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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The Houston-headquartered company was the only bidder to pass the technical evaluation for the Mutriba integrated project management (IPM) contract.
The minimum passing technical evaluation score was 75%.
The full list of bidders was:
- SLB (US): 97%
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The decision was finalised at a meeting of the Higher Purchase Committee (HPC) of state-owned Kuwait Petroleum Corporation (KPC) on 20 November 2025.
According to a document published earlier this year by KOC, the IPM tender for the Mutriba field aims to “accelerate production through a comprehensive study that includes economic feasibility evaluation, well planning and long-term sustainability strategies”.
The field was originally discovered in 2009.
Commercial production from the Mutriba field started earlier this year, on 15 June, after several wells were connected to production facilities.
The field is located in a relatively undeveloped area in northwest Kuwait and spans more than 230 square kilometres.
The oil at the Mutriba field has unusually high hydrogen sulfide content, which can be as much as 40%.
This presents operational challenges requiring specialised technologies and safety measures.
In order to start producing oil at the field, KOC deployed multiphase pumps to increase hydrocarbon pressure and enable transportation to the nearest Jurassic production facilities in north Kuwait.
The company also built long-distance pipelines stretching 50 to 70 kilometres, using high-grade corrosion-resistant materials engineered to withstand the high hydrogen sulfide levels and ensure long-term reliability.
KOC also commissioned the Mutriba long-term testing facility in northwest Kuwait, with a nameplate capacity of around 5,000 barrels of oil a day (b/d) and 5 million standard cubic feet of gas a day (mmscf/d).
Once this facility was commissioned, production stabilised at 5,000 b/d and 7 mmscf/d.
In documents published earlier this year, KOC said that starting production from the field had “laid a solid foundation” for the IPM contract by generating essential reservoir and surface data that will guide future development.
Future output from the field is expected to range between 80,000 and 120,000 b/d, in addition to approximately 150 mmscf/d of gas.
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Dana Gas makes onshore discovery in Egypt12 December 2025
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UAE-based Dana Gas has made an onshore gas discovery in Egypt’s Nile Delta area, according to a statement from the company.
The discovery was made by the drilling of the North El-Basant 1 exploratory well, and initial well results indicate estimated reserves of 15-25 billion cubic feet of gas.
Production from the reserve is expected to exceed 8 million cubic feet a day (cf/d) once the well is connected to the national network.
The North El-Basant 1 exploratory well was the fourth well in a campaign of 11 development and exploration wells.
The campaign is being executed as part of the company’s $100m investment programme to support domestic gas production, increase reserves and meet growing energy demand.
Earlier this year, Dana Gas completed the drilling of three wells, adding 10 million cf/d.
The programme is expected to increase long-term production and add approximately 80 billion cubic feet of recoverable gas reserves, according to Dana Gas.
Dana Gas expects to start drilling the fifth well in the programme, the Daffodil exploration well, in the first week of January 2026.
Richard Hall, the chief executive of Dana Gas, said: “The latest drilling success reinforces the value of our investment programme in Egypt and highlights the significant remaining potential within the Nile Delta.”
He added: “By increasing local gas production, the programme will help reduce Egypt’s reliance on imported liquefied natural gas (LNG) and fuel oil and is expected to generate more than $1bn in savings for the national economy over time.”
Previously, Dana Gas signed an agreement with state-owned Egyptian Natural Gas Holding Company (EGas) to secure additional acreage under improved fiscal terms, and to accelerate drilling activity.
Hall said: “We appreciate the strong cooperation from EGas and the ministry, and we remain committed to delivering the majority of our planned programme next year.
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SAR to tender new phosphate rail track section in January12 December 2025

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Saudi Arabian Railways (SAR) is expected to float another multibillion-riyal tender to double the tracks on the existing phosphate railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.
MEED understands that the new tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – will be issued in January.
The new tender follows SAR’s issuance of the tender for the project's first phase in November, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.
The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.
The scope also covers support for signalling and telecommunications systems.
The tender notice was issued in late November, with a bid submission deadline of 20 January 2026.
Switzerland-based engineering firm ARX is the project consultant.
MEED understands that these two packages are the first of four that SAR is expected to tender for the phosphate railway line.
The other packages expected to be tendered shortly include the depot and the systems package.
In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.
Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.
Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.
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Dar Global to develop $4.2bn Oman mixed-use project10 December 2025
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Saudi Arabia-headquartered real estate developer Dar Global has announced that it will develop a mixed-use project in Muscat at an estimated investment of RO1.6bn ($4.2bn).
Dar Global will co-develop the Muscat Marine, Art & Digital District project with Oman's Art District Real Estate Development Company.
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Dar Global, a subsidiary of Dar Al-Arkan, was one of the first Saudi brands to list on the London Stock Exchange.
Dar Al-Arkan established Dar Global in 2017 to focus on developing projects in the Middle East and Europe, including in Dubai, Qatar, Oman, London and the Costa del Sol in southern Spain.
Dar Global has $12bn-worth of projects under development in six countries: the UAE, Oman, Qatar, Saudi Arabia, the UK and Spain.
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The main contract was awarded to local firm Al-Adrak Trading & Contracting.
The latest announcement follows the awarding of contracts in June last year for the development of the first phase of the Aida project.
The Aida project is being developed as a joint venture with Omran Group and the first phase is expected to be completed in 2027.
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Contract award nears for Saudi Defence Ministry headquarters10 December 2025

Saudi Arabia’s Defence Ministry (MoD) is preparing to award the contract to build a new headquarters building, as part of its P-563 programme in Riyadh.
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The MoD issued the tender in April. The commercial bids were submitted in September, as MEED reported.
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READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDFProspects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges
Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:
> AGENDA 1: Regional rail construction surges ahead> INDUSTRY REPORT 1: Larsen & Toubro climbs EPC contractor ranking> INDUSTRY REPORT 2: Chinese firms expand oil and gas presence> CONSTRUCTION: Aramco Stadium races towards completion> RENEWABLES: UAE moves ahead with $6bn solar and storage project> INTERVIEW: Engie pivots towards renewables projects> BAHRAIN MARKET FOCUS: Manama pursues reform amid strainTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15222401/main.gif

