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
-
Executive briefing: US-Israel-Iran conflict6 March 2026
-
-
UAE utilities say services stable amid tensions6 March 2026
-
Drawn-out conflict may shift planning priorities6 March 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Executive briefing: US-Israel-Iran conflict6 March 2026
In this executive briefing, Ed James and Colin Foreman from MEED outline the key developments in the US-Israel-Iran conflict and examine the potential economic, infrastructure and market impacts across the Middle East.
Drawing on regional data and analysis, the briefing explores the drivers behind the escalation, the scale of attacks across GCC states, and the possible short- and long-term implications for energy markets, shipping, aviation and regional investment.
For ongoing updates and verified reporting as events unfold, follow MEED’s mega thread here.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15890483/main.gif -
Kuwait extends bid deadline for Al-Khairan phase one IWPP6 March 2026

Kuwait has extended bidding for the first phase of the Al-Khairan independent water and power producer (IWPP) project.
The project is being procured by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy (MEWRE).
The facility will have a capacity of 1,800MW and 33 million imperial gallons a day (MIGD) of desalinated water.
It will be located at Al-Khairan, adjacent to the Al-Zour South thermal plant.
The new deadline is 30 April.
The main contract was tendered last September, and the deadline had already been extended once, most recently until 4 March.
Three consortiums and two individual companies were previously prequalified to participate.
These include:
- Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) / Jera (Japan)
- Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)
- China Power / Malakoff International (Malaysia) / Abdul Aziz Al-Ajlan Sons (Saudi Arabia)
- Nebras Power (Qatar)
- Sumitomo Corporation (Japan)
The Al-Khairan IWPP project is part of Kuwait’s long-term plan to expand power and water production capacity through public-private partnerships (PPPs).
The winning bidder will sign a set of PPP agreements covering financing, design, construction, operation and transfer of the project.
The energy conversion and water purchase agreement is expected to cover a 25-year supply period.
Kapp extended another deadline recently for a contract to develop zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.
The PPP authority is procuring the 500MW solar photovoltaic independent power project (IPP) in partnership with the ministry.
The bid submission deadline was moved to the end of April, a source close to the project told MEED.
According to the MEWRE, the total generation capacity currently offered under partnership projects has reached 6,100MW, equivalent to about 30% of Kuwait’s existing power capacity.
The ministry and Kapp are also preparing to tender the main contract for the 3,600MW Nuwaiseeb power and water desalination plant after plans were approved by Kuwait’s Council of Ministers last November.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15889101/main.jpg -
UAE utilities say services stable amid tensions6 March 2026
Register for MEED’s 14-day trial access
Abu Dhabi National Energy Company (Taqa) and Etihad Water & Electricity (EtihadWE) have confirmed that water and electricity services in the UAE are operating normally amid ongoing regional tensions.
In a statement, Taqa said it had activated its risk management frameworks and “power generation, water desalination, transmission, distribution and wastewater services are operating safely and without interruption”.
According to Etihad WE, services are being delivered with “approved response plans” and “precautionary operational procedures” amid the current regional circumstances.
Taqa is one of the UAE’s largest integrated utilities, with assets including the Taweelah B independent power and water (IWPP) plant and the 2,400MW Fujairah F3 combined-cycle power plant.
EtihadWE operates electricity and water distribution networks across the Northern Emirates, supplying more than two million residents.
Iran’s recent missile attacks on energy infrastructure across the GCC in retaliation for US-Israel attacks have drawn renewed attention to the importance of the region’s utilities sector.
While power and water assets have largely avoided damage, there have been some incidents affecting broader energy infrastructure.
Saudi Aramco had shut down its Ras Tanura refinery following a drone strike, while US cloud provider Amazon Web Services reported service outages after incidents at two data centres in the UAE.
In January, Taqa and Etihad won a contract alongside France’s Saur to develop and operate a major wastewater treatment plant in the UAE’s northern emirate of Ras Al-Khaimah.
The Rakwa wastewater infrastructure project is RAK’s first public-private partnership for a sewage treatment plant.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15888121/main.jpg -
Drawn-out conflict may shift planning priorities6 March 2026
Commentary
Mark Dowdall
Power & water editorAcross the GCC, power and water networks have largely been planned around steadily rising consumption, driven by population growth and cooling demand.
A drawn-out conflict in the region may begin to change how planners think about these systems – particularly how they can keep operating if parts of the network are disrupted.
On Thursday, Iran’s Energy Minister Abbas Aliabadi said that US-Israeli attacks had damaged water and electricity supply facilities in several parts of the country, while urging the public to be careful with water and electricity consumption.
So far, major power and water infrastructure in the GCC has largely avoided damage. In the case of desalination, plants of this scale supply drinking water to millions of people, so striking them would immediately affect civilian populations and represent a significant escalation.
There is also an element of mutual vulnerability. Iran relies on its own electricity and water infrastructure, and Aliabadi’s comments this week suggest those systems are already under pressure. Targeting desalination plants in the GCC could invite similar disruptions at home.
However, if infrastructure disruption becomes a recurring risk in the region, the question may gradually shift from how to produce more water and electricity to how to reduce immediate reliance on continuous supply.
Some elements of that thinking are already visible in the project pipeline. In Saudi Arabia, for example, total reservoir storage capacity has reached about 25.1 million cubic metres, with roughly 44% located in the Mecca region and 31% in Riyadh. This provides a buffer that can sustain supply temporarily if desalination production is disrupted.
Additionally, the kingdom has about $8bn-worth of water storage projects in early study or feed stages. As regional tensions persist, schemes like this may move higher up the priority list.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15887101/main.jpg -
US oil companies to profit while Middle East exports are curtailed6 March 2026
While the oil and gas operations of the Middle East’s biggest producers are being dramatically curtailed by the conflict sparked by the US and Israel’s attack on Iran, US producers are likely to see windfall profits.
So far, the list of oil and gas assets in the Mena region disrupted by the conflict is long and includes facilities in all GCC nations, as well as Iraq and Iran itself.
In addition to oil fields and refineries that have been shut – either due to direct Iranian attacks or concerns over further strikes – about 20 million barrels a day (b/d) of production has been removed from the global market by the effective closure of the Strait of Hormuz.
Oil price
The disruption to global oil and gas supplies caused by the Iran conflict has pushed oil prices up by around 15%, with Brent briefly rising above $85 a barrel on 3 March – its highest level since July 2024.
This has boosted investor optimism about the outlook for US oil companies.
Texas-headquartered ExxonMobil made $56bn in profit in 2022 after Russia’s invasion of Ukraine created a sustained period of higher oil prices. It was a record year for the company, and it could see a similar bump this year if oil prices remain high.
Shale response
US shale producers are ramping up production to capitalise on higher oil prices, according to the Paris-based International Energy Agency (IEA).
Recently drilled shale wells could add around 240,000 b/d of supply in May, and an additional 400,000 b/d could be added in the second half of the year, according to an IEA document cited by the Financial Times.
Gas impact
The impact of the Iran conflict on liquefied natural gas (LNG) prices has been even more pronounced than on oil, with several gas benchmarks hitting multi-year highs.
The Dutch Title Transfer Facility rose by 55%, reaching its highest level since fuel markets spiked after Russia’s 2022 invasion of Ukraine.
One of the key factors driving prices higher was Qatar – the world’s second-biggest LNG producer – halting exports on 2 March after Iranian attacks on several facilities.
Qatar is expected to take at least several weeks to restart exports from its liquefaction terminals.
Not only will time be required to ensure the export route through the Strait of Hormuz is secure, but restarting LNG export terminals is also a gradual process. They require a slow restart to avoid damaging cryogenic equipment, which cools natural gas to around -160°C.
In addition, LNG trains must be brought back online sequentially; Qatar’s Ras Laffan hub has 14 trains.
US advantage
While the world’s second-biggest LNG producer is likely to be offline for some time, the US – the world’s biggest LNG producer – is already operating near full capacity and is benefiting from the higher-price environment.
Cheniere and Venture Global, the two biggest US LNG producers, have both seen their share prices rise amid the conflict.
Cheniere shares are up 18% since the start of February, while Venture Global’s share price has risen 12% over the same period.
The scale of additional revenues earned by US companies – and the revenue losses suffered in the Middle East’s oil and gas sector – will largely depend on how long the disruption linked to the Iran conflict continues.
If the disruption persists and significant long-term damage is done to Middle East oil and gas infrastructure, US-based oil and gas companies could record another year of record profits.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15886759/main.png
