meed-logo

line1 line2 line3
SIGN IN / REGISTER

Transport plans underpin Iraq’s reconstruction

25 May 2023

MEED's June 2023 special report on Iraq also includes:

> GOVERNMENT: Sudani makes fitful progress as Iraq's premier
> ECONOMY: Iraq hits the spend button​​​​​​​
> POWER: Iraq power projects make headway
> UPSTREAM DEVELOPERS: No place like Iraq for international oil firms
> OIL & GAS: Iraq's energy sector steadily expands
> TOTALENERGIES: Total to activate $27bn Iraq contract this year
> TRANSPORT: Baghdad approves funds for metro and airport projects

 

Iraq’s construction and transport sectors look to be turbocharged by its bumper 2023 budget, which envisages a series of major transport investments, alongside social infrastructure and housing plans.

With its new government in place since last year’s election and fiscally cushioned by higher oil prices, Baghdad has returned its attention to rebuilding and modernising the country’s ailing transport and social infrastructure in 2023.

Between 2016 and 2020, there were reportedly 971 reconstruction projects in the country, 718 of them completed. In 2021, the Fund for the Reconstruction of Areas Affected by Terrorist Operations completed 97 projects at a cost of ID86.7bn ($59.5m).

In 2018, Baghdad also released a forward-looking list of 157 projects in need of investment, with a $88bn price tag. These projects included the upgrade and repair of roads, bridges and airports, new city projects, and the rebuilding of hospitals, telecommunications and oil-related industries.

Despite rising revenues, Iraq’s contract awards in construction and transport decreased from $4.1bn in 2021 to only $0.6bn in 2022, according to MEED Projects.

The much larger awards value for 2021 was bolstered by several major contracts including  the Ministry of Education’s selection of China’s Sinotec and Power China for the construction of 1,000 schools in different parts of the country. The contracts, worth $2bn, were part of the “oil for reconstruction” and investment deal signed between Iraq and China in 2019. Under the agreement, Chinese firms work in Iraq in exchange for 100,000 barrels of oil a day.

In 2021, the Basra Provincial Council also awarded a $312m contract to the local Al-Narjess Trading & General Contracting for the phase 2 rehabilitation of roads, drainages and sewerage networks in Zubair City.

Big transport ambitions

Although beset by delays since its 2012 commencement date, the ID7.6tn ($5.8bn) Al-Faw Grand Port masterplan is one of the most significant projects under way in Iraq. Located on the northern tip of the Gulf, it is tentatively set to be completed by 2025.

With this flagship port heading towards the finish line, Baghdad is now making moves to expand upon its logistics potential and, specifically, Iraq’s ability to connect freight from the Gulf directly to Europe.

In April, the design was completed for the high-speed ‘Dry Canal’ rail link to Turkiye planned by the Ministry of Transport (MoT).

The scheme will connect the Al-Faw Grand Port in the south with northern Iraq and Turkiye through 1,200 kilometres of new electric railway track. It is one of the region’s largest rail schemes, and aims to provide a cost-effective overland route to Europe to rival the Suez Canal.

Last year, Italian engineering services company Progetti Europa & Global was appointed to carry out feasibility studies for the project. Current plans envisage high-speed trains operating alongside conventional passenger and freight trains. The MoT plans to tender contracts for the multibillion-dollar project by the end of 2023.

In addition to the rail line, Iraq’s Ministry of Transportation is considering a new highway linking the Al-Faw Port to Turkiye.

More recently, Iraq has approved funding for the first elevated metro in its capital and the expansion of Baghdad International airport, as part of the government’s 2023 budget. 

The funds will allow work to proceed on the much-delayed Baghdad elevated train project this year, while the airport expansion could start in the second half of 2023. Plans for the metro date back to the late 1970s, and if it had been built then, it would have been the first urban railway in the Arab world. The metro was also included in the 2022 budget, with the Ministry of Finance allocating $2bn to it.

Baghdad airport currently operates three terminals, each designed for 2.5 million passengers a year. The expansion will increase the capacity to 15 million passengers.

Other airport projects are also under way. In March 2022, the foundation stone was laid for Anbar International airport, and in April of that year, then prime minister Mustafa al-Kadhimi gave the green light for the rehabilitation of Mosul airport. 

In 2021, China State Construction Engineering Corporation finalised a $367m deal for the revived Nasiriyah International airport in Dhi Qar, with works commencing in February 2023.

In the past few months, Iraq has also announced over 150 public service and development projects in the capital Baghdad, including 70 road developments, pavements, bridges and overpasses, estimated to cost nearly $17bn over the first two phases.

Housing capacity

Meanwhile, Iraq’s housing shortfall of three million homes is rapidly becoming a major housing crisis for the government. The situation is being exacerbated by Iraq’s rising population. According to UN projections, the country’s population is projected to swell to 50 million by 2030, from around 44 million today.

Baghdad is advancing various large residential schemes to address this, the largest expected to be awarded this year being the mixed-use New Babylon City project. This is being developed by the Ministry of Housing at an estimated cost of $1.03bn. State entities are also taking matters into their own hands. Basra Oil Company, for example, is developing a $156m residential complex for its employees.

Yet such projects alone are unlikely to meet the soaring demand for affordable housing, which looks set to remain a key priority for the government for the foreseeable future.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10884758/main.gif
Eva Levesque

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai advances Auto Market construction

    6 May 2026

     

    The construction works on the Dubai Auto Market, which is set to become one of the world’s largest and most advanced automotive trading hubs, are progressing.

    Enabling works are under way, being carried out by local contractor Rad International Road Construction.

    US-based engineering firm Aecom is serving as the project consultant.

    In November last year, Dubai Municipality signed a partnership agreement with DP World’s Economic Zones division to establish and manage the market, as MEED reported. Under the agreement, DP World will provide integrated logistics and zone management services, including e-commerce and trade finance solutions.

    The Dubai Auto Market will span a 22 million-square-foot complex, to be developed by DP World. It is planned to include more than 1,500 showrooms, clustered workshop zones, warehouses and multi-storey parking facilities, alongside a convention centre, hotel, auction house, retail outlets, and food and beverage areas.

    The facility is designed to handle more than 800,000 vehicles a year, including new and used electric, hybrid and conventional models.

    The UAE’s construction industry is projected to expand by 5% in real terms in 2026, supported by rising foreign direct investment (FDI), growth in the construction sector and increased oil sector activity.

    According to the UAE’s Federal Competitiveness and Statistics Centre, construction value added rose by 8.8% year on year (YoY) in Q2 2025, following YoY growth of 7% in Q1 2025 and 10.8% in Q4 2024.

    The commercial construction sector is forecast to grow by 6.4% in 2026 and to record average annual growth of 4.9% from 2027 to 2030, supported by investment in tourism and hotel facilities.

    The industrial construction sector is expected to expand by 4.1% in real terms in 2026, then to average 4.4% annually from 2027 to 2030, supported by improved investment in manufacturing facilities.

    The infrastructure construction sector is projected to grow by 5.8% in real terms in 2026, before averaging 4.3% annual growth from 2027 to 2030, supported by the government’s focus on improving regional connectivity through road and rail development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16700367/main.png
    Yasir Iqbal
  • Saudi Arabia extends bid deadline for solar projects

    6 May 2026

     

    Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has extended the deadline for developers bidding for four solar projects under the seventh round of the National Renewable Energy Programme (NREP).

    Round seven of the NREP comprises solar photovoltaic (PV) and wind independent power producer (IPP) projects with a combined capacity of 5,300MW. The renewables programme is being led and supervised by the Ministry of Energy.

    The four solar PV projects comprise:

    • 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf province)
    • 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail province)
    • 600MW Tathleeth solar PV IPP (Tathleeth, Aseer province)
    • 500MW South Al-Ula solar PV IPP (Al-Ula, Medina province)

    The projects were tendered in January, with an initial bid submission deadline of 30 April.

    The new deadline is 30 June.

    The solar projects are the latest in a string of large-scale power and water developments across the region to have bidding extended in recent weeks.

    In the UAE, the bid deadline for the seventh phase of Dubai Electricity & Water Authority’s Mohammed Bin Rashid Al-Maktoum Solar Park was recently pushed back to 1 July. 

    Bids for the 1,300MW Bilgah and 900MW Shagra wind IPPs are currently still due by 14 May, according to a source.

    In January, MEED reported that 16 developers qualified to bid as both managing and technical members for the four solar PV projects under the seventh round of the NREP.

    These include:

    • Abu Dhabi Future Energy Company (Masdar) 
    • Alfanar Company (Saudi Arabia)
    • Al-Gihaz Holding Company (Saudi Arabia)
    • EDF Power Solutions (France)
    • Kahrabel (Engie) (UAE / France)
    • Sembcorp Utilities (Singapore)
    • Jinko Power (HK) (China)
    • TotalEnergies Renewables (France)
    • Al-Jomaih Energy & Water (Saudi Arabia)
    • Korea Electric Power Corporation (Kepco) (South Korea)
    • Nesma Renewable Energy (Saudi Arabia)
    • Korea Western Power (South Korea)
    • Marubeni Corporation (Japan)
    • SPIC Shanghai Electric Power (China)
    • WahajPeak Holdings (Saudi Arabia)
    • FAS Energy for Trading Company (Saudi Arabia)

    A further six companies qualified to bid as a managing member only for the solar PV projects. These include:

    • Saudi Electricity Company (Saudi Arabia)
    • Grupo Empresarial Enhol (Spain)
    • Power Construction Corporation of China (Power China) (China)
    • GD Power Development (China)
    • Gulf Development Public Company (Thailand)
    • Reliance NU Energies Private (India)

    The renewable energy programme aims to supply 50% of the kingdom’s electricity from renewable energy by 2030.

    Earlier rounds under the NREP have already put in place large capacities. Last October, SPPC awarded contracts to develop and operate five renewable energy projects under round six of the NREP.

    These comprise four solar PV IPP projects and one wind IPP project with a total combined capacity of 4,500MW.

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

    Global 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:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16700361/main.jpg
    Mark Dowdall
  • EtihadWE awards EPC contract for Fujairah IWP

    6 May 2026

    Etihad Water & Electricity (EtihadWE) has awarded an engineering, procurement and construction (EPC) contract for the Fujairah 1 independent water producer (IWP) project.

    The agreement was signed with a consortium of UAE-based NMDC Infra and Spain’s Lantania Aguas. 

    The EPC works will be delivered by Lantania NMDC Water. The company was formed after NMDC Infra acquired a 51% stake in Lantania Aguas in January 2026.

    Fujairah 1 is the second desalination project procured by EtihadWE under a public-private partnership (PPP) model. It follows the 150-million-imperial-gallon-a-day (MIGD) Naqa’a IWP in Umm Al-Quwain.

    The project involves developing a 60 MIGD seawater reverse osmosis (SWRO) desalination plant. The total investment is valued at AED1.046bn ($285m), the utility said in a statement.

    The plant will be located at the Port of Fujairah on the Gulf of Oman and will include storage capacity equivalent to 18 hours of production.

    Construction is expected to take about 30 months. Initial operations will begin at partial capacity, followed by ramp-up to full output.

    Details of the water offtake agreement for Fujairah 1 have not been disclosed. EtihadWE previously signed a 35-year water-purchase agreement for the Naqa’a project.

    Mohammed Al-Shehhi, CEO of the development and investment arm of EtihadWE, said the company is “currently developing multiple SWRO projects to be announced in due course”.

    In January, Dubai International Financial Centre-based Deloitte Professional Services submitted the lowest bid for a contract to provide consultancy services to Dubai Electricity & Water Authority (Dewa) and EtihadWE.

    The contract scope includes conducting a pre-feasibility study for an SWRO IWP and water transmission pipelines project.

    The study will assess potential project sites, optimal plant capacity, technical and commercial parameters and the viability of associated water transmission infrastructure.

    According to a source, the study’s consultant has not yet been appointed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16700218/main.jpg
    Mark Dowdall
  • June deadline for Riyadh section of Saudi Landbridge

    6 May 2026

     

    Saudi Arabia Railways (SAR) has set a 2 June bid submission deadline for a design-and-build contract to construct the Riyadh Rail Link, a new railway line running north to south across Riyadh.

    The tender was issued on 29 January. The previous bid submission deadline was 29 April.

    The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South railway to the Eastern railway network.

    The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.

    The project is expected to form a key component of the Saudi Landbridge railway.

    In January, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium to construct it, as MEED reported.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements and that the project would now be delivered in several phases under a different procurement model.

    The project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it through a public-private partnership.

    Al-Malik said that the project cost is about SR100bn ($26.6bn).

    It comprises more than 1,500km of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

    Other key sections include upgrading the existing Riyadh-Dammam line, a bypass around the capital called the Riyadh Link, and a link between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later. Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16698846/main.jpg
    Yasir Iqbal
  • Bid deadline extended for Kuwait oil pipeline

    6 May 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has extended the bid deadline for a project to develop a crude oil pipeline in the country.

    The invitation to bid was originally tendered in October last year, with a bid deadline of 18 January 2026.

    Since then, the deadline has been extended several times, and the latest announced bid deadline is 31 May 2026.

    The new pipeline will have a diameter of 20 inches and will carry the crude oil blend known as Ratawi-Burgen.

    The project scope will involve replacing a 30-kilometre section of the pipeline known as CR-058.

    The pipeline originates from the Wafra field and feeds crude oil into the larger 36-inch CR-088 crude oil pipeline.

    The pipelines on this network have had documented corrosion issues in the past, which were linked to slow flow rates within the pipelines.

    The Wafra field is located in the Partitioned Zone between Kuwait and Saudi Arabia.

    Both countries equally share the natural resources contained in this region.

    Kuwait is currently pushing to increase its oil production capacity.

    In 2024, Kuwait Petroleum Corporation’s chief executive, Sheikh Nawaf Al-Sabah, reiterated that his company plans to increase Kuwait’s oil production capacity to 4 million barrels a day (b/d) by 2035.                             

    In September last year, Kuwaiti Oil Minister Tareq Al‑Roumi announced that the country’s oil production capacity had reached 3.2 million b/d, its highest level in more than 10 years.

    Kuwait had a similar capacity in the late 2000s, peaking at a recorded 3.3 million b/d in 2010.

    Since the US and Israel’s attack on Iran on 28 February, Kuwait’s oil and gas sector has been rocked by the disruption to shipping through the Strait of Hormuz, through which all of the country’s crude is normally exported.

    Kuwait recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.

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

    Global 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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16691664/main5905.jpg
    Wil Crisp