How Chinese Contractors Became the Backbone of the Middle East’s Construction Boom

Chinese firms initially entered the Middle East through energy and transport infrastructure projects tied to oil and gas development. Over time, their role expanded dramatically as regional governments launched large-scale urban, industrial, and tourism projects aimed at diversifying their economies. State-owned enterprises such as China State Construction Engineering Corporation, China Railway Construction Corporation, and PowerChina have secured contracts for metro systems, airports, industrial zones, desalination plants, and new cities, often delivering projects faster and at lower cost than Western competitors.

A key advantage of Chinese contractors lies in their vertically integrated operating model. Many firms bring not only engineering and construction services, but also financing, equipment, materials, and labour through affiliated entities. This allows them to offer turnkey solutions that are particularly attractive to governments under pressure to meet tight political and economic timelines. In some cases, Chinese policy banks and commercial lenders provide project financing or credit support, further strengthening their competitive position in bidding processes.

The scale of Middle Eastern megaprojects has also aligned well with China’s domestic conditions. As infrastructure investment at home has slowed and profit margins have compressed, overseas markets have become critical for sustaining capacity utilisation and employment. The Middle East, with its strong fiscal resources and willingness to spend on long-term development, offers a relatively low-risk environment compared with some Belt and Road destinations. However, operating conditions remain complex, with rising localisation requirements, labour regulations, and increasing scrutiny of safety and environmental standards.

Despite their growing dominance, Chinese contractors face mounting challenges. Payment delays, cost overruns, geopolitical risks, and reputational issues related to labour practices have drawn attention from both host governments and international observers. In response, many firms are investing in local partnerships, workforce training, and compliance systems to secure long-term positions in the region. As the Middle East continues its transformation, Chinese contractors are no longer just builders of projects, but central actors shaping the region’s physical and economic landscape.