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Infrastructure & PPPs in Saudi Arabia - Q4 2024 Update

Writer's picture: YOG INFRAYOG INFRA

SAUDI ARABIA is the most active #PPP market in MENA region, with multiple new projects planned across renewable energy, water, waste management, transport and social infra sector. The country has set up benchmarks and precedent transactions for healthcare PPP and large renewable energy PPP projects. The government has also notified a robust infrastructure pipeline in order to attract private sector players for investments in the country.

Read the key developments in Infrastructure and PPPs in Saudi Arabia in our Q4 2024 insight.

 

OCTOBER 2024

SAUDI ARABIA IMPLEMENTS 33 INFRASTRUCTURE PROJECTS WORTH USD 640 MN IN TABUK REGION

The Tabuk branch of the Roads General Authority has developed an extensive road network of over 8,000 km and constructed over 200 bridges to support commercial, tourist, and social activities. This infrastructure plays a crucial role in connecting the region to the Kingdom's major projects, such as NEOM, AMAALA, and The Red Sea, and in serving pilgrims traveling from the northern parts of the world to the two holy mosques.

Tabuk region is strategically located in the northwest of Saudi Arabia, bordering Jordan to the north, Al-Jouf and Hail regions to the east, Madinah region to the south, and the Red Sea to the west. Its diverse terrain, encompassing desert, mountainous, and coastal areas, underscores the critical role of its road network in connecting it to other regions in the Kingdom. Moreover, Tabuk's strategic position facilitates connectivity with Jordan and, by extension, other countries in the east and north.

The numerous logistical projects have been carried out in Tabuk and services have been offered, benefiting both residents and travellers passing through the region. 33 projects have been implemented in Tabuk region in past decade, at a combined cost exceeding SAR 2.4 Bn (USD 0.64 Bn).

The authority's strategy focuses on improving road quality, safety, and traffic capacity, with the aim of improving Saudi Arabia's position in the global road quality index and reducing road fatalities to less than five per 100,000 people by 2030. To ensure efficient road management, the Roads General Authority is utilising advanced technologies, including surveying and evaluation equipment, such as the fleet of 18 pieces of equipment that employs AI to continuously assess the condition of the road network.

 

ICS ARABIA BREAKS GROUND ON 187MW DESERT DRAGON PROJECT

ICS Arabia has begun construction of the first facility in its 187MW Desert Dragon project in Saudi Arabia. The project is in partnership with Shanghai Lummington and China Mobile International, following the signing of a Memorandum of Agreement (MoU) in Q3 2023.

The project will comprise multiple data centre facilities across three phases. The first phase will see the build of a 65MW facility in Riyadh, expected to be operational in March 2026. The second phase will add 50MW to the project with construction beginning in Jeddah in Q1 2025 and completed by Q4 2026. The final 72MW will be added in the third phase of the project in the cities of Dammam and Neom. Construction for this phase will begin in Q3 2025.

The total investment in the project across the next three years will be approximately USD 1.9 Bn. This groundbreaking project represents a significant step forward in Saudi Arabia’s digital infrastructure. It aligns with the Kingdom’s Vision 2030 goals and bolsters the Kingdom as a regional leader in technology and innovation.

 

SAUDI ARABIA LAUNCHES EOI FOR JEDDAH-MAKKAH DIRECT HIGHWAY PPP PROJECT

The Roads General Authority (RGA), in collaboration with the National Center for Privatization (NCP) & Public-Private Partnership (PPP), has announced the launch of the Expression of Interest (EOI) phase for the Road Operations and Maintenance (O&M) and Motorway Services Areas (MSA) development of Jeddah – Makkah Direct Highway.

The Jeddah-Makkah Direct Highway spans 64 km, featuring four lanes in each direction, and includes six intersections, one camel crossing, and five vehicle overpasses. The Public-Private Partnership (PPP) project comprises an Operations and Maintenance (O&M) contract for the Jeddah-Makkah Highway, as well as a Design, Build, Finance, Operate, and Maintain (DBFOM) contract for the development of four MSAs on both sides of the highway. The contract term is set for 10 years. The project aims to operate and maintain the road, enhancing its infrastructure to serve the millions of pilgrims and Umrah performers traveling between Jeddah and the Holy City. The highway is designed to reduce travel time between the two cities to 35 minutes. 

 

SAUDI ARABIA LAUNCHES TENDER FOR CUSTOMS WAREHOUSES UNDER PPP MODEL

Saudi's Zakat, Tax, and Customs Authority (ZATCA), in partnership with the National Centre for Privatisation (NCP) & Public-Private Partnership (PPP) model, has initiated the tendering process to procure customs warehouses through a Public-Private Partnership (PPP) model. The NCP announced the opening of the Expression of Interest (EOI) and Request for Qualification (RFQ) phases for the development and operation of customs warehouses at 38 Points of Entry (PoEs) across the Kingdom.

The project encompasses the design, construction, and maintenance of 13 warehouses, including 12 newly constructed facilities and the renovation of an existing warehouse. The contract will span 15 years, covering the construction and operational phases.

The operational scope includes the loading and unloading of goods, operation of forklifts, cranes, trucks, and provision of cleaning services. Additionally, the project will involve equipping all 38 warehouses with new machinery.

 

SAUDI DIAGNOSTIC IMAGING PPP PROJECT REACHES FINANCIAL CLOSE

Altakassusi Alliance Medical (AAM), a joint venture between the Alliance Medical Group, King Faisal Specialist Hospital & Research Centre, and Lifeline Medical, has achieved financial close for their diagnostic imaging Public-Private Partnership (PPP) project, the very-first privatisation and partnership project between the private sector and Saudi Arabia’s Ministry of Health.

AAM was awarded a 10-year concession for the project by the health ministry to manage and operate radiology departments in seven hospitals within the scope of the second and third health clusters in Riyadh. Funds will be used by AAM to meet the targets of the project which aim to facilitate and extend access to world-class diagnostic services for more than 1.5 Mn beneficiaries.

 

SWPC SELECTS PREFERRED BIDDER FOR RAS MOHAISEN INDEPENDENT WATER PLANT

Saudi Water Partnerships Company (SWPC) is pleased to announce the successful completion of the evaluation process for the bids received from the private sector for Ras Mohaisen Independent Water Plant. This project will be developed and operated by the private sector for a duration of 25 years from the project's commercial operation date. This initiative is recognized as the first of its kind in the Kingdom of Saudi Arabia, characterized by its capacity, phased development, and implementation in a completely new area, providing direct benefits to the regions of Makkah and Al-Baha.

The scope of the project encompasses the following elements:

  1. Phase One: Development of a desalination plant with a capacity of 100,000 cubic meters per day, expected to commence operations in the Q1 of 2028.

  2. Phase Two: Expansion of the desalination plant with an additional capacity of 200,000 cubic meters per day, anticipated to begin operations in the Q1 of 2030, bringing the total capacity of the project to 300,000 cubic meters per day.

  3. Implementation of a water storage system with a capacity of 600,000 cubic meters, equivalent to two days of operational output from the plant, which will enhance the availability and reliability of water sources in the two regions.

  4. Construction of an electrical substation connected to the main power source via a 17-kilometer transmission line to support the project and the associated water transmission lines.

  5. Connection with the water transmission lines of Hali Dam - Al-Shuaibah and Ras Mohaisen - Al-Baha - Makkah.

Following the receipt and evaluation of developers’ bids, SWPC is pleased to announce the preferred and reserve bidders for Ras Mohaisen Independent Water Plant:

  • Preferred bidder: ACWA Power, Haji Abdullah Alireza & Partners Company and AlKifah holding.

  • Reserve bidder: Acciona Company.

This project signifies a continuation of the collaborative efforts between the public and private sectors in the domain of water production within the Kingdom, in alignment with the National Water Strategy, which is dedicated to addressing critical challenges and reforming the water and wastewater sector to ensure the sustainable development of water resources in the Kingdom while underscoring the importance of delivering high-quality services at reasonable prices.

 

HASSANA INVESTMENT COMPANY AND EIG SIGN MOU FOR STRATEGIC COLLABORATION ON MIDDLE EAST INFRASTRUCTURE AND ENERGY TRANSITION PROJECTS

Hassana Investment Company (Hassana) and Energy & Infrastructure Group (EIG), a leading institutional investor to the global energy and infrastructure sectors, have signed a memorandum of understanding (MoU) to collaborate on infrastructure and energy transition projects in the Middle East through EIG’s targeted USD 1 Bn dedicated regional fund in which Hassana is considering becoming an anchor investor with an allocation of up to USD 250 Mn.

The MoU underscores EIG’s and Hassana’s shared commitment to expand their local and regional infrastructure and energy transition investment portfolios. By fostering participation from international investors and boosting foreign direct investment, this partnership aims to support the Kingdom of Saudi Arabia’s Vision 2030 goals and the broader regional shift toward cleaner, sustainable energy solutions.

Hassana and EIG continue to make a difference in the energy scene of the Middle East. By deploying capital into innovative energy transition projects, we are endeavouring to build a sustainable future, boost the economy, and reinforce the region's commitment to clean energy solutions for many years to come.


SAUDI ARABIA RAILWAYS SEEKS TO EXPAND AND MODERNISE NORTH-SOUTH RAIL FLEET

Saudi Arabia Railways (SAR) has announced that it has issued an Expression of Interest (EOI) to global rail manufacturers as part of its plans to expand and modernise the North-South passenger rail fleet. This move is in response to the growing demand for efficient, modern transportation and aligns with the Kingdom’s Vision 2030, which aims to diversify the economy and enhance infrastructure across the country.

At the heart of this initiative is the acquisition of 15 new train sets, each composed of two power cars and five passenger coaches, capable of reaching speeds of up to 200 km/h. The procurement also includes an additional eight power cars in reserve, ensuring flexibility and redundancy for the rail network. The modernisation plan incorporates a mandatory 10-year maintenance agreement to guarantee the long-term reliability and performance of the new fleet.

The trains must be equipped to handle extreme heat while maintaining high levels of passenger comfort. Features such as Wi-Fi connectivity and advanced passenger information systems are among the requirements to ensure a modern and seamless experience for travellers.

The EOI marks the start of SAR’s procurement process, with the company engaging global suppliers in a comprehensive tender process. This includes supplier engagement session, and an extensive evaluation phase aimed at identifying manufacturers capable of meeting SAR’s stringent requirements for performance, reliability and passenger amenities.

The expansion of the North-South rail fleet is seen as crucial to meeting the expected rise in passenger demand, with SAR forecasting 2.5 Mn passengers annually by 2030 on this line. This increase in capacity is expected to play a pivotal role in supporting Saudi Arabia’s growing transportation needs as part of its broader infrastructure development plans.


NOVEMBER 2024


SWPC ANNOUNCES PREFERRED BIDDER FOR JUBAIL-BURAYDAH WATER TRANSMISSION PIPELINE PROJECT

The Saudi Water Partnership Company (SWPC) has announced the Preferred and Reserve bidders for the Jubail-Buraydah Independent Water Transmission Pipeline (IWTP) project, along with their respective Levelized Water Transmission Costs.

The Preferred Bidder for the project is a consortium comprising Al Jomaih Energy & Water Co. Ltd., Nesma Company Ltd., and Buhur for Investment Co., which proposed a competitive Levelized Cost of SAR 3.59468 per cubic meter. The Reserve Bidder is a partnership between Vision International Investment Company and Abu Dhabi National Energy Company PJSC (TAQA), with a Levelized Cost of SAR 5.04214 per cubic meter.

The Jubail-Buraydah IWTP represents a significant milestone as the first water transmission pipeline to connect the Eastern and Qassim regions with potable water, developed through private sector participation. The pipeline will have a daily transmission capacity of 650,000 m3/day and will span 587 kilometers. Designed with bidirectional water flow capabilities, the project also incorporates extensive water storage facilities, offering a total capacity of 1,634,500 cubic meters.

This infrastructure is expected to deliver a substantial boost to the region’s water supply resilience and ensure consistent access to high-quality drinking water. The project will operate under a Build, Own, Operate, and Transfer (BOOT) model for a concession period of 35 years from the commercial operation, which is expected to commence in the Q1 of 2029.

 

SAUDI ARABIA LAUNCHES TENDER FOR 8 GWH OF BATTERY STORAGE IN WORLD’S LARGEST DEAL

Saudi Arabia has launched the qualification process for the first group of battery energy storage system (BESS) projects with a total capacity of 2,000 MW/ 8,000 MWh as part of its efforts to expand renewable energy in its power mix. The projects mark the first phase of Saudi Arabia’s battery storage program, designed to support its goal of 50% renewable energy by 2030. Each 500 MW facility will operate for four hours, providing 2,000 MWh of total power capacity.

The Saudi Power Procurement Company (SPPC), the principal buyer of electricity in the kingdom announced recently that the first round of the tender will include four BESS projects to be developed under a Build- Own-Operate (BOO) model. The projects are strategically located across the Kingdom, with two 500 MW facilities planned in the Makkah region- the AI- Muwyah and Haden battery energy storage projects. Additionally, two other projects of equal capacity, the AI- Khushaybi project in AI- Qassim province and AI-Kahafa project in Hali province.

Each of these projects will feature four-hour storage capabilities, providing critical support for grid stability and integrating more renewable sources. The winning developers will enter a 15 -year energy storage service agreement with SPPC, ensuring long-term stability and support for these pivotal installations.  This initiative aligns with Saudi Arabia’s Vision 2030 objective to increase the proportion of renewable energy sources in the national electricity mix to about 50%.

 

SAUDI POWER PROCUREMENT COMPANY (SPPC) LAUNCHES FOR SIXTH NREP ROUND

The Saudi Power Procurement Company (SPPC) has launched a request for qualification (RFQ) for the sixth round of solar and wind energy projects under the National Renewable Energy Program (NREP). The initiative, overseen by the Ministry of Energy, aims to add a total of 4,500 MW to the country’s renewable energy capacity.

The projects included in Round 6 project is 4500 MW; the project are as follows

  1. 1,500 MWac Dawadmi Wind Independent Power Producer (IPP) in Riyadh province

  2. 1,400 MWac Najran Solar PV IPP in Najran province

  3. 600 MWac Samtah Solar PV IPP in Jizan province

  4. 600 MW Ad Darb Solar PV IPP in Jizan province

  5. 400 MW As Sufun Solar PV IPP in Hail province

These projects are part of Saudi Arabia’s broader goal to generate 50% of its electricity from renewable sources by 2030. SPPC, responsible for the predevelopment, tendering, and offtaking of energy from these projects, has already awarded over 19 GW of renewable energy capacity under the NREP.

 

SAUDI’S DESERT TECHNOLOGIES TO ESTABLISH 5 GW SOLAR MANUFACTURING COMPLEX IN JEDDAH

The Saudi Authority for Industrial Cities and Technology Zones, known as Modon, has signed an agreement with Desert Technologies, a prominent player in renewable energy and Saudi’s Arabia’s first solar panel manufacturer and exporter, to establish a massive industrial complex in Jeddah’s third industrial city. This landmark project aims to localise solar manufacturing, strengthen the renewable energy supply chain and support Saudi Arabia’s ambitious energy mix targets.

The new facility, covering 170,000 square meters of land provided by Modon, will produce both solar panels and cells with an impressive annual production capacity of up to 5 gigawatts (GW). The SAR 750 Mn (USD 200 Mn) will make it one of the largest photovoltaic manufacturing sites in Saudi Arabia, reinforcing the Kingdom’s commitment to becoming a leader in the renewable energy sector.

This expansive complex will host state -of-the art production lines with a capacity to manufacture 2 GW of solar panels and 3 GW of solar cells, positioning it as a critical component of the Kingdom’s industrial landscape. The solar panels and cells produced at this new facility are expected to meet the increasing local demand for solar energy solutions and enhance the Kingdom’s standing in global non-oil export markets.

This initiative is part of a broader series of projects aimed at localizing manufacturing technology to support the expansion of green energy in Saudi Arabia. Other projects include the establishment of production facilities for solar panels, wind turbines, and battery energy storage systems (BESS), reflecting the country’s commitment to diversifying its energy sources and promoting sustainable practices.

 

ENGIE TO BUILD 22 MW SOLAR PLANT FOR AL JOUF CEMENT IN SAUDI ARABIA

France-based energy leader ENGIE has partnered with Al Jouf Cement Company to develop a 22 MW solar photovoltaic project near Turaif in Saudi Arabia's Northern Borders Province. Covering 420,000 square meters, the project aims to reduce carbon emissions by approximately 1.48 Mn tons over its 25-year operational lifespan.

Under a fixed-rate Power Purchase Agreement (PPA), the solar initiative will meet 25% of Al Jouf Cement's electricity needs while delivering significant cost savings. The project is expected to lower energy expenses by SAR 3.6 Mn (USD 0.96 Mn) annually without requiring Al Jouf to bear any capital or operational costs.

The plant will integrate advanced rooftop and ground-mounted installations, designed to optimize energy generation and ensure stable power supply. ENGIE will oversee the project from design to ongoing maintenance, reinforcing its commitment to decarbonizing energy-intensive industries.


ACWA POWER SIGNS PPAs FOR USD 4 BN GAS POWER PLANTS IN SAUDI ARABIA

ACWA Power, Saudi Arabia announces the signing of the Power Purchase Agreements (PPAs) for Two (2) large-Scale Combined Cycle Gas Turbine (CCGT) Power Plants. The value of the Projects is approximately SAR 15 Bn (USD 3.99 Bn).

The PPA was signed with the Saudi Power Procurement Company (SPPC). The Projects namely Rumah -1 and Al-Nairyah -1 located in the Riyadh province and Eastern province of Saudi Arabia, respectively, with a production capacity of 1,800 MW for each plant. ACWA Power holds a 35% ownership stake in each project, with Saudi Electricity Co. (SEC) and Korea Electric Power Corporation (KEPCO) as partners in both projects. The projects involve the development, financing, construction, ownership, and operation of the two plants. The Project duration for each project is 25-years.

The projects are part of the energy mix plan, which is under the supervision of the Ministry of Energy to meet the future load demand of the electrical system, diversify energy production sources, and displace liquid fuels to achieve the optimal energy mix for electricity production in the Kingdom by 2030 with renewable energy and gas each contributing 50%.

The energy mix plan also aims to localize gas turbine manufacturing and allow for the utilization of carbon capture technologies readiness as part of the ministry’s endeavours to achieve the Saudi Vision 2030 goals. The projects come in alignment with the Saudi Green Initiative and its ambition to achieve greenhouse gases (GHGs) net-zero through the circular carbon economy approach by 2060 or earlier, depending on the availability of the necessary technologies.


DECEMBER 2024

SAUDI ARABIA LAUNCHES USD 3.2 BN NEW WATER, SANITATION PROJECTS

Saudi Arabia's National Water Company (NWC) has announced plans to implement water and sanitation projects worth SAR 11.6 Bn (USD 3.2 Bn) across the kingdom covering key regions such as Aseer, Qassim and Al Baha as part of the government's utility infrastructure development plan. In the Aseer region, National Water Company (NWC) will be developing a total of 87 water and sanitation projects at an investment of over SAR 5 Bn (USD 1.33 Bn).

NWC has already implemented six projects to improve the drinking water supply system and increase operational efficiency. These projects included the extension of water transmission lines and networks of different diameters with a total length of more than 302km, the development and replacement of existing pumps, and the implementation of pressure and flow control valve rooms in daily distribution reservoirs in several districts of Abha City, governorates and villages in the region, at a cost of more than SAR 134 Mn (USD 35.67 Mn).

The scope of work includes construction of two reservoirs with a total capacity of 11,000 cu m, a pumping station with a total capacity of 25,000 cu m per day, and a distribution station at a total cost of more than SAR 79.3 Mn (USD 21.11 Mn). In addition, water sources in Khamis Mushait and Uhud Rafidah governorates were developed through the implementation of a project to complete the water treatment plant at Wadi Tandaha Dam with a production capacity of (16,800) cu m per day. In Qassim region, NWC will be implementing 66 water and environment projects worth more than SAR 4.2 Bn (USD 1.12 Bn).

These projects included the construction of water transmission lines, main lines and networks of various diameters with a total length of over 579km, the construction of 7 operational reservoirs with various storage capacities totalling 109,000 cu m and several pumping stations with a total capacity of more than 294,000 cu m per day. The company also constructed two wastewater treatment plants with a total capacity of more than 11,200 cubic meters per day and lift stations with a total capacity of 128,700 cubic meters per day at a total cost of more than SAR 1.2 Bn (USD 319.41 Mn).

 

MATARAT HOLDING, NCP AND PPP INITIATE EOI PHASE FOR NEW TAIF INTERNATIONAL AIRPORT

MATARAT Holding, in collaboration with the National Center for Privatization (NCP)& Public-Private Partnership (PPP) is pleased to announce the launch of the Expression of Interest (EOI) for the new Taif International Airport project. The invitation is open to interested private sector entities in a Public-Private Partnership (PPP) model under a Build-Transfer-Operate (BTO) contract for a period of 30 years inclusive of the construction period.

The Project is in line with Vision 2030’s goals, which aims to enhance the growth of the aviation sector in the Kingdom of Saudi Arabia. Through the National Transport and Logistics Strategy and the National Aviation Strategy, the Kingdom seeks to strengthen its position among the leading nations as a global logistics hub connecting three continents. The new Taif International Airport will be located 21 km southeast of the existing Taif Airport, with a capacity to accommodate 2.5 Mn passengers by 2030.

The Project scope includes (BTO) model of the new airport. The proposed design features a runway with a full-length-parallel taxiway, that connects to a single commercial apron. The new Taif International Airport will include a well-equipped commercial passenger terminal building aligned with the airport’s projected capacity and demand, along with facility buildings, utility networks, car parks, and access roads that enable the standard operation of the airport. The project includes additional expansions to meet future subsystem requirements.


EDF-MASDAR CONSORTIUM SECURES FINANCIAL CLOSE FOR AMAALA UTILITIES PROJECT IN KSA

The consortium led by EDF Group and Masdar, alongside their partners Korea East-West Power Co. (EWP) and SUEZ, announced that it has reached the financial close for its multi-utility’s infrastructure facility at AMAALA. The overall project build cost is approximately USD 1.5 Bn.

The financial close was made possible due to the support of local and global financial institutions including: First Abu Dhabi Bank (FAB), Emirates National Bank Dubai (ENBD), Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. The milestone underscores the consortium’s commitment to realising AMAALA’s promise of unparalleled luxury, sustainability, and cultural enrichment.

This achievement follows the awarding of a 25-year multi-utility concession agreement with Red Sea Global in September 2023, with the option to extend, and involves the financing, engineering, development, construction, operation, maintenance and transfer of a multi-utilities infrastructure facility to service the AMAALA destination.

The facility consists of a fully optimised and decarbonised off-grid renewable energy system, which will generate electricity from a 250 MW solar photovoltaic park, 700MWh battery energy storage, transmission and distribution lines, and desalination plant, with a capacity of 37 Mn litres of drinking water per day and wastewater treatment plants securing the needed base load around the clock.

The innovative project will avoid the equivalent of nearly 350,000 tons of CO2 emissions every year compared to average infrastructures of this kind, and it will be a cutting-edge infrastructure project, paving the way for a new era of eco-friendly luxury tourism.

 

SWPC AWARDED EXCELLENCE IN PPP AWARD 2024 BY IDRA

Saudi Water Partnership Company (SWPC) has been awarded Excellence in Public-Private Partnership (PPP) Award 2024 by the International Desalination and Reuse Association (IDRA). Its key achievements contribution implemented in 2024 has led to this recognition. It has announced landmark project, including the selection of the preferred bidders for Jubail 4 and 6 Independent Water Project (IWP); Jubail — Buraydah Independent Water Transmission Pipeline (IWTP); Ras Muhaisen desalinated water project and inauguration projects that have been implemented by the private sector, which are Yanbu 4 IWP and Jeddah Airport 2 Independent Sewage Treatment Project (ISTP).

SWPC has also issuance of request for proposals (RFP) for high-impact projects, featuring the Riyadh-Qassim IWTP project, spanning 859km and designed to deliver 685,000m³/day of potable water. Additionally, a new partnership has been established through Al Haer ISTP project, solidifying collaboration with the private sector. It has financial closure of the Rayis-Rabigh IWTP — a vital initiative enhancing water access across regions; and completed a financial close for the Juranah Independent Strategic Water Reservoir (ISWR) in Makkah, which will provide a storage capacity of 2,000,000m³ and support potable water distribution with an operational tank capacity of 500,000m³.

The company has launched a pre-qualification programme for local and international developers, where SWPC has streamlined opportunities to participate in its upcoming projects across water sectors. The programme attracted over 90 developers locally and globally. As a government entity, SWPC is enhancing Saudi Arabia’s water infrastructure through PPP. By managing 12 operational projects, overseeing 7 projects currently under construction, and guiding 9 projects in the tendering stages — along with 22 projects in the planning phase, SWPC is committed to ensuring water security in alignment with the Kingdom’s Vision 2030.


SAUDI ARABIA BOOSTS HEALTH INFRASTRUCTURE WITH 5 NEW HOSPITALS

Saudi Arabia is set to open five new hospitals by 2025, adding 963 beds across key provinces as part of a broader SAR 260 Bn (USD 69.3 Bn) budget allocation to the health and social development sector. This allocation, which represents the second-largest share of government spending, covers a wide range of initiatives, including increasing bed capacity to 23 beds per 10,000 residents in the targeted provinces.

The new facilities, located in Rijal Almaa, Dhahran Al-Janoub, Hail, Makkah, and Riyadh, include a dedicated mental health hospital in the capital. These projects aim to enhance access to care and improve healthcare infrastructure across the Kingdom. Other initiatives for 2025 include emergency services, early detection programs, cancer care, and expanded dialysis services, highlighting a comprehensive approach to healthcare that emphasizes prevention, early intervention, and state-of-the-art infrastructure. In addition to healthcare, these funds will also support the management of human resources and social services, including social security and welfare. 


SAUDI ARABIA UNVEILS USD 21 BN RIYADH METRO EXPANSION STRATEGY

Saudi Arabia’s has unveiled an ambitious EUR 20 Bn (USD 21 Bn) plan to expand the Riyadh Metro network. This expansion, developed in collaboration with leading French companies, underscores Saudi Arabia’s commitment to sustainable and advanced transportation solutions, aiming to enhance the quality of life for residents and visitors in the rapidly growing capital city.

The expansion would include the seventh line of the Riyadh Metro. The proposed line will span approximately 65 kilometres and feature 19 state-of-the-art stations, 14 of which will be underground, while five will be constructed overground. This vital artery will link key landmarks and upcoming mega-developments, including Qiddiya Entertainment City, King Abdullah International Gardens, King Salman Park, New Murabba, Misk City and Diriyah Gate.

The High Commission for the Development of Riyadh has already initiated the prequalification process for companies to compete for the line’s design and construction, drawing significant interest from global players in the infrastructure sector.

This ambitious expansion comes as Riyadh’s current metro project nears completion. The current Riyadh Metro project, being built at a cost of USD 22.5 Bn, stands as one of the largest infrastructure projects in the world, spanning 176km and featuring 85 stations. The new plan will effectively double the size of the network, creating a seamless and integrated transportation system that connects every neighbourhood across Riyadh.

The Riyadh Metro expansion is a cornerstone of Saudi Arabia’s broader Vision 2030 strategy, which aims to position Riyadh among the top 10 global economic cities by the end of the decade. Currently ranked 40th, the capital is set to experience a remarkable transformation, with plans to double its population from 7.5 Mn to between 15 and 20 Mn.


SAUDI’S RIYADH DEVELOPMENT TO BUILD USD 60 MN LOGISTICS COMPLEX IN RIYADH

Riyadh Development Company (ARDCO) signed a strategic partnership with Agility Logistics Parks to develop a logistics complex in Al Remal District in Riyadh at the cost of SAR 227 Mn (USD 60.44 Mn).

The project covers an area of 97,904 square metres and includes the construction of 58,000 square metres of Grade A warehouses. Construction is expected to begin in 2025, with a scheduled opening in the second half of 2026.

ARDCO will hold 40 % of the total value of the project, while the remaining 60 % will be held by Agility Logistics Parks. The developer launched a strategy in 2023 to focus primarily on real estate development and management to keep pace with the rapid growth in Riyadh’s economy.

 

DEAL SIGNED FOR RIYADH LOGISTICS HUB

Bahrain-Based Arcapita Capital Company has reached an agreement with Flow Progressive Logistics (Flow) to develop a modern, Class A logistics complex in Riyadh. An end-to-end supply chain management company, Flow is a part of Saudi-based Alsulaiman Group.

The deal will see Arcapita develop an 80,000sqm mixed-use storage complex. The facility will feature various storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialised spaces for pharmaceutical and hazardous goods. Flow, which provides international shipping, customs clearance, warehousing, transportation, delivery, and reverse logistics, will operate the facility under a long-term lease agreement.

This collaboration will expand Arcapita’s logistics real estate portfolio in Saudi Arabia and support the government’s efforts to diversify its economy and improve market infrastructure, in line with Saudi Arabia’s Vision 2030. The Ministry of Transport and Logistics Services has been instrumental in driving growth in this sector, and its support continues to encourage private sector participation.

The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which aims to attract USD 10.6 Bn in investments.

This partnership will contribute to meeting the growing demand for modern logistics facilities and services in Riyadh, where demand is outstripping supply particularly when it comes to higher-quality assets. Riyadh is positioning itself as a key logistics hub for both regional and international companies making it an attractive destination for investment capital.

 

EDF RENEWABLES, SPIC WIN 1.4 GW OF SOLAR PROJECTS IN SAUDI ARABIA

A consortium of Électricité de France Renewables (EDF) and China's Huanghe Hydropower Development Co. (HHDC) is set to develop, finance, build and operate 1.4 GW of solar capacity at two project sites in Saudi Arabia. The partners submitted a successful bid to develop the 1 GW Al Masa’a solar project, to be built in Hail province, Saudi Arabia. They will also construct the 400 MW Al Henakiyah 2 solar plant, to be built in Madinah province, Saudi Arabia.

The two projects are part of the fifth round of the Saudi Arabian government’s renewable energy tender program, administered by Saudi Power Procurement Co., a government-owned entity tasked with procuring electricity from independent power producers.

The shortlisted bids were revealed in October, with the EDF-SPIC consortium submitting a bid of $0.0131/kWh for the Al Masa’a project and $0.0140/kWh for the Al Henakiyah 2 project. The consortium has signed two 25-year Power Purchase Agreements (PPA) for the energy from both projects, with Saudi Power Procurement acting as the offtaker.

The projects, estimated to cost USD 850 Mn, are expected to power more than 240,000 homes per year once operational. The Al Masa’a solar power plant is expected to go operation in the Q2 of 2027, while the Al Henakiyah 2 solar plant is expected to reach financial close in early 2025, before connecting to the grid in the Q4 of 2026.

 

List of key transaction- Saudi Arabia Q4 2024


Source: YOG INFRA, Public Information

 

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