Latest News

• 
  Diriyah awards $727m Waldorf Astoria superblock deal

  Administrator

  17 June 2026

  

   

  Saudi gigaproject developer Diriyah Company has awarded a SR2.7bn ($727m) contract for the main construction works on the development’s Waldorf Astoria superblock.

  The contract was awarded to the joint venture of Hassan Allam Construction Saudi and UCC Saudi, the local branch of Qatar’s Urbacon Holding.

  The Waldorf Astoria superblock is a mixed-use development comprising a Waldorf Astoria hotel, Waldorf Astoria-branded residences, commercial and residential facilities, and office space.

  The Waldorf Astoria hotel will feature 200 keys, while the residential component will comprise 47 branded residences.

  The project is located on the Grand Boulevard South and Northern Arterial Road in the Boulevard Northwestern district at Diriyah Gate 2. 

  Diriyah Company tendered the contract in November last year, with submissions due in January, as MEED reported.

  Diriyah Company Group CEO Jerry Inzerillo said: “We are delighted to announce this latest major construction contract for the Waldorf Astoria superblock as we continue to progress at pace across the Diriyah development area. The Waldorf Astoria will be a world-class addition to our growing portfolio of globally renowned hospitality brands, further strengthening Diriyah’s appeal as a globally significant destination that offers world-class hospitality and lifestyle experiences.

  “Together with our partners, we look forward to delivering another landmark development that supports the kingdom’s Vision 2030 ambitions and contributes to the continued growth and success of Diriyah.”

  Hassan Allam, chairman and CEO of Hassan Allam Holding, said: “We are proud to support the development of one of the kingdom’s most ambitious and transformative destinations and to continue our partnership with Diriyah Company in bringing its vision to life.

  “Drawing on more than 90 years of experience across the Mena region, we remain committed to delivering the highest standards of quality and excellence on landmark projects that are helping shape the kingdom’s future.”

  Ramez Al-Khayyat, UCC Holding president and group CEO, said: “Being awarded this contract by Diriyah Company marks another important milestone in our growing partnership and reinforces our shared commitment to delivering world-class developments across the kingdom. This project builds on our ongoing collaboration in Diriyah, including the delivery of four luxury hotels and the Royal Diriyah Equestrian and Polo Club in Wadi Safar.

  “We value the opportunity to contribute once again to one of Saudi Arabia’s most ambitious and prestigious urban development destinations, supporting the vision of creating a world-class cultural, hospitality and lifestyle hub.”

  The latest award follows Diriyah Company’s award of an estimated SR730m ($195m) construction contract for civic quarter buildings within the Diriyah development to local contractor Al-Rashid Trading & Contracting Company (RTCC).

  In April, Diriyah announced a SR1.84bn ($490m) construction contract to build the Saudi Arabia Museum of Contemporary Art (SAMoCA) within the Diriyah development. The contract was awarded to a consortium of Egyptian contractor Hassan Allam Construction Saudi and Saudi Arabia’s Albawani.

  In March, Diriyah Company awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock in the DG2 area.

  The Pendry superblock includes the construction of the Pendry Hotel alongside residential and commercial assets. The package will cover 75,365 square metres and is located in the northwestern district of the DG2 area.

  The previous month, Diriyah Company also awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan, with a gross floor area of more than 31,000 sq m.

  The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

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  Yasir Iqbal
• 
  AHS Properties acquires Shangri-La hotel for $300m

  Administrator

  17 June 2026

  Dubai-based real estate developer AHS Properties has announced the acquisition of the Shangri-La hotel for AED1.1bn ($300m), marking one of the largest single-asset real estate transactions in recent years.

  AHS Properties acquired the hotel from local firm Mismak Asset Management.

  The Shangri-La Hotel is a 43-storey, 200-metre tower located on Sheikh Zayed Road. Completed in 2003, it was among the first five-star hotels to open along the corridor.

  The acquisition expands AHS Properties’ portfolio, which includes AHS Tower, a Grade A commercial development on Sheikh Zayed Road, and AHS City, the company’s master-planned mixed-use community on the same corridor.

  In a statement, AHS Properties said that AHS Tower, AHS City and the Shangri-La hotel form a strategic “vertical corridor” platform, representing a significant portion of the company’s AED50bn development pipeline through the end of 2026.

  “The transaction reflects AHS Properties’ strategy of deploying capital into high-quality, supply-constrained assets,” the statement added.

  According to the Dubai Land Department, Dubai’s real estate sector recorded AED252bn in transactions in Q1 2026.

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  Yasir Iqbal
• 
  UAE moves to clear the path for recovery

  Administrator

  17 June 2026

  Commentary
  Colin Foreman
  Editor

  More than three months after the conflict began to disrupt business across the Gulf, the UAE is moving to resolve the technical challenges that the economy faces as it shifts towards recovery.

  The insurance gap has been a key obstacle to the recovery of aviation and tourism. Several countries continue to maintain advisories against travel to the Gulf, making it difficult or impossible for visitors to obtain conventional cover for trips to or through the region. The concern is twofold: one, becoming stranded should hostilities resume, and two, not being able to secure medical insurance. Both Emirates and Etihad have now moved to address that directly, offering insurance to passengers flying to or through their respective home hubs. The Etihad scheme, backed by DCT Abu Dhabi and underwritten by Daman, will run from July to December and covers eligible visitors for up to 15 days.

  The second area of concern is real estate. Anecdotally, buyers in sectors economically exposed to the conflict have found it increasingly difficult to obtain mortgage financing, a problem that has become especially acute at the point of handover. The recently signed partnership between Dubai Holding Real Estate and Commercial Bank of Dubai is designed to ease that pressure. The programme opens financing from the 30% construction stage once buyers have met a 50% payment threshold, giving purchasers earlier visibility of their borrowing capacity and reducing uncertainty during the off-plan purchase process.

  Taken together, the two initiatives show that the UAE is proactively addressing the technical hurdles as and when they arise. As the recovery gathers momentum, more challenges will surface. The capacity and willingness to address them as they emerge will be crucial to a meaningful recovery.

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  Colin Foreman
• 
  Libya signs three oil deals after licensing round

  Administrator

  17 June 2026

  Libya’s National Oil Corporation (NOC) has signed three production-sharing agreements with several international energy companies following the country’s first licensing round in nearly two decades.

  The three agreements have been signed with the following consortiums:

  • Block O1 – offshore – Eni (Italy; 60%) and QatarEnergy (40%)
  • Block O7 – offshore – Repsol (Spain; 40%), Turkiye Petrolleri A O (TPAO; Turkiye; 40%) and MOL Group (Hungary; 20%)
  • Block C3 – onshore – Repsol and TPAO

  The contracts are three of the five announced as awarded in February this year as part of the 2025 licensing round.

  The three contracts were signed on 15 June.

  It is not known why the remaining two awarded contracts have not been signed.

  The remaining two contracts are:

  • Block M1 – onshore – Aiteo (Nigeria)
  • Block S4 – onshore – Chevron (US)

  Libya is seeking to attract investment and raise oil production capacity to 2 million barrels a day (b/d) from around 1.4 million b/d currently.

  The chairman of NOC, Massoud Suleman, said that the agreements reflected growing confidence in Libya’s oil and gas sector and would support exploration, development and production growth.

  The 2025 licensing round was Libya’s first licensing round since 2007.

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  Wil Crisp
• 
  US–Iran deal sets Hormuz road map

  Administrator

  17 June 2026

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  The US-Iran agreement, declared complete on 14 June, reopens the Strait of Hormuz, lifts the US naval blockade and ends a war that has closed the Gulf’s export artery since 28 February. The strait reopens at Friday’s signing on paper, but the recovery will take months.

  US President Donald Trump announced the deal on Truth Social, authorising the "toll-free opening" of the strait and the immediate removal of the blockade, with formal signing set for Geneva on 19 June – with vice-president JD Vance to sign for Washington and parliamentary speaker Mohammad Baqer Ghalibaf for Tehran in the highest-level US-Iran meeting since 1979.

  Iran’s deputy foreign minister Kazem Gharibabadi confirmed the text was finalised but said Tehran would not implement it until signing, with the strait staying closed in the interim.

  Signing versus substance

  The signing on 19 June is merely the starting line that will set in motion a partial reopening to traffic alongside a clearance operation to remove the mines laid by Tehran across key sections of the strait.

  The memorandum gives Iranian forces 30 days from signing to clear the strait of mines. At the same time, the Pentagon’s estimates appear to suggest that a full minesweeping could take up to six months, even with three dedicated vessels in the region.

  Such gaps – here a 30-day treaty obligation against a six-month operational reality – have become the running feature of the bilateral negotiations, which have been framed by mutual distrust and plagued by an absence of granular detail.

  The deal is welcome for the region despite its uncertainty. Behind the mines sits a tanker backlog built over more than 100 days, and Gulf producers that throttled back production and need time and assurances to restore flow.

  Before the war, roughly 100 ships transited daily; Kpler now projects around 40 a day could sail within the first month, but with an estimated 300 loaded vessels stranded on either side of the strait, and 250 more sitting empty and idle in the Gulf, it is a pressure release valve, not an immediate restoration of flow.

  A total restoration of oil and trade flows is unlikely to come into view before the year’s end.

  Insurance represents the second brake, with war-risk premiums standing at 1-4% of vessel value per transit, or about $8m for a $200m tanker – against less than 0.1% before the war.

  Shipping associations are no less cautious, with the Baltic and International Maritime Council calling for verified mine-free routes before volume traffic resumes.

  Insurance underwriters are likewise unlikely to relent on prices until clearance is confirmed.

  Conditional relief

  Markets have already traded the sentiment, however. Brent settled at $87.33 on 13 June – an eight-week low – and have fallen further as the deal has firmed. As of early morning trading on 16 June, the first full day of trading after the Islamic New Year, Brent was down at $78.

  Yet the relief remains highly conditional: a 60-day nuclear negotiation now follows the signing, and a breakdown in either this, passage through the strait or peace in Lebanon could return the strait to crisis.

  The US-touted toll-free terminology is also narrower than billed, with the Iranians instead affirming a 60-day grace period for fees but not eliminating the possibility of “fees” for navigation, environmental and insurance services after that point.

  The distinction is legal, not rhetorical, with international maritime law barring tolls on passage through natural straits but permitting the imposition of service fees on vessels passing through territorial waters.

  It is through this terminology that Iran is now consistently framing its plans to charge fees from passing vessels through the office of its Persian Gulf Strait Authority – established 5 May and since sanctioned by the US Treasury.

  For the Gulf, a 60-day waiver that resolves into an Iranian (and possibly joint Omani) fee regime is a pause in Iran’s tollgate economy, not its end – and would represent a strategic concession for the US, the Gulf and the globe.

  Levant entanglement

  Lebanon is another conditional space that the deal cannot fully escape, with a flare-up on that front being the final potential trigger that could collapse the 60-day agreement.

  Iran has explicitly tied a ceasefire in Lebanon to the resolution of transit in the strait, but Israel does not agree with this, and the linkage may have inadvertently handed Tel Aviv the exact tool it needs to disrupt the US–Iran ceasefire – through the simple of continuing a conflict that it already wants to continue.

  Within a day of the deal, Israeli Defence Minister Israel Katz said the IDF would stay in southern Lebanon “without any time limit”, with US officials corroborating that Israeli withdrawal was never a condition of a deal.

  On the ground, the ceasefire is already looking frail, with post-deal fire straying in both directions and already endangering the regional calm and Hormuz reopening the Gulf is already pricing.

  For Gulf producers and shippers, the distinction and in some cases friction between what the deal declares and what it actually delivers remains a cause for uncertainty.

  A declaration is easy, but the delivery requires nuclear negotiation, mine-clearance verification, insurance repricing and a 60-day political test before barrels can again move at volume.

  Trump, who has been frustrated for months with the slow progress on Iran from a US perspective, is also more than likely to be distracted by other concerns on a timeline shorter than 60 days – risking the political will to peace coming up short.

  In the Gulf, whether Saudi Arabia and the UAE send cabinet-level representatives to Geneva on Friday will signal whether the region’s political leaders are willing to wield the political capital necessary to keep the US on track and pursue the ceasefire to fruition.

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  John Bambridge
• 
  Firms prepare offers for Bahrain’s Sitra IWPP

  Administrator

  17 June 2026

  

   

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  At least three firms are preparing to submit offers for the 1.2GW Sitra independent water and power plant (IWPP), with bidding due to close on 17 June.

  The Sitra IWPP is a combined-cycle gas turbine plant expected to have a generation capacity of about 1,200MW of electricity. The project’s seawater reverse osmosis desalination facility will have a production capacity of 30 million imperial gallons a day (MIGD). 

  The build-own-operate project is being procured by Bahrain’s Electricity & Water Authority (EWA) under a public-private partnership framework for 20-25 years.

  According to sources, Abu Dhabi National Energy Company (Taqa), Acwa (Saudi Arabia) and Korea Electric Power Corporation (Kepco) are preparing to submit separate offers for the project, which has had several deadline extensions since the tender was released last year.

  Bids are scheduled to be opened on 18 June.

  Lebanon-headquartered Khatib & Alami was recently awarded a consulting contract for the project, worth $1.91m. This was despite the consultancy submitting only the third-lowest bid behind Spain’s Ayesa ($1.25m) and WSP Middle East Architectural & Engineering ($1.27m).

  MEED previously reported that six individual companies had prequalified to bid, including Gulf Investment Corporation (Kuwait), Jera (Japan) and Sumitomo Corporation (Japan).

  China Energy Engineering Corporation and China Datang (Overseas Hong Kong, China) prequalified as the only consortium. It is unclear if either of these will submit an offer.

  EWA’s transaction advisory team for the project comprises KPMG Fakhro as the financial consultant and Trowers & Hamlins as the legal consultant.

  Al-Hidd IWP

  Sitra is Bahrain’s fourth IWPP, replacing the previously planned Al-Dur 3. Bids for another EWA initiative, the planned Al-Hidd independent water plant, have been under evaluation since the beginning of the year.

  According to a source, a decision on the project’s development is currently awaiting “tender board approval”.

  The Al-Hidd seawater reverse osmosis plant is expected to have a production capacity of about 60 MIGD, equivalent to roughly 272,000 cubic metres a day of potable water.

  Acwa (Saudi Arabia) and a consortium of GS Inima (South Korea/Spain) / Lamar Holding (local) each submitted bids for the project.

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  Mark Dowdall
• 
  Petrofac seeks to reclaim lost ground in UAE projects market

  Administrator

  17 June 2026

  Commentary
  Indrajit Sen
  Oil & gas editor

  Petrofac has turned a corner. The completion of sales transactions for its Asset Solutions business in April and the UAE-based unit Petrofac Emirates in late May mark the end of a tumultuous period for the UK-headquartered company that started in at least 2019. They are also the beginning of a new chapter.

  Since the start of the decade, Petrofac has been rattled by problems cascading from a corruption scandal that led key clients in the Middle East and North Africa (Mena) region to suspend the company from project tendering. It also caused widespread layoffs, saw the company's shares delisted from the London Stock Exchange in May 2025 and, ultimately, forced the firm to file for administration in the UK in October due to mounting financial challenges.

  In the midst of these legal and financial struggles, the Covid-19 pandemic dealt further blows to Petrofac's operations.

  Yet despite the troubles of its besieged parent company, Abu Dhabi-based Petrofac Emirates continued to win oil and gas contracts from Abu Dhabi National Oil Company (Adnoc Group).

  Petrofac Emirates, which was established in Abu Dhabi in 2008 and operates a major base in the emirate of Sharjah, won approximately $6.4bn-worth of engineering, procurement and construction (EPC) contracts in the Mena region in the first half of the decade, according to data from regional project tracker MEED Projects. Nearly half of the company's total contract awards in 2020-25 was generated in the UAE.

  Petrofac Emirates won major contracts for the third tranche of the first phase of Adnoc Gas’ Rich Gas Development programme in June 2025, valued at $1.2bn. The contracts cover engineering, procurement and construction management services and overseeing the procurement and construction contracts for the building of a new inlet facility; two new gas dehydration and compression trains, each with a capacity of 420 million cubic feet a day; and associated infrastructure at the Das Island liquefaction facility.

  Petrofac Emirates is also a key contractor within Adnoc Gas’ larger scheme to upgrade its sales gas pipeline network across the UAE. The firm has won two out of eight EPC packages for the project, which is also known as Estidama. 

  Separately, Adnoc Gas awarded Petrofac a $615m EPC contract in October 2023 for the carbon dioxide (CO2) recovery project at the Habshan complex. The planned Habshan carbon capture, utilisation and storage facility will have the capacity to capture and permanently store 1.5 million tonnes a year of CO2 within geological formations deep underground.

  Looking ahead, Petrofac Emirates is expected to thrive under its new ownership – a consortium of financial investors. The group is led by New York-headquartered hedge fund Mason Capital Management and UK-based asset management firm Pearlstone Alternative, and is expected to make significant investments to improve Petrofac Emirates’ core capabilities and increase the company's workforce.

  The management change at Petrofac Emirates also comes at an opportune time, as Adnoc strives to achieve an oil production capacity of 5 million barrels a day by 2027 – in a campaign known as Accelerated Integrated Programme 5 – and attain gas self-sufficiency by the end of the decade.

  With its financial stability secured under the new owners, a resurgent Petrofac is likely to compete to regain its lost share of the UAE projects market – as well as for Adnoc Group’s recently announced AED200bn ($54.45bn) capital expenditure budget for new project awards in 2026-28.

  

   

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  Indrajit Sen
• 
  Local consortium wins Egypt grid contracts

  Administrator

  17 June 2026

  

   

  Egypt’s Korra Energi and High Dam for Electrical & Industrial Projects (Hidelco) have won contracts to build two sections of a major power transmission project connecting wind farms in the Gulf of Suez to the national grid.

  The contracts were awarded by the Egyptian Electricity Transmission Company (EETC). In a statement, Korra said the contracts cover the first and third lots of a wider scheme involving the construction of 500-kilovolt (kV) extra-high-voltage overhead transmission lines.

  The consortium will execute a 45-kilometre transmission line under Lot 1, valued at £E1.5bn ($29m).

  Lot 3 covers a 52km transmission line and is valued at £E1.65bn.

  The two contracts have a combined value of more than £E3bn ($58m). Both are scheduled for completion within one year of contractual close, Korra said.

  The transmission lines will connect new wind power projects in the Gulf of Suez to Egypt’s electricity network. The project is expected to enable the integration of more than 2GW of renewable energy capacity.

  The wider transmission scheme has an estimated investment value of £E12bn-14bn and has been divided into eight packages. EETC is implementing the project as part of efforts to strengthen grid infrastructure and increase its capacity to absorb renewable energy generation.

  The award follows Korra Energi’s listing on the Egyptian Stock Exchange earlier this month. The company offered an 11% stake through a public and private placement at £E2.97 ($0.06) a share.

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  Mark Dowdall