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. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/13561811/main.gif
Yasir Iqbal
Related Articles
  • Veolia wins Jordan water services contract

    18 February 2026

    Register for MEED’s 14-day trial access 

    France's Veolia has signed a four-year performance-based management contract with the Water Authority of Jordan to support water and wastewater services in the country’s northern governorates.

    Under the contract, Veolia will provide operations, maintenance and management services to Yarmouk Water Company, the public utility responsible for water supply and wastewater services in the region.

    The agreement covers Irbid, Jerash, Ajloun and Mafraq, an area spanning nearly 30,000 square kilometres and covering about 3 million people.

    The scope includes water and wastewater operations, maintenance, billing and collection, and customer service.

    According to the firm, the performance-based structure prioritises measurable improvements, including service delivery, cost efficiency and revenue management.

    The company said it will deploy technical and management specialists to support operations, rehabilitation works and investment initiatives.

    The contract builds on Veolia’s existing operational role in Jordan’s water sector. The company operates the Disi-Amman scheme, which supplies about 100 million cubic metres of drinking water a year, under an operations and maintenance contract.

    It also operates the Al-Samra wastewater treatment plant, which produces about 133 million cubic metres of treated wastewater annually for agricultural reuse.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15684109/main0535.jpg
    Mark Dowdall
  • PIF-backed firm signs worker accommodation deal

    17 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Smart Accommodation for Residential Complexes Company (Sarcc) has signed an agreement with Riyadh-based Mawref Company to develop a 12,000-bed worker accommodation project in North Riyadh.

    The project will cover about 120,000 square metres (sq m), with a total built-up area of 150,000 sq m.

    The development is expected to cost over SR669m ($178m), with the first phase slated for completion in 2029.

    Sarcc is backed by the Public Investment Fund (PIF), the Saudi sovereign wealth vehicle.

    The agreement follows Sarcc signing another agreement in September last year with privately-owned local firm Tamimi Global Company to explore collaboration in developing worker accommodation facilities in the kingdom.

    The PIF launched Sarcc in October 2024 with the aim of developing and operating staff housing and accommodation assets in the kingdom.

    Sarcc will develop and operate the staff accommodation facilities at major construction projects in Saudi Arabia.

    The company will seek opportunities to invest in the sector to strengthen staff housing standards. Sarcc will also look to engage the private sector by enabling investment and partnership opportunities in sectors including construction, catering, transportation and retail.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15672262/main.gif
    Yasir Iqbal
  • KBR wins 10-year maintenance contract from Petro Rabigh

    17 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) has awarded US-based consultant KBR a 10-year contract to provide maintenance services covering the company’s polymer plants in Rabigh, on the kingdom’s Red Sea coast.

    “This [contract award] marks a major step in Petro Rabigh’s transformation journey, supporting safer operations, stronger reliability and long-term improvement across its facilities,” Petro Rabigh said in , without providing further details.

    Work on the operations and maintenance contract will be executed by KBR’s  business line, which operates under the Houston-headquartered firm’s Technology Solutions portfolio, sources told MEED.

    Prior to this contract, in March 2024, Petro Rabigh awarded KBR a similar five-year asset condition monitoring programme contract. As part of that job, KBR is to provide predictive maintenance services at Petro Rabigh’s main plant.

    Petro Rabigh was originally established in 1989 as a basic topping refinery with crude oil processing facilities, located in Rabigh, 165 kilometres to the north of Jeddah in Mecca Province.

    Saudi Aramco and Japan’s Sumitomo Chemical Company formed an equal joint venture in 2005 to transform the Petro Rabigh crude oil refining complex into an integrated refinery and petrochemicals complex, with the strategic objective of expanding Saudi Arabia’s annual production capacity of refined products and petrochemicals.

    Three years after the creation of the Petro Rabigh joint venture, the partners floated 25% of its shares in an initial public offering on the Saudi Stock Exchange (Tadawul) in 2008, following which Aramco and Sumitomo Chemical each held 37.5% shares in Petro Rabigh, with the remaining shares listing on the Tadawul.

    In October last year, however, Aramco completed the acquisition of an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical. Following the completion of the transaction, valued at $702m or SR7 a share, Aramco became the majority shareholder in Petro Rabigh, with an equity stake of 60%, while Sumitomo retains an interest of 15%. The remaining 25% shares of Petro Rabigh continue to trade on the Tadawul.

    ALSO READ: Petro Rabigh and Indian firm to study joint project investment

    Following the formation of the Petro Rabigh joint venture in 2005, Aramco and Sumitomo Chemical launched the expansion of the refining facility into an integrated refining and petrochemicals complex in 2006, investing $9.8bn in the project, 60% of which was secured through external financing. Engineering, procurement and construction works on phase one were completed in 2009, with the integrated downstream complex entering operations in November of that year.

    The Petro Rabigh downstream complex consists of a topping refinery that has a 340,000 barrel-a-day (b/d) crude distillation unit, a 47,000 b/d hydrotreater, a 12 million cubic-feet-a-day hydrogen plant, a 75,000 b/d naphtha merox unit and a 60,000 b/d kerosene merox unit, along with supporting utilities, product tankage and a marine terminal.

    Aramco and Sumitomo Chemical initiated Petro Rabigh’s phase two expansion project, valued at $8bn, in 2014. The second expansion phase was commissioned in 2018 and added 15 chemicals plants to the Petro Rabigh complex, raising the facility’s total production capacity to 18.4 million tonnes a year (t/y) of petroleum-based products.  

    The expansion also increased Petro Rabigh’s capacity to process an additional 30 million cubic feet a year of ethane into 2.4 million t/y of ethylene and propylene-based derivatives, and achieved a naphtha output of 3 million t/y.

    Expansion of the main existing chemicals plant and the establishment of a clean fuels complex comprising polyether polyols, naphtha treating and sulphur recovery units were also part of the phase two project.

    Photo credit: Petro Rabigh on LinkedIn

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15670196/main5008.jpg
    Indrajit Sen
  • Bidders await NWC decision on sewage contract

    17 February 2026

     

    Saudi Arabia’s National Water Company (NWC) is evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.

    Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cubic metres a day (cm/d).

    As MEED understands, the companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)
    • Beijing Enterprises Water Group – BEWG (Hong Kong)
    • Al-Yamama (Saudi Arabia)

    Earlier this month, MEED exclusively reported that six contractors are competing for the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11), which has an estimated value of about $211m.

    The project involves the construction and upgrade of two sewage treatment plants with a combined capacity of about 440,000 cm/d.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component. 

    It is understood that contracts for LTOM11 and LTOM12 will be awarded in May.

    In January, a consortium of United Water (China), Prosus Energy (UAE) and Armada Holding (Saudi Arabia) won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    This contract was the first to be awarded under the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    NWC previously awarded $2.7bn-worth of contracts for the first phase of its LTOM programme. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15670141/main.jpg
    Mark Dowdall
  • Lamprell wins Dubai’s Margham gas plant expansion contract

    17 February 2026

    Register for MEED’s 14-day trial access 

    Dubai Petroleum has awarded Lamprell a contract for a project covering the expansion of the Margham gas storage and processing facility, which is operated by state-owned Dubai Supply Authority (Dusup).

    Lamprell’s scope of work on the contract includes engineering, procurement and construction (EPC) of civil works, pipe rack structures and associated infrastructure installation. Work on the contract will be delivered by Lamprell’s onshore division.

    The contract awarded to Lamprell by Dubai government-owned Dubai Petroleum forms part of a wider project known as the Sunrise development programme. The aim of the scheme is “to support future capacity enhancements required to meet projected gas demand and the integration of renewable energy sources for end users across the [UAE],” Lamprell said in a statement.

    Lamprell is primarily a contractor and services provider in the offshore oil and gas and wind energy sectors, with its main clients including Saudi Aramco, Abu Dhabi National Oil Company (Adnoc) and QatarEnergy. The company has operational bases in Dammam and Ras Al-Khair in Saudi Arabia, while its bases in the UAE are in Hamriyah in Sharjah and Jebeli Ali Free Zone in Dubai.

    The company was previously listed on the London Stock Exchange, from where it delisted following a takeover offer from a consortium of Blofeld Investment Management and AlGihaz Holding for its Saudi Arabia business in 2022. AlGihaz Holding later took full ownership of Lamprell.

    “Expanding our onshore EPC capability is a key pillar of Lamprell’s strategy, and this award directly supports that objective,” Ian Prescott, Lamprell’s CEO, said.

    “We appreciate the confidence [Dubai Petroleum] has placed in Lamprell and look forward to working with our long-standing, valued client. Delivering critical energy infrastructure in the UAE strengthens our onshore portfolio, demonstrates local execution capability and positions the business for further growth in this market,” Prescott said.

    The Margham gas field and associated processing plant are located on the Dubai-Hatta road. It is the largest gas field onshore Dubai. The field contains three gas-bearing geological formations more than 10,000 feet below the surface.

    The Margham field came online in 1984 and has been developed with production and injection gas wells that are connected through a gathering system to the processing plant.

    Initially, the gas was processed to remove water for disposal and condensate for sale and the dry gas was reinjected into the reservoir. At present, the dry gas is sent by pipeline to the Dubai gas grid.

    The gas plant separates the heavier hydrocarbons components and formation water from the gas through a series of cooling, pressure reduction and phase separation steps.

    The remaining gas stream, substantially free of liquid components, can be either flowed directly to the Dubai gas grid or compressed to a higher pressure if required.

    The raw condensate is brought to product specification by further removal of water and stabilised by distillation. The stabilised condensate is moved by pipeline to Dubai’s main crude oil refinery at Jebel Ali.

    The Margham field has functioned as a strategic gas storage facility for Dubai since 2008, with the ability to inject gas into the reservoir or produce gas to meet Dubai’s seasonal fuel gas requirements.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15669884/main.jpg
    Indrajit Sen