Infrastructure & PPPs in Saudi Arabia - Q2 2025 Update
- YOG INFRA
- 3 days ago
- 14 min read
SAUDI ARABIA is developing large-scale infrastructure projects across various sectors with help of a strong and enabling framework for private sector participation through PPPs. We see infrastructure developments in renewable/ clean energy transition (including BESS), water sector, waste management, transport and urban infra sector. The country continues to attract global infrastructure developmers and financial institutions to support these projects and we are set to see some of the first-of-kind PPP projects, which will act as benchmark in near future.
Read the key developments in Infrastructure and PPPs in Saudi Arabia in our Q2 2025 insight.
APRIL 2025
JINKOSOLAR TO SUPPLY 1.75 GW OF TOPCON MODULES FOR SOLAR PV PROJECTS IN SAUDI ARABIA
JinkoSolar announced it will supply 1.75 GW of N-type TOPCon modules to two major photovoltaic (PV) projects in Saudi Arabia: AHK2 (500 MW) and MAS (1,250 MW), developed under the Fifth Round Renewable Energy Program by EDF Renewables and SPIC Huanghe Hydropower Development. Contracted by PowerChina Guizhou Engineering Corporation, this is JinkoSolar’s second major collaboration with EDF Renewables following the 1.8 GW PV3 Al Ajban project in Abu Dhabi. The projects highlight JinkoSolar’s role in advancing PV combined with desert restoration and reinforce China’s leadership in climate governance through technological innovation.
Located in Medina and Ha’il Provinces, AHK2 and MAS have been identified as strategic projects under Saudi Arabia’s “Vision 2030” and the National Renewable Energy Program (NREP). Both projects chose JinkoSolar’s N-type TOPCon Tiger Neo bifacial modules for their high efficiency, low degradation, and resilience against harsh conditions such as high irradiance, extreme temperatures, and sandstorms. These modules ensure stable and reliable power generation while withstanding environmental challenges.
Empirical studies show that the Tiger Neo modules’ bifacial rate of up to 85% can boost total energy yield by around 38%, especially in areas with high ground reflectivity. Beyond supplying clean electricity, the projects are expected to create microclimate benefits—lowering ground temperatures, improving soil conditions, and supporting vegetation recovery—offering a replicable model for energy transition and desertification control in the Middle East.
SEC LAUNCHES SAR 6.73 BN BESS PHASE 2 IN SAUDI ARABIA
Saudi Electricity Company (SEC), under the supervision of Ministry of Energy, has commenced Phase 2 of Battery Energy Storage System (BESS) development, with a total investment exceeding SAR 6.73 Bn (USD 1.79 Bn). This phase, with a combined storage capacity of 2.5 GW, comprises five battery storage sites located in Riyadh, Al-Qaisumah, Al-Jawf, Al-Dawadmi, and Rabigh.
The initiative forms part of National Renewable Energy Program (NREP), aiming to integrate approximately 50% renewable energy into the country’s electricity mix by 2030. Contracts for this phase have been awarded to Chinese group BYD Auto Company and Saudi utility major Alfanar Projects, who will deliver 500 MW/2,000 MWh storage systems at each of the five locations. The BESS systems are expected to enhance the reserve margin across operational areas, improve grid reliability, increase flexibility in demand response, and optimise energy distribution efficiency. The design allows the rapid transition from standby to operational mode, significantly strengthening power system resilience and reducing operational costs. The implementation of this phase will ensure full integration with the national grid while complying with regulatory standards and safety protocols.
SHANGHAI ELECTRIC MAKES 2 GW PV PACT WITH MASDAR
Shanghai Electric Group has signed a cooperation agreement with Masdar for the Al Sadawi Solar Photovoltaic Project. The total installed capacity of the project is expected to reach 2,000 megawatts (MW). This agreement is part of Saudi Arabia’s National Renewable Energy Program under its fifth round of bidding.
The Al Sadawi solar project will follow the Independent Power Producer (IPP) model. Under this model, the consortium led by Masdar, along with GD Power from China and Korea Electric Power Corporation (KEPCO), will build, own, and operate the facility. The project will be in the Sadawi region of Saudi Arabia. The agreement includes a long-term power purchase arrangement with Saudi Power Procurement Company (SPPC).
Shanghai Electric will contribute to technology and engineering support during the development and construction stages of the solar plant. The company confirmed this project as part of its global clean energy portfolio expansion.
SEC RECEIVES BIDS FOR 1,000 MW BATTERY ENERGY STORAGE SYSTEM PROJECTS
Saudi Electricity Company (SEC) recieved bidders' proposals for Battery Energy Storage Systems (BESS) having Combined Capacity of 1,000 MW. The Project location is in Tabuk and Hail in western region and central region of Saudi Arabia.
Following is the list of bidders who submitted the lowest Price.
Supply of BESS for Tabuk – 1 BSP: Xiamen Hithium Energy Storage – SAR 671.70 Mn (USD 179.07 Mn)
Supply of BESS for Hail 2 BSP: Xiamen Hithium Energy Storage – SAR 686.35 Mn (USD 182.99 Mn)
Construction of BESS for Tabuk – 1 BSP: Alfanar Projects – SAR 436.46 Mn (USD 116.36 Mn)
Construction of BESS for Hail 2 BSP: Alfanar Projects – SAR 441.01 Mn (USD 117.58 Mn)
Maintenance of BESS for Tabuk -1 and Hail 2 BSP: Xiamen Hithium Energy Storage – SAR 6.10 Mn (USD 1.62 Mn)
The awarding of the above projects will be subject to successful evaluation of bidder’s proposals. Battery Energy Storage System (BESS) plant will provide Load Shifting as main application while providing Black start, Frequency regulation and voltage support application through a selectable part of the system’s total capacity for the network at their respective Point of Interconnection (POI).
MAY 2025
SAUDI’S MOD, NCP LAUNCH TENDERING PROCESS FOR RIYADH ADMINISTRATIVE OFFICE PPP PROJECT
Saudi Arabia’s Ministry of Defense (MoD), in collaboration with the National Centre for Privatisation (NCP) & Public-Private Partnership (PPP) model, launched the Expression of Interest (EOI) and Request for Qualification (RFQ) process for the Riyadh Administrative Office Public-Private Partnership (PPP) model Project.
The project, which will be implemented under a Design, Build, Finance, and Maintain (DBFM) contract, will have a contract term of 27.5 years, after which the facilities will be transferred to the Ministry.
Located in North Riyadh, the administrative complex will span approximately 52,793 square metres, accommodate 4,500 employees and provide 3,200 parking spaces. The selected private sector partner will be responsible for the design, construction, and long-term maintenance of the facilities and supporting infrastructure, as well as coordination with stakeholders and obtaining all necessary permits.
SIRC SIGNS DEAL TO ADVANCE RECYCLING INFRASTRUCTURE PROJECTS IN SAUDI ARABIA
The Saudi Investment Recycling Company (SIRC), a wholly owned subsidiary of the Public Investment Fund (PIF), has signed a memorandum of understanding (MoU) with the US-based EIG Management Company, LLC. The MoU aims to enhance cooperation in investment and diversify funding sources to develop and operate infrastructure projects related to the circular economy and waste management in the Kingdom of Saudi Arabia.
The MoU includes joint efforts to develop critical waste management projects. The two sides intend to co-finance and establish advanced facilities to produce refuse-derived fuel (RDF) from waste to be used as an alternative fuel for kilns in heavy industries, starting in Riyadh as the initial location, with projected investments reaching approximately USD 375 Mn. Additionally, the MoU outlines plan to establish and operate specialized facilities for processing end-of-life tires into green energy products, such as pyrolysis oil and recycled carbon black, with investments estimated at USD 250 Mn.
CHINA ENERGY COMMISSIONS REGION’S LARGEST SOLAR POWER PLANT IN SAUDI ARABIA
China Energy has officially commissioned the Shuaibah Solar Power Plant in Jeddah, Saudi Arabia—now recognized as the largest solar power facility in the Middle East with a total capacity of 2.6 GW.
The landmark project is expected to produce more than 282 billion kilowatt-hours of electricity over a projected 35-year operational period. It features cutting-edge photovoltaic technology and automated systems, setting a new benchmark for clean energy infrastructure in the region.
The solar plant plays a pivotal role in advancing Saudi Arabia’s Vision 2030 by significantly reducing the country’s dependency on fossil fuels. It is estimated to offset nearly 20 million tons of carbon dioxide emissions annually.
Developed through a strategic international collaboration, the project is a joint venture between ACWA Power, the Water and Electricity Holding Company (Badeel), and China Energy. The commissioning marks a key milestone in sustainable development and highlights the growing role of global partnerships in driving clean energy transformation in the Gulf.
MAWANI, SULTAN LOGISTICS PARTNER ON SAR 200 MN DAMMAM LOGISTICS PARK
The Saudi Ports Authority (Mawani) and Sultan Logistics signed an agreement to develop a logistics park at King Abdulaziz Port in Dammam, representing an investment of up to SAR 200 Mn (USD 53.32 Mn). The contract establishes a new 197,000 square meter logistics park designed to boost the port's competitiveness, enhance operational efficiency, and elevate the quality of logistics services.
The project aligns with Mawani's strategic initiatives under the National Transport and Logistics Strategy, which aims to establish logistics parks both within and outside Saudi Arabia's ports. The broader goal is to solidify the Kingdom's position as a leading global logistics hub, provide advanced logistics services, drive national development, and support the economic and social objectives of Saudi Vision 2030. The logistics park will feature 35,000 square meters of warehousing, administrative offices, and a dedicated yard for storing and maintaining both dry and refrigerated containers. A re-export zone will also be included, further enhancing logistics capabilities and supporting commercial activity with high operational standards.
NWC COMMENCES USD 613 MN WORTH PROJECTS IN JEDDAH
The National Water Company (NWC) has launched 15 development projects worth over SAR 2.3 Bn (USD 613 Mn) to improve wastewater services and operational efficiency, benefiting more than 1.3 million people. A key initiative is the Eastern Tunnel Project in Jeddah, which involves constructing a 14-kilometer sewage pipeline from east of Haramain Road to the airport’s Lift Station 2. Costing over SAR 774 Mn (USD 206.35 Mn), it uses advanced tunneling techniques to minimize traffic disruption and will serve around 1.1 million beneficiaries across several districts.
Additionally, NWC is executing the airport sewage lifting project with a capacity of 611,000 m³ per day, valued at over SAR 915 Mn (USD 243.95 Mn), to improve environmental services and expand coverage in Jeddah’s eastern districts. The company has also started a sewerage project in Samer districts 1–4, totaling 17.8 kilometers and serving 20,000 people at a cost of SAR 54 Mn (USD 14.40 Mn). To further expand the wastewater network, NWC is implementing 10 feeder sewer line projects across districts such as Al Waha, Al Shati, Al Nahda, and Al Zahraa.
Moreover, NWC has initiated two surface water lowering projects in Bahra and other districts, covering 238 kilometers and costing over SAR 620 Mn (USD 165.29 Mn), benefiting more than 184,000 residents. The company highlighted that these efforts align with Jeddah’s rapid urban growth and the Kingdom’s Vision 2030, aiming to improve service quality, expand service coverage, and enhance operational efficiency in the water and wastewater sectors.
ARAMCO PIONEERS WORLD-FIRST RENEWABLE ENERGY STORAGE SYSTEM FOR GAS OPERATIONS
Aramco, one of the world’s leading integrated energy and chemicals companies, has achieved a world-first by successfully commissioning a megawatt (MW)-scale renewable energy storage system to power gas production activities.
It is the first deployment globally of an Iron-Vanadium (Fe/V) flow battery as a backup solar power source for gas well operations. Located in Wa’ad Al-Shamal, in western Saudi Arabia, the 1-MW/hour flow battery system is based on Aramco’s patented technology and was developed in collaboration with Rongke Power (RKP), a global leader in flow batteries.
It can support up to five wells over its projected 25-year lifespan, offers a robust alternative to existing solar energy solutions, and can handle variable power demands efficiently and cost-effectively. It is specifically engineered to withstand the hot climate of Saudi Arabia and achieve optimal performance under extreme weather conditions, setting it apart from other vanadium flow batteries on the market.
Flow batteries store energy in liquid electrolytes separately from battery cells, and electrolytes pumped into the cell convert chemical energy into electricity. In addition to providing energy independence, flow batteries can be repeatedly discharged and recharged with minimal capacity loss. They also reduce fire risks compared to other types of batteries, while their modular design makes them easier and less costly to maintain.
SUMOU REAL ESTATE COMPANY SIGNS USD 181.3 MN RESIDENTIAL PROJECT IN MAKKAH
Sumou Real Estate Company, Saudi Arabia announces the signing of development agreement of Areem Makkah project with National Housing Company to build residential units (villas). The value of the contract is SAR 680 Mn (USD 181.3 Mn).
As part of the contract, the company will build residential units (villas) on the lands allocated to Sumou Real Estate Company in area no (O2) within Makkah Gate project in Makkah City, with area of 231,637.22 m2. The duration of the contract is 42 months from the effective date.
The project is expected to have a positive impact on the company’s results after the start of off-plan sales and construction. National Housing Company (NHC), the investment arm of the Ministry of Municipal and Rural Affairs and Housing, is the master developer of Makkah Gate.
LEAPTING’S ROBOTS TO INSTALL MODULES AT 3.5-GW SAUDI SOLAR PROJECT
Chinese tech company Leapting Technology will deliver its unmanned intelligent robot solutions for the construction of 3.5 GW of solar parks by Indian engineering major Larsen & Toubro (L&T), in Saudi Arabia.
Leapting will deploy multiple automatic navigation photovoltaic (PV) module mounting robots during the construction process. The robots will install modules at two infrastructure sites within a single complex that will cover tens of millions of square metres. The robots will help stick to the construction timeline, which has been impacted by the lack of human resources and the extreme working environmental conditions at temperatures reaching up to 50 degrees Celsius.
The robots have passed all testing and packaging procedures at Leapting’s factory in Huzhou and will be shipped to the Saudi Arabian location in May. The partnership with L&T follows the successful completion of Leapting’s first commercial PV module deployment with an AI-driven robot in Australia. According to the Chinese company, its module mounting robots have a three-to-five-fold higher efficiency as compared to traditional manual operations and achieve a 25% reduction of the overall construction time.
SAUDI ARABIA'S PIF AND HYUNDAI MOTOR COMPANY BREAK GROUND ON AUTOMOTIVE MANUFACTURING FACILITY IN KAEC
Hyundai Motor Manufacturing Middle East (HMMME), a joint venture between Public Investment Fund (PIF) and Hyundai Motor Company, hosted its groundbreaking ceremony in the recently announced King Salman Automotive Cluster within King Abdullah Economic City (KAEC). The ceremony is a significant milestone that marks another step in the development of the automotive industry in the Kingdom of Saudi Arabia.
PIF owns a 70% stake in HMMME, with Hyundai holding the remaining 30%. The manufacturing plant, Hyundai's first facility in the Middle East, will roll out its first vehicle by the fourth quarter of 2026 and targets an annual production of 50,000 vehicles. This will include both internal combustion engine (ICE) and electric vehicles (EV).
HMMME is building a foundation for a new era of automotive manufacturing in Saudi Arabia. Harnessing the skills of the local workforce, the new manufacturing plant will create thousands of jobs and allow for knowledge transfer and skills development. The localization of Hyundai's vehicles will accelerate the growth of Saudi Arabia's automotive and mobility ecosystem and pave the way for a new industrial future.
This partnership is one in a series of PIF initiatives establishing Saudi Arabia as a global automotive player. Together, these initiatives are driving transformation in the sector, and boosting domestic manufacturing capabilities, infrastructure, and supply chains.
JUNE 2025
MOMAH LAUNCHES EOI PHASE FOR KING FAHD SUBURB BOULEVARD IN DAMMAM PROJECT
The Ministry of Municipalities and Housing (MOMAH), in collaboration with Ashraq Development Company — the development arm of the Eastern Province Municipality — and the National Center for Privatization & PPP (NCP), is pleased to announce the launch of the Expression of Interest (EOI) phase for the King Fahd Suburb Boulevard in Dammam Project. This Public-Private Partnership (PPP) project will be delivered under a Design, Build, Finance, Operate, Maintain, and Transfer (DBFOMT) model, with a contract term of 30 years.
Spanning approximately 1,000,000 m², the project will be developed in two phases, with a balanced allocation of a development plots, green spaces, and infrastructure facilities. The project also features a 4 km integrated mixed-use zone along a central boulevard and linear parklands, forming part of a larger 7.3 km corridor. Leveraging its strategic location and potential to deliver a unique urban experience, the private sector partner will be responsible for developing and operating a comprehensive mixed-use environment. This will include leisure and recreational facilities, public parks, entertainment venues, retail outlets, office spaces, hospitality zones, pedestrian walkways, and road networks—all designed to foster a vibrant and inclusive community in the Eastern Province.
The project is poised to redefine the urban landscape of the King Fahd Suburb in Dammam, advancing Saudi Arabia’s Vision 2030 goals to enhance quality of life, drive sustainable development, and increase private sector participation in municipal infrastructure.
SAUDI PORTS AUTHORITY SIGNS USD 586 MN PRIVATISATION CONTRACTS FOR CARGO TERMINALS
The Saudi Ports Authority (Mawani), in partnership with the National Centre for Privatisation and Public- Private Partnership (PPP) model, has signed build-operate-transfer (BOT) contracts worth more than SAR 2.2 Bn (USD 586 Mn) for multipurpose cargo terminals at eight major ports across the Kingdom.
Under the 20-year concession agreements, Saudi Global Ports (SGP), a part of Singapore-headquartered PSA group will develop, operate, and manage terminals on the East Coast, including:
King Abdulaziz Port in Dammam
Jubail Commercial Port
King Fahd Industrial Port in Jubail
Ras Al Khair Port
SGP currently operates both deep sea container terminals at King Abdulaziz Port Dammam. On the West Coast, Red Sea Gateway Terminal (RSGT) will handle operations at:
Jeddah Islamic Port
Yanbu Commercial Port
King Fahd Industrial Port in Yanbu
Jazan Port
Red Sea Gateway Terminal (RSGT), which operates the container terminal at Jeddah Islamic Port, is a partnership between the Red Sea Gateway Terminal of Saudi Arabia and the Malaysian Mining Company (MMC)
The contracts include investments in modernising terminal infrastructure and equipment. At King Fahd Industrial Port in Yanbu, upgrades will feature rubber-tyred gantry (RTG) and ship-to-shore (STS) cranes, reach stackers, and new trailer fleets, which is expected to improve truck turnaround times, reduce ship dwell periods, and enhance overall cargo handling efficiency.
VCM AND ENOWA SIGN DEAL TO DELIVER OVER 30 MN TONS OF CARBON CREDITS
The Voluntary Carbon Market (VCM), a carbon credit company established by the Public Investment Fund (PIF) and Saudi Tadawul Group, and Enowa, the energy and water subsidiary of NEOM, have announced a long-term agreement to facilitate the delivery of approximately 30 million tons of carbon credits within this decade. This agreement supports Saudi Arabia's net-zero ambitions and will help ENOWA offset its emissions as it develops renewable energy infrastructure for NEOM. The scale and duration of the agreement mark a significant milestone in VCM’s ambition to create a thriving voluntary carbon market in the region.
The deal will involve delivering high-integrity carbon credits to Enowa from climate action projects worldwide, with most projects based in the Global South and transacted on the VCM platform. The long-term agreement between VCM and Enowa to facilitate the delivery of over 30 million tons of carbon credits by 2030 marks a significant moment in Saudi Arabia’s journey to drive growth in global voluntary carbon markets. It helps Enowa compensate for today’s emissions while creating sustainable infrastructure for the long term.
VCM was established by PIF and the Saudi Tadawul Group in October 2022. The fund owns 80% of the company, while the group owns a 20% stake. Through its mandate to realize NEOM, Enowa serves as a blueprint for sustainable urban development worldwide, enhancing the planet's future while promoting economic diversification and improving quality of life.
SAUDI ARABIA’S NEOM GREEN HYDROGEN PROJECT HITS 80% COMPLETION, PAVING THE WAY FOR WORLD’S LARGEST CARBON-FREE FUEL FACILITY BY 2026
NEOM Green Hydrogen Company (NGHC) has announced that construction on its pioneering green hydrogen project at Oxagon, located in Saudi Arabia’s northwestern region, has reached 80% completion. This includes significant progress across all key project areas: the green hydrogen production plant, wind garden, solar farm, and transmission infrastructure.
NGHC is a strategic joint venture formed by Saudi utility giant ACWA Power, U.S.-based industrial gas company Air Products, and NEOM, the developer behind Saudi Arabia’s ambitious smart city project. Once fully operational by the end of 2026, the facility is expected to become the world’s largest green hydrogen plant, capable of producing up to 600 tonnes of carbon-free hydrogen daily.
The company stated that installation of vital equipment is currently underway. This includes wind turbines, hydrogen storage vessels, electrolysers, cold boxes, and pipe racks—critical components needed to bring the plant into operation.
The project is powered by a combination of solar and wind energy, with 4 GW of clean energy capacity targeted for completion by mid-2026. The first shipments of green ammonia—a transportable derivative of hydrogen—are projected to begin in 2027.
DP WORLD, MAWANI INAUGURATE USD 800 MN TERMINAL TO BOOST GLOBAL TRADE CONNECTIVITY
DP World and the Saudi Ports Authority (Mawani) have launched the South Container Terminal at Jeddah Islamic Port, as part of DP World’s SAR 3 Bn (USD 800 Mn) expansion plan aimed at strengthening Saudi Arabia’s role as a key trade hub linking Asia, Africa, and Europe. The three-year project has transformed the terminal into one of the region’s most advanced and sustainable facilities, more than doubling its capacity from 1.8 million TEUs to 4 million TEUs, with a future target of 5 million TEUs under a 30-year Build-Operate-Transfer (BOT) agreement.
Scheduled for completion by Q2 2026, the terminal’s modernization integrates smart systems and automation to boost operational efficiency, reducing gate transaction times from two minutes to just 10 seconds. The upgrade includes deploying automated yard cranes and expanding quay cranes from 14 to 17 by the end of 2025, eventually reaching 22. Additionally, DP World is building Saudi Arabia’s largest port-based reefer inspection facility, capable of handling up to 75 refrigerated containers simultaneously.
The terminal features a total quay length of 2,150 meters with an 18-meter depth, accommodating up to five ultra-large container vessels at once. Adjacent to the terminal, DP World is developing the 415,000 square meter Jeddah Logistics Park, offering warehousing, distribution, and freight forwarding services—supporting Vision 2030’s goals of trade growth and economic diversification.
List of key transaction- Saudi Arabia Q2 2025
Source: YOG INFRA, Public Information
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