State-owned NEOM has tendered a design-and-build contract for the permanent upgrade of Oxagon Highway 55, with major international contractors preparing to submit bids for the $500 million-plus project. As a result, the tender is for permanent upgrading of the critical highway linking the Red Sea coast to the mainland in the north-west of Saudi Arabia. The first phase involves building 14 km of road, two lanes in each direction, one bridge and three interchanges. Meanwhile, contractors had submitted proposals by the 21 September deadline for the 22-month project duration.
Currently, Highway 55 is the only road that connects Duba with the NEOM region from north to south. In particular, the Oxagon Highway 55 upgrade will facilitate the transport of goods from Duba Port to various destinations in Saudi Arabia and beyond, given the increasing volume of goods being transported. The project is thus a key component of the wider development vision for Oxagon, as part of NEOM’s ambitious Red Sea gateway strategy.
Transport projects across the Middle East are advancing with projects such as the Etihad rail advancing at an exponential rate. State-owned Etihad Rail awarded multi-billion-dollar design and build contracts to advance the Abu Dhabi-Dubai high-speed rail project. The contracts also included civil works and station packages of the project which is a high-speed railway (HSR). The Abu Dhabi side of the railway construction contract was awarded to a consortium comprising Abu Dhabi’s National Projects Construction (NPC).
Oxagon Highway 55 Upgrade Supports Regional Logistics and Port Operations
The permanent upgrade of Oxagon Highway 55 is to resolve capacity issues on the current highway carrying growing freight volumes. In particular, the first phase construction of the 14-kilometre section involves widening to provide four lanes in total, one bridge and three interchange improvements. The project helps NEOM to establish itself as a key logistics hub that links Red Sea ports to Saudi Arabia’s interior markets.
In addition, the Oxagon Highway 55 upgrade is linked to other parallel NEOM projects such as a 400-kilometer rail link between Oxagon and Saudi Arabia’s North-South Railway at Al Baseeta in Al Jawf Province. Multimodal freight corridor connectivity is being developed through feasibility studies and concept design for this complementary rail project.
Oxagon Highway 55 Tender Reflects Growing Infrastructure Demands
The major contractors bidding for Oxagon Highway 55 have experience in complex Middle Eastern infrastructure projects. The project is expected to take 22 months to complete, which is a significant amount of time and resources for the selected firms. Moreover, the upgrade is part of NEOM’s wider transportation infrastructure modernization initiative to support the regional economic diversification objectives. The Oxagon Highway 55 project is a testament to NEOM’s dedication to building world-class logistics infrastructure as part of its Red Sea gateway vision.
Project Overview
- Project Name: Oxagon Highway 55 Permanent Upgrade
- Project Value: $500 Million+ (estimated)
- Location: Oxagon region, northwestern Saudi Arabia
- Developer: NEOM (state-owned)
- Status: Contractor bids submitted September 21, 2026
Scope
- Design-and-build contract
- 14-kilometer road construction (Phase 1)
- Four-lane divided highway (two lanes each direction)
- One bridge construction
- Three interchange improvements
- 22-month project duration
Project Highlights
- Critical Red Sea-to-mainland connectivity
- Only north-south route between Duba and NEOM
- Supports Duba Port cargo operations
- Complements proposed 400km rail link
- Regional logistics infrastructure investment
Key Developments
- Tender issued September 2026
- Contractor proposals due September 21, 2026
- Design-and-build delivery model
- 22-month construction timeline
- Complementary rail feasibility studies underway
Key Challenges
- Managing 22-month accelerated timeline
- Complex interchange design in remote terrain
- Coordinating with parallel rail project
- Supporting increasing freight volume demands
- Red Sea coastal logistics coordination
Outlook
- Contractor selection expected late 2026
- Construction commencing 2027
- 14km Phase 1 completion 2028–2029
- Complementary rail link planning continuing
- Regional multimodal logistics hub establishment
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