According to the International Contractors Association of Korea (ICAK) on Dec. 25, the total value of construction contracts in the Middle East, including Saudi Arabia and the United Arab Emirates (UAE), has reached US$8.38 billion from the beginning of the year to the end of November this year, marking an approximately 11 percent increase compared to the same period last year, when it amounted to US$7.53 billion. The Middle East remains a significant and lucrative market for overseas construction projects, accounting for around 30 percent of the total.
Leading South Korean construction companies such as Samsung C&T, Hyundai Engineering & Construction, and Samsung Engineering are increasingly tapping into the Middle East, scoring successive jackpots in contract awards, fueling expectations of a “New Middle East Boom.” In Saudi Arabia alone, amid preparations for major events like Expo 2030 and the FIFA World Cup in 2034, every neighborhood of the capital city Riyadh becomes a construction site. Additionally, construction has been commissioned in Trojena, the mountainous city at the center of Neom City where the 2029 Winter Asian Games are scheduled to take place.
Over the past half-century, a foundation of trust has been built with clients in the Middle East through responsible construction, and this has led to an expansion of the contract base. Particularly noteworthy is the rapid strengthening of ties with Saudi Arabia, following President Yoon Suk-yeol’s state visit to the Middle East in October. A representative case is the US$2.4 billion contract between Saudi Aramco and Hyundai Engineering and Hyundai E&C for the “Jafurah 2 Gas Processing Plant Package.” Samsung C&T is also on the verge of completing the Riyadh Metro project, valued at US$7.67 billion.
Expectations for securing contracts are also high, given the Saudi government’s pursuit of 17 “Giga Projects,” or large-scale development initiatives, including Neom City.
The eastern coast of Saudi Arabia, facing the Persian Gulf, was once a region characterized by small fishing villages. However, since the development of the world’s largest oil field, Ghawar, in 1930, and the completion of the King Fahad Industrial Port, or Jubail, in 1980, this area has transformed into the current hub for oil production and exports. This is the site where the “Middle East Boom” began in the 1970s.
Once again, the history of the “New Middle East Boom” is being written in this region. Hyundai E&C is currently undertaking three projects, including the Marjan gas processing facility, Jafurah, and Amiral. Samsung C&T has also gained recognition for its independent capabilities from clients, especially through the Jubail Tanajib combined cycle power plant, leading to increased expectations for additional contracts.