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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The meeting was attended by the Japanese Embassy’s executive officer as well as representatives from the Japan International Cooperation Agency (Jica) and Japan-based JGC, which is the main contractor on the project.
According to the ministry, discussions focused on direct implementation steps and coordination between Iraqi authorities and the Japanese partners to bring the unit online using Japanese refining technologies.
Iraq’s South Refineries Company (SRC) sent JGC notice of the main contract award for the Basra refinery upgrade project’s FCC package in August 2020.
JGC was awarded the contract in consortium with South Korea’s Hyundai E&C.
The official contract signing ceremony was held in Baghdad on 1 October 2020.
The contract awarded to JGC, which uses the engineering, procurement, construction and commissioning model, was worth $3.78bn.
Project delays
The project has faced issues related to the ongoing regional conflict, which started when the US and Israel attacked Iran on 28 February.
JGC evacuated its personnel from the site in the southern oil hub of Basra following the start of the regional war, stopping work on the project, which was in its final stages of construction.
In August, JGC signed an agreement to restart work.
The project will produce around 5 million litres a day of gasoline and 7 million litres a day of diesel.
The FCC package is part of a broader project to upgrade the Basra refinery.
Oil Ministry officials said in late 2025 that the Basra refinery upgrade project aims to slash Iraq’s fuel import bill and convert heavy refining residues into high-value petroleum products.
The project site is located about 12 kilometres east of Iraq’s southern city of Basra.
The wider upgrade project is installing new facilities on land adjacent to the existing Basra refinery, including a vacuum distillation unit and a diesel desulphurisation unit.
In April 2021, France’s Axens won a contract to provide four process technologies to SRC for the Basra refinery upgrade project.
The technologies that SRC selected are:
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READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20366574/main.png -
Drilling resumes at Iraq’s Akkas field8 October 2026

Drilling has resumed as part of the project to further develop Iraq’s Akkas gas field, according to industry sources.
In March, MEED reported that development of the field had been disrupted by security issues related to the US and Israel’s war with Iran.
Activity at the project site had been significantly reduced due to security concerns, which led to the evacuation of most non-Iraqi workers.
Now, the project is progressing and drilling at the field is ongoing, sources said.
One source said: “Many of the major issues that stopped drilling at the site have been dealt with in various ways, and the development of the field is proceeding.”
Iraq held a ceremony in January to mark the start of drilling operations under the current phase of development. In July of the previous year, the Iraqi Oil Ministry announced a contract with US-based oilfield services provider SLB to develop the field. Under the agreement, SLB is drilling wells to raise initial output to 100 million cubic feet a day (cf/d), with a long-term production target of 400 million cf/d.
The contract with SLB replaced a previous deal with Ukraine-based Ukrzemresurs, which has been terminated.
It also covers the construction of surface infrastructure and pipelines to connect Akkas to central processing units.
The gas produced at Akkas will fuel the Anbar combined-cycle power plant, which the Electricity Ministry is building.
Akkas gas field development
Located in western Anbar province, Akkas holds an estimated 5.6 trillion cubic feet of proven natural gas reserves. The field was discovered in 1992 and entered initial production in 1993, but efforts to develop it commercially have faced repeated delays.
Development rights were originally awarded to a consortium of South Korea’s Kogas and Kazakhstan’s KazMunaiGas (KMG) during Iraq’s third licensing round in 2010. After KMG withdrew, Kogas took over as sole operator under revised contractual terms before work was subsequently halted.
In April 2024, the Oil Ministry signed an agreement with Ukraine’s Ukrzemresurs targeting 100 million cf/d within two years and 400 million cf/d within four years. However, the deal faced strong domestic political resistance.
Iraq’s parliamentary Oil and Gas Committee opposed the award, with committee member Ali Al-Mashkour telling Shafaq News Agency: “This contract involves a great waste of Iraq’s wealth, and there will be a waste of Iraq’s oil, and this confirms that Iraq is once again failing to choose reputable companies to work with in the most important economic field in the country.”
He added: “We will work to uncover and expose the suspicions in this contract during the next stage, especially since this contract was made by some representatives for specific interests, which we will reveal soon with evidence.”
The deal was subsequently terminated, paving the way for the current contract with SLB.
The development of Akkas is central to Baghdad’s broader ambition to transition from a net gas importer into an exporter. Iraq remains heavily dependent on gas imports from Iran to meet domestic electricity demand. Both the US and Saudi Arabia have backed Iraq’s efforts to develop non-associated gas fields to reduce its economic and energy dependence on Tehran.
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Neom extends bid deadline for Oxagon wastewater plant8 October 2026

Neom has extended the bid submission deadline for a contract to build a wastewater treatment plant for Oxagon, its industrial cluster.
According to a source, the new deadline is 25 October. The original deadline was 2 October.
Enowa, Neom’s energy and water utility, is tendering the contract.
The industrial wastewater treatment package will have an initial capacity of 35,000 cubic metres a day (cm/d), supplied in modular trains of 5,000 cm/d each. A separate sanitary wastewater treatment package will have a capacity of 1,000 cm/d.
The contract is structured as a design-build-operate project and covers the supply, installation and commissioning of industrial and sanitary wastewater treatment packages, as well as three years of operation and maintenance.
According to sources, local contractor Alfanar, Beijing-based PowerChina and France-based Veolia are among the companies preparing bids.
The project follows an earlier tender for the Oxagon Village Water Recycling Plant, which was cancelled despite contractors submitting bids in 2024.
MEED reported at the time that PowerChina, Alfanar and Cairo-headquartered Orascom had submitted bids for that project.
The earlier scheme included truck-receiving facilities, pretreatment, biological treatment using food chain reactor technology, tertiary treatment, sludge handling and recycled-water storage.
The latest procurement appears to take a reworked approach to wastewater treatment at Oxagon Industrial Quarter. It replaces the previous engineering, procurement and construction scheme with an interim modular and demountable facility.
The plant is designed to provide “interim wastewater treatment” capacity for Oxagon Industrial Quarter as industrial development progresses.
As MEED understands, this includes treatment systems that can be installed and subsequently removed or relocated as requirements at Oxagon evolve. The plant can be expanded to a maximum capacity of 45,000 cm/d.
The tender documents also state that Neom may consider export credit agency (ECA) financing for the project. The strength of bidders’ ECA financing proposals will form part of the commercial evaluation.
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Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
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Syria seeks interest for $1.16bn Euphrates dam7 October 2026
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Syria’s Ministry of Energy has invited expressions of interest (EoIs) for the development of the Halabiyeh-Zalabiyeh dam project on the Euphrates River.
The project has an indicative total cost of $1.16bn, according to the ministry’s EoI document. This includes $433.7m for the dam and hydropower plant and $729.6m for the pumped-storage power plant (PSP).
The scheme includes an 81MW hydroelectric power plant and a pumped-storage facility with a capacity of up to 1,200MW. The project will also include the construction of the dam and associated water-storage infrastructure.
The ministry seeks interest from qualified local and international companies, investors and other entities. Interested parties can participate in studies, design, financing, construction, and operation and maintenance of the project.
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The EoI covers several stages, including pre-feasibility and feasibility studies, financing and bankability studies, detailed and executive design, EPC execution, and operation and maintenance.
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READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
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Arada launches UAE construction arm with Roberts7 October 2026
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UAE developer Arada has integrated Australian contractor Roberts into the UAE market as part of its wider business strategy.
Arada acquired Roberts in 2025 after entering the Australian market. The tier-one contractor delivers projects in the healthcare, education, commercial, residential, hospitality, industrial, life sciences and defence sectors.
At the time of the acquisition, Arada said it planned to invest about $20m in Roberts. The investment is intended to give the developer greater control over the delivery of its Australian projects and support Roberts’ expansion into markets including the UAE.
Arada has said it could invest up to $100m in Roberts’ expansion into new sectors and markets. The company is targeting $1bn in annual revenue from Roberts by 2028.
Roberts has established a UAE office, with a head office team already in place. Arada said the contractor’s capabilities will support the delivery of its high-rise residential and social infrastructure projects.
The contractor’s first UAE project will be phase two of Arada Central Business District, a commercial development within Aljada in Sharjah. Arada is developing the AED35bn ($9.5bn) mixed-use project.
Roberts is also providing preconstruction services for several Arada projects in Dubai and Sharjah, ahead of starting site work.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20334926/main.jpg