Saudi Petrochemical and Plant EPC Projects and Risk Report
The EPC landscape in Saudi Arabia is evolving as Korean companies strengthen their foothold, bolstered by new energy cooperation MOUs. However, risks persist due to delays in Neom City projects and local financial constraints.
Saudi Petrochemical and Plant EPC Projects and Risk Report — June 21, 2026
1. Project Award Updates
1) Saipem secures EPC contract for Uthmaniyah gas compression plant Italian construction firm Saipem has been awarded an EPC contract for new compression facilities at the Uthmaniyah non-associated gas field in Saudi Arabia. The scope of the contract encompasses all engineering, procurement, and construction activities for the compression facilities.
2) SGC E&C establishes emergency support system for 200 Saudi-based employees In response to prolonged geopolitical risks in the Middle East, Korean construction firm SGC E&C is providing special allowances, family visitation leave, and travel vouchers to its approximately 200 employees stationed in Saudi Arabia. The company is strengthening its head office-to-site emergency response system and local safety protocols.
3) Verification required Official announcements regarding new orders from Saudi Aramco are currently pending verification. No major new orders related to petrochemical or plant EPC projects have been explicitly listed in the official Aramco newsroom recently.
2. Korean Participation and Financial Support
1) Korea-Saudi MOU on crude oil and gas cooperation — Laying the groundwork for policy financing Korea and Saudi Arabia have agreed to strengthen cooperation across various fields, including crude oil stockpiling, pipeline infrastructure development, energy technology innovation through AI/digital transformation, sustainability development, and petrochemical material research. This is expected to serve as a foundation for Korean companies to participate in Saudi plant projects and access policy-backed financial support.
2) Export-Import Bank of Korea provides project financing for desalination projects The Export-Import Bank of Korea (KEXIM) is supporting domestic companies' bids by providing project financing (PF) for seawater desalination projects in Saudi Arabia and Oman. Policy financing is being actively deployed for desalination facilities, which serve as essential survival infrastructure for water-scarce nations.
3) Stricter visa requirements — RHQ establishment mandatory Since 2024, regulations have been in effect prohibiting companies without a Regional Headquarters (RHQ) in Saudi Arabia from participating in government-issued projects. Strengthening local organizational presence is now essential for Korean firms operating in the country.
3. Risk Monitoring (Contractual/Financial/Political)
Warning: Neom City project delays — A sign of deepening financial distress The "Running Tunnel" project (a 28km underground high-speed and freight rail section for "The Line"), won by a consortium led by Samsung C&T and Hyundai E&C in 2022, is facing delays at the client's request. As the Saudi government faces funding issues, major segments of the Neom City project continue to be cancelled. Concerns include delayed payment collection and unfavorable negotiations regarding increased construction costs. Risks such as the difficulty in predicting when operations will resume due to the impact of the war and the challenge of determining liability remain high.
4. Competitor Trends and Strategies
1) Global EPC firms maintain dominance in the Saudi market Saipem’s recent contract win confirms that large global construction firms continue to lead the Middle East market. For Korean firms to compete, a combination of technical competitiveness and policy-backed financial support is essential.
2) Korean construction firms hold high share in Middle East energy EPC — Benefits expected Major Korean firms like Hyundai E&C and Samsung C&T maintain a significant market share in the Middle East energy EPC sector and are expected to benefit as the reconstruction of energy infrastructure in the region begins in earnest. However, it is necessary to re-evaluate the creditworthiness of project owners following the Neom City delay situation.
3) Notable risk factors today — No new construction delays or payment default cases reported in the last 24 hours. — Exchange rate volatility remains within the normal range. — Political/Regulatory changes: Sentiment remains largely positive due to strengthened Korea-Saudi cooperation.
Data Freshness Disclosure: This report includes information published after June 19, 2026. Historical data has been excluded.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
