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
-
WEBINAR: Iraq Projects Market 202620 May 2026
-
Surbana Jurong to lead Jeddah airport expansion20 May 2026
-
Dubai seeks contractors for Metro Gold Line20 May 2026
-
Iraq oil exports drop by 89% in April20 May 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
-
WEBINAR: Iraq Projects Market 202620 May 2026
Webinar: Iraq Projects Market 2026
Thursday 4 June | 11:00 AM GST | Register now
Agenda:
- Overview of the Iraq projects market landscape
- 2025-26 projects market performance
- Value of work awarded 2026 YTD
- Assessment of key current and future projects
- Key drivers, challenges and opportunities
- Summary of the key clients, contractors and consultants
- Size of future pipeline by sector and status
- Ranking of the top contractors and clients
- Short and long-term market outlook
- Audience Q&A
Hosted by: Edward James, head of content and analysis at MEED
A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today, he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. https://image.digitalinsightresearch.in/uploads/NewsArticle/16925011/main.gif -
Surbana Jurong to lead Jeddah airport expansion20 May 2026
Register for MEED’s 14-day trial access
Singapore-based engineering firm Surbana Jurong is expected to lead the future expansion and development plans of Jeddah Airports Company (Jedco).
Surbana Jurong's group CEO, Sean Chiao, met with Jedco's CEO, Mazen Bin Mohammed Johar, earlier this week to explore expanded cooperation.
The meeting focused on leveraging Surbana Jurong’s international expertise in delivering and managing major projects to help King Abdulaziz International airport (KAIA) scale towards more than 90 million passengers annually by 2030.
Both sides also discussed talent development for Saudi engineers through Surbana Jurong Academy programmes, mentorship and participation in international airport projects, alongside establishing a joint governance framework and progressing towards a memorandum of understanding.
Surbana Jurong is delivering project management consultancy services for over 100 capital projects at KAIA, valued at SR3bn ($800m).
These upgrades will boost KAIA’s annual capacity from 29 million to 114 million passengers by 2030, supporting Saudi Arabia’s Vision 2030 and National Aviation Strategy, and enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.
According to data from regional project tracker MEED Projects, Surbana Jurong is involved in several major projects in the kingdom, including Red Sea Global's Amaala masterplan, the Trojena dams scheme, Oxagon, King Salman International airport and Saudi Arabia Railway's North-South Phosphate Railway 3.
The firm has also been part of projects in the wider region, including the West Link project, Etihad high-speed rail and Abu Dhabi airport's Midfield Terminal.
The firm has also secured masterplan project contracts from Abu Dhabi's Department of Municipalities & Transport and Abu Dhabi Ports.
MEED’s April 2026 report on Saudi Arabia includes:
> COMMENT: Risk accelerates Saudi spending shift
> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
> DOWNSTREAM: Saudi downstream projects market enters lean period
> POWER: Wind power gathers pace in Saudi Arabia
> WATER: Sharakat plan signals next phase of Saudi water expansion
> CONSTRUCTION: Saudi construction enters a period of strategic readjustment
> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure pushTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16922013/main.jpg -
Dubai seeks contractors for Metro Gold Line20 May 2026

Register for MEED’s 14-day trial access
Dubai's Roads & Transport Authority (RTA) has invited contractors to express interest in a contract to build the new Gold Line, as part of its expansion of the Dubai Metro network.
The notice was issued in mid-May with a submission deadline of 13 June.
Dubai officially announced the launch of the new Gold Line in April.
In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project will cost about AED34bn ($9.2bn).
The Gold Line will increase the total length of the Dubai Metro network by 35%.
The project is scheduled for completion in September 2032.
The Gold Line will be a fully underground network covering more than 42 kilometres, with 18 stations.
It will pass through 15 areas in Dubai, benefiting 1.5 million residents.
The project is expected to provide connectivity to over 55 under-construction real estate development projects.
The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.
It will be connected to Dubai Metro’s existing Red and Green lines and will integrate with the Etihad Rail passenger line.
The contractor will be responsible for the design and build of all civil works, electromechanical equipment, rolling stock and rail systems.
The selected contractor will also be required to assist in the systems maintenance and operations during an initial three-year period.
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.
Stage one covers concept design, stage two covers preliminary design, stage three covers the preparation of tender documents, stage four encompasses construction supervision and stage five covers the defects and liability period.
MEED’s May 2026 report on the UAE includes:
> COMMENT: Conflict tests UAE diversification
> GVT &: ECONOMY: UAE economy absorbs multi-sector shock
> BANKING: UAE banks ready to weather the storm
> ATTACKS: UAE counts energy infrastructure costs
> UPSTREAM: Adnoc builds long-term oil and gas production potential
> DOWNSTREAM: Adnoc Gas to rally UAE downstream project spending
> POWER: Large-scale IPPs drive UAE power market
> WATER: UAE water investment broadens beyond desalination
> CONSTRUCTION: War casts shadow over UAE construction boom
> TRANSPORT: UAE rail momentum grows as trade routes face strainTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16919605/main.png -
Iraq oil exports drop by 89% in April20 May 2026
Register for MEED’s 14-day trial access
Iraq exported 10 million barrels of crude in April, an 89% drop compared to the 93 million barrels that were exported the month before the Iran conflict, according to the country’s new Oil Minister, Basim Mohammed Khudair.
Oil exports generated just over $1bn in April, down from $6bn in February, according to a separate statement from the ministry.
The decline in export volumes and revenues is due to the disruption to shipping through the Strait of Hormuz in the wake of the US and Israel’s war with Iran, which started on 28 February.
The country is exporting crude by sea through the Strait of Hormuz, as well as from Kirkuk through the Iraq-Turkiye Pipeline (ITP).
Iraq has plans to increase flows through the ITP to 500,000 barrels a day (b/d), according to Khudair.
The minister said an increase in crude output from the north of the country depends on the return of global oil companies to the Kurdistan region.
“The government is treating the energy file in the Kurdistan region as a priority,” he said.
Many international companies in the Iraqi Kurdistan region suspended their operations in the wake of the US and Isreal attacking Iran on 28 February.
Khudair said Iraq is currently producing a total of 1.4 million b/d of crude.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16913742/main.jpg -
Iraq risks defaulting on payments for $10bn oil project20 May 2026

Register for MEED’s 14-day trial access
Iraq’s state-owned upstream operator Basra Oil Company (BOC) risks defaulting on payments for the $27bn Gas Growth Integrated Project (GGIP) due to fallout from the US and Israel’s war with Iran.
Phase one of the GGIP is expected to be worth about $10bn and BOC holds a 30% stake in the project, while its partners France’s TotalEnergies and QatarEnergy hold 45% and 25%, respectively.
The consortium formalised the investment agreement with the Iraqi government in September 2021.
As part of the investment agreement, BOC was expected to make payments to fund the development of the project and the money from these payments was expected to come from oil revenues.
Due to disruption to the shipping of oil via the Strait of Hormuz in the wake of the US and Israel’s war on Iran, which started on 28 February, BOC’s revenues from oil have declined significantly, impacting the company’s ability to provide funds for the project.
BOC could default on payments for the project within four to six months if disruption to shipping through the Strait of Hormuz continues, according to industry sources.
BOC has already informed TotalEnergies and QatarEnergy that it is going though liquidity problems because it is unable to export normal volumes of oil, sources said.
When contacted about the project’s financial issues, TotalEnergies referred MEED to comments made by the company’s chief executive Patrick Pouyanne on 29 April.
He said: “We have maintained a team in Iraq, in Basra, of 20 TotalEnergies’ staff, who are supervising the progress of the GGIP projects on the ground, with around 5,000 workers there.”
He added: “This conflict immediately has some impact on TotalEnergies' operations. And we have been, by the way, very transparent, since day one, to disclose all the impacts on our activities.”
TotalEnergies declined to answer questions about potential changes to the schedule for the GGIP and whether there are alternative plans in place that provide for a situation where BOC could not deliver agreed funds.
GGIP masterplan
The GGIP programme is focused on developing four major projects in Iraq.
These are:
- The Common Seawater Supply Project (CSSP)
- The Ratawi gas processing complex
- A 1GW solar power project for Iraq’s electricity ministry
- A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)
The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.
China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute engineering, procurement and construction (EPC) work for the gas processing complex at the Ratawi field development.
CPECC’s project team based in its Dubai office is performing detailed engineering work on the project.
In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.
The 1GW Ratawi solar scheme will be developed in phases, with each phase coming online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.
The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.
Separately, in June, TotalEnergies awarded China Petroleum Pipeline Engineering an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.
Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April 2025, worth a combined $11m, under the GGIP scheme.
The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.
One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 barrels a day of oil on completion of the first phase, according to a statement by Wood.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16913732/main.jpg