Saudi Arabia Launches PPP Tender for Sikkah Al Hadid Project in Madinah

Madinah, Saudi Arabia: Saudi Arabia’s National Centre for Privatisation & PPP (NCP) has announced the launch of the tender process for the Sikkah Al Hadid joint development project in Madinah, marking a new step in the Kingdom’s efforts to expand private sector participation in urban development through public-private partnerships.

The project is being developed by Al Madinah Regional Municipality, in collaboration with the Ministry of Municipalities and Housing, with the authorities formally opening the Expressions of Interest (EOI), Request for Qualification (RFQ), and Request for Proposal (RFP) stages for potential investors and developers.

The development will be delivered under a public-private partnership (PPP) framework using a Build-Own-Operate-Transfer (BOOT) contract structure with a concession period of 50 years, allowing private sector partners to finance, develop, operate, and manage the project before transferring it back to the government at the end of the concession.

Mixed-Use Development on Strategic Madinah Site

The Sikkah Al Hadid project will redevelop an 84,657-square-metre government-owned site located to the west of Al Madinah Al Munawarah, transforming the area into an integrated mixed-use destination combining residential, commercial, and lifestyle components.

According to the project announcement, the site allows for buildings of up to 20 floors, offering developers the opportunity to deliver a high-density urban development supported by strong road connectivity and access to key transportation corridors.

The location is expected to benefit from its proximity to surrounding residential communities and infrastructure, creating new opportunities for businesses, residents, and visitors.

The project is also designed to complement nearby residential developments currently being delivered by the National Housing Company (NHC), one of Saudi Arabia’s leading housing developers.

Officials noted that the project will help support population growth within a five-kilometre radius, contributing to Madinah’s broader urban expansion and improving the availability of integrated lifestyle and commercial facilities for the surrounding communities.

By integrating residential, retail, and commercial components, the development is expected to strengthen the city’s urban ecosystem while enhancing the overall quality of life for residents.

Opportunity for Global Investors and Developers

The National Centre for Privatisation & PPP has invited local and international developers, operators, financial institutions, and investors to participate in the tender process.

Interested parties can access detailed project information through the NCP website and submit their applications as part of the competitive procurement process.

The deadline for submitting applications has been set for 23 June 2026, with investors able to apply through the Furas investment platform.

The Sikkah Al Hadid project forms part of Saudi Arabia’s broader strategy to expand public-private partnerships and increase private sector investment in infrastructure and real estate development.

Under the Kingdom’s National Privatisation Strategy, which builds on the Privatisation Programme launched in 2018, Saudi Arabia aims to attract approximately $64 billion in private sector capital investment by 2030.

The initiative is designed to enhance the quality of infrastructure and public services across the Kingdom while supporting long-term economic diversification and sustainable growth in line with the country’s development objectives.