Infrastructure & PPPs in Saudi Arabia - Q2 2026 Update
- YOG INFRA
- Aug 6
- 14 min read
SAUDI ARABIA continued to advance Saudi Vision 2030 through major investments, PPPs, and private-sector participation across energy, transport, logistics, healthcare, digital infrastructure, and urban development. The Kingdom launched projects worth over USD 10 Bn, including the USD 3 Bn Rabigh 2 Power Plant, USD 2.61 Bn Riyadh Road Development Programme, USD 2 Bn data centre investment, and USD 1.01 Bn healthcare PPP. It also accelerated renewable energy deployment through battery storage, wind, and green hydrogen projects, while expanding airports, ports, municipal infrastructure, and mixed-use developments to strengthen economic diversification, sustainability, and long-term private sector participation.
Read the key developments in Infrastructure and PPPs in Saudi Arabia in our Q2 2026 insight.
APRIL 2026
SAUDI ARABIA STARTS QUALIFICATION PROCESS FOR SIX BESS PROJECTS
The Saudi Power Procurement Company (Principal Buyer) has commenced the qualification process for the second group of Battery Energy Storage System (BESS) projects, consisting of a total of six projects. The process is being carried out under the supervision of the Ministry of Energy.
Each project will be developed under a build-own-operate (BOO) model, with the winning consortium holding 100% equity in the special purpose vehicle (SPV) set up to develop and operate the Independent Storage Provider (ISP) project. Each SPV will enter into a storage services agreement with the principal buyer.
The combined capacity of Group 2 BESS projects is 3,000 MW, for a 4-hour storage duration (12,000 MWh), comprising the following projects:
1. 500MW / 2000MWh Samha BESS ISP, Site Location: Qassim Region.
2. 500MW / 2000MWh Al-Leeth BESS ISP, Site location: Makkah Region.
3. 500MW / 2000MWh Al-Henakiyah BESS ISP, Site location: Madinah Region.
4. 500MW / 2000MWh Khulis BESS ISP, Site location: Makkah Region.
5. 500 MW / 2000 MWh Sadawi BESS ISP, Site location: Eastern Region.
6. 500MW / 2000MWh Ashyrah BESS ISP, Site location: Makkah Region.
As part of the current qualification process for energy storage projects, the Saudi Power Procurement Company has opened qualification for solar PV, wind, and future energy storage projects to be tendered at a later stage.
ACWA SIGNS USD 3 BN PPA FOR RABIGH 2 POWER PLANT EXPANSION
Acwa has announced the signing of a power purchase agreement (PPA) with the Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant Expansion Project. The contract value of SAR 11.5 Bn (USD 3 Bn), the project encompasses the development of a gas-fired combined cycle power plant located in the Makkah Region of Saudi Arabia, with a total capacity of 2,313.5 MW and readiness for the future installation of a carbon capture unit.
Acwa will hold a 40% equity stake in the project, which is designed to enhance the reliability and sustainability of electricity supply in the Kingdom, in line with the objectives of Saudi Vision 2030 and ongoing efforts to develop and modernize the energy sector.
The project is considered one of the largest power generation projects in the Kingdom and includes the development, financing, construction, ownership, and operation of a gas-fired combined cycle power plant. The agreement also includes the development, financing, and expansion of a 380 kV substation to support grid integration and network stability.
GO ENERGY AND SARCO ADVANCE STRATEGIC GREEN AMMONIA PROJECT IN SAUDI ARABIA
Go Energy and SARCO Advance Strategic Green Ammonia Project in Saudi Arabia. Go Energy, a US-based company, has reinforced its position as a key player in the global energy transition through a landmark joint venture with SARCO, part of ETHRAA Holding, to develop a large-scale green ammonia project in Saudi Arabia.
The partnership, structured through the previously announced Clean Energy company vehicle, marks a significant milestone in the kingdom's ambition to become a global hub for low-carbon fuels. Located in Jazan, the project will integrate a green ammonia production facility with a hybrid renewable energy platform, including a solar plant and an onshore wind farm exceeding 600 MW of installed capacity, along with grid interconnection infrastructure.
The production is primarily intended for export to key demand centres in Europe and Asia, including Japan and South Korea, where demand for clean hydrogen derivatives is rapidly increasing. With total investment expected to surpass USD 900 Mn, the project underscores Saudi Arabia’s emergence as a leader in large-scale hydrogen and ammonia initiatives. The joint venture combines Go Energy’s international project development expertise with SARCO’s strong financial backing.
LADUN TO BUILD USD 67 MN MIXED-USE PROJECT IN RIYADH
Ladun Investment Company (Ladun) has signed a preliminary agreement with Asbar Al Usool Company (Asbar Capital) to study and develop a mixed-use project in the Sports Boulevard development in Riyadh. The project land, spanning 16,800 square metres (sqm) in Al-Munsiyah district, is owned by the SAR 1 Bn (USD 267 Mn) Asbar Al-Munsiyah Fund.
The estimated construction cost will exceed SAR 250 Mn (USD 66.63 Mn), excluding land value, development fees, and value-added tax. Ladun will act as the developer for the fund, providing services including feasibility studies, design management, execution, marketing and sales. The project will include a hotel building, luxury residential units and retail outlets.
SADR, SAUDI CERAMICS SIGN USD 3.98 MN WAREHOUSE CONTRACT
Sadr Logistics Co. signed a contract with Saudi Ceramics Co. to supply and install advanced storage systems for the company’s central warehouses in Riyadh, with a total value of SAR 14.94 Mn (USD 3.98 Mn), including VAT.
The contract covers the design, manufacturing, supply, and installation of integrated racking systems and automated storage solutions aimed at improving operational efficiency and increasing warehouse capacity. The six-month project is expected to reflect the company’s financial results in the Q3 and Q4 of 2026.
The contract was concluded under normal commercial terms without preferential advantages, adding that it will be submitted to the general assembly for approval in line with regulatory requirements for related-party transactions.
MAY 2026
SAUDI ARABIA LAUNCHES PPP TENDER FOR REHABILITATION OF 50 PUBLIC PARKS
Saudi Arabia’s Ministry of Municipalities and Housing (MOMAH) and National Centre for Privatisation & PPP (NCP) have launched the Expression of Interest (EOI) and Request for Qualification (RFQ) phase for a Public-Private Partnership (PPP) project covering rehabilitation, operation and maintenance of public parks.
The project ‘Rehabilitation Operation and Maintenance of Public Parks PPP Project’ covers 50 parks across three regions: Eastern Province, Jeddah, and Madinah. The project will be procured under a Rehabilitate, Operate, Maintain and Transfer (ROMT) framework with a concession duration of 15 years.
The scope includes:
Rehabilitation of park infrastructure
Upgrades to green spaces and recreational areas
Utilities enhancement works
Landscaping and cleaning services
Pest control and quality assurance operations
Introduction of commercial facilities
Procurement and maintenance of operational equipment
The project aims to improve the quality, accessibility and user experience of municipal parks while enabling commercial activation and broader community engagement. The initiative also supports Saudi Vision 2030 objectives high-quality municipal services, fostering urban sustainability, and promoting a balanced and vibrant living environment.
SAUDI ARABIA'S AL-GHAT AND WA'AD ALSHAMAL WIND PROJECTS SET GLOBAL COST RECORDS
Saudi Arabia has achieved new global benchmarks in low-cost wind energy generation through the Al-Ghat and Wa'ad Alshamal wind projects. The announcement was made during the Saudi-Japan Vision 2030 Business Forum held in Tokyo.
Under Round 4 of the National Renewable Energy Program, the Saudi Power Procurement Company signed power purchase agreements with a consortium led by MARUBENI Corporation for the 600 MW Al-Ghat Wind Project and the 500 MW Wa'ad Alshamal Wind Project.
The projects established record-low electricity production costs for wind energy globally. Al-Ghat achieved a tariff of 1.56558 cents per kWh, while Wa'ad Alshamal reached 1.70187 cents per kWh following a competitive public bidding process.
The projects are expected to supply electricity to nearly 257,000 homes annually and support Saudi Arabia's target of generating 50% of its electricity from renewable sources by 2030 under the National Renewable Energy Program and Saudi Vision 2030.
Saudi Arabia is targeting 58.7 GW of renewable energy capacity by 2030, including around 40 GW from solar power, as part of broader efforts to diversify the economy, improve energy efficiency, and reduce carbon emissions.
GULF FIRMS TARANIS AND EEC PARTNER TO DEVELOP 50MW DATA CENTERS IN SAUDI ARABIA
Dubai-based investment firm Taranis Capital has signed a Memorandum of Understanding with Emaar Executive Company (EEC) to develop a portfolio of 40–50MW data center campuses in Saudi Arabia. The Taranis Data Centre Fund targets USD 2 Bn in private investment for the development and operation of carrier-neutral data center infrastructure in the country.
The agreement, which is backed by the Saudi Investment Promotion Authority (SIPA), is driven by a rising demand for digital and financial infrastructure across the kingdom. The companies will develop, construct, and operate an unspecified number of “strategically located” data center campuses designed to support cloud computing, artificial intelligence, and enterprise workloads.
The facilities will incorporate advanced cooling technologies and Nvidia’s next-generation GPU architectures. As the government entity attracting national and foreign investment, SIPA is expected to assist with regulatory approvals and licensing. SIPA’s involvement signals official support for this initiative in the context of the country’s Vision 2030—a major modernization initiative launched in 2016 to diversify the oil-dependent economy and establish the kingdom as a technology hub.
TAIBA INVESTMENT AND OSOOL SIGNS USD 639 MN PARTNERSHIP AGREEMENT TO DEVELOP THREE HOTELS IN AL MADINAH
Taiba Investment Company announced that it has completed and signed a final partnership agreement with Osool Integrated Real Estate Company to establish a special-purpose company for the development of a major hospitality project in Al Madinah.
The total investment value of the project is estimated at SAR 2.4 Bn (USD 639 Mn), with Taiba Investment Company contributing SAR 300 Mn (USD 79.9 Mn) to the new entity. Under the agreement, Taiba Investment Company will oversee the development, refurbishment, and operation of three hotels under a mix of local and international hospitality brands. The project will feature a total of approximately 1,500 hotel rooms, further strengthening the hospitality infrastructure in Al Madinah.
The agreement aligns with Taiba Investment Company’s strategic expansion plans aimed at reinforcing its leading position within Saudi Arabia’s hospitality sector. The initiative also reflects the company’s commitment to enhancing the quality of services provided to pilgrims and visitors to Al Madinah, particularly amid the rapid transformation and growth of the Kingdom’s hospitality industry under Saudi Vision 2030.
The new project is expected to add significant hotel assets to Taiba Investment Company’s investment portfolio while supporting the ongoing development of Al Madinah as a key religious and tourism destination in the Kingdom.
ARJAN TO DEVELOP USD 133.2 MN ALAHLI ARJAN BIN SAEDAN FUND PROJECT IN RIYADH
Arjan for Real Estate and Investment, Saudi Arabia, has announced its appointment as the developer of the AlAhli Arjan Bin Saedan Fund project, with a total investment value of SAR 500 Mn (USD 133.2 Mn). The large-scale residential development will feature approximately 900 housing units strategically distributed across two key locations in Riyadh—the Al Rimal district in eastern Riyadh and the Al Arid district in the northern part of the capital.
The project will be developed over a land area exceeding 60,000 square meters, with total built-up areas surpassing 125,000 square meters, reflecting the scale and ambition of the development in supporting Riyadh’s growing residential demand.
Sales under the off-plan model are scheduled to launch by the end of 2026, while the handover of residential units to homeowners is expected to be completed during Q2 of 2028. The project aligns with the Kingdom’s ongoing urban development goals and increasing demand for integrated housing communities across Riyadh, one of the region’s fastest-growing real estate markets.
FAKEEH CARE AND SAMSUNG C&T PARTNER ON SMART HOSPITALS IN SAUDI ARABIA
Dr. Soliman Abdulkader Fakeeh Hospital Company (“DSFH”) and its subsidiaries operating under Fakeeh Care Group have announced the signing of a memorandum of understanding (MoU) with Samsung C&T Corporation Saudi Arabia to explore strategic cooperation opportunities in the co-development of healthcare projects and the implementation of artificial intelligence-powered smart hospital systems across the Kingdom of Saudi Arabia.
The collaboration aligns with the objectives of Saudi Vision 2030, supporting the Kingdom’s efforts to expand healthcare infrastructure, enhance patient care through advanced technologies, and strengthen Saudi Arabia’s position as a regional hub for healthcare innovation and digital transformation.
Under the memorandum, Fakeeh Care Group and Samsung C&T Corporation Saudi Arabia will work together to evaluate opportunities for the development of healthcare projects and smart hospitals utilizing advanced operational models and artificial intelligence technologies inspired by South Korea’s healthcare and technology expertise.
The agreement also outlines cooperation in implementing smart hospital systems designed to improve operational efficiency, patient experience, and healthcare delivery standards through digital innovation and AI-driven solutions. In addition, both parties will explore co-investment opportunities for the construction and operation of healthcare projects under a Property and Operating Company model, supporting sustainable growth in the Kingdom’s healthcare sector.
The partnership reflects the growing momentum of international collaborations aimed at accelerating innovation in Saudi Arabia’s healthcare industry while contributing to long-term economic diversification and infrastructure development goals under Vision 2030.
SAUDI ARABIAN REFINERIES SIGNS GREEN AMMONIA MOU WITH ALLY HYDROGEN ENERGY
Saudi Arabian Refineries Company announced the signing of a non-binding Memorandum of Understanding (MoU) with Ally Hydrogen Energy Co., Ltd. to collaborate on the development of green hydrogen and ammonia projects in Saudi Arabia.
Under the agreement, the two parties will explore the establishment of a green ammonia production plant in Jazan Industrial City, supporting the Kingdom’s ambitions to expand its clean energy sector and accelerate the transition toward sustainable industrial solutions.
The MoU also includes plans to establish a local hub in Jazan Industrial City for the assembly and manufacturing of hydrogen production and purification equipment. The initiative is expected to contribute to the localization of advanced clean energy technologies, strengthen industrial capabilities, and create new opportunities within Saudi Arabia’s growing hydrogen economy.
The collaboration aims to establish a research and development centre in partnership with local Saudi universities to drive innovation in green hydrogen and ammonia technologies. The centre is expected to support knowledge transfer, technology advancement, and the development of specialized talent in the renewable energy sector.
JUNE 2026
SAUDI WASTE MANAGEMENT DIGITAL PLATFORM PPP PROJECT ATTRACTS EOIs FROM 123 FIRMS
Saudi Arabia's National Centre for Waste Management (MWAN), in collaboration with Ministry of Environment Water and Agriculture (MEWA), Environment Fund and National Centre for Privatisation (NCP) and Public Private Partnership (PPP), announced that 123 local and international companies have expressed interest in the Development and Operation of the National Digital Platform for Waste Management project.
The project will be delivered under a 11-year Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) model.
The companies that expressed interest include:
1. 48 information technology and digital transformation companies
2. 21 environment, waste management and sustainability companies
3. 18 consultancy firms
4. 11 telecommunications and digital infrastructure companies
5. 9 investment and business development companies
6. 7 contracting, operations and maintenance companies
7. 5 business services firms
8. 4 industrial and manufacturing companies.
SAUDI ARABIA LAUNCHES RFP FOR TAIF INTERNATIONAL AIRPORT PROJECT
Saudi Arabia’s MATARAT Holding and the National Centre for Privatisation (NCP) & Public Private Partnership (PPP) announced the launch of Request for Proposals (RFP) for the new Taif International Airport project in the Makkah Province. Four consortia and one standalone company have been prequalified to bid for the project.
The shortlisted bidders were:
Consortium of Turkey’s Kalyon İnşaat and Saudi Arabia’s AlBawani Capital.
Consortium of Saudi Arabia’s MADA International Holding and Turkey’s TAV Airports.
Consortium of Saudi Arabia’s Tamasuk and India’s Bengaluru International Airport.
Consortium of Saudi Arabia’s Vision Invest, Asyad and Ireland’s daa International.
India’s GMR Group.
The project is being procured under a Build-Transfer-Operate (BTO) contract for a period of 30 years inclusive of the construction period.
SAUDI ARABIA LAUNCHES PPP TENDER FOR MIXED-USE PROJECT IN MAKKAH
Saudi Arabia’s Ministry of Municipalities and Housing (MOMAH), represented by the Holy Capital Municipality and the National Centre for Privatisation & PPP (NCP), announced the launch of the tendering process for a mixed-use real estate project under the Public-Private Partnership (PPP) framework in the southeast of Makkah.
The project located on Prince Sultan bin Abdulaziz Road (Al-Hada Road), is being procured under a 50-year Build-Own-Operate-Transfer (BOOT) model with the private sector partner responsible for design, construction, operation, and maintenance of the project.
The project entails developing a government-owned plot of land spanning 166,487.84 square metres (sqm) into a premium mixed-use facility. The site is zoned for two-storey developments and features connectivity to major road networks. The development will integrate services with surrounding projects to address community needs, deliver essential services, and support ongoing population growth.
SAUDI PIF, TALAAT MOUSTAFA GROUP SIGN MOU TO EXPLORE URBAN DEVELOPMENT PROJECTS
Saudi Arabia’s Public Investment Fund and Talaat Moustafa Group Saudi for Real Estate Development have signed a memorandum of understanding to explore mixed-use real estate opportunities across the Kingdom.
The agreement will see the two parties assess opportunities at PIF-owned developments and projects across Saudi Arabia, covering residential, commercial, hospitality, retail and integrated urban developments.
The move aligns with Saudi Arabia’s Vision 2030 strategy to diversify the economy, attract investment and increase private-sector participation in key industries. It also supports efforts to expand housing supply and develop integrated communities as the Kingdom works toward raising homeownership among Saudi citizens to 70% by 2030.
The agreement is expected to accelerate project delivery and value creation across its development portfolio, while creating opportunities for broader private-sector participation. The partnership is also expected to provide a framework for additional investors to participate in future project phases, while supporting knowledge transfer and broader private-sector involvement as investors, partners and suppliers.
SAUDI ARABIA ANNOUNCES USD 613 MN JUBAIL, DAMMAM PORT INFRASTRUCTURE PROJECTS
Saudi Ports Authority (Mawani) announced five projects with private-sector partners representing investments exceeding SAR 2.3 Bn (USD 612.6 Mn) to expand port and logistics infrastructure at Jubail Commercial Port and King Abdulaziz Port.
The projects are aimed at enhancing port operational efficiency, expanding logistics and storage capacity, attracting foreign investment and supporting industrial and commercial growth in line with Saudi Arabia’s National Transport and Logistics Strategy.
1. Privatisation of Jubail container terminal
The flagship project is a SAR 2 Bn (USD 532.7 Mn) concession awarded to Saudi Global Ports (SGP) to privatise and operate the container terminal at Jubail Commercial Port. The project will expand berth length to 1,400 metres, increase automated cranes from 8 to 39, and raise annual container handling capacity to 2.4 million TEUs.
2. Truck services centre
Mawani signed a contract with Q Saudi to develop an Integrated Truck Services Centre at King Abdulaziz Port with investments amounting to SAR 180 Mn (USD 48 Mn). The project aims to regulate truck traffic, reduce waiting times, and improve port entry and exit efficiency.
3. Logistics Park
Mawani signed an agreement with Agility to develop a 400,000 sqm integrated logistics park at King Abdulaziz Port. It also inaugurated the SAR 40 Mn (USD 10.7 Mn) AlDrees Logistics Centre and SAR 30 Mn (USD 8 Mn) eXtra Logistics Centre, further expanding the port's logistics and warehousing capacity.
RCRC LAUNCHES THE FOURTH GROUP OF THE MAIN AND RING ROAD AXES DEVELOPMENT PROGRAM
The Royal Commission for Riyadh City (RCRC) launched the fourth group of the Main and Ring Road Axes Development Program in Riyadh, with a total cost of SAR 9.8 Bn (USD 2.61 Bn). The project features the development of four major road corridors spanning a combined length of 40 kilometers and includes 14 key intersections, 33 bridges, 5 tunnels, and 6 pedestrian bridges. Upon completion, the upgraded infrastructure will accommodate more than 950,000 vehicles per day, significantly enhancing traffic flow, improving network efficiency, and strengthening connectivity across Riyadh.
The fourth group includes the following projects:
Sheikh Jaber Al-Sabah Road (Southern Section): Extending 12 kilometers, the project involves executing 6 main intersections, 22 bridges, and 3 tunnels, yielding a capacity of 350,000 vehicles per day.
Prince Turki bin Abdulaziz Al Awwal Road (Central Section): Extending 9 kilometers, the project includes 3 main intersections, 6 bridges, and 2 tunnels, with a daily capacity of 200,000 vehicles.
Prince Mishal bin Abdulaziz Road: Spanning 6 kilometers, the development features 2 main intersections, 2 bridges, and 4 pedestrian bridges, accommodating 200,000 vehicles daily.
Najmuddin Al-Ayoubi Road (Western Section): Extending 13 kilometers, the project includes 3 main intersections, 3 bridges, and 2 pedestrian bridges, delivering a capacity of 200,000 vehicles per day.
The launch of this group advances the Main and Ring Road Axes Development Program, reflecting integrated, long-term planning for Riyadh’s road network. These projects will reduce daily travel times, resolve traffic congestion, increase mobility efficiency, and elevate the quality of life. By establishing a highly interconnected road network, the program will support the capital’s urban expansion, reinforce its global competitiveness, and accommodate preparations to host major global events.
SMC HEALTHCARE SUBSIDIARY SECURES USD 1.01 BN SABIC BEHAVIORAL CARE SPECIALIST HOSPITAL PPP CONTRACT
Specialized Medical Company (SMC Healthcare) announced that its subsidiary, Al-Mukhtas Al-Sehhi Medical, in which SMC Healthcare holds a 51% stake, has received a project award letter from the Ministry of Health (MoH) for the management and operation of the SABIC Behavioral Care Specialist Hospital under a Public-Private Partnership (PPP) model.
The project carries an estimated value of approximately SAR 3.8 Bn (USD 1.01 Bn), including Value Added Tax (VAT), and represents one of the Kingdom’s major healthcare PPP initiatives focused on advancing specialized mental health services.
Under the 15-year agreement, Al-Mukhtas Al-Sehhi Medical will assume full responsibility for the management, operation, and maintenance of the SABIC Behavioral Care Specialist Hospital on behalf of the Ministry of Health. The facility comprises 150 inpatient beds, 19 outpatient clinics, and six dedicated day-care rooms, providing a comprehensive range of behavioral healthcare services.
The scope of work includes the delivery of both medical and non-medical operations and maintenance services, facility management, equipment management, and specialized clinical and non-clinical services related to mental health, addiction treatment, rehabilitation, and aftercare programs.
List of key transaction- Saudi Arabia Q2 2026
Source: YOG INFRA, Public Information
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