The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Saudi projects lure the big players

International banks have been encouraged to re-enter the Saudi project finance market with big-ticket deals backed by a relatively healthy risk environment and more solid financial guarantees than in the past. Nigel Dudley reports.

LATER THIS MONTH contractors and investment bankers will assemble in Jeddah for a detailed briefing on Saudi Arabia’s multi-million project to establish a rail link between Mecca and Medina.

This is only the latest of several big projects – estimated by bankers to be worth at least $200 billion over the next 20 years – that have been announced by the government, to be undertaken by combinations of the public and private sectors.

These include another rail project – the Landbridge between the west and east coasts of Saudi Arabia – as well as water, electricity and petrochemicals projects. Even more ambitious are the plans for the SR100 billion ($30 billion) King Abdullah Economic City, which will be built north of Jeddah and financed entirely by the private sector.

Riyadh’s financial community is eagerly waiting to hear the terms for the financing of the independent water and power project (IWPP) at Marafiq, where bids have just been submitted, with financing underwritten.

This is expected to be a much more tightly priced deal than that agreed for the ground-breaking $2.5 billion Shuaibah 3 IWPP deal negotiated early this year – a transaction that boosted confidence in the kingdom and among international bankers that this level of investment could be carried out by project finance.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree