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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UAE banks ready to weather the storm8 April 2026

Amid unprecedented turbulent geopolitics, Emirati lenders are putting on a confident face. More than one month in from the Iran conflict, Dubai’s largest bank, Emirates NBD, raised $2.25bn in long-term financing – obtaining, it said, the tightest pricing in the bank’s history for a syndicated loan, which aims to strengthen the bank’s liquidity position.
Bankers view this as a token of the sector’s resilience. “Strong oversubscription from international lenders, together with tight pricing, reflects continued market confidence in the UAE’s financial sector,” said Shayne Nelson, Emirates NBD’s CEO.
UAE banks entered the crisis in a strong position. Capital and liquidity buffers are robust, with an aggregate capital adequacy ratio of 17.1% in Q4 2025 – well ahead of the minimum 10.5% level. The loan-to-deposit ratio stood at 77.7%, another metric indicating its latitude to extend ample credit to the economy.
Performance levels last year were impressive. Total assets in the UAE banking system rose 17% in year-on-year terms to AED5,340bn ($1.45bn) by end-2025. Asset quality ratios improved, supported by a 16.2% reduction in non-performing loans (NPLs). Large banks revealed strong profits. The largest Emirati lender, First Abu Dhabi Bank, reported a 24% increase in net income to AED21.11bn ($5.7bn), while Abu Dhabi Commercial Bank similarly saw full-year pre-tax profits rise by 21% to AED12.8bn.
Analysts paint a picture of a broadly healthy banking system, at least pre-conflict. “In 2025, we saw some margin pressure, as competition for liquidity increased. UAE banks’ profitability metrics declined a bit. But banks entered this crisis in the best shape for the last 10 years. Take the NPL ratio; at around 3%, it’s been on a declining trend for the last five years,” says Anton Lopatin, senior director, financial institutions at Fitch Ratings.
Support package
The events since 28 February have clearly ruffled the surface calm, although the UAE Central Bank has stepped in to provide additional support, announcing on 19 March a resilience package mainly made up of precautionary support measures focused on liquidity and forbearance. This comes amid reports of a sharp decline in liquidity in the banking system.
The package allows lenders to access liquidity and to use capital buffers to support the economy. Banks enjoy enhanced access to reserve balances up to 30% of the cash reserve requirement.
“The central bank has a strong ability to support banks in the UAE, as it has AED1tn ($270bn) in external reserves. It means that it is able to provide support if needed, backed by these reserves,” says Lopatin.
According to Lopatin, overnight deposits at the Central Bank have declined slightly since the conflict escalated, but nothing too severe. “Judging by liquidity indicators at the sector level, it’s under pressure, but it’s still healthy,” he says.
Ongoing risks
Nonetheless, a protracted conflict would raise asset quality concerns, given the likely impact on companies in sectors such as infrastructure, real estate, tourism and aviation – those most exposed to war-related effects. In the UAE, hospitality, tourism and real estate also have weaker links to the sovereign.
Disruption to air traffic and tourist inflows is likely to have only a small direct impact on UAE banks, whose lending to the transport (mostly aviation) and tourism sectors is limited. Fitch estimates the two combined accounted for less than 3% of total loans at end-2025.
“The UAE has always been sensitive to the real estate market performance. It has recovered strongly since Covid, with prices up by 60%. But if there is less economic activity, and less belief in Dubai as a safe jurisdiction, real estate would be among the first sectors to suffer,” says Lopatin.
Corporate real estate accounted for 13% of gross loans at end-2025, down from 20% at end-2021, and this sector is likely to be the main source of new Stage 3 loans if the conflict is prolonged, warned Fitch in a rating note issued on 2nd April.
Some banks still have high concentrations in their loan books, namely Sharjah Islamic Bank (29%), Ajman Bank (28%), Commercial Bank International (CBI; 41%), Commercial Bank of Dubai (20%) and United Arab Bank (UAB; 20%). Their asset-quality metrics could weaken, said Fitch, adding profitability pressures, if the real estate price correction exceeds its pre-conflict expectations.
Already, two Dubai property developers have seen their sukuk (Islamic debt securities) fall into distressed territory, as investor concerns about credit quality and refinancing risks start to register. In mid-March, Fitch Ratings placed Dubai real estate firm Binghatti on a negative rating watch, signalling a potential downgrade.
Too early to assess
Yet analysts caution against reading too much into this at this stage. “UAE banks’ total exposure to real estate is not so significant,” he says. “Currently, it’s less than 15%, the lowest level in 10-15 years. Any impact on banks will be gradual, but it will be under pressure, so banks will be under pressure too. Some smaller UAE banks entered this crisis with less cushioning and higher NPLs and therefore could be affected more.”
Refinancing risk may also affect the government-related entity (GRE) sector, with these anticipating around $11.5bn in debt maturing this year, according to estimates from Capital Economics, a consultancy.
If the refinancing of GRE debt proves too expensive, then UAE banks may have to step into the breach with new credit facilities.
“The longer the conflict lasts, refinancing becomes a point of stress,” says Lopatin.
The capacity of the likes of Emirates NBD to raise finance in the most trying conditions suggests a wider resilience that may stave off worst-case scenarios for UAE banks. The next weeks and months will doubtless be testing for them, and the possibility of cash flow problems yielding a worsened loan quality position is one that will be taken seriously.
However, the capital and liquidity buffers painstakingly built up since the Covid pandemic mean banks are ready to weather the storm.
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Dubai extends bid deadline for Jebel Ali STP expansion8 April 2026

Dubai Municipality has extended the deadline for contractors to submit bids for a contract covering the expansion of the Jebel Ali sewage treatment plant (STP) phases one and two.
The upgraded facility will be capable of treating an additional sewage flow of 100,000 cubic metres a day (cm/d), with the expansion estimated to cost $300m.
The scope includes the design, construction and commissioning of infrastructure and systems required to support the increased capacity.
The new bid submission deadline is 30 April. The original deadline was 2 April.
Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.
The main element of the expansion involves modifications to the secondary treatment process at Jebel Ali STP phase two.
UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.
It is understood that the project is part of long-term plans to treat about 1.05 million cm/d once all future phases are completed.
MEED recently revealed that the municipality is preparing to tender the main construction package for the Warsan STP by the end of the year.
As MEED understands, the Warsan STP had previously been expected to be procured as a public-private partnership scheme.
However, the main construction package will now be procured as an engineering, procurement and construction contract.
The project involves the construction of a sewage treatment plant with a capacity of about 175,000 cm/d, including treatment units, sludge handling systems and associated infrastructure.
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Prequalification begins for King Salman Stadium early works8 April 2026
Saudi Arabia’s Sports Ministry has invited companies to prequalify for a contract covering early works at the King Salman International Stadium in Riyadh.
The notice was issued on 8 April, with a prequalification deadline of 28 April.
The stadium will cover about 660,000 square metres (sq m) and have a seating capacity of 92,000. Facilities will include a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.
The wider development will include sports facilities covering more than 360,000 sq m, including two training fields and fan zones, a closed sports hall, an Olympic-sized swimming pool, an athletics track, and outdoor courts for volleyball, basketball and padel.
The stadium is set to host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main base.
US-based architectural firm Populous is the lead architect for the stadium.
Construction of the stadium is expected to be completed by 2029.
The stadium will be located next to King Abdulaziz Park.
Firms submitted prequalification statements for the main design-and-build contract in February.
Saudi Arabia stadium plans
In August 2024, MEED reported that Saudi Arabia plans to build 11 new stadiums and refurbish four facilities for the 2034 Fifa World Cup.
Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.
A further 10 cities will host training bases: Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.
There are expected to be 134 training sites across the kingdom, including 61 existing facilities and 73 new venues.
Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.
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PDO awards Oman gas plant expansion project8 April 2026

Petroleum Development Oman (PDO) has awarded the main contract for a major project to expand the Birba gas station in the Dhofar governorate in southern Oman.
Known as the Budour-Northeast Birba integrated project, PDO intends to execute engineering, procurement, construction (EPC) and commissioning of units to process additional volumes of sour gas.
Egypt’s Engineering for the Petroleum & Process Industries (Enppi) has won the contract to perform EPC works on the project, according to sources.
The value of the contract awarded by PDO to Enppi is unknown. The Budour-Northeast Birba integrated project was earlier estimated to be worth about $300m.
MEED reported last year on the two-way fight between Enppi and India-based Larsen & Toubro Energy Hydrocarbon (L&TEH) for the project’s main EPC contract.
MEED previously reported that contractors submitted technical bids for the project by the deadline of 30 January 2025. Aside from Enppi and L&TEH, Greece/Lebanon-headquartered Consolidated Contractors Company (CCC) and Abu Dhabi’s NMDC Energy were understood to have submitted technical bids, but are thought to have later withdrawn from the race.
Enppi and L&THE submitted commercial bids for the project by the 11 June deadline, MEED previously reported.
After receiving prices, however, PDO appeared to slow down the bid evaluation process for the project’s contract award. The majority state-owned oil and gas producer engaged bidders for discussions and negotiations in the meantime, eventually asking them to extend the validity of their bids until April, one source said.
The greenfield and brownfield scope of work on the project covers the following:
- New separator train at the Birba gas station to perform three-stage separation
- New gas dehydration unit
- Two new gas injection compressors
- New gas recovery compressor
- New gas booster compressor
- Installation of utility units, such as electrical infrastructure, flare system, drainage, etc
- New high-pressure flare
- New instrumentation air package
- New nitrogen system
- New drainage vessel
- Debottlenecking of AP flare header by increasing the flare header size
- Modification inside existing 33kV gas-insulated switchgear in Birba gas station substation
- Modification of existing 6.6kV switchboard
- Interfaces with existing control room
- Civil and piping interfaces within the Birba gas station facility
In December, PDO achieved a final investment decision on another major project to build an integrated facility to produce natural gas from the Budour and Tayseer fields in Oman.
Kuwait‑based Spetco International Petroleum Company (Spetco) won the main design, build, own, operate and maintain (DBOOM) contract for the combined Budour-Tayseer sour gas processing facility project. The value of the contract won by Spetco is $683m.
PDO awarded Spetco the 15-year contract in September, as MEED reported, with the official signing between the parties taking place in December.
The project aims to expand the capacity of the existing gas production and processing facility at Tayseer. It represents the second development phase of the gas field. Through the project, PDO is also seeking to appraise, produce and process sweet gas from the Budour field, located about 50 kilometres west of the Tayseer field.
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Saudi firm to develop $300m Syria Beaumont project8 April 2026
Syria’s Ministry of Tourism has partnered with Riyadh-based firm Ezdihar Holding to develop The Beaumont, described as the country’s first fully integrated residential, commercial and leisure scheme.
The 77,000-square-metre project is expected to cost $250m-$300m and is positioned as a flagship development aimed at supporting tourism sector recovery, while boosting investment, job creation and skills development.
Plans include two towers on the Barada River waterfront.
The first will house a five-star, 150-key hotel with presidential suites, multiple food and beverage outlets, a private members’ club and a spa.
The second will feature 26 floors of high-end residential units, ranging from one-bedroom serviced apartments to 570-square-metre duplex penthouses overlooking the city.
Additional components include a two-level retail centre, an outdoor promenade with cafes and restaurants, and a 10-storey business centre targeting regional and international occupiers.
The project will be delivered through a 50-year joint venture between the Ministry of Tourism and Ezdihar Holding, operating with financial and administrative autonomy.
Located near Umayyad Square in Damascus, the development is intended to serve as a base for companies seeking regional or national headquarters, alongside a mixed-use destination combining hospitality, retail and leisure offerings.
Construction will be carried out in phases, with completion targeted within four years.
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