Latest News

• 
  Jabal Omar plans next phase of its Mecca development

  Administrator

  18 March 2026

  Saudi Arabian developer Jabal Omar Development Company is carrying out planning for phase seven of its Jabal Omar master development in Mecca, according to a fourth-quarter 2025 financial presentation.

  The company said phase seven will be a mixed-use scheme comprising hotels, retail and residential components, but did not disclose a breakdown of the project elements.

  Jabal Omar plans to use a development partnership model for the phase to minimise capital expenditure.

  Separately, the developer said it is targeting the delivery of 1,346 hotel keys and more than 20,000 square metres of gross leasing area in phase four by 2027.

  Rotana Jabal Omar Makkah, comprising 655 keys, is due to be fully operational in the first quarter of 2026, after 450 keys began operating in the final week of December 2025.

  The 1,141-key Sofitel is scheduled to become operational in the fourth quarter of 2026, while the 20,000 square metres of gross leasable area is expected to be ready in 2027.

  Jabal Omar estimates its 2026 capital expenditure at SR1.1bn ($293m), with spending expected to fall once the phase four hotels are completed.

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  Yasir Iqbal
• 
  Egypt styrene project design complete

  Administrator

  18 March 2026

  Early design work has been completed for a planned styrene production project in Egypt’s Alexandria region, according to information released by state-owned Egyptian Petrochemicals Holding Company (Echem).

  The front-end engineering and design (feed) has now been finished for the 300,000-tonne-a-year project, and investment costs are currently under evaluation.

  The plant is planned to be built in El-Dekheila in Alexandria, where around 104,000 square metres of land have been allocated for the facility.

  Early site preparation works have been completed, and startup is currently targeted for 2030, according to Echem.

  The styrene technology licence agreement has been signed, and the total investment cost is being evaluated.

  The shareholding structure of the project company is still under study and feedstock requirements for the plant are expected to include:

  • 85,000 tonnes a year of ethylene, which is expected to be supplied locally
  • 235,000 tonnes a year of benzene, part of which is expected to be imported

  Egypt’s chemicals sector has been disrupted by the US and Israel’s war with Iran.

  The war has led to high liquefied natural gas (LNG) prices and Israel shutting off gas flows into the country.

  ---

  MEED’s March 2026 report on Egypt includes:

  > COMMENT: Egypt’s crisis mode gives way to cautious revival
  > GOVERNMENT: Egypt adapts its foreign policy approach
  > ECONOMY & BANKING: Egypt nears return to economic stability
  > OIL & GAS: Egypt’s oil and gas sector shows bright spots
  > POWER & WATER: Egypt utility contracts hit $5bn decade peak
  > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

  To see previous issues of MEED Business Review, please click here

   

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  Wil Crisp
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  Egypt seeks financing for major petrochemicals project

  Administrator

  18 March 2026

  Egypt is working on the financing arrangements for an integrated refining and petrochemicals complex in the Suez Canal Economic Zone (SCZone), which will have a capacity of 3.5 million tonnes a year, according to information provided by the state-owned Egyptian Petrochemicals Holding Company (Echem).

  Front-end engineering and design (feed) for the first phase and a financing arrangement are under way for the project, which will be implemented by Red Sea National Petrochemicals Company (RSNPC).

  A process design package (PDP) covering 14 technology licences has been issued, defining the configuration of the complex, which is estimated to be worth several billion dollars.

  A land agreement for the project has been signed, and permits and regulatory approvals are being obtained, Echem said.

  The project has stalled for more than three years due to financial issues, but Echem is optimistic about progress.

  A company has already been established to develop and operate the facility and startup is currently targeted for the second quarter of 2030, according to Echem.

  The project will cover an area of 3.56 million square metres. The project integrates both a refinery and a mixed-feed cracker.

  Phase 1 will produce polyethylene (PE) and polypropylene (PP).

  Phase 2 will add the production of benzene, polyethylene terephthalate (PET), paraxylene, mono ethylene Glycol (MEG), di-ethylene glycol (DEG) and purified terephthalic acid (PTA).

  In July 2025, RSNPC and China National Chemical Engineering Company (CNCEC) signed a non-binding framework agreement for the project in Beijing.

  Egypt’s Ministry of Petroleum & Mineral Resources has said that CNCEC has expressed its willingness to potentially contribute to the project’s equity and possibly help arrange financing covering up to 85% of the value of the project’s engineering, procurement and construction (EPC) contracts.

  In April 2025, a consortium of CNCEC, along with Egypt’s Petrojet and Enppi, was awarded the feed contract for phase 1.

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  Wil Crisp
• 
  Abu Dhabi’s Shah field goes offline after drone attack

  Administrator

  17 March 2026

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  Authorities in Abu Dhabi have contained a fire that broke out at the Shah hydrocarbon field development in the emirate following a drone attack on the facility late on 16 March.

  Operations at the oil and gas field have been “temporarily suspended pending completion of the situation assessment and the necessary measures”, the official Emirates News Agency (Wam) reported.

  No injuries were caused by the attack, which was understood to have been launched by Iran, Wam reported, citing the Abu Dhabi Media Office.

  The Shah onshore field development complex primarily consists of a major gas processing plant that is located 210 kilometres southwest of the city of Abu Dhabi. The Shah gas plant is operated by Adnoc Group subsidiary, Adnoc Sour Gas – a 60:40 joint venture of Abu Dhabi National Oil Company (Adnoc) and US energy company Occidental Petroleum (Oxy).

  The Shah gas plant came online in 2015 with a processing capacity of 1.28 billion cubic feet a day (cf/d). It draws associated gas produced from the onshore Shah oil field, which has an output capacity of 70,000 barrels a day.

  Adnoc Sour Gas undertook the Optimum Shah Gas Expansion (OGSE) project in 2021 to increase the Shah gas plant’s output to a potential 1.45 billion cf/d. Italian contractor Saipem was awarded a $510m contract in June of that year to execute EPC works on the project. The OGSE project is understood to have been commissioned.

  In January 2025, Adnoc announced that the Shah field had achieved a carbon intensity of 0.1 kilogrammes of carbon dioxide (CO2) equivalent per barrel of oil equivalent.

  The field reached this milestone through optimised field development and the deployment of digitalisation, artificial intelligence (AI) and other technologies to maximise efficiencies and minimise emissions. The field also benefits from Adnoc’s electrification of its onshore assets, which are powered by nuclear and solar energy sources.

  Adnoc Sour Gas expects to raise the asset’s production potential to 1.85 billion cf/d through the Shah gas plant expansion project.

  ALSO READ: Adnoc and Oxy shelve Shah gas plant expansion project

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  Indrajit Sen
• 
  Dubai real estate buys time

  Administrator

  17 March 2026

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  The outbreak of the Iran-US-Israel war has injected a powerful dose of uncertainty into Dubai’s residential real estate market, a sector already bracing for a cyclical cooldown.

  A new report from S&P Global Ratings, published on 16 March, outlines the parameters of the risk.

  The core argument is that while Dubai is not facing an immediate 2008-style collapse, the market’s resilience is now a function of time. If the conflict intensifies beyond a one-month horizon, the strains on prices, investor confidence and developer balance sheets could become severe.

  Momentum stalls as caution takes hold

  The most immediate impact of the conflict has been psychological. According to S&P, official sources are already reporting lower transaction volumes since the war began. The prolonged war could mark the end of the post-pandemic boom, shifting the market into a phase of guarded caution.

  The luxury segment, which has driven much of the recent growth, is seen as the most vulnerable. High-net-worth individuals who relocated to Dubai for its perceived safety and tax advantages may now reconsider their positions, given that the city’s ‘safe haven’ status is being tested.

  S&P’s baseline forecast assumes the most intense phase of fighting will last up to four weeks. Under this scenario, the market will likely experience a slowdown in both volumes and prices, with the declines being more pronounced the longer the uncertainty drags on.

  The report notes a flight to liquidity, predicting that secondary market transactions will become more prevalent as investors seek to offload properties, further suppressing values.

  Apartments are expected to suffer steeper price drops than villas due to a robust supply pipeline.

  Regulatory shields and the threat of a prolonged conflict

  One of the central tenets of the report is that Dubai’s post-2008 regulatory framework provides a crucial buffer. Escrow accounts and stringent payment plans mean that for projects already under way, developers should be able to complete construction, barring a wave of mass investor defaults.

  The rules offer significant protection: developers can retain up to 40% of the property value if construction is on schedule, refund the remainder, and repossess the unit for resale.

  However, this protection has limits. S&P warns that a prolonged war scenario would test these regulations. If the Strait of Hormuz remains closed, supply chains for construction materials could bottleneck, driving up input costs. More critically, the rules that protect developers would only be effective up to a point.

  In a deep and lasting downturn, project cancellations would become likely, particularly for newly launched developments that have not secured substantial presales.

  The analysis suggests that while top-tier developers weathered past downturns with delinquency rates of just 3-10%, the figure for newer, less experienced players could be much higher.

  Rated developers have headroom, but it is not infinite

  The four major developers rated by S&P with exposure to Dubai are Emaar Properties, Damac Properties, PNC Investments and Omniyat Holdings. All of these players enter the period of uncertainty from a position of relative strength.

  The report highlights that years of strong sales have created significant revenue backlogs covering several years.

  Emaar leads with the revenue backlog of about $37bn, equivalent to 2.7 years, while Damac holds about $22bn of backlog, representing 2.3 years.

  Their leverage is low, and cash positions are meaningful. As of 31 December 2025, Emaar held $7.5bn in cash and liquid investments, with $11.7bn as escrow cash balance.

  Damac holds $1.7bn in total cash, including $6bn in escrow, while PNCI and Omniyat hold more modest balances of $600m and $600m, respectively.

  S&P has built “substantial headroom” into their credit ratings to absorb sudden shocks.

  The liquidity assessments for all four companies are adequate, with manageable debt maturities in 2026.

  The critical question is duration. If the conflict grinds on, the buffers will narrow.

  S&P states that in a prolonged scenario, its reassessment will focus on construction progress, cash collection and working capital.

  The financial policies of management teams, specifically their willingness to maintain low leverage and cut dividends, will be key to preserving creditworthiness.

  Capex and dividends under review

  The war will also force a recalibration of corporate strategy. The report notes that investment decisions are likely to be postponed or cancelled. While commitments for projects nearing completion will proceed, companies will prioritise liquidity over new land purchases.

  This is most pronounced for Emaar, which has sizeable capital expenditure plans of AED10bn-AED11bn ($2.7bn-$3bn) annually in 2026-27 for projects such as Dubai Creek Tower, Dubai Creek Mall and the expansion of Dubai Mall. S&P believes a significant portion of this spending is flexible and can be delayed if needed.

  Dividend policies will also be tested. The report expects dividend distributions to remain substantial but potentially adjustable. 

  S&P’s analysis paints a picture of a market that is braced for impact but not yet broken. The fundamentals are stronger than they were in 2008, thanks to tighter regulations and well-capitalised developers with $10bn in combined cash reserves.

  However, the market’s fate is now externally determined. If the conflict remains contained and short-lived, Dubai’s real estate sector should absorb the shock with manageable declines.

  But if the war becomes a protracted regional crisis, the meaningful correction that S&P flags as a possibility will move from the realm of the theoretical to the probable, testing the resilience of both the developers and the regulatory framework designed to protect them.

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  Yasir Iqbal
• 
  Saudi Energy pushes back deadlines for power projects

  Administrator

  17 March 2026

  Saudi Energy, formerly Saudi Electricity Company (SEC), has extended bid submission deadlines for three substation projects in Riyadh Province.

  The utility has pushed back the deadline for the estimated $50m King Khalid International airport 132/13.8kV substation project to 9 April.

  The contract was originally tendered in December, and the deadline had previously been extended to 9 March.

  Local firms Al-Babtain Contracting and Al-Haider are understood to have prequalified to bid for the scheme. 

  The company has also extended the deadline for a $40m engineering, procurement and construction (EPC) contract for a 132kV underground cable project in Al-Kharj, Riyadh Province.

  The new bid submission date is 26 March.

  The project covers the installation of underground cable circuits linking a proposed substation (S/S #8721) north of Al-Kharj to BSP #9028. The scope also includes associated civil works and infrastructure.

  Prequalified bidders include Saudi Services for Electro Mechanic Works, Al-Babtain Contracting and Al-Haider, according to regional project tracker MEED Projects.

  In addition, the utility has extended the deadline for a $50m contract to replace the existing 132/13.8kV substation (S/S #8044) with the new Al-Sharafiyah-2 substation (S/S #8407) in Riyadh.

  The revised submission date is 9 April.

  The scope includes construction of the new substation, installation of switchgear and conductors, and associated infrastructure works.

  Saudi Services for Electro Mechanic Works, Al-Babtain Contracting and Al-Haider are expected to submit bids for the project.

  Riyadh Expo substations

  Separately, Saudi Energy is understood to be moving forward with procurement for a project to develop three 132/13.8kV substations in Riyadh to support Expo 2030.

  The utility is said to have invited bids for the engineering, procurement and construction (EPC) contract to deliver the three substations along with associated works to connect the facilities to the national grid.

  The project forms part of wider infrastructure preparations for Expo 2030 Riyadh, scheduled to take place from October 2030 to March 2031

  No bid submission deadline has been publicly disclosed.

  Last September, Saudi Energy outlined plans to invest $58.7bn in power projects between 2025 and 2030.

  This includes $36bn and $22.7bn for transmission and distribution, respectively, and is part of long-term plans to meet growing electricity demand while improving grid efficiency and reliability.

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  Mark Dowdall
• 
  Fujairah oil hub targeted in fresh drone strike

  Administrator

  17 March 2026

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  The Fujairah Oil Industry Zone (FOIZ) was hit by another drone attack early on 17 March, causing a fire, authorities in Fujairah said.

  No injuries have been reported in the attack, and the emirate’s civil defence teams are dealing with the situation and trying to control the fire, the official Emirates News Agency (Wam) reported, citing the media office of the Government of Fujairah.

  This is understood to be the fifth attack since the start of March that FOIZ has suffered from drone or debris resulting from interceptions by the UAE’s air defence systems, as Iran continues to hit energy and industrial facilities in the UAE.

  Fujairah benefits from its strategic geopolitical location outside the Strait of Hormuz, which Iran has blockaded in its ongoing conflict with Israel and the US, choking about a fifth of the world’s oil and gas supplies.

  Consequently, oil prices have soared since the start of the conflict on 28 February. Global benchmark Brent broke the $100 mark on 9 March, for the first time since Russia’s invasion of Ukraine in February 2022, rising to a high of $119 a barrel on that day. Prices have dropped since, but it is still trading well above the $100 mark, with Brent recorded at $103.87 a barrel as of 12pm GST on 17 March.

  Major midstream oil and gas companies operate key storage and export hubs for oil and refined products in Fujairah, including Abu Dhabi National Oil Company (Adnoc Group), Saudi Aramco – through its subsidiary Aramco Trading – Vopak Horizon, VTTI, Shell, Fujairah Oil Terminal, Brooge Petroleum & Gas Investment Company (BPGIC), Emirates National Oil Company (Enoc), Ecomar, Mount Row and GPS Chemoil.

  ALSO READ: Iran sees economic pressure as key to ending war

  Fujairah is crucial to the operations of Adnoc Group subsidiary Adnoc Onshore, which operates a main oil terminal (MOT) there. Located approximately 300 kilometres north of Abu Dhabi, the terminal facilitates the import and export of various crude oil grades, particularly Murban, from the company’s onshore and offshore fields.

  Meanwhile, the Abu Dhabi Crude Oil Pipeline (Adcop) connects milestone pole (MP) 21 at the Habshan oil facility in Abu Dhabi, where stabilised crude produced from Adnoc Onshore fields is gathered for dispatch, to the Fujairah MOT.

  BPGIC is an oil storage and services firm that was established in 2013 in Fujairah and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.

  Separately, in September 2021, BPGIC began operations at the second phase of its Fujairah oil storage complex, adding 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.

  BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.

  The third phase increased BPGIC’s oil storage capacity by 3.5 times, raising it to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.

  The third-phase expansion project consists of an oil storage facility with a capacity of 2.5 million cubic metres, a modular 25,000-barrel-a-day (b/d) refinery, and a larger 180,000-b/d conventional refinery.

  BPGIC also co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produces low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.

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  Indrajit Sen
• 
  Oman signs $2bn real estate deals at Mipim 2026

  Administrator

  17 March 2026

  Oman has signed 17 international investment and development agreements worth over RO762m ($1.98bn) at the Mipim 2026 event held in Cannes, France.

  The deals were concluded through the Ministry of Housing & Urban Planning (MHUP) and partners at the Oman pavilion, and span mixed-use real estate, healthcare, agri-investment and digital planning tools.

  A key agreement was a memorandum of understanding with Turkiye’s Artas Holding for the Al-Khuwair Downtown project, with planned investments exceeding RO150m ($390m).

  In Sultan Haitham City, an agreement was signed with Saudi Arabia’s Retal Development to develop neighbourhoods 3, 15 and 17, covering more than 1.39 million square metres, with a combined investment of over RO320m ($832m).

  Other agreements include Vogue Homes Portugal investing more than RO25m ($65m) in the Al-Thuraya City project, and another residential scheme led by international firms including Avant Garde Properties, F&M International, Metrogramma and The One Atelier, with an investment of about RO50m ($130m).

  MoHUP also signed agreements covering smart planning and project delivery, including advanced 3D digital modelling, with investment exceeding RO408,000 ($1m).

  Healthcare-related agreements include a partnership between local Al-Daham Real Estate and Kubba to develop hospital and stem-cell treatment facilities, valued at RO11.5m ($30m), and a deal between local firm Al-Abrar Real Estate Group and Vienna Hospital & University to operate Ibn Al-Haitham Hospital in Sultan Haitham City, with an investment of more than RO40m ($104m).

  In Dhofar, investments will be made in planting one million olive trees under a usufruct arrangement, valued at RO15m ($39m), as part of agriculture sustainability plans.

  The programme also includes architectural and branding collaborations involving international firms such as Chapman Taylor Architects, 3DTouch Studio, Hawk & Impact Communication and Atelier Entropic, alongside luxury brands including Pagani, Armani and Elie Saab for branded residential concepts.

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  Yasir Iqbal