{"id":113375,"date":"2026-03-25T00:00:00","date_gmt":"2026-03-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/menaplus\/?p=113375"},"modified":"2026-04-15T15:19:19","modified_gmt":"2026-04-15T15:19:19","slug":"the-giga-scaleback-continues-as-saudi-exes-usd-1-bn-tunnelling-contract-for-the-line","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/menaplus\/2026\/03\/25\/the-giga-scaleback-continues-as-saudi-exes-usd-1-bn-tunnelling-contract-for-the-line\/","title":{"rendered":"The Giga-scaleback continues as Saudi exes USD 1 bn tunnelling contract for The Line"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"> <a id=\"wwtt1\"><\/a> <strong>SIGN OF THE TIMES: Giga <\/strong><strong>scaleback<\/strong><strong> continues\u2026 <\/strong>Saudi Arabia <a target=\"_blank\" href=\"https:\/\/www.agbi.com\/giga-projects\/2026\/03\/neom-terminates-1bn-tunnel-contract-at-heart-of-the-line\/\">terminated<\/a> a USD 1 bn tunneling contract for Neom\u2019s The Line, the futuristic linear city that has been among the most drastically rescaled ventures in the wholesale recalibration of Saudi gigaprojects.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>The termination impacts projects that were awarded in 2022<\/strong> to a consortium composed of Hyundai E&amp;C, Greece-based Archirodon, and Samsung C&amp;T. Hyundai E&amp;C, which was awarded more than half the value of the contract, said in a market filing that the deal was terminated back in December and that settlement was finalized.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>IN CONTEXT- <\/strong>Lower-than-expected oil prices and foreign direct investments were among the main drivers for the massive rescoping of Saudi Arabia\u2019s USD tn gigaprojects \u2014 and the lingering Iran war could further pressure the country\u2019s capital inflows. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\">\n<p class=\"tag-border-left\">Watch this space<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong> <a id=\"wwtt2\"><\/a> <\/strong><strong>UAE <\/strong><strong>authorities could be offering greater tax leniency to expats<\/strong> who have left the country due to the ongoing regional war, the <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/ea6c84c9-3385-4b32-ab25-0f439a26891d?syn-25a6b1a6=1\">Financial Times<\/a> reports, citing people with knowledge of the plan. The Federal Tax Authority (FTA) is now expected to review residency applications on a case-by-case basis for those whose travel or stay has been disrupted by the war, showing more leniency on the requirement for residents to spend 183 days in a year (or 90 days for those who are employed or own a home in the UAE) <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Why it matters:<\/strong> Many high-net-worth individuals who fled when the conflict began on February 28 risk losing their tax-exempt status. If these residents are forced to pay taxes in their home jurisdictions (like the UK), the UAE risks a permanent exodus of capital and talent. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Will firms who head for the hills be shown the same consideration? <\/strong>Hedge fund Millennium will likely be hoping so if it <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/3a3dfe47-4afa-4956-9244-893e5899453b?syn-25a6b1a6=1\">goes through with its plan<\/a> to relocate to Jersey.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Will 2026 be Syria\u2019s comeback year? <\/strong>Syrian President Ahmed Al Sharaa thinks so, with a doubled budget and growth projected at some 30-35% to bring GDP back to pre-2011 levels around USD 65 bn. Sharaa also pledged a 50% hike in salaries during his Eid Al Fitr address (<a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=OTUeMuIk6jA\">watch, runtime: 13:31)<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Take these numbers with a grain of salt\u2026 <\/strong>The announced budget of USD 10.5 bn is almost double what the Finance Minister previously signaled two months ago, and a 35% growth rate won\u2019t translate into a GDP of USD 65 bn. With a GDP of some USD 21 bn in 2024, hitting the pre-war levels <a target=\"_blank\" href=\"https:\/\/syrianobserver.com\/society\/a-presidential-fiscal-proclamation-tested-by-economic-reality.html\">would require growth to hit 111%<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>What\u2019s Sharaa\u2019s math? <\/strong>The methodology here isn\u2019t clear, but these could be adjusted projections based on new income streams after the central government regained control of previously autonomous, oil-rich territories in the north and the east. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><a id=\"wwtt3\"><\/a> <strong>Marsa Maroc plots MAD 21 bn expansion: <\/strong>Morocco's port operator Marsa Maroc is planning to <a target=\"_blank\" href=\"https:\/\/www.moroccoworldnews.com\/2026\/03\/283731\/marsa-maroc-to-invest-2-1-billion-in-port-expansion-through-2030\/\">invest<\/a> nearly MAD 21 bn in port expansion projects through 2030 after closing 2025 with 16% increase in revenue to MAD 5.8 bn, and 25% surge in net income to MAD 1.6 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Why it matters:<\/strong>The investment plan is meant to reinforce the group\u2019s ambition to rank among the region\u2019s leading port operators by the end of the decade, which is part of a MAD 4.4 bn investment plan that aims to modernize and expand port capacity at the port of Casablanca and Jorf Lasfar, according to the group\u2019s <a target=\"_blank\" href=\"https:\/\/ent.news\/2026\/3\/1039.pdf\">annual financial release (pdf)<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Pipeline dreams? <\/strong>Australia\u2019s investment group Macquarie reportedly pulled out its bid for the <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/02\/25\/kuwaits-pipeline-sale-could-be-online-in-a-few-weeks\/\"><\/a><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/02\/25\/kuwaits-pipeline-sale-could-be-online-in-a-few-weeks\/\">USD<\/a><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/02\/25\/kuwaits-pipeline-sale-could-be-online-in-a-few-weeks\/\">7 bn<\/a><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/02\/25\/kuwaits-pipeline-sale-could-be-online-in-a-few-weeks\/\">stake<\/a> in Kuwait Petroleum Corporation\u2019s (KPC) crude oil pipeline network due to uncertainty caused by the Iran war. Still, Kuwait is reportedly courting investors and is seeking binding offers by 7 April, sources told <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/energy\/macquarie-walks-away-kuwait-oil-pipelines-deal-amid-iran-war-sources-say-2026-03-17\/\">Reuters<\/a> on Friday. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Why it matters:<\/strong>Macquarie\u2019s change of heart is another sign that the war is shaking investor confidence in what are otherwise historically considered reliable assets in the GCC. If other investors follow suit, Kuwait\u2019s latecoming diversification push could be thrown into question, as funds from the stake sale are expected to contribute a big chunk to its <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/02\/25\/kuwaits-pipeline-sale-could-be-online-in-a-few-weeks\/\">USD 65 bn investment plan<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\">\n<p class=\"tag-border-left\">Catch up quick<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>Central banks moved in rare unison last week, keeping interest rates on hold<\/strong> as regional volatility clouded the global outlook.The <a target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20260318a.htm\">US Federal Reserve<\/a> led the pack, holding rates at 3.50\u20133.75% and citing \u201csolid\u201d economic activity tempered by \"elevated uncertainty\" from the conflict in the Middle East. The <a target=\"_blank\" href=\"https:\/\/www.centralbank.ae\/media\/kc0p2tuf\/cbuae-maintains-the-base-rate-at-3-65-en.pdf\">Central Bank of the UAE<\/a>, Saudi\u2019s Sama, the <a target=\"_blank\" href=\"https:\/\/www.linkedin.com\/posts\/central-bank-of-bahrain_overnight-deposit-interest-rate-unchanged-activity-7440097542245236736-_ifr?utm_source=share&amp;utm_medium=member_desktop&amp;rcm=ACoAAA1AS44B-aQBN0K8chj0xmkNiEW4dATjDOM\">Central Bank of Bahrain<\/a>, and other GCC central banks followed suit. Similarly, the Bank of England, the Bank of Japan, and the European Central Bank all left rates unchanged.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;text-align:left\"><strong>The outlier:<\/strong> <a target=\"_blank\" href=\"https:\/\/www.alarabiya.net\/aswaq\/economy\/2026\/03\/20\/%D9%82%D8%B1%D8%A7%D8%B1-%D8%A7%D8%B3%D8%AA%D8%AB%D9%86%D8%A7%D8%A6%D9%8A-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%A7%D9%84%D8%B1%D9%88%D8%B3%D9%8A-%D9%8A%D8%AE%D9%81%D8%B6-%D8%A7%D9%84%D9%81%D8%A7%D8%A6%D8%AF%D8%A9-50-%D9%86%D9%82%D8%B7%D8%A9-%D8%A7%D8%B3%D8%A7%D8%B3\">Russia<\/a> bucked the global hold trend, cutting its key rate by 50 bps to 15.0%. The move \u2014 the <a target=\"_blank\" href=\"https:\/\/tradingeconomics.com\/russia\/interest-rate\">seventh cut<\/a> since rates peaked at 21% in 2024 \u2014 comes as domestic inflation cools and a temporary easing of US sanctions on Russian oil provides some breathing room.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>...while Syria hopes 2026 is going to be its year<\/p>\n","protected":false},"author":1,"featured_media":114237,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","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":[2540],"tags":[2538,2563,2771,2537],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-113375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-enterpriseam","tag-saudi-arabia","tag-the-line","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"5a4a9ceb-be5e-4c9c-af91-4842ba808892","order":"9","is_powered_by":false,"story_type":"4","photo_url":"","photo_position":"above","homepage_title":"","full_issue_title":"The Giga-scaleback continues","related_issue":[113360],"teaser":"...while Syria hopes 2026 is going to be its year","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Giga-scaleback continues as Saudi exes USD 1 bn tunnelling contract for The Line - MENA+ Edition<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/03\/25\/the-giga-scaleback-continues-as-saudi-exes-usd-1-bn-tunnelling-contract-for-the-line\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Giga-scaleback continues as Saudi exes USD 1 bn tunnelling 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