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Saudi Arabia’s Royal Commission for Al-Ula (RCU) has asked firms to submit their last and final offer for a contract to build the infrastructure for the tramway at the Al-Ula development in Saudi Arabia.
The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions. The tramway is scheduled to start operating in 2027.
The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.
The RCU issued a request for proposal notice in June last year and received commercial bids for the project on 10 November.
France’s Systra is the consultant.
In October 2023, the RCU announced that France’s Alstom would provide rolling stock and systems for the Al-Ula tram scheme.
The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.
New paradigm
The scheme could be one of several others affected by the reprioritisation of gigaproject activity reported last year.
After four years of consistently strong year-on-year growth in the Saudi construction sector up to 2023, when just under $32.1bn-worth of contracts were awarded, the growth slowed in 2024.
This plateauing of growth in part reflects a pause in – and reprioritisation of – gigaproject activity last year. However, as gigaproject awards declined slightly, construction work on other projects helped to sustain contract awards activity overall.
Another challenge is funding, with encouragement from Public Investment Fund-led companies to find alternative means of financing projects.
A greater emphasis on public-private partnership projects using private sector funding is expected going forwards, as are requests for contractors to propose financing options. This is leading to more openness about project plans and improved transparency regarding issues and strategies, as the gigaprojects seek to attract foreign investment.
