Navigating Turbulence: Mega-Project Recalibration, Geopolitical Risk and Construction Disputes in Saudi Arabia

Our recent contribution to the Chambers Global Practice Guides: Construction Law 2026 examines the profound transformation underway in Saudi Arabia's construction sector, driven by two compounding developments: the strategic recalibration of the Kingdom's mega-project portfolio under Vision 2030, and the eruption of the Iran conflict in February 2026 with its consequent disruption to shipping through the Strait of Hormuz.

Key topics covered include:

• Legal consequences of project cancellations and re-scoping, including termination disputes, bond exposure and contractor entitlements
• The contractual and statutory tools available under Saudi Arabia's Civil Transactions Law (CTL) and FIDIC standard forms to address force majeure and hardship
• Anticipated categories of construction claims, from price escalation and delay to cascading subcontractor disputes
• Practical guidance for project participants on notice requirements, contemporaneous documentation, mitigation and dispute resolution strategy