{"id":106990,"date":"2026-04-07T00:00:00","date_gmt":"2026-04-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=106990"},"modified":"2026-04-07T03:54:43","modified_gmt":"2026-04-07T03:54:43","slug":"war-jitters-hit-saudi-tenders-as-march-awards-slump","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/04\/07\/war-jitters-hit-saudi-tenders-as-march-awards-slump\/","title":{"rendered":"War jitters hit Saudi tenders as March awards slump"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The Iran war is filtering into the Kingdom\u2019s gigaprojects market<\/strong>, following a month of significantly reduced tendering activity. Only 25 major contracts worth USD 11.8 bn were awarded in March, down from 80 contracts (USD 26 bn) in February and 84 (USD 20.5 bn) in January, Meed\u2019s head of content and research Ed James said in a webinar attended by EnterpriseAM. While these preliminary figures could be revised, the steep drop points to a sudden pause in awarding activity.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Hesitation at the finish line: <\/strong>Many contracts that were close to signing have been \u201ckicked back a few weeks\u201d as developers and contractors make last-minute reassessments to risk exposure, revisiting key terms around force majeure and pricing, HKA partner Haroon Niazi said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The slowdown reflects caution rather than a structural pullback.<\/strong> Most projects are still expected to move forward once terms are recalibrated, Niazi said. However, rising ins. costs, tightening coverage, and growing logistics risks mean that prolonged conflict could turn temporary delays into longer-term disruptions.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Beyond the dotted line<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Logistics headaches take the cake: <\/strong>Logistics delays are the biggest challenge linked to the conflict, cited by 37% of survey respondents. Niazi points out that the region is entering \u201cuncharted territory\u201d in terms of moving goods. Freight is being diverted mid-journey, long-lead materials face delays, and transport routes are becoming more complex \u2014 all driving up costs and slowing execution.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Ins. is becoming a key pressure point.<\/strong> War-related risks are pushing ins. premiums higher, and some coverage is now unavailable. \u201cA number of ins. policies, particularly around logistics, don\u2019t cover situations when there is a conflict,\u201d Niazi said. Insurers are also increasingly reluctant to underwrite long-distance transport \u2014 complicating rerouting efforts and further delaying long-lead items.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>PLUS- On-site jitters:<\/strong> On-site contractors are also dealing with intermittent stoppages and stricter safety protocols, including temporary demobilisation during security alerts.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Mitigation 101<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Records, records, records:<\/strong> To mitigate cost impacts, Niazi advised companies to establish a clear contractual and regulatory strategy early and keep precise, categorized records of delays, disruptions, and increased costs. These records should clearly link cause and effect, rather than lumping costs together. These records should be shared with employers and engineers to document actions and mitigation measures, creating a clear, verifiable basis for claims.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Data centers taking shelter: <\/strong>There\u2019s a growing trend to protect data centers from future conflicts, with plans to build more underground and strengthen power supply contingencies.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">How fares the pipeline?<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Several major contracts are still up for grabs<\/strong>, mainly in infrastructure, data centers, and the Kingdom\u2019s high-priority developments. Over the next few months, Meed expects awards for Riyadh Metro Line 7, the first phase of the Oxagon data center campus, and the civil and telecom contracts for Q-Express Line 1. It also expects several contracts for various stadiums, King Salman International Airport, Diriyah, and Expo 2030.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Only 25 major contracts worth USD 11.8 bn were awarded during the month<\/p>\n","protected":false},"author":1,"featured_media":106991,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2800],"tags":[142,10,509,238],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-106990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gigaprojects","tag-construction","tag-enterpriseam-ksa","tag-gigaprojects","tag-logistics","wpautop","entry"],"acf":{"mongo_id":"592b9cc2-7f6c-4bf3-b4eb-a57f4d4a1cb6","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/4\/302.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Iran war causes a Giga-pause in tender awards","related_issue":[106984],"teaser":"Only 25 major contracts worth USD 11.8 bn were awarded during the month"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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