meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Sabic completes $450m divestment of thermoplastics business

    6 August 2026

    Saudi Basic Industries Corporation (Sabic) has completed a transaction to divest its engineering thermoplastics business in the Americas and Europe to German venture capital and private equity firm Mutares, for an enterprise value of $450m.

    Sabic’s Americas and Europe engineering thermoplastics business produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene resins and compounds, and operates manufacturing sites in Mt Vernon, Bay St Louis and Burkville in the US; Ottawa, Canada; Tampico, Mexico; Campinas, Brazil; Cartagena, Spain; and Bergen op Zoom, the Netherlands.

    The divestment process was initiated by Sabic in January this year and marks a significant milestone in the company’s broader portfolio optimisation programme.

    “The transaction supports Sabic’s continued focus on exiting structurally underperforming assets, reducing cash losses, improving return on capital employed and maximising long-term shareholder value,” the Saudi chemicals giant said.

    The divested business reported an operating loss of approximately $498m for full-year 2025, and approximately $173m for the first half of this year.

    On a pro forma basis, the carve-out of the engineering thermoplastics business improved Sabic’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin by approximately 130-140 basis points, “reflecting the positive impact of the transaction on the company’s overall profitability and portfolio quality”.

    In addition to agreeing the sale of its engineering thermoplastics business in January, Sabic also began a process to divest its European petrochemicals business to Aequita for an estimated enterprise value of $500m.

    Aequita is a Munich-based venture capital and private equity firm.

    Sabic’s European petrochemicals business produces and markets ethylene, propylene, low- and high-density polyethylene, polypropylene and value-added polymer compounds, and operates manufacturing sites in Teesside, the UK; Geleen, the Netherlands; Gelsenkirchen, Germany; and Genk, Belgium.

    Q2 2026 financial results

    Sabic reported a net loss of $100m for the second quarter of 2026, which it attributed to the impact of the Iran-US regional conflict on its business.

    The company had only returned to profit in the first quarter, registering a net income of $3.52m, after posting a full-year 2025 loss of $6.87bn.

    The Saudi petrochemicals giant also said Q2 2026 revenue fell 5% year-on-year to $6.62bn.

    Sabic posted adjusted Ebitda of $900m for the three months to 30 June, a drop of 18% compared to the previous quarter.

    Adjusted earnings before interest and taxes in Q2 also fell by 72% quarter-on-quarter to $110m, while adjusted earnings per share stood at $0.03.

    Saudi Exchange-listed Sabic said its net debt position remained largely unchanged at $730m at the end of June, compared with $740m at the end of March.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18153251/main4445.jpg
    Indrajit Sen
  • UAE leads Mena project pipeline recovery

    6 August 2026

    Register for MEED’s 14-day trial access 

    The Middle East and North Africa’s construction project pipeline strengthened in June 2026, recovering some of the momentum lost earlier in the year as the effects of the Israel-Iran conflict continued to work through regional project markets.

    GlobalData’s Construction Projects Momentum Index (CPMI) for the Mena region rose to 0.84 in June, up 5% from 0.80 in May, leaving the region third globally behind South Asia and Sub-Saharan Africa. The three-month moving average held at 0.95, unchanged from May.

    The recovery was led by execution-stage activity, where the score rose to 1.18 in June from 1.06 in May. Pre-execution momentum, however, continued to soften, falling to 0.68 from 0.73. The pre-execution stage captures project planning, design development and procurement preparation, and a sustained decline there can point to a thinning of the future pipeline even when near-term execution holds up.

    Infrastructure drove the sector-level gains, with momentum rising sharply to 1.03 in June from 0.25 in May, the largest increase among the region’s sectors. Industrial momentum rose to 0.78 from 0.40. Residential activity remained elevated at 1.17, easing only marginally from 1.22.

    The gains were partly offset by a steep pullback in institutional activity, where momentum fell to 0.45 in June from 1.72 in May, the largest decline of any sector. Commercial and leisure momentum eased to 0.88 from 1.13, and energy and utilities to 0.59 from 0.82.

    The UAE posted the region’s highest score in June at 1.52, up from 1.16 in May. Algeria rose to 1.26 from 0.68, and Kuwait recovered to 0.76 from 0.26. Egypt reached 1.36, Oman held at 0.87, Qatar rose to 0.86 and Iran eased to 0.81.

    Saudi Arabia was the main exception among the larger markets, with its score falling to 0.31 in June from 1.16 in May. GlobalData linked the decline to procurement disruption on renewable energy projects under the Public Investment Fund’s giga developments and to the Najran-Asir-Jizan direct road, which faced consecutive bidding delays and consortium withdrawals.

    Israel recovered to 0.65 in June from -1.66 in May, having recorded the region’s weakest scores through the earlier phase of the conflict.

    Whether the June recovery is sustained will depend on the direction of pre-execution activity, which continued to weaken even as execution-stage momentum firmed.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18153255/main.jpg
    Colin Foreman
  • PIF anchors Brookfield Middle East fund

    5 August 2026

    Canada’s Brookfield has announced the first close of Brookfield Middle East Partners (BMEP), a private equity fund anchored by Saudi Arabia’s Public Investment Fund (PIF), raising about $2bn.

    The capital was raised from a group of anchor investors comprising PIF and other global and regional institutional partners.

    The fund will invest in businesses based in Saudi Arabia and the wider Middle East, pursuing buyouts, minority growth equity and other opportunities across sectors including financial, business and consumer services, industrials, technology and healthcare.

    Capital will be allocated to investments in the Middle East, with a focus on the GCC. The fund targets allocating 50% of its investments to Saudi Arabia.

    Brookfield is committing $500m to the fund. The $2bn figure is a first close; neither the size of PIF’s commitment nor the fund’s final fundraising target was disclosed.

    “Our partnership with Brookfield is designed to help anchor international private equity into Saudi Arabia and the region. It will also accelerate deal flow while continuing to bring world-class expertise to the local capital market ecosystem,” said Yazeed Al-Humied, deputy governor and head of Mena investments at PIF.

    The fund draws on Brookfield’s offices in Riyadh and its wider global network. As part of the initiative, Brookfield will make the Brookfield Academy, its professional learning programme founded in 2019, available in Saudi Arabia to develop local investment talent.

    PIF and Brookfield agreed to create the fund in October 2024. The announcement follows the approval of PIF’s 2026-30 strategy in April, which focuses on maximising financial returns, improving investment efficiency and increasing private sector participation.

    “We are grateful for the collaboration with PIF and our other strategic anchor partners, reflecting the global confidence and strong demand for private equity opportunities in Saudi Arabia and the region. Brookfield has been active in the Middle East for nearly three decades, and we bring deep local investment expertise, local networks and an owner-operator approach to transforming high-quality businesses. We see a compelling opportunity to partner with businesses across the region and position them for long-term growth,” said Bruce Flatt, CEO of Brookfield Corporation.

    Saudi footprint

    The fund is the latest step in Brookfield’s expansion in Saudi Arabia. Its local unit, Brookfield Arabia for Business Services, received Capital Market Authority approval in June to manage investments and run funds in the country. In May 2025, Brookfield launched a $1bn joint venture with Abu Dhabi’s Lunate focused on residential real estate in the Middle East, with a focus on the UAE and Saudi Arabia.

    The fund also fits a wider PIF pattern of using relationships with global asset managers to channel international capital into the domestic economy rather than deploying Saudi money abroad. In the same month as the BMEP close, PIF signed $24.5bn in memorandums of understanding with the World Bank Group and US Export-Import Bank to draw outside capital into its portfolio companies, alongside a $2bn co-investment agreement with US-based I Squared Capital targeting infrastructure and district cooling.

    Gulf expansion

    Brookfield has signalled a broader push into the Gulf. In May, Flatt said the company intended to increase its investments in the region despite the ongoing conflict.

    “In fact, [we're] doubling down; we are doing more,” Flatt said when asked at the Milken Institute Global Conference on 4 May whether the ongoing conflict in the region was changing the way he thought about the Gulf.

    “When you find great businesses, countries, great people, and the market offers you an opportunity to invest when others are not, it is always the best opportunity in the world, so we are doing more. We have been there for 25 years; we are continuing to do all of the investments we have there, and we are going to do more,” he added.

    Flatt suggested the current period of geopolitical stress could accelerate long-term economic strengthening across the Gulf, arguing that governments and businesses would respond by investing in self-sufficiency and strategic infrastructure.

    Since the conflict began on 28 February, Flatt has travelled to the region to meet senior UAE officials. In Abu Dhabi on 9 April, he met Sheikh Khaled Bin Mohamed Bin Zayed Al-Nahyan, Crown Prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council, to discuss cooperation in investment and asset management between UAE-based institutions and Brookfield.

    Two days later, in Dubai, Flatt met Sheikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Finance Minister and chairman of Dubai International Financial Centre, to explore opportunities to expand cooperation.

    Regional deals

    Brookfield has also been active elsewhere in the region. In May, the firm formed a joint venture with Kuwait-based Alshaya Group to develop a 480,000-square-foot mixed-use project in the Dubai Hills area of Dubai, a master-planned community developed by Emaar. The project will include Grade A office space, build-to-rent residential units and retail components, with Brookfield Properties acting as development and real estate manager.

    In late 2025, Brookfield and Qai, Qatar’s artificial intelligence (AI) company and a subsidiary of Qatar Investment Authority, announced a strategic partnership to establish a $20bn joint venture focused on AI infrastructure in Qatar and select international markets. The venture is slated to be backed through Brookfield’s Artificial Intelligence Infrastructure Fund, part of a broader programme targeting up to $100bn in global investment.

    Brookfield has been directly investing in the region since 2015 and has built a portfolio of more than $16bn of managed assets across private equity, real estate and infrastructure.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18126652/main.png
    Colin Foreman
  • SSH wins Muscat cultural complex

    5 August 2026

    Kuwait-based engineering and architecture consultancy SSH has been appointed as the construction supervision consultant for the Sayyid Tarik Bin Taimur Cultural Complex in Oman.

    The firm will provide construction supervision services across the project, overseeing construction activities, monitoring quality, coordinating specialist subconsultants and working with stakeholders throughout delivery.

    SSH was appointed by UK-based Mace, the project management consultant, on behalf of Oman’s Ministry of Culture, Sports & Youth.

    The complex is located in Al-Seeb, Muscat, on a 400,000-square-metre (sq m) site. It is centred on an urban plaza and brings together a range of cultural and institutional facilities.

    These include a 23,000 sq m national library, a 15,500 sq m national archives, four facilities buildings with a combined area of 14,000 sq m and a 5,000 sq m energy and data centre.

    At the heart of the development is the national theatre, comprising a 1,000-seat auditorium and a 250-seat auditorium. The facilities are set within landscaped gardens and water features, alongside a signature canopy structure.

    In October 2023, the Ministry of Culture, Sports & Youth awarded a design-and-build construction contract for the complex to a joint venture of local firm Saif Salim Issa Al-Harrasi and Turkiye’s Sembol Construction, MEED reported.

    In January 2026, UAE-based steel structure manufacturer Emirates Building Systems, a wholly owned subsidiary of Dubai Investments, won a contract to deliver the project’s complete structural steel package.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18124477/main.jpg
    Colin Foreman
  • PIF completes $55bn EA buyout

    5 August 2026

    A consortium led by Saudi Arabia’s Public Investment Fund (PIF) has completed the acquisition of US video games publisher Electronic Arts (EA), taking the company private in a deal valued at $55bn.

    The transaction closed on 4 August, resulting in EA’s delisting from the Nasdaq stock exchange 36 years after its listing. Shareholders will receive $210 in cash for each share, a premium of about 25% on the closing price before the deal was announced in September 2025.

    PIF holds about 94% of the company, while US technology investor Silver Lake holds 5.5% and Affinity Partners, the firm founded by Jared Kushner, holds 1.1%.

    The deal is described as the largest leveraged buyout in history, a structure in which a large share of the purchase is funded by debt that is transferred to the acquired company. The acquisition is backed by about $36bn in equity, with a further $20bn in debt added to EA’s balance sheet.

    EA publishes some of the games industry’s biggest franchises, including EA Sports FC, formerly Fifa, alongside Madden NFL, Apex Legends, Battlefield and The Sims. The company generated revenue of $7.5bn last year, while the October release of Battlefield 6 sold more than 7 million copies in its first three days.

    The acquisition is the second-largest in gaming history, after Microsoft’s $69bn purchase of Activision Blizzard. It ranks among PIF’s largest investments to date under its strategy of building positions in gaming, esports and digital entertainment as part of Saudi Arabia’s Vision 2030 economic diversification programme. The fund already holds stakes in games companies including Take-Two Interactive and owns Japanese developer SNK.

    The consortium’s control of EA strengthens its links to the global football ecosystem through the EA Sports FC franchise, adding to PIF’s investments in the sport, which include English Premier League club Newcastle United and four clubs in the Saudi Pro League. Saudi Arabia has also hosted esports events, including the 2025 Esports World Cup.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18122763/main.gif
    Colin Foreman