Infrastructure & PPPs in Saudi Arabia - Q1 2026 Update

YOG INFRA
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SAUDI ARABIA is accelerating infrastructure and economic transformation through PPPs, large-scale investments, and strategic reforms under Saudi Vision 2030. Key projects across digital infrastructure, transport, energy, and urban development, ranging from USD 88 Mn to over USD 8 Bn, are strengthening connectivity, service delivery, and the Kingdom’s position as a global hub. Major highlights include the USD 2.7 Bn Hexagon Data Centre in Riyadh, an USD 8 Bn housing PPP by NEOM, and a USD 2.75 Bn metro expansion led by the Royal Commission for Riyadh City. The National Center for Privatization & PPP is driving over USD 64 Bn in PPP investments, reinforcing the Kingdom’s push toward diversification, sustainability, and private sector participation.

Read the key developments in Infrastructure and PPPs in Saudi Arabia in our Q1 2026 insight.

JANUARY 2026

SAUDI ARABIA TO BUILD WORLD’S LARGEST GOVERNMENT DATA CENTRE IN USD 2.7 BN DIGITAL INFRASTRUCTURE DRIVE

Saudi Arabia has officially launched an ambitious AED 9.9 Bn (USD 2.7 Bn) digital infrastructure initiative with the announcement of the Hexagon Data Centre, set to be the world’s largest government data centre and a cornerstone project of the Kingdom’s Vision 2030. Classified as Tier IV, the highest international standard for reliability, the Hexagon facility is designed to support the rapid expansion of digital services across the public sector and accelerate Saudi Arabia’s shift towards a data‑driven economy.

The project is part of Riyadh’s commitment to securing technical sovereignty over its national data while boosting economic diversification beyond oil. The centre will deploy advanced technologies to support vital sectors of development, at a time when data has emerged as a primary engine of economic and social transformation globally.

Situated in Riyadh with a total footprint exceeding 30 million square feet and a capacity of 480 megawatts (MW), Hexagon is expected to establish Saudi Arabia as a global hub for cutting‑edge digital infrastructure. The initiative is aligned with the strategic objectives of the Saudi Data and Artificial Intelligence Authority (SDAIA) and the Vision 2030 reform agenda. It comes as the Kingdom is already ranked first globally on several measures, including government strategy in the Global AI Index.

SAUDI ARABIA LAUNCHES MINING INFRASTRUCTURE INITIATIVE

The Ministry of Industry and Mineral Resources has launched the Mining Infrastructure Enablement Initiative in collaboration with the Saudi Authority for Industrial Cities and Technology Zones (MODON), as well as a project to provide treated water in the Jabal Sayid mining area in collaboration with the Saudi Irrigation Organization (SIO), on the margins of the Future Minerals Forum 2026.

These efforts aim to strengthen the competitiveness of the mining sector in the Kingdom by addressing last-mile infrastructure challenges, accelerating the development of mining projects, and establishing shared-use infrastructure, in alignment with Vision 2030.

The Jabal Sayid belt hosts copper and gold deposits and is estimated to contain mineral resources valued at around SAR 192 Bn (USD 51.3 Bn), making it one of the Kingdom’s most significant mining regions.

Through this project, the ministry—working in cooperation with the SIO—will provide more than 20,000 cubic meters of treated water per day to the area via a treated‑water pipeline extending over 75 kilometers. This infrastructure will support up to five potential mining sites while creating opportunities for broader agricultural and municipal use. The potential impact of the project includes preserving groundwater and surface water resources while increasing the use of treated water in line with the National Water Strategy, which enhances the sustainability of mining operations in the region.

NEXTPOWER, ABUNAYYAN SET UP SOLAR JV WITH 12-GW SAUDI TRACKER PLANT

US solar technology firm Nextpower Inc and Saudi water and power group Abunayyan Holding have incorporated their joint venture (JV), Nextpower Arabia, and will build a solar equipment factory in Saudi Arabia to serve the Middle East and North Africa (MENA).

The Riyadh-headquartered JV will establish an advanced manufacturing facility in Jeddah to produce solar tracking systems and related control and yield management solutions for large-scale solar projects. The factory, which is under construction on a 42,000-square-meter site, is expected to open in the Q2 of 2026 and have manufacturing and local supply chain capacity of up to 12 GW per year.

Nextpower and Abunayyan expect to invest around EUR 75.3 Mn (USD 88 Mn) through a combination of equity and public and private debt over the next two years to fund the JV, including the build-out of the manufacturing facility and the development of local engineering and technical capabilities.

RIYADH METRO EXPANSION TO CONNECT RED LINE WITH DIRIYAH GATE

Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has awarded a contract to extend the Red Line of the Riyadh Metro, adding 8.4 kilometres and five new stations to carry the route from King Saud University to the Diriyah Gate development area. The extension of the Red Line, also called the Line 2, is 8.4 km long, of which 1.3km is elevated and 7.1km is underground. It includes five stations, two elevated and three underground. The contract has a total value of USD 2.75 Bn.

The extension is designed to make Diriyah, one of the kingdom’s flagship heritage and tourism projects, more accessible by rail, strengthening links between the capital’s education, business and cultural districts.

Under the expanded network, the journey from STC station to Diriyah is expected to take less than 15 minutes, while trips from the King Abdullah Financial District (KAFD) should come in at under 20 minutes. Travel times are also expected to improve from King Fahd Sports City (under 40 minutes) and from Qasr Al Hokm (under 30 minutes), helping to shift more visitors and commuters towards public transport. The project builds on a metro system that has been rolling out in phases, part of a broader push to reshape mobility in Riyadh and reduce reliance on private cars.

SAUDI ARABIA UNVEILS QUALIFIED BIDDERS FOR 5.3 GW RENEWABLE ENERGY PROJECTS

Saudi Power Procurement Company has announced the qualified bidders for Round Seven of solar and wind projects under the National Renewable Energy Program, led by the Ministry of Energy. The round will deliver a total capacity of 5,300 MW.

The solar PV Independent Power Producer (IPP) projects include Tabarjal II (1,400 MW) in Al Jouf, Mawqaq (600 MW) in Hail, Tathleeth (600 MW) in Aseer, and South Al Ula (500 MW) in Madinah. Wind projects include Bilghah (1,300 MW) and Shagran (900 MW), both located in the Madinah region, with a combined capacity of 2,200 MW.

Key qualified developers across wind and solar projects include Masdar, EDF Power Solutions, Engie, Marubeni Corporation, Power China, Sembcorp Utilities, TotalEnergies Renewables, Korea Electric Power Corporation, and Saudi Electricity Company, among others. The announcement marks continued progress in Saudi Arabia’s renewable energy pipeline, supporting diversification and large-scale private sector participation under the IPP model.

YELLOW DOOR ENERGY TO INSTALL ON-SITE SOLAR FOR SADAFCO UNDER PPA

Saudia Dairy & Foodstuff Company has tapped independent power producer Yellow Door Energy to deploy solar systems for seven of its facilities in Saudi Arabia under a power purchase agreement (PPA).

The solar lease will see the installation of more than 4,700 solar panels across 13 connection points, representing a combined capacity of about 2.9 MWp. The project will benefit SADAFCO’s ice cream and milk factories in Jeddah, its tomato paste factory in Dammam, a regional distribution center in Riyadh, and three depots in Yanbu, Tabuk, and Makkah.

Yellow Door Energy, which has so far sealed five solar leases in Saudi Arabia, will be responsible for the financing, design, construction, commissioning, operation, and maintenance of the solar power plants. Construction is set to start in Q1 2026, and all sites are scheduled to be completed before the end of 2026.

Once operational, the solar systems are expected to generate 4.9 million kWh in the first year of operation, equivalent to reducing carbon emissions by 1,830 metric tons.

SAUDI ARABIA LAUNCHES NATIONAL PRIVATISATION STRATEGY TO EXPAND PUBLIC-PRIVATE PARTNERSHIPS

Saudi Arabia has launched a new National Privatization Strategy to significantly expand the role of Public-Private Partnerships (PPPs) in delivering and operating large-scale projects and advancing economic diversification in line with Saudi Vision 2030.

Led by the National Center for Privatization & PPP (NCP), the strategy provides unprecedented opportunities for long-term foreign direct investment. It aims to enhance the quality and efficiency of infrastructure and public services in the Kingdom, strengthen the role of the private sector in sustainable economic development, enable the government to focus on its legislative, regulatory, and oversight roles, and improve fiscal sustainability.

The National Privatization Strategy aims to increase resident and visitor satisfaction with public services across 18 targeted sectors, create tens of thousands of high-quality jobs, sign more than 220 PPP contracts by 2030, and mobilize over SAR 240 Bn (USD 64 Bn) in private capital investments by 2030.

INFRA AND HUMAIN PARTNER TO BUILD AI INFRASTRUCTURE IN SAUDI ARABIA

Saudi Arabia’s National Infrastructure Fund (Infra) and the kingdom’s global artificial intelligence (AI) company Humain announced a USD 1.2 Bn strategic financing framework agreement to expand AI and digital infrastructure projects in Saudi Arabia.

The framework agreement includes nonbinding financing terms of Humain’s development of as much as 250 megawatts (MW) of hyperscale AI data center capacity to support AI training and inference for the company’s customers around the world. Infra and Humain also agreed to explore the establishment of an AI data center investment platform that facilitates global and local institutional investors’ support of further scaling of Humain’s AI strategy.

Humain, which is a company of Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF), delivers data centers, infrastructure and cloud platforms, AI models, and AI solutions. Infra, which is Saudi Arabia’s lead development financing partner for infrastructure, focuses on achieving the goals of Saudi Vision 2030 and the Saudi Green Initiative.

SOUDAH DEVELOPMENT AND NATIONAL GRID SIGN USD 346 MN AGREEMENT TO POWER SOUDAH PEAKS

Soudah Development, a Public Investment Fund (PIF) company, has entered into a major agreement with National Grid SA, a subsidiary of the Saudi Electricity Company, worth over SAR 1.3 Bn (USD 346.59 Mn), to develop and implement advanced power infrastructure for Soudah Peaks.

This strategic partnership marks a pivotal milestone in the development of Soudah Peaks, an ultra-luxury mountain destination rising 3,015 meters above sea level and reinforces Soudah Development’s commitment to excellence and to delivering unmatched experiences across tourism, hospitality, wellness, retail, and ultra-luxury residential offerings, among others.

Under the agreement, National Grid will engineer and build an integrated power network, including a 380/132 kV primary substation rated at 500 MVA, along with two 132/13.8 kV high-voltage substations. This resilient infrastructure will serve as the core of the project’s utilities framework across all zones, providing dependable electricity to hospitality, residential, commercial, and public assets throughout every phase of development.

MAWANI TO ESTABLISH OFFSHORE STRUCTURES CENTRE AT RAS AL-KHAIR PORT

Mawani, the Saudi Ports Authority, has signed a contract with Singatac Arabia to establish a manufacturing center for offshore structures and platforms at Ras Al-Khair Port, serving the oil and gas industry.

The project includes the construction of warehouses for finished parts, as well as the provision of specialized equipment, welding systems, and cranes to meet the requirements of offshore projects involving marine platforms and structures. The project carries an investment value of SAR 139 Mn (USD 37 Mn) and covers an area of 100,000 square meters.

The project is expected to create more than 500 direct and indirect jobs, contributing to the development of national talent, strengthening the operational capabilities of Ras Al-Khair Port and value-added services, increasing the port’s handling capacity, supporting economic and development activity, and enhancing the contribution of exports to the national economy.

FEBRUARY 2026

SAUDI ARABIA PREQUALIFIES 6 BIDDERS FOR HIGHWAY ROADSIDE SERVICES PPP

Saudi Arabia’s Roads General Authority (RGA), in partnership with the National Center for Privatization (NCP) & Public-Private Partnership (PPP), has released the list of prequalified companies for its One-Stop Station (OSS) Public-Private Partnership (PPP) project, aimed at modernizing roadside services across the Kingdom’s national highway network.

The scheme involves the development of roadside service facilities at multiple locations along RGA’s 73,600-kilometer intercity road network. Planned assets include refueling stations, commercial areas, parking facilities, driver rest zones, vehicle maintenance services, and hospitality amenities. The project will be delivered under a 30-year Design-Build-Finance-Operate-Maintain (DBFOM) model and is being tendered in three waves comprising six packages.

The NCP, the following consortia have been prequalified:

Local consortium of Al-Ayuni Investment & Contracting Co. and Al Jeri
Consortium of Turkey’s IC İçtaş İnşaat with local firms Alghaz Holding and Aldrees
Local consortium comprising Tech Trade, Al Habbas, Fuelax, Markabat, and Naqleen Co.
Local consortium of Petromin and Red Sea Housing Services

In addition, ASYAD and SASCO were prequalified as standalone companies.

Other government entities supporting the program include the Ministry of Energy Saudi Arabia, the Ministry of Finance Saudi Arabia, and the Ministry of Transport and Logistics Services.

SAUDI ARABIA SEEKS PRIVATE SECTOR INVESTMENT FOR 45 TRANSPORT AND LOGISTICS PROJECTS

Saudi Arabia’s Ministry of Investment is offering 45 high-potential investment opportunities across the transportation and logistics sectors to both local and international investors. These opportunities include the management of railway station facilities, truck stops at major city entrances, Public-Private Partnership (PPP) projects for Taif, Abha, Qassim, and Hail International Airports, maritime crew zones, feeder vessel operations, a bus station project for Abha, Khamis Mushait, and Ahad Rafidah, and airport feeder services, among others.

Key investment opportunities include the following:

Facility Management for Railway Stations: Management of railway and metro station facilities, covering soft FM services (cleaning, waste management, and pest control) and complex FM services (HVAC, MEP systems, and infrastructure maintenance).
Truck Stops at Main City Entrances: Development of truck stops at the four major city entrances (Riyadh, Dammam, Jeddah, and Medina), including services for truck drivers and warehouse facilities.
PPP Projects for Four International Airports: Construction of greenfield international airports in Taif, Abha, Qassim, and Hail under the Public-Private Partnership (PPP) model, which is a cooperative arrangement between public and private sectors for funding and managing projects.
Maritime Crew Zones: Establishment of seafarer-focused zones offering a full range of amenities, including hotels, banking services, and food and beverage facilities in major ports.
Feeder Vessels: Development and operation of feeder vessel services to facilitate transshipment to and from growing markets in East Africa and beyond.
One-Stop Stations: A national-level project involving motorway-side service and amenity stations across the Kingdom’s road network.
Outdoor Advertising on Intercity Roads: Outdoor advertising opportunities along intercity roads under a Build-Operate-Transfer (BOT) model.
Bus Stations: Development of bus stations in three cities—Abha, Khamis Mushait, and Ahad Rafidah—to support urban public transport services.
Airport Road Feeder Services: Establishment of dedicated air cargo trucking services between Riyadh, Dammam, and Jeddah airports and smaller airports to support the growth of air freight in the Kingdom.
Private Aircraft Hangars: Development and operation of hangars for private aircraft at major airports across the Kingdom to address existing capacity gaps.
Maintenance, Repair, and Operations (MRO): Development of MRO facilities to serve domestic demand and the wider GCC region.
Automotive Logistics Zones: Development of logistics zones near automotive manufacturing hubs for the distribution of finished vehicles, spare parts, and components.

CORNEX TO DELIVER 5.5 GWH OF ENERGY STORAGE TECH TO SAUDI ARABIA

Cornex New Energy Co Ltd has entered into a strategic cooperation agreement for the delivery of 5.5 GWh of advanced energy storage products in Saudi Arabia, deepening its presence in the Middle East and advancing its global expansion. The collaboration was sealed with Al Rajhi Electrical and GREENGRID in Dammam, Saudi Arabia.

Under the deal, the Chinese firm will supply the energy storage technology to Al Rajhi Electrical over the next three years, with GREENGRID acting as "a vital link" to ensure seamless supply chain services. Additionally, Cornex will apply its R&D and manufacturing expertise to provide comprehensive technical support for local factory construction in the Kingdom. Together with our partners, we are dedicated to building a localised energy ecosystem and contributing to a greener, sustainable future.

ASMO, ARCAPITA TO BUILD 1.4 MN SQM LOGISTICS FACILITY IN SPARK

CASMO, a joint venture between Saudi Aramco and DHL Supply Chain, partnered with Arcapita Group Holdings Limited to establish a 1.4 million-square-meter purpose-built logistics facility in King Salman Energy Park (SPARK). The project will support the Kingdom’s logistics and supply chain development and will be delivered through a forward funding transaction.

Under this partnership, Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year occupational lease. Designed for large-scale industrial operations, the facility will include a 43,000 square meter temperature-controlled grade-A logistics warehouse, over 3,000 square meters of offices and staff facilities, 5,300 square meters of dedicated chemical storage space, and a 1.2 million square meter open yard.

The investment reflects the shared commitment of parties to developing resilient, scalable, and future-ready institutional-grade logistics infrastructure in the Kingdom. This development reflects the strategic intent behind ASMO’s mandate and reaffirms its role in enabling resilient and future-ready supply chains. By investing in long-term infrastructure and strategic partnerships, ASMO is supporting the Kingdom’s industrial ambitions and contributing to the development of integrated logistics capabilities that serve both national priorities and global markets.

TENDER TO BE ISSUED FOR USD 8 BN HOUSING PPP PROJECT IN SAUDI ARABIA

Saudi Arabia’s Neom has prepared to issue the Request for Proposals (RFP) for a contract to develop the second wave of its Public-Private Partnership (PPP) housing deals for worker accommodation in Tabuk, Saudi Arabia.

The second-phase community village initiative encompasses the development of up to 20 villages, each consisting of approximately 10,000 accommodation units. The budget for each village is anticipated to range from USD 400 Mn to USD 450 Mn, resulting in a total project value exceeding USD 8 Bn. Each village boasts a built-up area of 240,000 square meters

To meet temporary accommodation needs during Neom's construction period, sustainable relocatable modular units are being built, designed for repurposing once the communities are no longer necessary. The communities will feature various amenities, including multi-purpose sports fields, cricket ovals, tennis courts, volleyball courts, basketball courts, swimming pools, and entertainment venues.

MARCH 2026

SAUDI ARABIA LAUNCHES PPP TENDER FOR MIXED-USE SIKKAH AL HADID PROJECT IN MADINAH

Saudi Arabia’s National Centre for Privatization (NCP) & Public-Private Partnership (PPP) announced that Al Madinah Regional Municipality, in collaboration with the Ministry of Municipalities and Housing, launched the Expressions of Interest (EOI), Request for Qualification (RFQ), and Request for Proposal (RFP) stages for the Sikkah Al Hadid joint development project.

The project will be implemented under a Public-Private Partnership (PPP) model using a Build-Own-Operate-Transfer (BOOT) contract with a concession period of 50 years. The Sikkah Al Hadid project involves the redevelopment of an 84,657-square-meter government-owned site located west of Al Madinah Al Munawarah into an integrated mixed-use destination.

The site allows for buildings of up to 20 floors and benefits from strong road connectivity, providing easy access for residents, visitors, and businesses. The development is expected to complement nearby residential projects being developed by National Housing Company (NHC) and support population growth within a five-kilometer radius.

SAUDI'S PRINCE NAIF BIN ABDULAZIZ INTERNATIONAL AIRPORT EOI TENDER ATTRACTS 89 FIRMS

The MATARAT Holding, in collaboration with the National Center for Privatization & PPP (NCP), has received Expressions of Interest (EOIs) from 89 local and international entities for the development of the Prince Naif bin Abdulaziz International Airport in the Qassim Region of Saudi Arabia. The project is being planned under a Public-Private Partnership (PPP) model aimed at upgrading and expanding the airport’s infrastructure and operations.

A total of 55 Saudi companies and 34 international firms expressed interest in the project. These companies represent different roles in the aviation infrastructure sector, including 19 developers, 33 EPC contractors, 13 operators, 11 advisors, 9 equity investors, and 3 financial institutions.

The project involves the development and long-term operation of the airport under a 30-year concession, which includes the phases of design, financing, construction, transfer, operation, and maintenance. The redevelopment aims to enhance passenger capacity, modernize airport facilities, and improve airside infrastructure such as runways, taxiways, and aprons to meet future demand.

Located about 20–25 km southeast of Buraidah, the capital of the Qassim region, the airport project is expected to support Saudi Arabia’s growing aviation sector and strengthen the country’s logistics network. The development aligns with the Kingdom’s Vision 2030 strategy, which focuses on expanding transportation infrastructure and positioning Saudi Arabia as a global logistics hub connecting three continents.

EVIQ IN DEAL TO SET UP EV CHARGING INFRASTRUCTURE WITHIN NEW MURABBA IN SAUDI

Saudi Arabia's New Murabba Development Company has signed a strategic agreement with Electric Vehicle Infrastructure Company (Eviq) for the deployment of EV charging infrastructure across key assets within its giga-project, New Murabba, thus supporting the kingdom’s transition toward sustainable mobility.

A 19-sq-km urban destination, the New Murabba will be built around the concept of sustainability and offer a unique living, working, and entertainment experience. Once completed, New Murabba will boast more than 100,000 residential units, over 10,000 hotel room keys, schools, hospitals, and healthcare facilities.

At the heart of the project is the iconic, technological, and cultural wonder, The Mukaab, a premium mixed-use landmark that integrates retail, cultural, tourism, hospitality, residential, commercial, and recreational components. Designed as one of the world’s largest built structures, the 247-acre Mukaab will anchor a new mixed-used modern downtown development.

RUA AL HARAM AL MAKKI SIGNS MOU WITH ALPHA DEVELOPMENT TO ADVANCE URBAN PROJECTS IN MAKKAH

Rua Al Haram Al Makki Company, a PIF company, has signed a Memorandum of Understanding (MoU) with Alpha Development to explore and develop qualitative urban projects and initiatives in Makkah across both the short and long term. The collaboration will focus on innovation-driven and sustainable developments, including initiatives within the King Salman Gate Project. The agreement aims to advance integrated urban solutions that contribute to the continued transformation of the holy city.

Through the partnership, the two companies will explore opportunities to develop mixed-use projects designed to set new benchmarks in urban development and hospitality services. These initiatives are expected to enhance the quality of life for residents of Makkah while enriching the experience of millions of worshippers who visit the city each year.

The initiative aligns with the objectives of Saudi Vision 2030, which aims to enhance the Kingdom’s infrastructure, urban development, and hospitality sectors while improving the overall experience for visitors to the holy cities. RUA AlHaram AlMakki, a PIF company, is a Saudi master developer dedicated to delivering projects surrounding AlMasjid AlHaram in Makkah. The company aims to enrich Makkah’s infrastructure to the highest international standards, catering to the needs of the global Muslim community while preserving the city’s rich heritage.

List of key transaction- Saudi Arabia Q1 2026

Source: YOG INFRA, Public Information

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