Tunnelling projects take the front seat
22 August 2023
The economic and energy diversification programmes of countries in the Middle East and North Africa have provided an impetus for physical infrastructure projects such as tunnels, which have become emblematic of the region’s transition towards a more interconnected and sustainable future.
In some cases, tunnelling projects in the region also extend beyond their utilitarian functions – in addition to decongesting cities and improving water networks, they embody diplomatic overtones and regional cooperation.
Some of the biggest tunnelling projects in the Middle East have historically been executed in the GCC, especially in Saudi Arabia and the UAE. These two countries also promise the most robust future project pipelines.
Neom tunnels
In line with its strategy of redefining sustainable urban living, the integration of tunnels is key to shaping the landscape at Neom in Saudi Arabia.
Tunnels are core components of the integrated transportation network at Neom's The Line, Oxagon and Trojena developments.
According to regional projects tracker MEED Projects, about $6.9bn-worth of schemes with tunnel components are at the pre-execution and execution phases at Neom.
Tunnel projects worth over $4.6bn are in the execution phase. These include the backbone infrastructure tunnels for The Line project, which involve constructing two railway tunnels in parallel using the drill-and-blast method, one for passengers and the other for goods.
In June 2022, Neom awarded $2.7bn-worth of main contracts to the joint venture of Shibh al-Jazira Contracting, China State Construction Engineering and FCC Construction for lots two and three of this scheme.
A separate contract worth about $1.8bn was awarded by Neom for lots four and five to a team of Archirodon, Samsung Engineering and Hyundai Engineering.
The pipeline of projects with tunnel components at Neom is worth about $2.3bn. Some of the major upcoming projects include the time-travel tunnel and funicular railway at Trojena and a package of works for the Spine railway network at The Line. The main contract bids for both packages are in the evaluation phase.
Other upcoming projects include the Spine's desert coastal west cut-and-cover tunnels for The Line, which are under design, and packages one and two of the delta junction tunnel at Oxagon. Neom expects to receive the bids for both packages by 27 August.
Dubai Deep Tunnels Portfolio
In Dubai, meanwhile, the Deep Tunnels Portfolio includes a series of interconnected deep sewage tunnels and associated facilities. The project involves the construction of two sets of deep tunnels terminating at two pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali.
A conventional sewage and drainage collection system and STPs will be built in Hatta.
First announced in 2015, the Dubai Deep Tunnels Portfolio project has faced delays over the years. The tender for consultancy services was first issued in 2015 and was awarded the following year to US-headquartered Parsons.
In June 2017, Dubai Municipality appointed Dutch consulting firm KPMG to assist with preparing the project under a public-private partnership (PPP) model instead of the conventional engineering, procurement and construction model.
There was no significant progress on the project after Dubai Municipality conducted a geotechnical investigation in late 2017.
This changed in June of this year, however, when Dubai’s Executive Council approved the project and said it would require an investment of about AED80bn ($22bn).
It added that the project has been designed to serve the needs of the Dubai population for the next 100 years, in alignment with the Dubai Economic Agenda D33 and the Dubai Urban Plan 2040.
In August, Dubai Municipality invited firms to express interest in bidding for the contract to provide project management consultancy services for the scheme. It expects to receive prequalification applications by 25 August.
Jeddah stormwater system
Jeddah Municipality is also taking steps to improve the city’s water infrastructure, and is investing in stormwater drainage and management systems.
The latest project under this programme is the King Abdullah Road-Falasteen Road (Kafa) tunnel, which is being developed in two phases. Phase one involves the construction of two main storage tunnels, one 5.3 kilometres (km) long and the other 3.4km long.
The scope of phase two includes constructing a terminal pumping station, a marine outfall and all necessary online and offline shafts.
In March, Jeddah Municipality invited contractors to prequalify for the contract to build the tunnels. It is understood the client received responses to the request for qualifications in June.
US-based Aecom is the consultant for the project.
Morocco's undersea rail link
In June this year, the Spanish government revived the Morocco-to-Spain undersea rail link project after allocating about $2.5m for a renewed design study.
The project was launched in 2003 but was put on hold after the 2008 financial crisis. It has undergone several rounds of feasibility studies but remains in the study stage after nearly two decades of funding-linked delays.
The plans involve a double-rail track and additional service line stretching 38.5km between Tarifa in Spain and Tangier in Morocco. A 28km section will run under the Mediterranean Sea at a maximum depth of 475 metres.
The maximum depth of the tunnels will be 300 metres. Each single-track tunnel will have an inner diameter of 7.9 metres, while the service gallery will be 6 metres in diameter.
The two countries are developing the project jointly through Morocco’s National Society for Strait of Gibraltar Studies and the Sociedad Espanola de Estudios para the Comunicacion Fija a Traves del Estrecho de Gibraltar.
In 2006, Swiss engineering company Lombardi Engineering was selected to design the tunnel and the preliminary studies for the project were completed two years later.
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Saudi Landbridge rail scheme to be delivered by 203421 January 2026
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In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said that the consortium failed to meet local content requirements, and the project will now be delivered in several phases through a different procurement model.
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Al-Malik said that the project cost is about SR100bn ($26.6bn).
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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.
In April last year, MEED exclusively reported that SAR had issued a tender for the lead design consultancy services contract on the Saudi Landbridge railway network.
MEED understands that the scope covered the concept design and options for the preliminary and issued-for-construction design stages on the network.
MEED reported that the launch of a design tender directly by SAR suggested that Riyadh was looking at other options to develop it alongside the Chinese proposal.
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If it proceeds, the Saudi Landbridge will be one of the largest railway projects ever undertaken in the Middle East and one of the biggest globally. Based on typical design timeframes, tenders for construction are likely to be ready by mid-2026, although the question of how it will be financed will need to be answered before it can proceed to the next step.
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Firms submit bids for Dorra gas scheme PMC21 January 2026

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Engineering firms have submitted bids to Al-Khafji Joint Operations (KJO) for a tender covering project management consultancy (PMC) for the multibillion-dollar Dorra gas field facilities development project.
MEED reported last March that KJO was pushing forwards with a project to produce gas from the Dorra offshore field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.
KJO has divided the engineering, procurement and construction (EPC) scope of work on the project to produce gas from the Dorra field into four EPC packages – three offshore and one onshore.
The broad scope of services under the tender involves providing PMC for EPC works for the Dorra gas facilities development project.
Firms submitted bids for the PMC tender by the deadline of 19 January, sources told MEED.
KJO issued the tender for PMC services for EPC works on the Dorra gas facilities development project on 29 September. Engineering firms were initially given until 24 November to submit bids for the tender, with that deadline then extended until 15 December and then finally until 19 January, according to sources.
Sources said that the following firms, among others, are understood to be bidding for the PMC tender:
- Fluor (US)
- KBR (US)
- Kent (Saudi Arabia/UAE)
- Tecnicas Reunidas (Spain)
- Wood (UK)
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KJO hosted a job explanation meeting with the bidders for the tender on 15 October, the sources said.
KJO offshore and onshore facilities
KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company (AGOC) and KPC subsidiary Kuwait Gulf Oil Company (KGOC), is moving forward with its Dorra gas field facilities project. KJO has divided the project’s scope of work into four EPC packages – three offshore and one onshore.
Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has won package 1 of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract awarded by KJO to L&TEH is estimated to be valued between $140m and $150m, MEED reported in October.
Contractors are presently preparing to submit bids for the remaining three packages — offshore packages 2A and 2B, and onshore package 3 by 26 January, sources told MEED. KJO has extended the bid submission deadlines for these packages multiple times.
The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables. Package 3 includes the EPC of onshore gas processing facilities.
Saudi Arabia and Kuwait are pressing ahead with their ambitious plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field, located in the waters of their shared Neutral Zone. Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.
Saudi Arabia and Kuwait have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, both countries have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.
The Dorra facilities project is one of three major multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field that have been advancing over the past few months.
AGOC onshore Khafji gas plant
Meanwhile, AGOC has extended the bid submission deadline for seven EPC packages as part of a project to construct the Khafji gas plant, which will process gas from the Dorra field onshore Saudi Arabia, until 22 April.
MEED previously reported that AGOC had issued main tenders for the seven EPC packages earlier in 2025. Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for submission of commercial bids, which was then extended by AGOC until 22 December.
The seven EPC packages cover a wide range of works, including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems, and main operational and administrative buildings.
France-based Technip Energies has carried out a concept study and front-end engineering and design (feed) work on the entire Dorra gas field development programme.
Progress has been hampered by a geopolitical dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.
In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.
Since that show of strength and unity, projects targeting production and processing of gas from the Dorra field have gained momentum.
KGOC onshore processing facilities
KGOC has initiated early engagement with contractors for the main EPC tendering process for a planned Dorra onshore gas processing facility, which is to be located in Kuwait.
KGOC is in the feed stage of the project, which is estimated to be valued at up to $3.3bn, and is now expected to issue the main EPC tender in the second quarter of this year, MEED recently reported.
The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.
The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).
A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility, and discussions regarding survey work are ongoing. The site may require shoring, backfilling and dewatering.
The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company (KOC), for possible injection into its oil fields.
Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.
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Libya announces $2.7bn Misurata Port expansion21 January 2026
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Libya has announced the $2.7bn expansion of Misurata Port, led by Terminal Investment Limited.
The consortium comprises Switzerland's Mediterranean Shipping Company and Qatari firm Maha Capital Partners.
The project is being implemented under a public-private partnership model, and is the first of its kind in the country's non-oil sector
The expansion aims to increase the port's container-handling capacity to 4 million containers a year.
Misurata Free Zone (MFZ) is Libya’s largest free zone, spanning an area of 2,576 hectares.
According to an MFZ statement, the expansion includes:
- Expanding container-handling capacity to accommodate larger vessels and more complex logistics chains;
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The Libyan Prime Minister’s Office said the expanded port is expected to generate around $600m in annual operating revenues, create about 8,400 direct jobs and support nearly 60,000 indirect jobs.
The investment scope includes:
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An advanced terminal operating system will also be implemented.
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Ras Al-Khaimah awards sewage PPP contract20 January 2026
A consortium of Abu Dhabi National Energy Company (Taqa), France’s Saur and the local Etihad Water & Electricity (Etihad WE) has signed a contract to develop and operate a wastewater treatment plant in the UAE’s northern emirate of Ras Al-Khaimah.
The Rakwa wastewater infrastructure project is Ras Al-Khaimah’s first public-private partnership (PPP) for a sewage treatment plant.
It is being developed in partnership with Ras Al-Khaimah’s Public Services Department and Investment & Development Office.
The $120m project entails developing a wastewater treatment plant with a capacity of 60,000 cubic metres a day (cm/d), expandable to 150,000 cm/d.
On 9 January, MEED exclusively reported that the consortium was set to be awarded the contract. The consortium is being led by Ajman-based Emirates Utilities Development Company, a subsidiary of Etihad WE.
US/India-based Synergy Consulting is the financial advisory consultant to Taqa and EtihadWE on this project.
MEED previously reported that two bidding consortiums had submitted bids for the contract. The other bidding consortium comprised the UAE’s Metito Utilities and Omani firm Sogex.
The scope of the build, own, operate and transfer scheme will include extensive sewerage and distribution works in addition to the main treatment plant.
Future PPP project
For its part, Etihad WE is preparing to procure another utility PPP project in Ras Al-Khaimah.
The project involves expanding the capacity of an existing seawater reverse osmosis plant in Ghalilah, which became operational in 2015.
The state-owned utility recently appointed Austria’s ILF Consulting Engineers to provide technical advisory services for the project, which is expected to be tendered this year.
If successfully procured, it will be the first independent water project in Ras Al-Khaimah.
READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds
Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:
> AGENDA: Saudi real estate to surge in 2026> BATTERIES: Batteries shape the region's energy future> INTERVIEW: Tabreed finishes the year on a high> CONTRACTORS: Managing risk in the GCC construction market> ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch> AIRSHOW: Top deals signed at Dubai Airshow 2025> MARKET FOCUS: Oman steadies growth with strategic restraintTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15465691/main.jpg -
Dubai tenders Al-Maktoum airport metro link20 January 2026

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Dubai's Roads & Transport Authority (RTA) has invited consultants to bid for the design contract for the Route 2020 extension.
The extended line will start from the Expo 2020 metro station and connect with Al-Maktoum International airport's West Terminal.
The extension to the line will run for about 3 kilometres (km) and will feature two stations.
MEED understands that the invitation to bid was issued earlier in January with a submission deadline of mid-March.
The existing Route 2020 metro link is a 15km-long line branching off the existing Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks, 3.2km of tunnels, and has five elevated stations and two underground stations.
In 2016, the RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain's Acciona, Turkiye's Gulermak and France's Alstom.
Dubai's plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to Al-Maktoum International airport. There are long-term plans for further extensions.
Other metro projects
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.
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.
The other metro lines in the pipeline are the Purple Line and the Pink Line, both of which are in the early stages of development.
Firms are also bidding to update the emirate’s rail masterplan. Also in October 2025, MEED reported that 10 firms had submitted offers to undertake the project.
The rail masterplan study will update and modify the RTA’s rail network, which includes the Dubai Metro and Dubai Tram. These plans will support Dubai’s 2040 urban masterplan, which aims for all residents to be within a 30-minute metro or light-rail trip to their place of work.
The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.
There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services as well as a high-speed rail connection.
In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.
The Blue Line consists of 14 stations, including three interchange stations at Al-Jaddaf, Al-Rashidiya and International City 1, as well as a station in Dubai Creek Harbour. By 2040, daily ridership on the Blue Line is projected to reach 320,000 passengers. It will be the first Dubai Metro line to cross Dubai Creek and will do so on a 1,300-metre viaduct.
READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds
Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:
> AGENDA: Saudi real estate to surge in 2026> BATTERIES: Batteries shape the region's energy future> INTERVIEW: Tabreed finishes the year on a high> CONTRACTORS: Managing risk in the GCC construction market> ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch> AIRSHOW: Top deals signed at Dubai Airshow 2025> MARKET FOCUS: Oman steadies growth with strategic restraintTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15465636/main.jpg