Infrastructure & PPPs in Saudi Arabia - Q3 2026 Update
SAUDI ARABIA is accelerating its infrastructure development, energy transition, and urban modernization through large-scale capital deployments and Public-Private Partnership (PPP) frameworks under Vision 2030. Transport and connectivity remain central priorities, led by a USD 27.8 Bn nationwide road program, Riyadh Metro expansions, the USD 5.6 Bn King Salman Gate transit project in Makkah, and the 30-year Prince Naif Airport PPP. The Kingdom is also reinforcing clean energy and utilities through a 12 GWh battery storage program, third-round CCGT IPP tenders, and NWC's USD 348 Mn wastewater contract. These projects are complemented by major healthcare PPPs and expanding AI data center hubs across Riyadh.
Read the key developments in Infrastructure and PPPs in Saudi Arabia in our Q3 2026 insight.
JULY 2026
POSITIVE ZERO SECURES USD 375 MN CLEAN ENERGY FINANCING
UAE-based Positive Zero, active in the sustainable energy transition, secured a USD 375 Mn financing facility to expand its portfolio of distributed energy projects, energy efficiency solutions, and clean transport in the region.
The financing, arranged jointly by Natixis Corporate & Investment Banking and The Arab Energy Fund, is one of the largest deals of its kind in the Middle East to cover a diversified portfolio of clean energy assets under a single facility.
The financing aims to support Positive Zero's expansion in the UAE, Saudi Arabia, Bahrain, Oman, and Qatar, funding new infrastructure projects and additional capital investments, reflecting rising regional interest in sustainable energy technologies.
Positive Zero currently manages over 500 MW of distributed solar projects in the Gulf states, and its projects have so far contributed to reducing more than 450,000 metric tons of carbon annually.
UMM AL-QURA UNIVERSITY LAUNCHES PPP TENDER FOR HOSPITAL PROJECT
Umm Al-Qura University, in partnership with the National Center for Privatization & PPP (NCP), has launched the Expressions of Interest (EOI) phase for the development and operation of Umm Al-Qura University Hospital in Makkah under a Public-Private Partnership (PPP) framework.
The project will be procured through a Design, Build, Finance, Operate and Maintain (DBFOM) contract with a concession period of 30 years, offering private sector investors the opportunity to complete, equip, operate, and maintain a major healthcare asset that will serve both the region’s healthcare needs and the University’s medical education programs.
The project involves the revitalization of an existing hospital facility and its transformation into a fully operational 391-bed university hospital, providing comprehensive healthcare services while supporting medical education, training, and scientific research.
The project is expected to strengthen healthcare infrastructure in the Makkah Region by providing high-quality secondary and specialized medical services while supporting the development of Saudi healthcare professionals through integrated education and training programs.
NESMA LANDS USD 146 MN KAEC INFRASTRUCTURE PROJECT
Emaar, The Economic City (EEC) signs the contract with Nesma & Partners Contracting Company UJSC a contract valued at SAR 547.4 Mn (USD 146 Mn) for the construction of infrastructure networks within the Special Economic Zone (SEZ) at the Industrial Valley in King Abdullah Economic City (KAEC).
The contract forms part of EEC’s ongoing infrastructure development program to support industrial expansion and attract strategic investments within the Kingdom’s premier economic city. Under the 18-month contract, Nesma & Partners will execute the infrastructure works for Phase 1 of the King Salman Automotive Cluster, one of Saudi Arabia’s flagship automotive manufacturing hubs located within the Special Economic Zone at KAEC.
The scope of work includes the construction of essential infrastructure networks serving the automotive cluster, in addition to the development of infrastructure supporting other strategic projects across the Industrial Valley. The project will also provide key utility and infrastructure enhancements required to support existing industrial tenants and fulfill EEC’s contractual commitments to investors.
SAUDI AWARDS ACWA POWER GREEN HYDROGEN EXPORT RIGHTS
ACWA has received government approval granting the company the exclusive right to export green hydrogen and its derivatives produced in Saudi Arabia to international markets, marking a significant milestone in the Kingdom’s strategy to become a global hub for clean energy exports.
Under the approval, ACWA has been authorized to export green hydrogen, green ammonia, green methanol, and other green fuels produced within the Kingdom, supporting the growing global demand for low-carbon energy solutions while advancing Saudi Arabia’s Vision 2030 objectives.
In addition to the export mandate, the Saudi government has assigned ACWA to develop projects for the production, transmission, and export of renewable electricity to European and Arab markets. The initiative is expected to strengthen regional energy security while enabling the Kingdom to export competitively priced clean electricity generated from its abundant renewable energy resources. The approval aligns with Saudi Arabia’s ambitions to diversify its economy, establish new non-oil revenue streams, and strengthen its position as a global supplier of sustainable energy solutions through the export of clean hydrogen, renewable electricity, and low-carbon fuels.
RCRC AWARDS RIYADH METRO & ROAD CONTRACTS TO ATKINSRÉALIS
The Royal Commission for Riyadh City (RCRC) has awarded AtkinsRéalis engineering services and supervision contracts to support the operation and expansion of the Riyadh Metro network and oversee the delivery of key road infrastructure development projects across Riyadh.
The contracts reinforce the long-standing partnership between RCRC and AtkinsRéalis in delivering major transportation infrastructure that supports the Kingdom’s urban mobility objectives and the continued growth of the Saudi capital.
Under the agreements, AtkinsRéalis will provide engineering consultancy, construction supervision, project management, and technical oversight services for the Riyadh Metro network, ensuring the efficient execution of ongoing infrastructure works while maintaining quality, safety, and operational standards.
In addition, the company will supervise the implementation of strategic road development projects aimed at improving Riyadh’s transportation network, enhancing traffic flow, increasing road safety, and supporting the city’s long-term urban expansion.
SAUDI LAUNCHES QUALIFICATION FOR THIRD-ROUND CCGT IPP PROJECTS
The Saudi Power Procurement Company (Principal Buyer – SPPC), under the supervision of the Ministry of Energy, has announced the opening of the qualification process for the third round of Independent Power Producer (IPP) projects based on Combined Cycle Gas Turbine (CCGT) technology, with provisions for future Carbon Capture (CC) unit readiness.
The projects will be procured under the Build-Own-Operate (BOO) model, with the successful developer consortium holding 100% ownership of a Special Purpose Vehicle (SPV) established to finance, develop, own, operate, and maintain each power plant. Each SPV will enter into a long-term Power Purchase Agreement (PPA) with SPPC.
The third-round forms part of Saudi Arabia’s strategy to expand private sector participation in the power generation sector while supporting the Kingdom’s transition to lower-carbon electricity generation. The projects will utilize high-efficiency Combined Cycle Gas Turbine (CCGT) technology and will be designed with provisions to accommodate future carbon capture systems, in line with Saudi Arabia’s Circular Carbon Economy (CCE) framework and national emissions reduction objectives.
ALKHORAYEF WINS USD 44.5 MN WATER O&M CONTRACTS
Alkhorayef Water and Power Technologies Company (AWPT) has been awarded two operation and maintenance (O&M) contracts by the National Water Company (NWC) and the Saudi Irrigation Organization (SIO) with a combined value of more than SAR 166.9 Mn (USD 44.5 Mn), further strengthening the company’s presence in Saudi Arabia’s water infrastructure sector.
The contracts cover the operation and maintenance of water, wastewater, treated water, and groundwater transmission and distribution systems across Al Khobar and the Riyadh region.
Under the agreement, Alkhorayef Water and Power Technologies will be responsible for operating, maintaining, and ensuring the reliability of Al Khobar’s water distribution and wastewater collection networks, supporting service continuity, operational efficiency, and infrastructure sustainability. The contract will be executed over a period of 36 months.
MAWANI SIGNS USD 267 MN LOGISTICS CENTER AGREEMENTS
The Saudi Ports Authority (Mawani) has signed seven agreements with national and international companies to establish and expand seven logistics centers at Jeddah Islamic Port and the Al Khomrah Logistics Zone, with combined investments of nearly SAR 1 Bn (USD 267 Mn).
The agreements cover a total development area of approx. 444,000 square meters and form part of Mawani’s strategy to strengthen Saudi Arabia’s logistics infrastructure, improve supply chain efficiency, expand cargo handling and warehousing capabilities, and reinforce the Kingdom’s position as a global logistics hub under Saudi Vision 2030.
JD.com – Jeddah Islamic Port: Develop an integrated logistics center as part of a SAR 700 Mn (USD 187 Mn), 93,000 sq. m dual-project investment.
JD.com – Al Khomrah Logistics Zone: Develop a second integrated logistics center under the same SAR 700 Mn (USD 187 Mn), 93,000 sq. m investment.
Maersk: Expand its Global Logistics Center at Jeddah Islamic Port with an investment of SAR 40 Mn (USD 10.6 Mn) over an additional 50,000 sq. m.
Shatri Store Trading Company: Establish an integrated logistics center at Jeddah Islamic Port with an investment of SAR 80 Mn (USD 21.4 Mn) across 100,000 sq. m.
West Group Logistics Ports Services: Develop an integrated logistics center at Jeddah Islamic Port with an investment of SAR 40 Mn (USD 10.6 Mn) over 100,000 sq. m.
Masdar Building Materials Company: Establish an integrated logistics center at Jeddah Islamic Port with an investment of SAR 57 Mn (USD 15.2 Mn) covering 91,000 sq. m.
Jadeer Company: Establish an integrated logistics center at Jeddah Islamic Port with an investment of SAR 57 Mn (USD 15.2 Mn) covering 50,000 sq. m.
ENERGY RECOVERY AWARDED USD 11 MN SAUDI DESALINATION TECHNOLOGY CONTRACT
Energy Recovery has secured a greenfield supply contract for high-efficiency PX Pressure Exchanger energy recovery devices to be integrated into a new seawater reverse osmosis (SWRO) desalination plant in Saudi Arabia. Once fully operational, the flagship water infrastructure facility will deliver a dependable supply of potable water to an estimated 1 million people across the Mecca, Al-Baha, and Asir regions. Desalination infrastructure currently accounts for over 70% of the Kingdom's total potable water supply, making large-scale efficiency upgrades essential to national utility operations.
The proprietary PX Pressure Exchanger technology captures and reuses hydraulic energy during the reverse osmosis process, reducing total energy consumption in seawater desalination by up to 60%. The devices operate at up to 99% efficiency with a single moving part and feature a 30-year operational lifespan. The integration supports Saudi Arabia’s Vision 2030 water security programme, which aims to establish sustainable, long-term water resource management through advanced technology deployment.
While project delivery schedules across the Middle East continue to shift in response to changing market conditions as of July 2026, execution on key national water security targets remains steady. The latest agreement expands the company's regional operational capacity in Saudi Arabia to over 11 million cubic meters of fresh water per day.
SAUDI ARABIA ANNOUNCES USD 27.8 BN ROAD INFRASTRUCTURE EXPANSION PROGRAM
Saudi Arabia has outlined a USD 147 Bn multi-sector infrastructure investment strategy, dedicating USD 27.8 Bn specifically toward the strategic expansion and modernization of its nationwide road network. Managed under the Ministry of Transport and Logistic Services, the initiative aims to boost regional connectivity across key population centers, streamline supply chain movements, and significantly reduce journey times for commercial and public transit.
The comprehensive transport program features over 15 high-priority megaprojects targeting smart-city and intelligent mobility solutions. Strategic scope includes the rollout of nationwide electric vehicle (EV) charging infrastructure, automated parking facilities, intelligent traffic management systems, and specialized freight capacity expansions. To support national trade logistics, the program also incorporates the development of 59 logistics centers distributed strategically across the Kingdom. Advanced transport technologies are integrated throughout the new roadway corridors to strengthen road safety standards and optimize traffic efficiency.
The construction phase involves a combination of highway developments and roadway upgrades. Scheduled project activities and procurement rollouts are planned across 2026 and subsequent development quarters. Beyond national road connectivity, the investment framework provides scalable opportunities for Public-Private Partnership (PPP) concessions across digital tolling, logistics hubs, and service facilities. Ultimately, this capital deployment serves as a core pillar of the national economic diversification strategy, establishing Saudi Arabia as a modern, technology-driven regional logistics hub.
SAUDI ARABIA ADVANCES 12 GWH BATTERY STORAGE PROGRAMME
Saudi Arabia’s Principal Buyer, the Saudi Power Procurement Company (SPPC), working under the Ministry of Energy, has prequalified 27 developers for the second phase of its Battery Energy Storage System (BESS) programme. The prequalified pool includes major global utility companies such as EDF, Korea Electric Power Corporation (Kepco), and Marubeni, alongside prominent regional entities like Masdar and ACWA Power.
The overall initiative consists of six Independent Storage Provider (ISP) projects delivering a combined capacity of 3GW and 12GWh of energy storage across various regions in the country. Designed to offer four hours of storage, each individual facility will feature a capacity of 500MW and 2GWh. These developments are structured under a build-own-operate (BOO) model, where each awarded consortium holds full ownership of a dedicated special purpose vehicle.
The projects are spread across strategic regional locations, including Samha in Qassim Province, Al-Leeth, Khulis, and Ashyrah in Makkah Province, Al-Henakiyah in Madinah Province, and Sadawi in the Eastern Province. Each special purpose vehicle will manage operations under a long-term Storage Services Agreement with SPPC. The overarching programme supports Saudi Arabia’s broader initiative to scale up its national energy storage capability and strengthen system grid reliability.
AUGUST 2026
SOLUTIONS AWARDS USD 97 MN CONTRACT TO CENTER3 FOR DAMMAM DATA CENTER
Arabian Internet and Communications Services Company (solutions) signed a SAR 364 Mn (USD 97 Mn) contract with Digital Data Centers for Data and Telecommunications Company (Center3) to build the DDC307 data center facility in Dammam. Signed on August 3, 2026, the 18-month project requires solutions to manage the full lifecycle, spanning site preparation, engineering, structural construction, MEP system installation, testing, commissioning, and final handover.
The development aims to strengthen Saudi Arabia's digital infrastructure by increasing data center capacity to meet growing demand for cloud computing, telecommunications, and digital services. Saudi Telecom Company (stc) serves as the largest shareholder in both companies, holding approx. 79% of solutions’ shares and 100% of Center3’s shares. Financial impacts from the contract will begin reflecting in solutions’ financial statements starting in the first quarter of 2027.
SAUDI ARABIA QUALIFIES EIGHT BIDDERS FOR QUALITY VALLEY RIYADH PPP PROJECT
The State Properties General Authority (SPGA) and the National Center for Privatization & PPP (NCP) have qualified eight bidders for the tender to develop the Quality Valley project in Riyadh. The qualified entities comprise three individual companies—Al Ayuni Investment and Contracting, Mada International Holding, and Tanami Holding—alongside five distinct real estate and investment consortiums.
Planned for the site of the Saudi Standards, Metrology and Quality Organization headquarters in the Al-Muhammadiyah District, the project spans over 191,000 square meters. It will be executed under a 35-year Public-Private Partnership model based on a Design-Build-Finance-Operate-Maintain-Transfer (DBFOMT) structure, which includes a three-year construction phase followed by a 32-year operational period.
The development will feature integrated commercial and government office spaces, retail outlets, and supporting public amenities such as a mosque, parking facilities, landscaping, and pedestrian pathways. The project forms part of Saudi Arabia’s broader efforts to enhance public spending efficiency, achieve financial sustainability, and develop high-quality urban and real estate assets in line with the objectives of Saudi Vision 2030 and the National Transformation Program.
INFORMATION SYSTEMS FIRM SIGNS DATA CENTER LEASING AGREEMENT WITH ARAMCO
Al Moammar Information Systems (MIS) has entered into a five-year framework agreement with Aramco to provide specialized data center leasing services. Under this contract, MIS will supply full-scale data center infrastructure—including server racks, cooling, power systems, connectivity, physical security, and ongoing technical support. The facility is designed to support Data Only Drill (DoD) and Disaster Recovery (DR) requirements, safeguarding Aramco's critical digital assets and maintaining continuous IT operations.
The agreement officially took effect on August 5, 2026, and includes an option to extend the initial five-year term by an additional two years. Revenue for MIS will be generated through purchase orders issued by Aramco in accordance with the agreed-upon pricing schedule.
The partnership further strengthens MIS’s position as a key provider of data center, cloud, and digital infrastructure solutions in Saudi Arabia, while supporting the Kingdom’s ongoing digital transformation initiatives and the growing demand for secure, resilient, and high-availability data center services.
GE POWER INDIA SECURES USD 57.6 MN CONTRACT FOR SHOAIBA FUEL CONVERSION PROJECT
GE Power India Limited has secured two separate Notices of Award valued at approx. USD 57.6 Mn (INR 550 crore) for the Shoaiba Fuel Conversion Project in Saudi Arabia. Issued by Dar Al Balad for Contracting and Operations Company Ltd., the international contract spans an estimated execution timeframe of 2.5 years.
Under the scope of the agreement, the company will deliver essential equipment, materials, and specialized Technical Field Advisory Services. These resources will directly support major boiler modifications required to adapt the facility’s existing power generation systems for its new designated fuel configuration.
The overall initiative forms part of Saudi Arabia's broader strategy to modernize regional energy infrastructure and enhance the operational efficiency, performance, and fuel flexibility of existing power assets. This contract further strengthens GE Power India’s presence in the Saudi power sector and highlights the company’s capabilities in providing specialized boiler modification and engineering solutions for large-scale power generation facilities.
SAUDI CONTRACTORS AWARDED EXPO 2030 RIYADH SUBSTATION PROJECTS
Saudi Energy, formerly Saudi Electricity Company has partnered with Expo 2030 Riyadh Company to develop a dedicated power infrastructure network for the event site. The agreement focuses on establishing an integrated, reliable electrical system built to high technical standards to handle operational demands. The core project includes constructing a 380kV/132kV main supply Bulk Supply Point (BSP) along with three 132/13.8kV primary transformation substations. Contracts for these major infrastructure works have been awarded to Al-Babtain Contracting, Haif Company, Alfanar, and Trading & Development Partnership (TDP).
This project forms a key part of the wider utility infrastructure plan aimed at supplying approx. 400MW of permanent power capacity to Expo 2030. The new grid connections will ensure strong power network resilience to seamlessly support the operational, commercial, and visitor facilities across the northern Riyadh site. Expo 2030 Riyadh is scheduled to run from October 1, 2030, through March 31, 2031, with expectations to host over 40 million visits. The awarded power projects highlight the expanding capabilities of local Saudi engineering and contracting firms in executing large-scale energy infrastructure.
DIRIYAH COMPANY SECURES USD 533 MN FINANCING FOR BRANDED RESIDENCES DEVELOPMENT
Diriyah Company has secured a SAR 2 Bn (USD 533 Mn) financing facility from Arab National Bank to fund its branded residential developments across Diriyah and Wadi Safar. Marking the first financial agreement between the two entities, the capital will support residential projects spanning the 14-square Km Diriyah and 62-square Km Wadi Safar masterplans.
Diriyah Company’s branded residences portfolio currently comprises more than 300 units. This residential project forms a key element of a wider masterplan encompassing hotels, cultural hubs, educational facilities, entertainment sites, and essential infrastructure. Long-term targets aim to deliver roughly 18,000 homes to accommodate a population of around 100,000 residents across both project zones.
The agreement demonstrates continued confidence from major financial institutions and institutional investors in Diriyah’s long-term development potential. The latest financing comes as Diriyah Company accelerates construction and development activities across the giga-project. The company has awarded more than SAR 110 Bn (USD 30 Bn) in major contracts for the SAR 236 Bn (USD 63.2 Bn) Diriyah giga-project, with more than 63,000 workers currently engaged on site.
BREAKTHROUGH USD 220 MN BATTERY ENERGY STORAGE FACILITY ANNOUNCED IN SAUDI ARABIA
ENGIE, in association with Haji Abdullah Alireza & Co. Ltd., has signed a Storage Service Agreement with the Saudi Power Procurement Company to develop and operate a standalone battery energy storage facility. Situated in Saudi Arabia’s Qassim Region, the project features a total capacity of 500 MW / 2,000 MWh. It stands as the largest battery storage project in ENGIE’s global portfolio to date and represents approx. USD 220 Mn in direct foreign investment into the Kingdom.
The facility is designed to enhance Saudi Arabia’s national power grid by improving overall reliability, flexibility, and operational resilience. By enabling the seamless integration of higher volumes of renewable energy into the network, the project directly supports the Kingdom’s Vision 2030, which aims to achieve an optimal power generation mix containing roughly 50% renewable energy by 2030.
Beyond grid infrastructure improvements, the initiative serves as a major driver for local economic development and workforce capabilities. During both its construction and long-term operational phases, the project will generate direct job opportunities. Further, it will facilitate the transfer of technical expertise and specialized battery storage knowledge to local industry professionals, supporting long-term sustainable power development.
NEW MURABBA SIGNS USD 267 MN PARTNERSHIP FOR 200-BED HOSPITAL IN RIYADH
New Murabba, a PIF-owned company developing Riyadh’s modern downtown, has signed a SAR 1 Bn (USD 267 Mn) investment partnership with Almana Medical Group. This deal marks the first activated investment package under New Murabba’s masterplan as the development moves into its execution phase. The investment supports Saudi Vision 2030, Quality of Life goals, and the project's 15-minute community framework, which aims to give over 280,000 residents easy access to essential urban amenities.
The partnership focuses on constructing a 200-bed general hospital over a site exceeding 16,000 square meters near Prince Turki bin Abdulaziz Al Awal Road. The facility is designed to deliver comprehensive medical services including emergency care, orthopedics, pediatrics, cardiology, and neurosciences. Furthermore, the facility will integrate advanced digital healthcare solutions and artificial intelligence to offer more precise, efficient, and proactive patient care. The hospital will serve as an anchor for a wider ecosystem of planned community, educational, and healthcare infrastructure across the district.
NESMA & PARTNERS AND SAUR SIGN MOU FOR RECYCLED WATER PROJECT IN RIYADH
Nesma & Partners and Saur Saudi Arabia signed a Memorandum of Understanding to collaborate on a major recycled water infrastructure initiative in Riyadh. The partnership was officially established during the French-Saudi Investment Roundtable Meeting in Paris in August 2026. This agreement builds on an existing strategic partnership formed between the two entities in September 2025 to prepare for upcoming project tenders.
The joint venture combines international water management expertise with local market experience, engineering capabilities, and infrastructure delivery strength across Saudi Arabia. Beyond the immediate Riyadh recycled water opportunity, the agreement encompasses municipal and industrial water projects, engineering, procurement, and construction services, operations and maintenance, digital water solutions, and water reuse applications.
This agreement marks a significant step forward in supporting Saudi Arabia's long-term water infrastructure development and sustainability targets under Vision 2030.
SAUDI ARABIA LAUNCHES RFQ FOR KING FAHD SUBURB BOULEVARD PPP PROJECT
The Ministry of Municipalities and Housing, alongside the National Center for Privatization & PPP and Ashraq Development Company, has launched the Request for Qualification phase for the King Fahd Suburb Boulevard Project in Saudi Arabia’s Eastern Province. Executed under a Public-Private Partnership model using a Design, Build, Finance, Operate, Maintain and Transfer framework, the development features a 43-year concession period. It aims to significantly increase private-sector investment in municipal infrastructure and urban development across the region.
Spanning approx. 1 million square meters in Al Bayda Governorate, the project will be delivered in two distinct phases. The designated private partner will oversee the complete lifecycle—including design, financing, construction, maintenance, and operation—before transferring ownership back at the conclusion of the contract. The primary scope covers a 4 Km mixed-use zone running alongside a central boulevard and linear parklands, set within a broader 7.3 Km corridor. The site will feature a combination of public parks, leisure and entertainment venues, commercial retail, office spaces, and connected road networks.
HUMAIN AND DATAVOLT BEGIN 100MW AI DATA CENTER DEVELOPMENT AT OXAGON, NEOM
HUMAIN and Saudi digital infrastructure developer DataVolt have begun developing a 100MW AI-ready data center at Oxagon in NEOM. This facility represents the initial phase of DataVolt’s broader 360MW development plan, with construction currently underway and an expected service launch by 2028. Ultimately, the entire data center campus is projected to scale up to 1.5GW in total capacity.
Under the partnership, DataVolt will handle the development, financing, delivery, and ongoing operations of the infrastructure, while HUMAIN provides full-stack AI technology solutions. The project is designed to deliver high-density digital infrastructure capable of supporting large-scale artificial intelligence and cloud computing workloads, with advanced cooling systems. The data center is a key milestone supporting Saudi Arabia's broader ambition to become a global hub for AI and digital technology.
SEPTEMBER 2026
ZAIN KSA AND DATAVOLT PARTNER TO DEVELOP DATA CENTERS ACROSS SAUDI ARABIA
Zain KSA and DataVolt have signed a Memorandum of Understanding during LEAP 2026 to co-develop data center facilities across Saudi Arabia. The initiative combines telecom network infrastructure and digital services with specialized data center development and operational expertise. It aims to directly address the surging domestic demand for cloud computing, digital applications, and artificial intelligence solutions.
The planned facilities will supply high-performance computing infrastructure engineered to process intensive AI workloads and advanced data operations. Designed for scalability and resilience, the centers will incorporate high-density computing architecture, cutting-edge cooling systems, high-capacity connectivity, and energy-efficient operations. The capacity will support telecommunications growth alongside government entities, large enterprises, and major cloud providers.
This venture marks a strategic transition toward integrated digital infrastructure, advancing beyond traditional telecommunications connectivity into energy-efficient, scalable enterprise hosting. The project aligns with Saudi Vision 2030 and the National Strategy for Data and AI by strengthening domestic digital assets. Ultimately, the expansion is designed to drive technology adoption and position the Kingdom as a premier regional innovation hub.
VEOLIA SIGNS THREE STRATEGIC MOUS WITH ACWA, MA’ADEN AND KHAZEEN IN SAUDI ARABIA
Global environmental services firm Veolia has entered into three strategic agreements with ACWA Power, Ma’aden, and GASCO subsidiary Khazeen to expand water technology, industrial waste management, and decarbonization initiatives in Saudi Arabia. The collaboration with ACWA Power targets operational and energy efficiency across seawater desalination plants handling approx. 9.7 million cubic meters per day. This initiative aims to enhance regional water security, reduce operating expenses, and potentially eliminate up to 500,000 tonnes of carbon dioxide emissions annually.
The partnership with Ma’aden focuses on circular economy solutions for the mining sector through advanced water recycling, process optimization, and waste stream valorization. Simultaneously, the agreement with Khazeen will introduce hazardous waste handling, industrial water treatment, and integrated energy and facility management across liquefied petroleum gas storage sites. Together, these initiatives support the Kingdom’s industrial development and long-term sustainability goals under Saudi Vision 2030.
SAUDI ARABIA: NWC AWARDS USD 348 MN LTOM CONTRACT TO SAUDI-CHINESE CONSORTIUM
Saudi Arabia's National Water Company (NWC) awarded a 15-year long-term operation and maintenance contract valued at over SAR 1.3 Bn (USD 348 Mn) to a consortium of Armada and Zhangzhou United Waters. The agreement covers the rehabilitation, operation, and maintenance of nine sewage treatment plants across four regions, featuring a tariff of SAR 0.69 (USD 0.18) per cubic meter. These facilities—located in Unaizah, Al-Bukairiyah, Al-Muznib, Al-Ras, Hail 1, Hail 2, Baqa’a, Sakaka, and Turaif—hold a combined design capacity exceeding 337,000 cubic meters per day.
This project marks the tenth package under NWC’s initiative to expand private-sector participation and upgrade existing wastewater infrastructure under the National Water Strategy. Having completed eight similar contracts, the utility plans to tender 51 more operational sewage treatment plants with an aggregate capacity of roughly 888,000 cubic meters per day. The program aims to modernize strategic environmental assets through long-term private capital, advanced operational efficiencies, and localized technical expertise.
SAFARI CONSTRUCTION WINS HAIL AIRPORT EXPANSION PROJECT IN SAUDI ARABIA
Safari Construction has secured the main contract from Matarat Holding's Cluster2 Company to expand and rehabilitate Hail International Airport, though the financial value was not disclosed. The project includes constructing a 5,600-square-metre southern terminal extension alongside upgrades to departure and arrival halls and baggage systems.
The wider scope adds passenger boarding bridges, a dedicated lounge, aircraft aprons, a rapid-exit taxiway, access roads, and cargo, mosque, and utility facilities. Designed to support Saudi Vision 2030, the upgrades will expand the airport's annual capacity to 1.7 million passengers by 2030 while significantly improving operational efficiency.
DESERT TECHNOLOGIES AND CTS GROUP LAUNCH 300 MW AI DATA CENTER VENTURE IN SAUDI ARABIA
Desert Technologies and Switzerland's CTS Group have established a joint venture, CTS-DT, to design, build, and manufacture high-performance AI data center infrastructure in Saudi Arabia. Finalized during the LEAP 2026 conference in Riyadh, the partnership targets an initial annual capacity of 300 MW, with plans to scale production up to 1.2 GW per year. While the financial value remains undisclosed, the initiative focuses on deploying energy-efficient, localized solutions tailored for artificial intelligence and heavy computing workloads.
The platform will serve the Kingdom’s surging domestic computing needs while operating as a base for regional exports across the Middle East and Africa. Company leadership emphasized that combining clean power capabilities with specialized data center engineering will support resilient digital infrastructure across emerging markets. Aligned with Saudi Vision 2030 targets, the venture is structured to advance domestic engineering expertise, transfer advanced manufacturing technologies, and generate high-value local employment.
QIDDIYA AWARDS DESIGN-BUILD CONTRACT TO BOUYGUES-ALMABANI JV FOR 33,000-SEAT NATIONAL TENNIS CENTRE
Qiddiya Investment Company has awarded a design-build contract to a joint venture between Bouygues Construction and Almabani General Contractors to build the National Tennis Centre at Qiddiya City. Designed by Populous to international ATP, WTA, and ITF standards, the landmark complex will encompass 30 courts, including 28 hard courts and two clay courts. In total, the dedicated development will accommodate approx. 33,000 spectators across its tournament and training facilities.
SAUDI ARABIA QUALIFIES SIX BIDDERS FOR PRINCE NAIF BIN ABDULAZIZ INTERNATIONAL AIRPORT PPP PROJECT
Saudi Arabia's MATARAT Holding and the National Center for Privatization & PPP (NCP) have prequalified six international and local consortia to develop the Prince Naif Bin Abdulaziz International Airport in Qassim. The project will be executed under a 30-year Public-Private Partnership (PPP) model, covering the design, financing, construction, operation, and maintenance of the facility located roughly 25 kilometres from Buraidah.
The scope of work features a fully equipped passenger terminal, supporting facilities, and airside upgrades including runways, taxiways, and aprons to boost regional capacity and operational efficiency. The qualified contenders include standalone bidder GMR Airports alongside five joint ventures: Egis–YDA–Safari–Lamar Holding, PPMDC–Al Gihaz Holding, Tanama–Oman Airports–Namaya–Al Bawani Capital, Vision Invest–ASYAD–daa International, and TAV Airports–MADA International Holding.
BANAN REAL ESTATE AWARDS USD 30 MN SPORTS CLUB DEVELOPMENT AND LEASE CONTRACT IN RIYADH
Banan Real Estate’s subsidiary, Emaar Al-Waseel Al-Mutamayyizah, has signed an agreement valued at SAR 110.4 Mn (USD 29.43 Mn) with Armah Sports Company to develop and lease a sports club in Riyadh’s Al Qirawan district. Under the contract, the subsidiary will deliver an operationally ready facility, excluding movable furniture and sports equipment. Following handover, Armah Sports will manage and operate the venue under a binding 20-year lease agreement.
The lease carries an annual rental fee of SAR 5.52 Mn (USD 1.47 Mn), totaling SAR 110.4 Mn (USD 29.43 Mn) across the two-decade term. Construction is scheduled for completion within roughly 24 months. Once operational, the development will yield recurring rental revenue for Banan Real Estate through its 60% stake in the subsidiary, alongside direct income from executing the construction works.
PIF LAUNCHES 20-SQ-KM GULF COAST TOURISM AND RESIDENTIAL DESTINATION IN AL-KHAFJI
Saudi Arabia’s Public Investment Fund has established the Gulf Coast Development Company to construct an integrated, 20-square-kilometer tourism and residential destination in Al-Khafji. Featuring a 10-kilometer Arabian Gulf waterfront, the master plan includes eight neighborhoods housing over 16,000 residential units, approx. 1,400 hotel keys, marinas, and diverse commercial and educational facilities. The development will be executed in partnership with private and regional investors, though official investment values have not been disclosed.
Development will roll out in three phases, targeting 2030 for the delivery of Phase 1 alongside its initial three residential communities. Strategically located near the Kuwait border, the hub is designed to draw visitors from across the Gulf, diversify the local economy, and generate direct and indirect jobs. The initiative aims to leverage the area’s logistical and coastal strengths to modernize urban infrastructure and expand public-private partnerships.
GARUDA CONSTRUCTION SIGNS MOU FOR DEVELOPMENT OF 93-STOREY LANDMARK TOWER IN JEDDAH
Garuda Construction and Engineering’s subsidiary, Dream City Builders, has signed a Memorandum of Understanding with Almasarat Company Limited to develop a 93-storey tower in Jeddah, Saudi Arabia. The project carries an estimated revenue potential of approx. INR 18 Bn (USD 190 Mn) for the contractor over a planned five-year execution timeline.
Designed as a 360-degree twisting structure spanning 153,451 square metres, the landmark will include a 350-room five-star hotel across its lower 14 floors and a diamond-shaped rooftop restaurant on the 93rd floor. Dream City Builders will handle the full engineering, procurement, and construction (EPC) scope through final handover, pending regulatory approvals.
KEC PARTNERS WITH KADEN TO DEVELOP USD 667 MN MIXED-USE PROJECT IN MADINAH
Knowledge Economic City Company has signed a memorandum of understanding with Kaden Investment Company to develop the Multaqa Al Madinah 2 mixed-use project in Madinah, valued at approx. SAR 2.5 Bn (USD 666.45 Mn). The development will span 92,043 square meters with a gross floor area of 229,117 square meters, featuring 1,527 residential units alongside 31,108 square meters of net leasable area for commercial and office spaces. Serving as an extension of Multaqa Al Madinah phase one, the project will also incorporate recreational clubs, parking, and landscaping around an adjacent central park.
The development will be financed through a proposed closed-ended real estate investment fund requiring an initial equity of SAR 832.7 Mn (USD 221.98 Mn), with Knowledge Economic City holding a 75% stake and Kaden retaining 25%. Knowledge Economic City will provide land valued at SAR 692.3 Mn (USD 184.55 Mn) as an in-kind contribution and receive SAR 67.7 Mn (USD 18.05 Mn) in cash alongside its fund units. Kaden will act as the development manager overseeing leasing, sales, and operations, while Capital Hill manages the fund under a 90-day exclusive negotiation framework.
ELEGANCIA ARABIA SECURES USD 221 MN KEY CONTRACT FOR PRINCE MOHAMMED BIN SALMAN STADIUM IN QIDDIYA
Elegancia Arabia Trading, a subsidiary of Estithmar Holding, has secured a SAR 829 Mn (USD 221 Mn) contract to deliver mechanical packages for the Prince Mohammed Bin Salman Stadium in Qiddiya City. Running from September 2026 to May 2030, the scope covers HVAC, public health, firefighting, and building management systems executed by Elegancia Electromechanical Services. The project marks the contractor’s largest assignment in Saudi Arabia and will deploy approx. 3,000 personnel across various construction phases.
Perched atop the 200-metre Tuwaiq cliff 40 minutes outside Riyadh, the multipurpose venue is a designated site for the FIFA World Cup 2034. The stadium will accommodate 47,000 football spectators—with total event capacity exceeding 60,900—and features a retractable roof, retractable pitch, and an expansive LED wall. Aligned with Vision 2030 objectives, the development also incorporates more than 50,000 square metres of retail, dining, and entertainment space.
AL MAJDIAH SIGNS USD 49 MN DEVELOPMENT AGREEMENT FOR 296 RESIDENTIAL UNITS IN MADINAH
Al Majdiah Real Estate Company has signed a SAR 185 Mn (USD 49.33 Mn) development agreement with Jadwa Al Maqar Real Estate Fund, represented by Masaken Noura Real Estate Company. The deal covers Zone 1 of the Mishraf Al Majdiah project in Madinah’s Al Hadra District, along with the development of the central public realm. The master plan includes the delivery of 296 residential units, divided into 66 villas and 230 apartments, excluding the previously developed show area.
The total capped budget allocates SAR 158.12 Mn (USD 42.17 Mn) to direct costs and SAR 26.88 Mn (USD 7.17 Mn) to indirect expenditures. Al Majdiah will manage overall design, licensing, contractor supervision, marketing, and unit sales, earning service fees and performance-linked incentives. Construction and final handover works are scheduled for completion within a 24-month timeline from the signing date.
EMAAR EC SIGNS USD 40 MN INFRASTRUCTURE DEVELOPMENT AGREEMENT FOR MASARAT MOBILITY PARK IN KING ABDULLAH ECONOMIC CITY
Emaar, The Economic City has signed a SAR 152 Mn (USD 40.53 Mn) infrastructure development agreement, excluding VAT, with Automotive Solutions Company for Logistics Services. Under the contract, the developer will design, construct, and deliver expanded infrastructure and utility capacity within the King Salman Automotive Cluster at King Abdullah Economic City's Special Economic Zone. The project will support the development of Masarat Mobility Park as an integrated logistics and industrial hub for the national automotive industry.
The additional works accommodate utility demands exceeding original plans established during a separate SAR 366.77 Mn (USD 97.81 Mn) land transaction in 2023. Masarat Mobility Park was founded by a consortium comprising Dar Al Himmah Projects, TASARU Mobility Investments, Zamil Group Real Estate, and Abdullah Ibrahim Alkhorayef Sons. The financial returns from this infrastructure deal will be recognized in the developer's earnings starting from the third quarter of 2026.
AL AKARIA SIGNS USD 123 MN CONTRACT WITH MOBCO FOR PORTA JEDDAH PROJECT
Saudi Real Estate Company (Al Akaria) has finalized a SAR 463.13 Mn (USD 123.46 Mn USD) construction contract with Mounes Mohamed Alshayeb for Civil Construction (MOBCO) for Package One of the Porta Jeddah development. Spanning a delivery timeline of 820 calendar days, the scope covers primary structural, external façade, landscaping, and electromechanical works across the site, excluding hotel electromechanics. The financial impact of the project is slated to register on the company's balance sheet starting in the fourth quarter of 2026.
Located in Al Nahdah District on King Abdulaziz Road, the mixed-use scheme occupies a 47,971-square-meter plot with a gross floor area of roughly 133,000 square meters. The development will feature a hotel, serviced suites, commercial office spaces, leisure facilities, and a retail promenade lined with dining outlets. The venture marks the developer’s first flagship project in Jeddah, targeting urban expansion across commercial and hospitality assets.
UMM AL QURA SIGNS AGREEMENT WITH RAWAJEH GROUP FOR USD 133 MN RESIDENTIAL TOWER AT MASAR DESTINATION
Umm Al Qura for Development and Construction Company has signed a land sale agreement with Rawajeh Group to develop a residential tower within Masar Destination in Makkah. The project, named Masar Rawajeh, represents a total private-sector investment of approx. SAR 500 Mn (USD 133.3 Mn). It is designed to expand the destination's housing supply while integrating with its broader hospitality and commercial offerings.
The development aims to bolster Masar Destination’s position as a major urban hub serving both residents and visitors to Makkah. By adding premium residential capacity, the project directly supports the area’s ongoing urban transformation. Construction on the newly acquired plot will proceed as part of the destination’s phased expansion plans.
BAAN HOLDING LAUNCHES 2,600-SQ-M FAMILY ENTERTAINMENT PROJECT WITH HASBRO IN JEDDAH
BAAN Holding Group Company has begun development on Playocity, an integrated family entertainment destination at Westfield Center in Jeddah, partnered with global brand Hasbro. Covering roughly 2,600 square meters, the venue will feature modern attractions, interactive activities, and immersive experiences centered on Hasbro’s character portfolio. The project is designed to cater to visitors across all age groups within an emerging retail hub.
The initiative aligns with Saudi Vision 2030 targets to diversify revenue streams, expand domestic leisure offerings, and elevate quality of life. The development is scheduled for completion and commercial launch in Q1 2027. Financial returns are expected to be reflected in corporate earnings immediately upon opening.
INDIA’S WELSPUN CORP ASSOCIATE WINS USD 205 MN ARAMCO CONTRACT
East Pipes Integrated Company for Industry (EPIC), an associate of India's Welspun Corp Limited, has secured a steel pipe manufacturing and supply contract from Saudi Aramco valued at over SAR 771 Mn (USD 205 Mn), inclusive of value-added tax. The agreement covers the production and delivery of Helical Submerged Arc Welded (HSAW) pipes to support Saudi Arabia's strategic oil, gas, and energy infrastructure.
The contract spans an execution period of six months, with its financial impact scheduled to materialize between Q4 FY2026–27 and Q1 FY2027–28. This project reinforces local industrial capabilities and advances domestic supply chain goals under Saudi Vision 2030.
HITACHI RAIL WINS CONTRACT TO REVAMP AL MASHAAER AL MUQADDASSAH METRO IN SAUDI ARABIA
Saudi Arabia Railways has awarded Hitachi Rail a contract to modernize and upgrade the Al Mashaaer Al Muqaddassah Metro Project. The project focuses on boosting railway reliability, operational efficiency, and service sustainability to improve passenger transit during the annual Hajj pilgrimage. Although financial terms were not publicly disclosed, the agreement reinforces the ongoing infrastructure partnership between both entities.
Spanning 18 kilometers across nine stations, the transit line connects the Holy Sites of Mina, Muzdalifah, and Arafat with a capacity of 72,000 passengers per hour per direction. The comprehensive overhaul aligns with broader national mobility targets under Saudi Vision 2030 to ensure dependable, large-scale transport for millions of pilgrims. Upgraded systems will streamline crowd movement and enhance overall travel safety across the network.
GOTION HIGH-TECH TO SUPPLY 6 GWH BESS SYSTEMS FOR SAUDI ARABIA’S FIRST UTILITY-SCALE BATTERY STORAGE PROGRAMME
China’s Gotion High-Tech will supply 1.5 GW/6 GWh of battery energy storage system (BESS) technology across three utility-scale projects in Saudi Arabia: Al-Muwaih, Kahafah, and Haden. Awarded by the Saudi Power Procurement Company to a consortium of Saudi Energy Company, ACWA Power, and Al Sharif Contracting under 15-year agreements, the three facilities represent an investment of SAR 3.25 Bn (USD 866 Mn) and will deliver 500 MW/2,000 MWh each.
These facilities constitute the majority of the Kingdom’s wider SAR 4.35 Bn (USD 1.16 Bn), 2 GW/8 GWh Group 1 BESS programme aimed at reinforcing grid stability and integrating renewable power. The equipment features desert-optimized thermal management capable of operating from -30°C to 55°C, AI-driven diagnostics, and an estimated 25-year operational lifespan.
UMM AL-QURA UNIVERSITY HOSPITAL PPP ATTRACTS INTEREST FROM 73 COMPANIES
Umm Al-Qura University, together with the National Center for Privatization & PPP, has received Expressions of Interest from 73 domestic and international companies to finish and operate the Umm Al-Qura University Hospital in Makkah. Submissions span 28 developers, 14 operators, 13 contracting and facilities management firms, 11 consultancies, 5 equipment and services providers, and 2 financing entities.
Procured under a 30-year Design, Build, Finance, Operate, and Maintain model, the public-private partnership will convert an existing site into a fully operational 391-bed academic hospital. The project directly supports Saudi Vision 2030 by driving private-sector participation in public services, maximizing state asset utilization, and ensuring long-term financial and operational sustainability.
RUA ALHARAM ALMAKKI AND MRCB EXPLORE USD 5.6 BN KING SALMAN GATE DEVELOPMENT IN MAKKAH
RUA AlHaram AlMakki Company, a Public Investment Fund entity, has partnered with Malaysia’s MRCB International to explore developing a transit-oriented destination within Makkah’s King Salman Gate project. The proposed development holds an indicative gross development value of SAR 21 Bn (USD 5.6 Bn). The scope centers on an integrated public bus terminal alongside residential, commercial, and retail facilities to improve mobility and journey continuity for pilgrims and visitors.
The collaboration outlines a joint framework covering the development, funding, and delivery of the site, leveraging expertise from major transit hubs such as KL Sentral to attract international capital. The master-planned expansion is designed to enhance Makkah’s overall hosting capacity through connected urban and transport infrastructure. Full execution remains subject to due diligence, necessary regulatory approvals, final financing, and the signing of definitive agreements.
SMC HEALTHCARE AWARDS USD 40 MN CONTRACT FOR SMC3 HOSPITAL IN RIYADH
Specialized Medical Company (SMC Healthcare) has awarded a SAR 148.45 Mn (USD 39.57 Mn) contract, excluding VAT, to Maharat Al Injaz Company Limited for the foundation, construction, and full structural works of the SMC3 Hospital in Riyadh. Signed on September 27, 2026, the agreement stipulates a project duration of 360 calendar days from the date of site handover. The scope requires executing all foundational and structural stages strictly in line with approved drawings, technical specifications, and the bill of quantities.
Located on Riyadh’s Northern Ring Road, the SMC3 facility is scheduled for completion in Q4 2028 as part of the company's broader expansion strategy across the capital. Designed to house 296 beds, 200 outpatient clinics, and a dedicated emergency helipad, the hospital will expand local specialized medical capacity. SMC Healthcare anticipates that primary operational and financial yields from the development will begin materializing following the start of clinical operations.
List of key transaction- Saudi Arabia Q3 2026
Source: YOG INFRA, Public Information
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