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There are still a number of contractors in the industry who, despite all of the data showing improvements in the marketplace, are complaining that their own pipelines are taking time to fill.
And despite the announcements of a series of new mega-projectsacross the GCC, there are others where work had already begun but where progress remains so slow as to be barely noticeable.
The recent MENA Projects Tracker published by global bank Citi stated that of the $2.5tn worth of work currently on the books in the Middle East, 90% is in the GCC. Saudi Arabia and Qatar lead the way, with $784bn and $669bn worth of projects respectively.
Yet despite the headline-grabbing figure, there is an acknowledgement that much of what is planned is still either early-stage or in the pipeline, with construction yet to move onto site. Only 56% ($1.4tn) of it is defined as under construction, while 25% ($600bn) is classed as being at a “relatively advanced” stage of pre-contract development and 21% ($500bn) is defined as early stage.
Ventures Middle East figures suggest the trend of work being completed is climbing, though, with the value of projects set to finish this year likely to reach $128.46bn – a 92% increase on the $66.9bn achieved in 2013.
Client: King Abdullah City of Atomic and Renewable Energy (KA-Care)
In a clear sign of Saudi Arabia’s ambitions to power the country with sustainable energy, the Kingdom announced plans in 2010 to build a centre for nuclear and renewable energy in Riyadh.
A host of regional and foreign consultancy firms, including Norway’s Snohetta, the UK’s Hilson Moran and Buro Happold, and the US-based Gensler, participated in master-planning the 60mn m2 site, while Lebanon’s SETS planned the roads and transport.
Finland’s Povry consultancy worked on a strategy for the development of nuclear and renewable energy applications with desalination and in 2011, WorleyParsons was appointed to conduct site surveys and regional analysis to identify potential sites as well as to develop the planned tender for the nuclear power project stage.
The three sites selected were Jubail on the Gulf; and Tabuk and Jazan on the Red Sea.
In early 2013, KA-Care care opened a tender for new solar PV and solar thermal power plants, wind farms, geothermal facilities and waste-to-energy plants.
In January this year, the UAE’s Abdul Latif Jameel Energy and Fotowatio Renewable Ventures (FRV) announced that it would form a joint venture to develop photovoltaic (PV) solar energy projects, which includes the construction of 41GW of solar power.
Other contracts for this part of the project, estimated to be worth $10bn, are expected to be awarded before 2015.
The construction of 16 nuclear power reactors worth a proposed $77bn are planned over the next 20 years. The first phase of this for the initial reactor is currently in the feasibility study stage, with a proposed four-year building programme earmarked to begin next year.
In September last year, both GE Hitachi Nuclear Energy and Toshiba/ Westinghouse signed contracts with Exelon Nuclear Partners (ENP), a division of Exelon Generation, to pursue reactor construction deals with KA-CARE.
Client: Emaar Economic City
In 2006, Saudi Arabia’s mammoth King Abdullah Economic City, which stretches across 189mn m2 along the Kingdom’s Red Sea coast, was simply a concept.
Today, it is an emerging city with “thousands of people living and working there on a daily basis,” says Michael Chihoski, chief operating officer at developer Emaar TEC.
Initial infrastructure, including roads and utilities, is in place. However, this will be expanded over the next few years, as part of a $33bn investment.
Chihoski said Emaar will “use this infrastructure as we begin vertical development”, as many large-scale physical assets are brought forward. The first of these is the port, which opened earlier this year. Eventually, it will handle 14mn containers a year.
The first residential units at Bay La Sun completed in 2010. The district will eventually have 12,000 homes.
Ten hotels are also planned over the next six years, with the Bay La Sun Hotel and Marina being the first.
“We have at any one time up to 100 active projectsthat we are working on,” Chihoski said.
“We have thousands of workers spread across the 189mn m2 that makes up the city. A lot of our work now is on grading and for that activity alone we are moving about 10,000 trucks a day.”
The entire project, which is being built across five phases, has been earmarked for completion in 2025.
Client: Ministry of Housing, Saudi Arabia Estimated value: $68bn
In 2011, the Saudi government announced plans to build 500,000 homes over several years in a bid to tackle a housing shortage, earmarking $68bn in funds.
But the difficulty in obtaining suitable land, high cost of construction and bureaucracy has slowed the programme.
However, parts of the development are underway. The first major contract was given to Parsons International for masterplanning and designing housing and infrastructure for the first phase, which covers 32mn m2 of land divided into 11 sites across the country.
These sites range in size from 10mn m2 for the biggest, which is at Dammam (pictured), through to a 729,000m² site in Khamis Mushayt. Others are in Jeddah, Madinah, Al Ahsa, Qatif, Tabuk and Al Kharj.
Nine deals worth a total of $1.06bn were awarded to contractors under this initiative in August last year, according to the Saudi Press Agency. Research by contractor Al Fanar suggested that 12 out of 16 contracts are already on site, with the remaining four still in the design stage. All of the work is due for completion by September 2016.
Client: Dubai Holding Estimated value: $64.7bn
As Dubai emerged from the financial crisis in November 2012, ruler Sheikh Mohammed announced plans for perhaps the biggest project in its history: Mohammed Bin Rashid City.
Planned across several phases, the sprawling development will feature parkland, the largest shopping mall in the world, more than 100 hotels, golf courses, and a hub for the arts and centres to develop small businesses.
The first phase of the development that was announced as part of phase one, called Mohammed Bin Rashid Al Maktoum City – District One (pictured), is a $3bn project covering a 4km2 site. It is being developed in a joint venture between Meydan and Sobha Group, whose construction unit, Sobha Engineering and Contracting, is helping to build the project.
Spread across 47mn ft2, this part of the project will feature homes, man-made beaches, a promenade, sports clubs and equestrian riding trails.
It is expected to complete by 2018. Meraas Holding andEmaar Properties are also building Dubai Hills Estate, a residential component of the first phase. The sale of homes at Mulberry at Park Heights, part of the project, got underway in February.
The entire development, which has been split into four phases, could take an estimated 11 years to complete.
Client: Qatar Railways Development Company Estimated value:$64.7bn
As Qatar prepares to host the 2022 World Cup football tournament, the country is planning a 486km freight and high-speed passenger network that will also provide links to Saudi Arabia and Bahrain.
In February this year, a joint venture between Parsons and Systra won th design consultancy services contract, while contractors have been invited to bid for the first phase civil works.
The network will include seven passenger stations, six freight facilities and a depot.
Meanwhile, $8.2bn worth of contracts were handed out in May last year to companies to build the first phase of the Doha Metro. A consortium featuring Salini Impregilo, SK Engineering, and the local arm of Omani firm Galfar won the contract for the Red Line North. QDVC – a company owned by Qatari Diar and France’s Vinci – South Korea’s GS Engineering and local firm Darwish Engineering were appointed to build the 12km Red Line South.
Austria’s Porr, Saudi Bin Ladin Group and the local HBK Contracting Company won contracts to build the Green Line. Samsung C+T is leading a consortium building the main stations.
More recently, in April the long-awaited contract for the Gold Line – the biggest and most complicated award for phase one – was awarded to a consortium led by Greek firm Ellaktor alongside India’s Larsen & Toubro, Turkish firms Yapi Merkezi and STFA and Qatar’s Al Jaber Engineering.
Client: Saudi Industrial Property Authority (Modon) Estimated value:$40bn
The development of Sudair Industrial City, a 258 square kilometre mega-city designed to host over 30 small cities, got underway in 2009.
The project is one of a number of purpose-built industrial cities planned in Saudi Arabia as it diversifies its economy away from oil and developsprojects to provide more jobs.
It will also host petroleum, minerals, plastics, automobile and food companies, in addition to factories for manufacturing building materials.
Several firms, including Halcrow Group, Monitor Group, Mouchel, Buro Happold, Atkins, CH2M and IBI are involved in planning the city.
A road and intersection project has been built as part of the first phase, while 150 factories are under construction.
Electrical transformer substations are also under construction, as well as an administrative building.
In September last year, Modon signed a contract worth $50mn with Saudi PAN Kingdom Company (SAPAC) to develop Sudair City for Industry and Businesses as part of the second phase.
The contract includes construction of residential and industrial areas as well as building drinking water pipelines and utilities networks.
Client: Kingdom Holding Company Estimated value: $27bn
The first phase of Jeddah Economic City, which is set to include the world’s next tallest building, has been earmarked for completion in 2020.
Kingdom Tower (left), which will be more than 1,000-meters high, will alone cost an estimated $1.5bn to build.
Financing for the tower, which received final municipal approvals in 2012, is expected to be finalised by the end of this year.
Saudi Binladin Group won the contract to build the tower, for which underground work has been completed, from Kingdom Holding in 2011.
The company has invested $400mn in the project, and holds a 16.6% stake in its developer, Jeddah Economic Company.
The project’s design consultant is Omrania & Associates, while the tower was designed by Adrian Smith and Gordon Gill Architecture – the pair who designed Dubai’s Burj Khalifa.
UK-based EC Harris and Mace were appointed as project managers of the tower’s build last year.
Mounib Hammoud, CEO of Jeddah Economic Company, said last month that the tower’s raft is set to complete in August, and that the entire building is likely to complete by December 2018.
Kingdom City, which is being built over three phases, will also host other commercial and residential property as well as hotels.
Phase one will be built over 1.4mn m2 and include Kingdom Tower, a mall, a 12,000 capacity mosque, plus some residential and commercial buildings. Phase two will involve the creation of infrastructure for the city, while plans for phase three are yet to be revealed.
Client: Royal Commission for Jubail and YanbuEstimated value:$25bn
Ras Al Khair Minerals Industrial City is being developed by the Royal Commission for Jubail and Yanbu.
Phase one, which comprises an area of 11,000 hectares, is underway and expected to take 10 years. The masterplan was developed by Atkins.
The city has been set up to exploit bauxite and phosphate deposits. A $1.8bn aluminium smelter has already been built by Bechtel, which will be served by a huge new bauxite mine and refinery as part of a $10.8bn complex run jointly by Saudi Arabian mining companyMa’aden and Alcoa.
Ma’aden is also building a huge phosphate development within the city, Waad Al Shamal, at a cost of $7.5bn. In February, the firm announced it had signed $3.7bn worth of deals with EPC contractors to build different elements.
Korea-based Hanwha Engineering is building a $935mnphosphoric acid plant; SNC-Lavalin & Sinopec Engineering a $764mn sulphuric acid factory; China Huanqiu a $557mn ore beautification plant; Intecsa Industrial a $600mn fertiliser plant and Daelim Industrial an $825mn ammonia facility.
Client: Arriyadh Development Authority (ADA) Estimated value:$23bn
Work on the first two lines (the Blue Line and Green Line) that will make up the 175-km Riyadh Light Rail Network got underway in April more than $23bn worth of contracts in were awarded in July last year.
A consortium including Bechtel, Siemens, Almabani and CCC was awarded a $9.4bn contract, while one worth $7.8bn went to Spain’s FCC and third worth $5.2bn was given to Italy’s Salini Impregilo, alongside Nesma & Partners, Larsen & Toubro, Bombardier and others.
Six lines will link the capital city’s centre, government facilities, universities, commercial areas, the airport and thefinancial district.
The project is being led by Sattam bin Abdul-Aziz Al Saud, governor of Riyadh and chairman of the Arriyadh Development Authority.
At 175km long and with 84 stops, the metro will be the longest in the world.
Client: ChemaWEyaat Estimated value: $20bn
Chemaweyaat is a chemicals city spanning 70mn m2 near Ruwais that was revived last year after encountering a series of hurdles and changes since first being announced in 2008. It is being built by Abu DhabiInvestment Council, state fund IPIC and oil firm ADNOC.
A front-end engineering and design contract was awarded to the US’ CH2M Hill in 2013 while Foster Wheeler, also from the US, signed a project management consultancy deal to continue bringing the project forwards.
Client: Emirates Nuclear Energy Corporation (ENEC) Estimated value:$20bn
In 2009, Emirates Nuclear Energy Corporation (ENEC) awarded a $20bn contract to a consortium led by South Korea’s KEPCO including Doosan, Samsung and Hyundai to build four commercial nuclear power reactors.
Work has been progressing on the first two reactors, with the first nuclear-grade steel shipments arriving on site in September last year made by Emirates Steel.
In February, ENEC was also granted permission to go ahead with preparatory works for units three and four by the Federal Agency for Nuclear Regulation, which is overseeing the plant building. This has allowed it to start on site for civil works in preparation for concrete pouring for its reactor containment building, auxiliary building, turbine generator building, cooling water heat exchanger building and other components.
The four plants are all being built in Barakah, in Abu Dhabi’s western region. The first plant is expected to begin operations in 2017, and will be followed in annual intervals by units 2, 3 and 4.
Client: Dow Chemicals Estimated value: $15bn
Made up of 26 plants, this huge petrochemical complex is under construction in Saudi Arabia’s Jubail Industrial City II (pictured, right).
The project is being developed by Sadara, a joint venture formed in 2011 between Dow Chemicals and local oil giant Saudi Aramco.
The first production plants are scheduled to come on line in late 2015, with all units expected to be complete in 2016. Funding for the Sadara complex has already been raised. It is the biggest ever petrochemicals complex to be built in a single phase and its products will feed a new plaschem park in Jubail.
Client: Rayadah Investment Company Estimated value: $15bn
This $15bn housing project is set to comprise 240 residential towers, 1,200 villas, a five-star hotel, hospital, clinics, mosques, a commercial district, schools and municipal buildings. The project is being developed by Al-Rayadah Investment Company.
Client: Nuclear Power Plant – Bahrain Estimated Value: $15bn
Bahrain had announced an ambitious $15bn plan to adopt nuclear power in 2010, which the then Minister of Electricity & Water, Fahmi al-Jawder, had suggested could be built in seven years with the help of international experts.
Given that the country has few natural resources in terms of oil & gas, the idea had appeal. However, as a small nation finding a good location for the site was challenging, and the project has reportedly been shelved following the 2011 Fukushima nuclear plant disaster.er..
Client: Rayadah Investment Company Estimated Value: $14.721bn
Parts of the King Faisal University in Al-Hasa in Saudi Arabia have been completed, including the Girls Science College project, which was handed over by contractor Al-Khodari in September last year. The company is building three other faculties at the university.
Client: Kuwait National Petroleum Company (KNPC) Estimated value: $14bn
The Al Zour Refinery was first announced in 2007, with contracts being awarded in 2008 to US-based Fluor Corporation, for consultancy, and a consortium including Japan’s JGC and South Korea’s GS Engineering for construction.
But a year later, construction was stopped due to political opposition and allegations of corruption.
The project was revived in 2012, with a $697mn dredging contract awarded to the Netherlands’ Van Oord in March this year for the reclamation of the 615,000-barrels per day refinery complex. Amec also landed a project management deal for the refinery last year worth $528mn.
Last month, project manager Khaled al-Awadhi said three separate tenders for the project were likely to be issued – for primary units, secondary units and on-site utililties. Winning bids are likely to be chosen by the end of the year, with contract awards in Q1 2015.
However, political tension in Kuwait remain, with five MPs stepping down last month after the country’s chamber refused to sanction a debate allowing government members to be questioned about allegations of corruption. By-elections take place later this month.
Client: Al Ruwais Union Company for Real Estate Development / Raysan Al Arabiah (Amlak Al Ruwais) / Jeddah Development and Urban Regeneration Company (JDURC) Estimated value: $13.8bn
In 2010, a makeover for Al-Ruwais, Jeddah’s oldest district, was announced, with modern skyscrap-ers replacing thousands of dated villas.
Jeddah Development and Urban Regeneration Company then negotiated compensation with property owners forced to leave the district to make way for the new development in 2012.
The project, which is still being planned by Al Ruwais Union Company for Real Estate Development and Raysan Al Arabiah (Amlak Al Ruwais), is envisioned to cover an area of 142,0174m2, but has been fairly slow-moving thus far. It is the second largest redevelopment of a district planned in Jeddah.
Client: Saudi Railways Organization (SRO) Estimated value: $13.7bn
Construction of the Makkah-Madinah high speed railway, also known as Haramain, got underway in March 2009 after multiple contracts were awarded for phase one to firms including China Railway Con-struction Corporation (CRCC), Al Arrab Contracting Company and Scott Wilson.
Contracts for phase two, which included the remaining infrastructure, were awarded in 2011 to the Saudi-Spanish Al Shoula Group.
Work was initially meant to conclude on the 450km railway in 2012, but the line is now expected to be up andrunning by the end of 2015. The Kingdom’s Shoura Council has called for a probe into project overruns.
Client: Dar Al Arkan Development Company, Jeddah / Jeddah Development and Urban Regeneration Company (JDURC) / Khozam Development Company Estimated value: $13.3bn
Located in the heart of Jeddah, the rejuvenation of Qasr Khozam, one of the city’s poorest districts, is described as Saudi Arabia’s “most ambitious” development.
The project is being developed by Dar Al Arkan Development Company in a joint venture with Jeddah Development & Urban Regeneration Company and Khozam Development Company.
In 2011, the joint venture was given a loan to fund the project, and was then set to compensate property owners at the site to leave before beginning demolition work.
The project was originally slated for completion in 2017. Masterplanning for the project, which is set on a 400ha site and is set to include 15mn m2 of built-up area, was done by Dar Al Handasah.
Client: Ministry of Transport & Communications, Oman Estimated value: $13bn
Bids for Oman’s first ever railway scheme were received in March this year, with a South Korean-led consortium reportedly being among those pitching for the deal.
The tender covers the construction of the first part of the railway, which runs from the UAE border at Al Buraimi to Sohar port. This part of the project is worth an estimated $2.6bn.
Italy’s Italferr is the project’s preliminary design consultant. Construction is due to get underway early in 2015.
Client: Kuwait National Petroleum Company (KNPC) Estimated value: $12bn
After a series of false starts, in March this year, Japan’s JGC Corporation and its partners GS Engineering & Construction and SK Engineering & Construction, both Korean, won a $4.82bn contract for the upgrade and expansion of the Mina Al-Ahmadi refinery as part of Kuwait’s Clean Fuels projects.
The Mina Abdullah I project, valued at $3.7bn, was awarded to a consortium led by Petrofac while a Flour-led consortium is working on Mina Abdhullah II as part of a contract worth $3.4 bn.
Client: Saudi Aramco Estimated value: $12bn
Being developed by Saudi Aramco, Yanbu’s Export Refinery is a 400,000 bpd full-conversion refinery located on the Red Sea coast.
Its expansion, which will increase the overall capacity from the current 280,000t a year to 710,000t, got underway in January 2011 and is expected to be completed by 2015.
Contractors involved in the project include WorleyParsons, Samsung Engineering and Jacobs Engineering.
Client: Etihad Rail / Abu Dhabi Department of Transport (DOT) / Abu Dhabi General Services PJSC (Musanada)Estimated value: $11bn
After a number of years in the works, Etihad Rail Company awarded an $880mn contract in October 2011 to a consortium made up of Italian firms Saipem and Tecnimoment, and regional firm Dodsal for the design and construction of the first phase of the project: a 266km stretch of track that will linkn Habshan with Ruwais and Shah.
In January 2012, a signalling and telecoms contract was later awarded to Ansaldo STS. Contracts for the second phase, which will extend the network by 630km from the Saudi border through Abu Dhabi to Dubai and to Al Ain, are expected to be awarded this year. The project is expected to be completed in 2017-2018.
Client: Aldar Properties Estimated value: $11bn
Reclamation of Lulu Island, which lies off Abu Dhabi’s coast, was completed in 1992. After several previous plans faltered, it was taken up by Sorouh Real Estate and Mubadala, with the pair proposing a commercial and residential project.
A masterplan was produced by Martha Schwartz Partners (USA) and Arquitectonica. The 500-hectare pro-ject was meant to contain around 15 low-rise neighbourhoods.
Since Sorouh’s merger with Aldar Properties, its current status on the developer’s project pipeline is not known. When announcing its first $1.36bn worth of projects last month, Aldar said it had identified a further 20 sites to bring forward over 5-8 years.
However, given that the initial three were chosen due to their strong existing infrastructure it may be there are other projects within its land bank that will be easier to take forwards.
Client: General Presidency of Holy Mosques Affairs Estimated value: $11bn
The ongoing expansion of the holy mosque, or Haram, in Makkah will see the Mataf area enlarged to accommodate 6mn worshippers, while the number of floors will be increased to six.
Sixty-three hotel towers are also planned as part of the development by the Jabal Omar Development Projectcompany. These have been awarded in phases, with four contracts handed out to date between 2011 and 2014.
The expansion project is focussed on three areas: the expansion of the mosque, the development of restrooms, tunnels and other services to ensure the smooth movement of worshippers, and the construction of a district cooling plants, an electricity station, water stations and other services. SBG is the main contractor.
And despite the announcements of a series of new mega-projectsacross the GCC, there are others where work had already begun but where progress remains so slow as to be barely noticeable.
The recent MENA Projects Tracker published by global bank Citi stated that of the $2.5tn worth of work currently on the books in the Middle East, 90% is in the GCC. Saudi Arabia and Qatar lead the way, with $784bn and $669bn worth of projects respectively.
Yet despite the headline-grabbing figure, there is an acknowledgement that much of what is planned is still either early-stage or in the pipeline, with construction yet to move onto site. Only 56% ($1.4tn) of it is defined as under construction, while 25% ($600bn) is classed as being at a “relatively advanced” stage of pre-contract development and 21% ($500bn) is defined as early stage.
Ventures Middle East figures suggest the trend of work being completed is climbing, though, with the value of projects set to finish this year likely to reach $128.46bn – a 92% increase on the $66.9bn achieved in 2013.
- King Abdullah City of Atomic and Renewable Energy
Client: King Abdullah City of Atomic and Renewable Energy (KA-Care)
In a clear sign of Saudi Arabia’s ambitions to power the country with sustainable energy, the Kingdom announced plans in 2010 to build a centre for nuclear and renewable energy in Riyadh.
A host of regional and foreign consultancy firms, including Norway’s Snohetta, the UK’s Hilson Moran and Buro Happold, and the US-based Gensler, participated in master-planning the 60mn m2 site, while Lebanon’s SETS planned the roads and transport.
Finland’s Povry consultancy worked on a strategy for the development of nuclear and renewable energy applications with desalination and in 2011, WorleyParsons was appointed to conduct site surveys and regional analysis to identify potential sites as well as to develop the planned tender for the nuclear power project stage.
The three sites selected were Jubail on the Gulf; and Tabuk and Jazan on the Red Sea.
In early 2013, KA-Care care opened a tender for new solar PV and solar thermal power plants, wind farms, geothermal facilities and waste-to-energy plants.
In January this year, the UAE’s Abdul Latif Jameel Energy and Fotowatio Renewable Ventures (FRV) announced that it would form a joint venture to develop photovoltaic (PV) solar energy projects, which includes the construction of 41GW of solar power.
Other contracts for this part of the project, estimated to be worth $10bn, are expected to be awarded before 2015.
The construction of 16 nuclear power reactors worth a proposed $77bn are planned over the next 20 years. The first phase of this for the initial reactor is currently in the feasibility study stage, with a proposed four-year building programme earmarked to begin next year.
In September last year, both GE Hitachi Nuclear Energy and Toshiba/ Westinghouse signed contracts with Exelon Nuclear Partners (ENP), a division of Exelon Generation, to pursue reactor construction deals with KA-CARE.
- King Abdullah Economic City (KAEC)
Client: Emaar Economic City
In 2006, Saudi Arabia’s mammoth King Abdullah Economic City, which stretches across 189mn m2 along the Kingdom’s Red Sea coast, was simply a concept.
Today, it is an emerging city with “thousands of people living and working there on a daily basis,” says Michael Chihoski, chief operating officer at developer Emaar TEC.
Initial infrastructure, including roads and utilities, is in place. However, this will be expanded over the next few years, as part of a $33bn investment.
Chihoski said Emaar will “use this infrastructure as we begin vertical development”, as many large-scale physical assets are brought forward. The first of these is the port, which opened earlier this year. Eventually, it will handle 14mn containers a year.
The first residential units at Bay La Sun completed in 2010. The district will eventually have 12,000 homes.
Ten hotels are also planned over the next six years, with the Bay La Sun Hotel and Marina being the first.
“We have at any one time up to 100 active projectsthat we are working on,” Chihoski said.
“We have thousands of workers spread across the 189mn m2 that makes up the city. A lot of our work now is on grading and for that activity alone we are moving about 10,000 trucks a day.”
The entire project, which is being built across five phases, has been earmarked for completion in 2025.
- 500,000 Housing Units in Different Areas of Saudi Arabia
Client: Ministry of Housing, Saudi Arabia Estimated value: $68bn
In 2011, the Saudi government announced plans to build 500,000 homes over several years in a bid to tackle a housing shortage, earmarking $68bn in funds.
But the difficulty in obtaining suitable land, high cost of construction and bureaucracy has slowed the programme.
However, parts of the development are underway. The first major contract was given to Parsons International for masterplanning and designing housing and infrastructure for the first phase, which covers 32mn m2 of land divided into 11 sites across the country.
These sites range in size from 10mn m2 for the biggest, which is at Dammam (pictured), through to a 729,000m² site in Khamis Mushayt. Others are in Jeddah, Madinah, Al Ahsa, Qatif, Tabuk and Al Kharj.
Nine deals worth a total of $1.06bn were awarded to contractors under this initiative in August last year, according to the Saudi Press Agency. Research by contractor Al Fanar suggested that 12 out of 16 contracts are already on site, with the remaining four still in the design stage. All of the work is due for completion by September 2016.
- Mohammed Bin Rashid (MBR) City
Client: Dubai Holding Estimated value: $64.7bn
As Dubai emerged from the financial crisis in November 2012, ruler Sheikh Mohammed announced plans for perhaps the biggest project in its history: Mohammed Bin Rashid City.
Planned across several phases, the sprawling development will feature parkland, the largest shopping mall in the world, more than 100 hotels, golf courses, and a hub for the arts and centres to develop small businesses.
The first phase of the development that was announced as part of phase one, called Mohammed Bin Rashid Al Maktoum City – District One (pictured), is a $3bn project covering a 4km2 site. It is being developed in a joint venture between Meydan and Sobha Group, whose construction unit, Sobha Engineering and Contracting, is helping to build the project.
Spread across 47mn ft2, this part of the project will feature homes, man-made beaches, a promenade, sports clubs and equestrian riding trails.
It is expected to complete by 2018. Meraas Holding andEmaar Properties are also building Dubai Hills Estate, a residential component of the first phase. The sale of homes at Mulberry at Park Heights, part of the project, got underway in February.
The entire development, which has been split into four phases, could take an estimated 11 years to complete.
- Qatar National Rail Scheme
Client: Qatar Railways Development Company Estimated value:$64.7bn
As Qatar prepares to host the 2022 World Cup football tournament, the country is planning a 486km freight and high-speed passenger network that will also provide links to Saudi Arabia and Bahrain.
In February this year, a joint venture between Parsons and Systra won th design consultancy services contract, while contractors have been invited to bid for the first phase civil works.
The network will include seven passenger stations, six freight facilities and a depot.
Meanwhile, $8.2bn worth of contracts were handed out in May last year to companies to build the first phase of the Doha Metro. A consortium featuring Salini Impregilo, SK Engineering, and the local arm of Omani firm Galfar won the contract for the Red Line North. QDVC – a company owned by Qatari Diar and France’s Vinci – South Korea’s GS Engineering and local firm Darwish Engineering were appointed to build the 12km Red Line South.
Austria’s Porr, Saudi Bin Ladin Group and the local HBK Contracting Company won contracts to build the Green Line. Samsung C+T is leading a consortium building the main stations.
More recently, in April the long-awaited contract for the Gold Line – the biggest and most complicated award for phase one – was awarded to a consortium led by Greek firm Ellaktor alongside India’s Larsen & Toubro, Turkish firms Yapi Merkezi and STFA and Qatar’s Al Jaber Engineering.
- Sudair Industrial City
Client: Saudi Industrial Property Authority (Modon) Estimated value:$40bn
The development of Sudair Industrial City, a 258 square kilometre mega-city designed to host over 30 small cities, got underway in 2009.
The project is one of a number of purpose-built industrial cities planned in Saudi Arabia as it diversifies its economy away from oil and developsprojects to provide more jobs.
It will also host petroleum, minerals, plastics, automobile and food companies, in addition to factories for manufacturing building materials.
Several firms, including Halcrow Group, Monitor Group, Mouchel, Buro Happold, Atkins, CH2M and IBI are involved in planning the city.
A road and intersection project has been built as part of the first phase, while 150 factories are under construction.
Electrical transformer substations are also under construction, as well as an administrative building.
In September last year, Modon signed a contract worth $50mn with Saudi PAN Kingdom Company (SAPAC) to develop Sudair City for Industry and Businesses as part of the second phase.
The contract includes construction of residential and industrial areas as well as building drinking water pipelines and utilities networks.
- Jeddah Kingdom City
Client: Kingdom Holding Company Estimated value: $27bn
The first phase of Jeddah Economic City, which is set to include the world’s next tallest building, has been earmarked for completion in 2020.
Kingdom Tower (left), which will be more than 1,000-meters high, will alone cost an estimated $1.5bn to build.
Financing for the tower, which received final municipal approvals in 2012, is expected to be finalised by the end of this year.
Saudi Binladin Group won the contract to build the tower, for which underground work has been completed, from Kingdom Holding in 2011.
The company has invested $400mn in the project, and holds a 16.6% stake in its developer, Jeddah Economic Company.
The project’s design consultant is Omrania & Associates, while the tower was designed by Adrian Smith and Gordon Gill Architecture – the pair who designed Dubai’s Burj Khalifa.
UK-based EC Harris and Mace were appointed as project managers of the tower’s build last year.
Mounib Hammoud, CEO of Jeddah Economic Company, said last month that the tower’s raft is set to complete in August, and that the entire building is likely to complete by December 2018.
Kingdom City, which is being built over three phases, will also host other commercial and residential property as well as hotels.
Phase one will be built over 1.4mn m2 and include Kingdom Tower, a mall, a 12,000 capacity mosque, plus some residential and commercial buildings. Phase two will involve the creation of infrastructure for the city, while plans for phase three are yet to be revealed.
- Ras Al Khair Minerals Industrial City
Client: Royal Commission for Jubail and YanbuEstimated value:$25bn
Ras Al Khair Minerals Industrial City is being developed by the Royal Commission for Jubail and Yanbu.
Phase one, which comprises an area of 11,000 hectares, is underway and expected to take 10 years. The masterplan was developed by Atkins.
The city has been set up to exploit bauxite and phosphate deposits. A $1.8bn aluminium smelter has already been built by Bechtel, which will be served by a huge new bauxite mine and refinery as part of a $10.8bn complex run jointly by Saudi Arabian mining companyMa’aden and Alcoa.
Ma’aden is also building a huge phosphate development within the city, Waad Al Shamal, at a cost of $7.5bn. In February, the firm announced it had signed $3.7bn worth of deals with EPC contractors to build different elements.
Korea-based Hanwha Engineering is building a $935mnphosphoric acid plant; SNC-Lavalin & Sinopec Engineering a $764mn sulphuric acid factory; China Huanqiu a $557mn ore beautification plant; Intecsa Industrial a $600mn fertiliser plant and Daelim Industrial an $825mn ammonia facility.
- Riyadh Light Rail Network
Client: Arriyadh Development Authority (ADA) Estimated value:$23bn
Work on the first two lines (the Blue Line and Green Line) that will make up the 175-km Riyadh Light Rail Network got underway in April more than $23bn worth of contracts in were awarded in July last year.
A consortium including Bechtel, Siemens, Almabani and CCC was awarded a $9.4bn contract, while one worth $7.8bn went to Spain’s FCC and third worth $5.2bn was given to Italy’s Salini Impregilo, alongside Nesma & Partners, Larsen & Toubro, Bombardier and others.
Six lines will link the capital city’s centre, government facilities, universities, commercial areas, the airport and thefinancial district.
The project is being led by Sattam bin Abdul-Aziz Al Saud, governor of Riyadh and chairman of the Arriyadh Development Authority.
At 175km long and with 84 stops, the metro will be the longest in the world.
- Chemaweyaat Complex
Client: ChemaWEyaat Estimated value: $20bn
Chemaweyaat is a chemicals city spanning 70mn m2 near Ruwais that was revived last year after encountering a series of hurdles and changes since first being announced in 2008. It is being built by Abu DhabiInvestment Council, state fund IPIC and oil firm ADNOC.
A front-end engineering and design contract was awarded to the US’ CH2M Hill in 2013 while Foster Wheeler, also from the US, signed a project management consultancy deal to continue bringing the project forwards.
- Nuclear Power Plant in Abu Dhabi
Client: Emirates Nuclear Energy Corporation (ENEC) Estimated value:$20bn
In 2009, Emirates Nuclear Energy Corporation (ENEC) awarded a $20bn contract to a consortium led by South Korea’s KEPCO including Doosan, Samsung and Hyundai to build four commercial nuclear power reactors.
Work has been progressing on the first two reactors, with the first nuclear-grade steel shipments arriving on site in September last year made by Emirates Steel.
In February, ENEC was also granted permission to go ahead with preparatory works for units three and four by the Federal Agency for Nuclear Regulation, which is overseeing the plant building. This has allowed it to start on site for civil works in preparation for concrete pouring for its reactor containment building, auxiliary building, turbine generator building, cooling water heat exchanger building and other components.
The four plants are all being built in Barakah, in Abu Dhabi’s western region. The first plant is expected to begin operations in 2017, and will be followed in annual intervals by units 2, 3 and 4.
- Jubail II - Sadara Petrochemical Complex
Client: Dow Chemicals Estimated value: $15bn
Made up of 26 plants, this huge petrochemical complex is under construction in Saudi Arabia’s Jubail Industrial City II (pictured, right).
The project is being developed by Sadara, a joint venture formed in 2011 between Dow Chemicals and local oil giant Saudi Aramco.
The first production plants are scheduled to come on line in late 2015, with all units expected to be complete in 2016. Funding for the Sadara complex has already been raised. It is the biggest ever petrochemicals complex to be built in a single phase and its products will feed a new plaschem park in Jubail.
- South Obhur Project
Client: Rayadah Investment Company Estimated value: $15bn
This $15bn housing project is set to comprise 240 residential towers, 1,200 villas, a five-star hotel, hospital, clinics, mosques, a commercial district, schools and municipal buildings. The project is being developed by Al-Rayadah Investment Company.
- Nuclear Power Plant – Bahrain
Client: Nuclear Power Plant – Bahrain Estimated Value: $15bn
Bahrain had announced an ambitious $15bn plan to adopt nuclear power in 2010, which the then Minister of Electricity & Water, Fahmi al-Jawder, had suggested could be built in seven years with the help of international experts.
Given that the country has few natural resources in terms of oil & gas, the idea had appeal. However, as a small nation finding a good location for the site was challenging, and the project has reportedly been shelved following the 2011 Fukushima nuclear plant disaster.er..
- King Faisal University in Al-Ahsa
Client: Rayadah Investment Company Estimated Value: $14.721bn
Parts of the King Faisal University in Al-Hasa in Saudi Arabia have been completed, including the Girls Science College project, which was handed over by contractor Al-Khodari in September last year. The company is building three other faculties at the university.
- New Refinery in Al Zour, Kuwait
Client: Kuwait National Petroleum Company (KNPC) Estimated value: $14bn
The Al Zour Refinery was first announced in 2007, with contracts being awarded in 2008 to US-based Fluor Corporation, for consultancy, and a consortium including Japan’s JGC and South Korea’s GS Engineering for construction.
But a year later, construction was stopped due to political opposition and allegations of corruption.
The project was revived in 2012, with a $697mn dredging contract awarded to the Netherlands’ Van Oord in March this year for the reclamation of the 615,000-barrels per day refinery complex. Amec also landed a project management deal for the refinery last year worth $528mn.
Last month, project manager Khaled al-Awadhi said three separate tenders for the project were likely to be issued – for primary units, secondary units and on-site utililties. Winning bids are likely to be chosen by the end of the year, with contract awards in Q1 2015.
However, political tension in Kuwait remain, with five MPs stepping down last month after the country’s chamber refused to sanction a debate allowing government members to be questioned about allegations of corruption. By-elections take place later this month.
- Al Ruwais Development in Jeddah
Client: Al Ruwais Union Company for Real Estate Development / Raysan Al Arabiah (Amlak Al Ruwais) / Jeddah Development and Urban Regeneration Company (JDURC) Estimated value: $13.8bn
In 2010, a makeover for Al-Ruwais, Jeddah’s oldest district, was announced, with modern skyscrap-ers replacing thousands of dated villas.
Jeddah Development and Urban Regeneration Company then negotiated compensation with property owners forced to leave the district to make way for the new development in 2012.
The project, which is still being planned by Al Ruwais Union Company for Real Estate Development and Raysan Al Arabiah (Amlak Al Ruwais), is envisioned to cover an area of 142,0174m2, but has been fairly slow-moving thus far. It is the second largest redevelopment of a district planned in Jeddah.
- Makkah-Madinah Railway Link (MMRL) – Haramain
Client: Saudi Railways Organization (SRO) Estimated value: $13.7bn
Construction of the Makkah-Madinah high speed railway, also known as Haramain, got underway in March 2009 after multiple contracts were awarded for phase one to firms including China Railway Con-struction Corporation (CRCC), Al Arrab Contracting Company and Scott Wilson.
Contracts for phase two, which included the remaining infrastructure, were awarded in 2011 to the Saudi-Spanish Al Shoula Group.
Work was initially meant to conclude on the 450km railway in 2012, but the line is now expected to be up andrunning by the end of 2015. The Kingdom’s Shoura Council has called for a probe into project overruns.
- Qasr Khozam
Client: Dar Al Arkan Development Company, Jeddah / Jeddah Development and Urban Regeneration Company (JDURC) / Khozam Development Company Estimated value: $13.3bn
Located in the heart of Jeddah, the rejuvenation of Qasr Khozam, one of the city’s poorest districts, is described as Saudi Arabia’s “most ambitious” development.
The project is being developed by Dar Al Arkan Development Company in a joint venture with Jeddah Development & Urban Regeneration Company and Khozam Development Company.
In 2011, the joint venture was given a loan to fund the project, and was then set to compensate property owners at the site to leave before beginning demolition work.
The project was originally slated for completion in 2017. Masterplanning for the project, which is set on a 400ha site and is set to include 15mn m2 of built-up area, was done by Dar Al Handasah.
- Oman Rail
Client: Ministry of Transport & Communications, Oman Estimated value: $13bn
Bids for Oman’s first ever railway scheme were received in March this year, with a South Korean-led consortium reportedly being among those pitching for the deal.
The tender covers the construction of the first part of the railway, which runs from the UAE border at Al Buraimi to Sohar port. This part of the project is worth an estimated $2.6bn.
Italy’s Italferr is the project’s preliminary design consultant. Construction is due to get underway early in 2015.
- Clean Fuels Project – Kuwait
Client: Kuwait National Petroleum Company (KNPC) Estimated value: $12bn
After a series of false starts, in March this year, Japan’s JGC Corporation and its partners GS Engineering & Construction and SK Engineering & Construction, both Korean, won a $4.82bn contract for the upgrade and expansion of the Mina Al-Ahmadi refinery as part of Kuwait’s Clean Fuels projects.
The Mina Abdullah I project, valued at $3.7bn, was awarded to a consortium led by Petrofac while a Flour-led consortium is working on Mina Abdhullah II as part of a contract worth $3.4 bn.
- Yanbu Export Refinery
Client: Saudi Aramco Estimated value: $12bn
Being developed by Saudi Aramco, Yanbu’s Export Refinery is a 400,000 bpd full-conversion refinery located on the Red Sea coast.
Its expansion, which will increase the overall capacity from the current 280,000t a year to 710,000t, got underway in January 2011 and is expected to be completed by 2015.
Contractors involved in the project include WorleyParsons, Samsung Engineering and Jacobs Engineering.
- Etihad Rail
Client: Etihad Rail / Abu Dhabi Department of Transport (DOT) / Abu Dhabi General Services PJSC (Musanada)Estimated value: $11bn
After a number of years in the works, Etihad Rail Company awarded an $880mn contract in October 2011 to a consortium made up of Italian firms Saipem and Tecnimoment, and regional firm Dodsal for the design and construction of the first phase of the project: a 266km stretch of track that will linkn Habshan with Ruwais and Shah.
In January 2012, a signalling and telecoms contract was later awarded to Ansaldo STS. Contracts for the second phase, which will extend the network by 630km from the Saudi border through Abu Dhabi to Dubai and to Al Ain, are expected to be awarded this year. The project is expected to be completed in 2017-2018.
- Lulu Island Development
Client: Aldar Properties Estimated value: $11bn
Reclamation of Lulu Island, which lies off Abu Dhabi’s coast, was completed in 1992. After several previous plans faltered, it was taken up by Sorouh Real Estate and Mubadala, with the pair proposing a commercial and residential project.
A masterplan was produced by Martha Schwartz Partners (USA) and Arquitectonica. The 500-hectare pro-ject was meant to contain around 15 low-rise neighbourhoods.
Since Sorouh’s merger with Aldar Properties, its current status on the developer’s project pipeline is not known. When announcing its first $1.36bn worth of projects last month, Aldar said it had identified a further 20 sites to bring forward over 5-8 years.
However, given that the initial three were chosen due to their strong existing infrastructure it may be there are other projects within its land bank that will be easier to take forwards.
- Expansion of Makkah Holy Haram
Client: General Presidency of Holy Mosques Affairs Estimated value: $11bn
The ongoing expansion of the holy mosque, or Haram, in Makkah will see the Mataf area enlarged to accommodate 6mn worshippers, while the number of floors will be increased to six.
Sixty-three hotel towers are also planned as part of the development by the Jabal Omar Development Projectcompany. These have been awarded in phases, with four contracts handed out to date between 2011 and 2014.
The expansion project is focussed on three areas: the expansion of the mosque, the development of restrooms, tunnels and other services to ensure the smooth movement of worshippers, and the construction of a district cooling plants, an electricity station, water stations and other services. SBG is the main contractor.
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