longer be relevant and will have to be repeated.”
2025 rebound
Last year, Kuwait recorded its highest total annual value for oil, gas and chemicals contract awards since 2017, according to data from regional project tracker MEED Projects.
A total of 19 contract awards with a combined value of $1.9bn were awarded.
This was more than four times the value of contract awards across the same sectors in 2024, when awards were worth just $436m.
It was also above the $1.7bn peak recorded in 2021, but it remained far lower than the values seen in 2014-17, when several large-scale, multibillion-dollar projects were awarded in the country.
The surge in the value of contract awards came after Kuwait’s emir indefinitely dissolved parliament and suspended some of the country’s constitutional articles in May 2024.
Prior to the suspension of parliament, Kuwait suffered from very low levels of project awards for several years amid political gridlock and infighting between the cabinet and parliament.
This meant important decisions about projects could not be made – a major obstacle to the progression of strategic oil projects.
Forward outlook
With several major oil and gas projects under development in late 2025 and early 2026, some expected 2026 to record a far higher volume of oil and gas contract awards than 2025.
Projects expected to be tendered – and potentially awarded – this year included a $3.3bn onshore production facility due to be developed next to the Al-Zour refinery.
This project has already been delayed and put on hold as a result of fallout from the US and Israel’s conflict with Iran.
Had it been awarded, it would have been the biggest single oil and gas contract award in Kuwait in more than 10 years.
Now, as a result of the conflict, many of the large tenders expected to take place this year are likely to be significantly delayed.
One source said: “Right now, everyone in the oil and gas sector is waiting for some sort of sign of improving stability before they make a decision and there’s a lot of uncertainty.
“The state-owned oil companies aren’t communicating with contractors like they normally do and the price of a lot of materials has increased dramatically.”
Even if the standoff between the US and Iran over reopening the Strait of Hormuz is resolved in the near future, it is likely to take months or years before Kuwait’s oil and gas project market regains the momentum it had at the beginning of 2026.
Given the lack of flexibility within Kuwait’s existing tendering system, delays can easily lead to tenders being cancelled, and the conflict’s inflationary impact will make it even harder for contractors to meet budgets set before the latest disruption.
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Partners launch feed-to-EPC contest for Duqm petchems project27 April 2026

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Omani state energy conglomerate OQ Group and Kuwait Petroleum International (KPI), the overseas subsidiary of Kuwait Petroleum Corporation, have initiated a feed-to-EPC competition among contractors to develop a major petrochemicals complex at Duqm.
Under a feed-to-EPC model, the project operator selects contractors to carry out front-end engineering and design (feed). It then awards the engineering, procurement and construction (EPC) contract to the contractor with the most competitive feed proposal, while compensating the other contestants for their work.
OQ8, the 50:50 joint venture of OQ and KPI, is understood to have issued the tender for the Duqm petrochemicals project’s feed-to-EPC competition in mid-March, with a deadline of 6 May for contractors to submit proposals, sources told MEED.
Several local and international contractors based in Oman are believed to be participating in the competition, according to sources.
OQ Group CEO Ashraf Bin Hamad Al-Maamari and KPI’s CEO Shafi Bin Taleb Al-Ajmi signed an agreement on 3 February, during the Kuwait Oil & Gas Show and Conference, to develop a major petrochemicals-producing complex in Oman’s Duqm. The parties did not disclose details at the time.
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The agreement represented a significant step forward in Oman and Kuwait’s long-held plans to jointly develop a petrochemicals complex next to the existing Duqm refinery, which will benefit from favourable feedstock access and strong cost competitiveness.
The planned facility will also benefit from in Al-Wusta governorate, along Oman’s Arabian Sea coastline.
OQ8 had struggled to make meaningful progress on the Duqm petrochemicals project since the plan was conceived as early as 2018, for a variety of reasons.
The original plan for the Duqm petrochemicals facility, estimated at $7bn, centred on a mixed-feed steam cracker with a capacity to produce 1.6 million tonnes a year (t/y) of ethylene. The project also included a polypropylene (PP) plant with a capacity of 280,000 t/y and a high-density polyethylene (HDPE) plant with a capacity of 480,000 t/y.
The complex was also expected to include an aromatics plant, as well as storage facilities for naphtha and liquefied petroleum gas (LPG).
The project’s prospects were temporarily boosted when Saudi Basic Industries Corporation (Sabic) expressed interest in investing by signing a non-binding memorandum of understanding with OQ in December 2021.
Reuters reported in December that Sabic was withdrawing from the project, leaving OQ to look for other partners. The new agreement between OQ and KPI is understood to have followed the Saudi chemical giant’s departure.
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Nakheel awards $953m Palm Jebel Ali villas deal27 April 2026
Dubai-based real estate developer Nakheel, now part of Dubai Holding, has awarded two contracts worth AED3.5bn ($953m) to local firms for the construction of 544 villas at its Palm Jebel Ali project in Dubai.
The first contract was awarded to Ginco General Contracting for the construction of 354 villas across fronds A to D.
The second contract was awarded to United Engineering Construction Company (Unec) for the construction of 190 villas on fronds E and F.
Construction is expected to begin in Q2 this year, with completion scheduled for 2028.
Earlier phases
In October 2024, Nakheel awarded three contracts worth AED5bn ($1.3bn) for the construction of 723 villas on fronds K to P. The contracts went to Ginco, Unec and the local Shapoorji Pallonji.
Under these awards, Ginco is delivering 197 villas on fronds O and P, Shapoorji Pallonji is constructing 275 villas on fronds M and N, and Unec is building 251 villas on fronds K and L. Villa construction is expected to be completed by 2026.
Infrastructure works
This was followed by Nakheel awarding infrastructure contracts worth over AED750m ($204m) to local firm Dutco Construction for works on Palm Jebel Ali.
The infrastructure work includes utility connections, excavation, backfilling, and the construction of roads and pavements across fronds A to G. It also covers 11-kilovolt power distribution and telecommunications-related utility works.
Reclamation contract
In August 2024, Nakheel awarded an AED810m ($220m) contract to complete the reclamation works for the project.
The contract was awarded to Belgium’s Jan De Nul. Its scope includes dredging, land reclamation, beach profiling and sand placement to support the construction of villas across all fronds.
Masterplan details
Nakheel released details of the new masterplan for Palm Jebel Ali in June 2023. Twice the size of Palm Jumeirah, Palm Jebel Ali will have 110 kilometres of shoreline and extensive green spaces. The development will feature more than 80 hotels and resorts, along with a range of entertainment and leisure facilities.
It includes seven connected islands that will cater to approximately 35,000 families. The development also emphasises sustainability, with 30% of public facilities expected to be powered by renewable energy.
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