meed-logo

line1 line2 line3
SIGN IN / REGISTER

World’s tallest tower is back on track

24 October 2024

 

The chairman of Saudi Arabia’s Kingdom Holding, Prince Alwaleed Bin Talal Al-Saud, published a two-word message on social media platform X on 2 October. The message, which said, “We’re back,” was accompanied by an animated video of a fly-through rendering of the world’s next tallest building, the 1,000-metre-plus Jeddah Tower. 

The post was made shortly after a pivotal event for the tower. Earlier that day, the company developing the project, Jeddah Economic Company (JEC), in which Kingdom Holding is a shareholder, signed a contract with the local Saudi Binladin Group (SBG) to resume construction work on the scheme. The SR7.2bn ($2bn) contract includes SR1.1bn for works already completed on the tower. 

SBG was the original contractor on the project before construction work stalled in 2018. This left the tower’s superstructure about one-third complete, with 63 floors built out of 157. 

Speaking to MEED after the contract signing, Kingdom Holding’s CEO Talal Ibrahim Almaiman echoed and expanded on Prince Alwaleed’s post. 

“We’re back. People have been asking questions about the project after it froze in February 2018. We had the patience, but also the determination to finish it. We will deliver what we promised to deliver at the highest possible quality, with a contractor with a long history of success when it comes to handling such huge projects,” he says.

Contractor selection

Appointing a firm to build a tower that will be the world’s tallest is more than just a major contract signing. 

“There are plenty of successes. Saudi Arabia will soon have the record for the tallest tower in the world. Kingdom Holding is doing what it does best, completing projects at the highest level. Saudi Binladin is going to get back its glory. And the people of Jeddah will have the tallest tower in the world,” says Almaiman.

The appointment of the original contractor after having started a fresh tender process for the project in late 2023 has taken some in the market by surprise. 

“Rather than talk about the past, I would like to talk about the future,” says Almaiman.

“SBG has gone through some technical and financial difficulties in the past. The latest announcement, when the Ministry of Finance said it would support them with their issues with the banks, gave them huge financial credibility. The government of Saudi Arabia being a partner and shareholder in SBG gives us huge confidence,” he adds.

With financial issues put to one side, SBG was able to put together a winning proposal to complete the tower. “The contractor spent a lot of time with our designers, quantity surveyors and other experts and went through each part of the tower and how they plan to build it by moving from floor to floor, and this method was approved by us,” says Almaiman. 

Programme and price were also key factors. “The other consortium we spoke to was planning to finish in 58 months, whereas Binladin was saying 42 months, which is three and a half years,” Almaiman explains, adding: “For pricing, we got a good deal.”

In addition, there were several practical reasons for selecting the original contractor on the project, according to Almaiman. SBG already has offices established on site and, as a Jeddah-based company with a long history of delivering major projects in Saudi Arabia, it has well-established connections with the local supply chain.

With financial issues put to one side, SBG was able to put together a winning proposal to complete the tower

Future vision

Although the Jeddah Tower project has a history that can be traced back over a decade, its ambitions are very much in tune with those of modern Saudi Arabia. 

“It is in line with the government’s Vision 2030 to create attractions for Saudi Arabia,” says Almaiman.

Vision 2030 reinforces the importance of the three-and-a-half-year programme that SBG offered because it puts the tower comfortably on course to be delivered in mid-2028, well ahead of 2030.

Completing the world’s tallest tower is just the start for the wider Jeddah Economic City development. 

“The tower is part of phase one, which is about 1.1 million square metres,” says Almaiman. 

“We are now in discussions with investors about coming in and developing. We will contribute land. We will not be selling land at phase one for the sake of selling. We will control the development and the building code,” he adds.

Securing the title

Building the world’s tallest tower inevitably prompts conversations and speculation about other rival towers being planned around the world. 

However, Almaiman is confident that Jeddah Tower’s reign as the world’s tallest will be lengthy, as he, perhaps better than anyone else, understands the challenges involved in building record-breaking towers. 

“The reason for calling the tower 1,000-plus-metres is because we will add more height. The final height of the tower will be decided by HRH Prince Alwaleed Bin Talal,” he says. 

“The other developers will probably need around 10 years to catch up, and if we keep the title for that long, I will be happy.” 

https://image.digitalinsightresearch.in/uploads/NewsArticle/12787969/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia approves new procurement law

    17 August 2026

    Saudi Arabia’s Council of Ministers has approved a new Government Tenders and Procurement Law (GTPL), introducing changes to public procurement procedures and government contracting.

    The Ministry of Finance announced the approval on 5 August.

    The new law aims to strengthen governance and transparency, improve procurement planning and implementation, and promote fairness and equal opportunities in government contracting.

    The changes give government entities greater flexibility in procurement while introducing new provisions that could affect contractors and suppliers, including contract variations, outstanding payments and procurement procedures.

    Contract flexibility

    According to a Ministry of Finance summary of the key amendments, one of the main changes allows government entities to increase existing contract items by up to 20% of the contract value. Contractor approval is required for increases exceeding 10%, while the total increase from adding new items or increasing existing items cannot exceed 20% of the contract value.

    The amendments also introduce measures addressing outstanding payments to contractors. A government entity cannot make a new award when it has outstanding amounts owed to contractors for works or procurement and the required procedures have not been taken, after notification from the Ministry of Finance.

    Exceptions apply where non-payment relates to ministry procedures or where the government entity has taken the required action on a claim but does not have sufficient budget allocations.

    Single committee

    Under the new law, the committees responsible for opening and examining bids will be merged into a single committee.

    The maximum value for direct procurement will rise from SR100,000 ($26,700) to SR1m ($267,000) while government entities will be required to explain and document their use of direct procurement.

    Direct procurement will also be permitted in cases involving research, development and innovation and certain contracts with professional practitioners.

    The amendments reduce the minimum standstill period following a procurement award from five working days to three working days. Government entities will also be able to negotiate where the best bid exceeds the estimated cost plus the permitted contingency.

    Localisation

    The new framework includes provisions covering industrial localisation and knowledge transfer. The Ministry of Finance said it will issue rules for contracting for these purposes in cooperation with the Local Content and Government Procurement Authority.

    A new regulation will also cover research, development and innovation, including tendering and contracting provisions for these activities.

    Other changes involve contractors’ exposure to penalties. The maximum delay penalty on contracts, excluding supply contracts, will fall from 20% to 15% of contract value. The maximum penalty for non-performance in continuous-performance contracts will also fall from 20% to 15%.

    The value of purchases exempt from providing a final guarantee will rise from SR100,000 ($26,700) to SR300,000 ($80,000). Additional exemptions will apply to contracts with professional practitioners and emergency or urgent cases.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18805103/main.jpg
    Mark Dowdall
  • GCC reviews first phase of water interconnection study

    17 August 2026

    The GCC General Secretariat has completed the first phase of a study examining the feasibility of developing water interconnection projects between GCC member states.

    A two-day workshop reviewing the study’s findings concluded on 12 August at the headquarters of the GCC Interconnection Authority (GCCIA) in Dammam, Saudi Arabia.

    The GCC General Secretariat organised the workshop in cooperation with GCCIA, with representatives from relevant authorities and experts in water, infrastructure and water security taking part.

    Participants reviewed the first phase findings, including an assessment of existing water supply infrastructure and the actual water needs of GCC member states. They also discussed the technical requirements and data needed to complete the study.

    The study is intended to identify practical options and feasible solutions for developing a regional water interconnection network. This includes establishing an implementation roadmap.

    The initiative aims to improve the GCC states’ ability to respond to emergencies and crises and support continuity of water supplies.

    First meeting

    The workshop followed a virtual meeting on 22 July between the GCC General Secretariat and Saudi Arabia’s water authorities as part of the study.

    That meeting, which also involved consultancy Artelia, reviewed the study’s methodology and implementation stages. These include assessing existing water systems across GCC states, their resilience and emergency readiness, and developing technical options for bilateral water interconnection projects.

    In Saudi Arabia, the study is focused primarily on the Eastern Province and Riyadh. It is assessing water production and desalination facilities, transmission pipelines, strategic reservoirs, pumping stations and existing and planned projects.

    The study is also examining potential bilateral connections between Saudi Arabia and Bahrain, Kuwait and Qatar, as well as the possibility of a connection with the UAE.

    The 22 July meeting also discussed potential connection points and routes, water flow directions and the possibility of designing interconnection pipelines to operate in both directions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18802726/main.jpg
    Mark Dowdall
  • Neom’s next phase is crucial to green hydrogen pipeline

    17 August 2026

    Commentary
    Mark Dowdall
    Power & water editor

    The completion of construction at Neom Green Hydrogen comes at an important point for Saudi Arabia’s wider hydrogen ambitions.

    The project has already shown that a large green hydrogen scheme can secure financing by reaching financial close in 2023 with long-term offtake from Air Products.

    With the facility now moving into commissioning ahead of a targeted commercial operations date next year, Neom could soon give lenders and developers real evidence on the performance, costs and risks of a large-scale green hydrogen project.

    That could be important for projects still moving through development. Acwa’s Yanbu Green Hydrogen Hub, for example, is targeting commercial operations in 2030.

    The project has brought in Germany’s EnBW as a co-developer and minority investor and Japan’s Itochu as a co-developer, investor and offtaker. Acwa is targeting production of 2.5 million tonnes a year of green ammonia from the hub.

    Saudi Arabia is also putting more of the framework around the industry in place. In July, the government granted Acwa exclusive rights to export green hydrogen produced in the kingdom along with its derivatives, including green ammonia, methanol and fuels.

    However, partnerships and policy support alone will not remove the commercial questions facing projects. Yanbu still needs to progress through development and secure the financing needed to move into construction.

    Neom’s financing structure and 30-year offtake may be specific to the project, but its operating performance should give future developers and lenders a clearer reference point for assessing production, reliability and costs.

    While Neom will not make the next projects bankable on its own, if it stays on track and performs as expected, it could give lenders a stronger basis for assessing projects that follow. In the long-run, this could be one of its most important contributions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18800285/main.jpg
    Mark Dowdall
  • Five bid for King Salman Bay construction work

    17 August 2026

     

    Five teams have submitted bids for the contract covering the marine infrastructure works at King Salman Bay on the Red Sea coast, north of Jeddah.

    MEED understands that the bids were submitted on 31 July.

    The bidders include:

    • Deme / Archirodon (Belgium/Netherlands)
    • ⁠Van Oord (Netherlands)
    • ⁠Abdulmohsen Altamimi / NMDC Group (local/UAE)
    • ⁠Urbacon / Negida Contracting  (Qatar/Egypt )
    • ⁠Modern Building Leaders / China Harbour (local/China)

    The scope includes dredging and earthworks, as well as quay wall and edge protection works spanning about 11 kilometres.

    King Salman Bay is expected to be a waterfront development that aims to reshape the city’s northern Red Sea frontage into a mixed-use destination, anchored by public-realm improvements and leisure-led development.

    Saudi gigaproject developer Red Sea Global (RSG) is developing the project.

    The latest development follows RSG’s award of an estimated SR100m ($27m) contract to construct a solid waste management centre at its Red Sea Project. The scope includes four buildings: a materials recycling facility, a transfer station, an administration building and a vehicle maintenance building.

    In October last year, MEED reported that RSG had secured a SR6.5bn ($1.7bn) credit facility to further develop Amaala, its luxury tourism destination on Saudi Arabia’s northwestern Red Sea coast.

    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/18800910/main.jpg
    Yasir Iqbal
  • PDO allows more time for Al-Ghubar field project prices

    17 August 2026

     

    Petroleum Development Oman (PDO) has allowed contractors additional time to prepare commercial bids for a project to build a new facility to handle additional oil production from the Al-Ghubar field in the sultanate.

    The Al-Ghubar field is located in the Ghaba Salt Basin at Qarn Alam, within majority state-owned PDO’s Block 6 concession area.

    The Al-Ghubar gas-oil gravity drainage (GOGD) facility will be designed as a sour (hydrogen sulphide) facility and is expected to handle maximum oil production of 1,800 standard cubic metres a day (cm/d), a maximum total water flow rate of 10,421 standard cm/d, and maximum gas lift of 256,934 standard cm/d. Production from the planned Al-Ghubar GOGD facility will be exported to PDO’s main oil line.

    Following receipt of the technical bids for the project in July, PDO granted contractors additional time – until 16 August – to submit commercial bids for the project, MEED recently reported.

    The project operator has now extended the deadline for submitting commercial bids to 1 September, sources told MEED.

    PDO floated the tender for the Al-Ghubar GOGD facility project in March, setting an initial bid submission deadline of 4 May, MEED previously reported.

    PDO later extended the deadlines for submission of technical and commercial bids to 26 July and 7 August, respectively. Contractors submitted technical proposals by the revised deadline, according to sources.

    The following contractors, among others, are understood to be bidding for the project:

    • Archirodon (Greece)
    • Engineering for the Petroleum & Process Industries (Egypt) / Petrojet (Egypt)
    • Jereh (China)
    • Kent (UAE)
    • Larsen & Toubro Energy Hydrocarbon (India)

    The scope of work on the Al-Ghubar GOGD facility project covers the engineering, procurement and construction (EPC) of the following:

    • On-plot scope consists of:
      • Production separator  
      • Test separator  
      • Concentric wash tank
      • Wet oil pump
      • Water bath heater
      • Surge tank
      • Gas injection/gas lift compressor (centrifugal)
      • Utilities (Instrument Air compressors, chemical injection skids, drain system, vent system) 
      • Suction scrubber
      • Air coolers
      • Discharge scrubbers
      • Condensate flash drum
      • Atmospheric pressure knock-out drum 
      • Flare system
      • Gas heater
      • Water disposal pump
      • Oil shipping pump
      • New 132kV substation and plant substation (housing 6.6kV & 415-Volt switchboard)
      • New control room
         
    • Off-plot scope consists of:
      • Off-plot pipeline network (bulk header, test header, gathering infrastructure/ gathering line header, instrument air header, water disposal header)
      • Two remote manifold stations 
      • Tie-in connection to main oil line
      • Tie-in to gas network pipeline

    PDO previously intended to tender the Al-Ghubar GOGD project under its framework structure with selected EPC contractors, but eventually tendered it separately.

    PDO is the operator of the Block 6 hydrocarbons concession in Oman, which is the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields, with PDO producing a total of approximately 680,000 barrels a day (b/d) of oil and condensates from those fields.

    The Omani government holds a 60% stake in PDO through Energy Development Oman (EDO). The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).

    ALSO READ: PDO floats tender for major flare gas monetisation scheme
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18799485/main.jpg
    Indrajit Sen