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  Region’s hotel projects pipeline balloons

  Administrator

  4 April 2025

  

   

  This package also includes: Beaches and luxury drive regional tourism

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  Despite a somewhat lackluster 2024 performance in the region for hospitality-linked project award activity, Middle East and North Africa (Mena) contractors are eyeing more than $60bn in projects in design and bid that are set to proceed to market in the near future.

  Last year, project awards in the Mena region’s hospitality-linked construction segment declined slightly to $6.2bn, falling below the contract award values in both 2022 and 2023, while remaining above that of the three preceding years and the average for the past five years.

  Also positively, the awards value for 2024 was commensurate with the value of projects in the bidding phase this time last year, when $1.3bn-worth of projects had been awarded and $5.2bn-worth of projects were in the bidding phase. This indicates that projects in the segment are delivering and not stalling.

  Top projects

  Saudi Arabia dominated the overall project activity in the segment with a total contract award value of $4.4bn. This was followed by the UAE at $1bn and a handful of other countries with a combined $700m in value – making for a significantly skewed project activity landscape.

  The largest single project to be awarded was the $762m Keturah Creekside Resort, a Ritz-Carlton Residences scheme in Dubai that is being developed by the local Mag Property Development. The main contract was awarded to Cecep Techand Middle East, a Dubai-based contracting subsidiary of a Chinese state-owned enterprise that is generally better known for its involvement in utility projects.

  The next largest award was for the $508m Six Senses Falcon’s Nest Hotel in the Wadi Safar area of Saudi Arabia’s Diriyah gigaproject. This contract was awarded by Diriyah Company to a joint venture (JV) of Qatar’s UCC Holding and local construction group Al-Bawani. 

  Diriyah Company also let the contracts for four other hotels at Wadi Safar – Aman, Chedi, Faena and Oberoi-branded properties worth a combined $826m – to the same JV. 

  Three further Diriyah projects worth a combined $519m were awarded for the building of a Capella hotel, a Raffles hotel and a Ritz-Carlton Residences to a variety of other contractors.

  Significant gigaproject-linked contract awards were also made on the Amaala development within Red Sea Global’s project portfolio, and for a hotel complex at Qiddiya, the Riyadh-adjacent entertainment city. 

  The largest contract awarded in a third country was a $125m Avani-Tivoli hotel and residences project in Bahrain let to local contractor Cebarco by Bahrain Real Estate Investment Company (Edamah) as part of the Bilaj Al-Jazayer development.

  Project pipeline

  Looking ahead in 2025, there are $8.6bn-worth of projects in the bidding phase, with $3.9bn at the prequalification stage, $2.2bn in bid submission and $2.5bn in bid evaluation. If all of this value is awarded as expected, alongside the $410m in awards so far this year, then 2025 could turn out to be the best year for hotel project activity since 2015.

  There is also a much larger groundswell of projects in the design phase. This time last year, the value of projects in design was $15bn, but that value has swollen by 270% to $56bn in the past 12 months, led by Egypt’s launch of South Med, a 2,300-hectare tourism masterplan valued at $21bn. 

  Launched by Talaat Moustafa Group, the South Med project is situated 165 kilometres (km) to the west of Alexandria on Egypt’s northern Mediterranean coastline and 60km east of Ras El-Hekma, an area earmarked for development by Abu Dhabi following a $24bn deal for the land rights.

  Between the two masterplans, Egypt’s northern coast promises to generate a significant amount of construction work in the years to come, and developments in the area are also accelerating as the stretch of coastline grows in significance as a source of interest for investors. Local developer Sodic, which in 2021 become a subsidiary of UAE developer Aldar, launched its own plans in September to deliver a $500m Nobu hotel and residences complex just east of the Ras El-Hekma area.

  In Saudi Arabia, which accounts for $41.6bn or 50% of the hospitality project pipeline in the Mena region – including $24.4bn-worth of projects in design – the pending work is led in value terms by the $7bn in-design second phase of the Red Sea Project. There are also four packages of work worth a combined $3bn in design for the towers and podiums of the Mukaab project – the cubic centrepiece of the New Murabba development in Riyadh. Meanwhile, a further $3.8bn of projects are in design or bid – split $1.8bn and $2bn, respectively – at the Rua Al-Madinah development.

  The next-largest areas of pending hospitality projects in the region are in the UAE and Oman. The UAE’s pipeline is led by Emaar’s $1.5bn Dubai Creek Harbour Tower and a $1.3bn JW Marriott Resort & Residences planned by private developer Wow Resorts for Al-Marjan Island in Ras Al-Khaimah. In Oman, the projects are led by the $500m third phase of the tourism ministry’s Yenkit Hills development and a $500m Trump resort being developed by Omran, the UAE’s Dar Al-Arkan and the US’ Trump Organisation.

  If even a small fraction of the $56bn of hospitality-linked projects in the design phase in the region proceeds to execution in 2025, it could swell the awards total to record levels. After a somewhat sluggish performance in Q1, awards activity could pick up markedly from Q2 onwards, given the $2.5bn in projects that are already in bid evaluation and are set for imminent award.

  Beaches and luxury drive regional tourism

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  John Bambridge
• 
  Beaches and luxury drive regional tourism

  Administrator

  4 April 2025

  

   

  This package also includes: Region’s hotel projects pipeline balloons

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  In November last year, Saudi gigaproject developer Red Sea Global opened the Shebara resort. The resort’s futuristic architecture – with metallic orbs seemingly floating above the Red Sea – is indicative of the kingdom’s efforts to transform its tourism sector to attract international leisure visitors with sandy beaches and year-round sunshine to supplement its religious tourism offerings.

  While the room rates may mean visiting the resort is just an aspiration for many, its impact has been wide-ranging as social media posts by influencers visiting the resort highlight what Saudi Arabia now offers as a tourist destination.

  Diversifying its offering is a key part of Saudi Arabia’s tourism strategy, which aims to attract 70 million international visitors by 2030. 

  In January, Saudi Arabia’s tourism minister reported that the kingdom had welcomed a record 30 million international visitors in 2024. This figure marks a significant rise from 2019, when Saudi Arabia opened its doors to international tourism, attracting just over 17.5 million visitors.

  Despite the progress, the growth rate in 2024 was 9.4%, which is slower than previous years. In 2023, arrivals jumped by 65% to reach 27.4 million. To achieve its target of 70 million visitors by 2030, Saudi Arabia must achieve an average annual increase of about 6.6 million visitors, equating to a growth rate of nearly 15% a year.

  The opening of Shebara and other beach resorts will be vital to achieving this target.

  Diversifying its offering is a key part of Saudi Arabia’s tourism strategy, which aims to attract 70 million international visitors by 2030

  Beach resorts

  While the GCC’s coastal regions and islands have been developed for tourism for decades, they are increasingly becoming magnets for travellers. According to GlobalData’s Q2 2024 survey, 54% of respondents globally prefer sun and beach holidays, a trend that the GCC is well-positioned to capitalise on.

  Saudi Arabia is tapping into this demand with development projects on the country’s west coast, including the Red Sea Project, Amaala and several schemes within the Neom masterplan. 

  On the other side of the Arabian Peninsula, the UAE – particularly Dubai and Abu Dhabi – has long been a favourite for beachgoers, boasting luxurious beachfront resorts. These destinations are not only about relaxation, but also offer adventure activities, from water sports to desert safaris, enhancing their appeal to a broad spectrum of tourists.

  These beachfront offerings have helped the UAE’s tourism sector recover from the lockdowns during the Covid-19 pandemic. Dubai welcomed 18.7 million international overnight visitors in January to December 2024, a 9% year-on-year increase that surpassed the previous record of 17.2 million in 2023, according to data from the Dubai Department of Economy & Tourism.

  Room capacity is being added to cater to the growing numbers of tourists. According to property consultancy Cavendish Maxwell, Dubai’s hotel inventory will grow by 3.1% in 2025, with 3.4% growth predicted for 2026. By the end of 2027, Dubai is set to have more than 162,600 rooms across 769 hotels.

  High-end offering

  Luxury tourism is another pillar of growth for the GCC’s tourism sector. The UAE and Qatar have already established themselves as luxury destinations, attracting high-net-worth individuals and affluent travellers. Dubai’s high-end hotels and shopping malls are just some of the well-developed luxury tourism experiences on offer in Dubai.

  In 2024, almost 70% of room supply in Dubai was in the high-end category, according to Cavendish Maxwell, while for upcoming supply in 2025, nearly 70% will be in the high-end or upper-upscale segment.

  Similarly, the Pearl-Qatar destination and the award-winning experiences offered by Qatar Airways have positioned Doha as a luxury hotspot.

  Saudi Arabia is also making strides in this sector. In addition to developments like Shebara offering luxury experiences, there are high-end tourism projects being developed across the kingdom. Most recently, gigaproject developer Diriyah Company announced the Luxury 1, a 325-key hotel, which will be the brand’s first property in the Middle East. It will be part of a media and innovation district within the Diriyah project on the outskirts of Riyadh.

  Diriyah Company is also building residential projects that will be operated by luxury hotel brands. These include Armani, Baccarat, Corinthia, Raffles and Ritz-Carlton branded residences.

  Traditional strength

  While beaches and luxury are creating new opportunities, religious tourism remains the cornerstone of Saudi Arabia’s tourism strategy, driven by the millions of Muslims that visit Mecca and Medina for Hajj and Umrah. 

  A recent legal change allowing foreign ownership of land-owning companies in these cities marks a significant shift in Saudi Arabia’s approach to attracting foreign investment. This move is part of a broader strategy to bolster the economy and enhance the appeal of the Saudi financial market.

  The Saudi government’s Vision 2030 aims to increase tourism to 150 million visits annually by 2030, with religious tourism playing a crucial role. The kingdom is investing in infrastructure to accommodate the growing number of pilgrims, with the expansion of airports, hotels and transportation networks under way.

  The introduction of electronic and tourist visas has also made it easier for pilgrims to combine their religious journeys with other tourism experiences, broadening the scope of religious tourism to include cultural and heritage tourism.

  The GCC’s tourism sector is poised for significant growth, driven by the dual pillars of beach and luxury tourism, and complemented by religious tourism. The region’s investments in resorts and supporting infrastructure, coupled with its natural and cultural attractions, position it as one of the world’s most exciting tourism destinations.

  Region’s hotel projects pipeline balloons

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  Main image: High-end beachfront resorts such as Red Sea Global’s Shebara will be vital in achieving Saudi Arabia’s tourism targets. Credit: Red Sea Global – Shebara

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  Colin Foreman
• 
  Muted public spending hinders global tunnelling

  Administrator

  4 April 2025

  

   

  This package also includes: Traffic drives construction underground

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  The pipeline of tunnel construction projects around the world as tracked by GlobalData stands at $1.3tn, encompassing projects from announcement to execution.

  The total pipeline value reflects the overall values of projects that are either entirely tunnels or that have tunnels as an integral part of the work. The project pipeline includes tunnelling works across a range of sectors, including road and railway development, as well as water and sewerage.

  The pipeline of tunnel construction projects around the world currently stands at $1.3tn

  Subdued spending

  Public spending is anticipated to remain muted globally in the short term, as governments are still trying to curtail expenditure to reduce public debt, thereby constraining investments in public infrastructure. This is affecting the demand for tunnel construction, which heavily relies on public infrastructure development. Elevated construction material prices, high interest rates and labour and skill shortages are expected to discourage new investment, further reducing demand for tunnel construction.

  These challenges have already impacted project viability, leading to the withdrawal or postponement of funding for 50 projects in Australia’s $78.6bn infrastructure investment programme due to cost increases of over $21bn. The conflicts in Russia and Ukraine, the situation in Gaza and disruptions to shipping in the Red Sea are weighing on new investment levels, particularly in Eastern Europe and the Middle East and North Africa region due to increased uncertainty.

  However, this decrease in new tunnel investment is not expected to be uniform globally, as China’s significant infrastructure investment drive, the US’ Infrastructure and Jobs Act and India’s various infrastructure investment programmes are driving new investment in their respective regions.

  

  > Middle East and North Africa (Mena) The Mena region has a tunnel construction pipeline valued at $128.6bn. The UAE is one of the leading markets, with $25.4bn of projects that are mainly for metro systems and water and sewage tunnels. Across the region, economic factors like high debt and lower oil revenues may hinder the progress of these projects in the future.

  > Western Europe

  Western Europe has a tunnel construction project pipeline valued at $329.5bn, with Switzerland leading with $60.6bn of projects, follwed by Germany with $56.8bn. Notable projects include the Turin-Lyon tunnel and the Genoa underwater tunnel. Projects in pre-execution and execution stages total $222.8bn, with the highest-value project being Zurich’s $38.8bn CST (underground cargo) Freight Metro Tunnel.

  > Northeast Asia

  Northeast Asia’s tunnel construction pipeline is valued at $327.7bn, with China contributing $220.3bn, including the $42.4bn Dalian-Yantai undersea railway tunnel. Japan has projects worth $101.3bn, primarily the $65.2bn Tokyo to Nagoya Maglev Railway Line. Most projects are in later development stages, totalling $198.3bn, or 69.8% of the pipeline.

  > Australasia

  Australasia’s tunnel construction pipeline totals $150.1bn, with Australia holding $112.9bn, about 75% of the region’s value. The largest project is the $87bn Melbourne Suburban Rail Loop, a 90km rail loop with 13 stations. Construction on six stations began in 2022, with the entire project expected to finish by 2050, though rising costs and labour shortages may affect this.

  > North America

  North America’s tunnel projects are valued at $92.4bn, with $63.6bn in pre-execution and execution stages. The pipeline includes 921.8km of tunnels, primarily in the US. Railway tunnels are the largest segment at $40.7bn, with the Hudson River Rail Tunnel being the highest-value project at $16bn.

  > Southeast Asia

  Southeast Asia’s tunnel pipeline is valued at $91.3bn, with $55.1bn under construction. Singapore leads with $45.2bn, mainly from rail tunnel projects. The Land Transport Authority awarded a $199m contract for tunnels connecting MRT stations as part of the Cross Island Line’s second phase.

  > Eastern Europe

  Eastern Europe’s pipeline is valued at $56.3bn, with $46.9bn in pre-execution and execution stages. Major contributors include Turkiye, Czechia and Romania, which has the largest share at $16.3bn. The $9bn Bucharest Metro Line 5 is a key project expected to complete by 2033, with spending projected to rise in the coming years.

  > South Asia

  South Asia’s tunnel construction pipeline is valued at $47.9bn, with India contributing $31.9bn, primarily from road tunnels. A notable project is the $1.3bn Thane to Borivali underground tunnel. The pipeline includes 2,043.7km of developments, with spending expected to reach $1.8bn in 2024.

  > Latin America

  Latin America has a growing tunnel construction pipeline valued at $30.3bn, with $28.7bn in later development stages. The region includes 276.2km of projects, with Colombia leading at 92.1km. The highest-value project is the $9.6bn Bogota Metro, which began construction in early 2021.

  > Sub-Saharan Africa

  Sub-Saharan Africa’s tunnel construction pipeline is valued at $6.7bn, with 63.7% in pre-execution and execution stages. The pipeline includes 1,580km of projects, primarily in Tanzania, Ethiopia and Kenya. Spending may reach $685.4m in 2025, but investment constraints may limit new projects.

  In conclusion, while the global tunnel construction industry faces challenges due to muted spending, high construction material prices and geopolitical uncertainties, significant infrastructure investment initiatives in countries like China, the US and India are expected to continue driving new investment.

  Traffic drives construction underground 

   

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  Colin Foreman
• 
  Acwa Power starts production at new Shuaibah plant

  Administrator

  3 April 2025

  The new seawater reverse osmosis (SWRO) technology-based plant in Shuaibah, Saudi Arabia, has started water production following the decommissioning of the old plant running on multi-stage flash (MSF) technology.

  The new plant will cater to the water needs of Jeddah and Makkah Al-Mukarramah, especially during peak demand periods such as the Ramadan and Hajj seasons.

  Saudi utility developer Acwa Power CEO Marco Arcelli said in a social media post that the company has begun producing “green” water from the new SWRO plant in Shuaibah following the decommissioning of the old MSF desalination plant there.

  “We bid farewell to the first ever Acwa Power plant to jump into the future with one of the most efficient and green plants in the world, reducing power consumption by 87%, integrating 65MW of locally produced solar power, and bringing 22 million barrels of oil and 9 million tonnes of carbon dioxide annually to zero,” Arcelli said.

  The old MSF-based plant was part of the first independent water and power project (IWPP) to be developed in Saudi Arabia when the government opened the market for private investment. It became operational in 2010.

  Acwa Power, Shuaibah Water Electricity Company (Swec) and Saudi Water Partnership Company (SWPC) agreed to convert the water desalination component of the Shuaibah 3 IWPP into an SWRO plant in June 2022.

  At the time, the stakeholders announced that “operations of Shuaibah 3 IWPP will cease in 2025, saving nearly 45 million tonnes of carbon dioxide emissions and 22 million barrels of light crude oil annually”.

  A consortium led by Acwa Power and Public Investment Fund (PIF)-owned Badeel is developing the new facility, known as the Shuaibah 3 independent water project (IWP), at a cost of approximately SR3bn ($800m).

  It will produce 600,000 cubic metres of water a day once complete.

  The Acwa Power-led team agreed to have 40% local content in the construction phase and 50% in the operation and maintenance phase for the first five years, which will eventually increase to 70%.

  Swec is the project company that developed, financed and operated the Shuaibah 3 IWPP. It comprised Acwa Power (30%); a Malaysian consortium of Tenaga Nasional, Malakoff Berhad and Khazanah Nasional (30%); PIF (32%); and Saudi Electricity Company (8%).

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  Jennifer Aguinaldo
• 
  Read the April 2025 MEED Business Review

  Administrator

  3 April 2025

  Download / Subscribe / 14-day trial access

  Governments in the Middle East and North Africa (Mena) region are digging deep to find solutions to the challenges posed by booming populations and rapidly growing cities. It is hoped that by expanding their underground infrastructure, major urban
  centres such as Dubai, Riyadh and Doha can alleviate the mounting pressure that is being put on their existing transport and utility networks.

  Subterranean transport projects, such as the high-profile Dubai Loop scheme being planned by the Roads & Transport Authority in partnership with Elon Musk's The Boring Company, or the recently completed metro systems in Riyadh and Doha, promise to tackle urban congestion and slash commute times. Meanwhile, through large-scale underground utilities schemes like the Dubai Strategic Sewerage Tunnels project, the traditional wastewater network can be upgraded without disturbing the existing cityscape.

  As a result, while governments globally are curtailing public infrastructure spending to reduce public debt, GlobalData has revealed that the Mena region has a tunnel construction pipeline worth $128.6bn.

  In the April edition of MEED Business Review, we take an in-depth look at the various subterranean transport and utility projects that are in the pipeline in the Mena region, and examine the outlook for major tunnelling projects globally. 

  MEED's latest issue also includes a comprehensive report on the region's tourism and hospitality sector, as Saudi Arabia strives to join Qatar and the UAE as one of the GCC’s leading leisure tourism destinations. Indeed, the kingdom dominates when it comes to hospitality-linked project activity, with contracts worth a total of $4.4bn awarded last year.

  Saudi Arabia is also the focus of this month’s exclusive 21-page market report, which finds the kingdom looking forward to a positive year in 2025. As Riyadh takes the diplomatic initiative, particularly as an intermediary in the Ukraine conflict, the kingdom's non-oil economy is also going from strength to strength.

  Although lower oil prices are expected to slightly dent revenues this year, Saudi Aramco is planning sustained capital expenditure and remains intent on projects to expand the production of high-value petrochemicals. Meanwhile, 2025 is expected to be a year of stable profitability for Saudi Arabia’s banks, and is set to be the busiest year ever for the power sector. Construction awards also remain up as Riyadh shifts its focus to delivering the infrastructure and transport projects that are needed for the kingdom’s hosting of upcoming international events.

  This issue is also packed with analysis. We find out how BP’s planned $25bn investment in Iraqi oil fields will benefit Chinese contractors, round up the top five GCC data centre projects, look at why the rapid deployment of low-cost solar power is causing a surge in battery energy storage demand, and discover that Riyadh's need to diversify its sources of project financing has led to a sharp rise in the value of public-private partnerships in Saudi Arabia.

  In the April issue, the team also speaks exclusively to CEO of Edmond de Rothschild Asset Management UK and global head of infrastructure and structured finance, Jean-Francis Dusch, about Saudi infrastructure investment opportunities; and talks to Mark Thomas, group CEO of Bapco Energies, about how the state energy conglomerate plans to secure Bahrain’s hydrocarbons potential.

  We hope our valued subscribers enjoy the April 2025 issue of MEED Business Review. 

  

   

  Must-read sections in the April 2025 issue of MEED Business Review include:

  > AGENDA: 
  > Traffic drives construction underground
  > Muted public spending hinders global tunnelling

  > CURRENT AFFAIRS:
  > Chinese contractors to benefit from BP’s investment in Iraq

  INDUSTRY REPORT: Tourism and hospitality > Beaches and luxury drive regional tourism > Region’s hotel projects pipeline balloons

  > INTERVIEWS:
  > Investing in Saudi Arabia’s infrastructure opportunities
  > Securing Bahrain’s hydrocarbons potential

  > DATA CENTRES: GCC’s top five data centre projects

  > POWER: GCC battery storage pipeline hits over 55GWh

  > SAUDI PPPs: Rise in PPPs reflects Saudi budgetary pragmatism

  > SAUDI ARABIA MARKET REPORT: 
  > COMMENT: Riyadh enjoys buoyant fortunes
  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > DATABANK: Saudi Arabia’s growth trend heads up

  > MEED COMMENTS: 
  > Saudi Arabia is high-rise capital of the world
  > Dubai needs to deliver more metro lines
  > US and UAE power play gains momentum
  > Libya’s new oil licensing round could be make or break

  > GULF PROJECTS INDEX: Gulf index sees minor correction

  > FEBRUARY 2025 CONTRACTS: Project awards slump notably in February

  > ECONOMIC DATA: Data drives regional projects

  > OPINION: Is this the end for Middle East studies?

  > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

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

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  MEED Editorial
• 
  Abu Dhabi balances AI and net zero with $9.8bn infra spend

  Administrator

  3 April 2025

  Commentary
  Jennifer Aguinaldo
  Energy & technology editor

  Abu Dhabi National Energy Company (Taqa) and Emirates Water & Electricity Company (Ewec) have officially confirmed the scale of the power generation and grid infrastructure being planned to support the UAE capital’s artificial intelligence (AI) strategy.

  The picture emerging from today’s announcement indicates a total investment of AED36bn, or roughly $9.8bn.

  This includes the round-the-clock solar photovoltaic plus battery energy storage system project that Ewec and Abu Dhabi Future Energy Company (Masdar) announced in January, and which requires an estimated $6bn.

  Today’s announcement said an advanced grid infrastructure project will account for 25% of the total investment, which equates to about $2.45bn. This implies that the build, own and operate contract for the Al-Dhafra open-cycle gas turbine (OCGT), which Taqa will 100% own, will require roughly $1.35bn.

  The chosen energy infrastructure combination shows Abu Dhabi’s resolve to address the high energy density of the nascent AI sector and its commitment to achieving net-zero emissions in the long term. 

  These major investments provide a glimpse into the scale and urgency of Abu Dhabi’s AI ambitions.

  In January, for instance, the government said it plans to deploy AED13bn for a three-year digital strategy to make Abu Dhabi the first government globally to fully integrate AI into its digital services by 2027.

  The strategy includes achieving 100% adoption of sovereign cloud computing for government operations and digitising and automating 100% of processes to streamline procedures, enhance productivity and improve operational efficiency.

  The strategy is projected to contribute AED24bn to Abu Dhabi’s GDP by 2027 while creating more than 5,000 jobs to support Emiratisation efforts.

  Abu Dhabi-owned data centre operator Khazna Data Centres is also preparing for a major capacity expansion. Construction is under way for the state’s first 100MW data centre in Ajman.

  In addition, UAE AI and technology fund MGX and US-based private equity investor Silver Lake recently acquired a minority stake in Khazna, while Abu Dhabi AI firm G42 remains the company’s majority shareholder.

  A March meeting between US President Donald Trump and Abu Dhabi deputy ruler, Sheikh Tahnoon Bin Zayed Al-Nahyan, at the White House also highlighted Abu Dhabi’s unfolding AI pursuit.

  The formation of a $25bn joint venture between Abu Dhabi’s ADQ and US-headquartered Energy Capital Partners (ECP) to build data centres in the US preceded that meeting.

  However, in the minds of some observers, the real diplomatic objective of the UAE is to gain easier access to US-made graphics processing units (GPUs), which are vital to the successful implementation of its AI strategy.

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  Jennifer Aguinaldo
• 
  Taqa and Ewec sign Dhafra OCGT and grid contracts

  Administrator

  3 April 2025

  Abu Dhabi National Energy Company (Taqa) and state utility and offtaker Emirates Water & Electricity Company (Ewec) have signed a 24-year power-purchase agreement (PPA) to build, own and operate an open-cycle gas turbine (OCGT) project in Abu Dhabi.

  The Al-Dhafra OCGT project will have a capacity of 1,000MW.

  Taqa will own 100% of the project and undertake the operation and maintenance (O&M) of the plant, the firms said in a joint statement issued on 3 April.

  MEED previously reported that the Italian original equipment manufacturer, Ansaldo Energia, will supply gas turbines for the project.

  The project’s engineering, procurement and construction (EPC) contract is also expected to be formally awarded imminently to a team of South Korean and local contractors, according to industry sources. 

  In addition to the Dhafra OCGT project, Taqa Transmission, previously Transco, agreed to develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to “reliable power with a low carbon footprint”.

  According to Taqa and Ewec, both schemes will support the round-the-clock solar and battery energy storage system (bess) project, which Abu Dhabi Future Energy Company (Masdar) and Ewec announced in January.

  Related read: Masdar meets renewable’s moonshot challenge

  That project, comprising a 5.2GW solar photovoltaic (PV) plant and 19 gigawatt-hours bess plant, aims to deliver up to 1GW of “baseload” power from renewable sources “24 hours a day, seven days a week”.

  These projects aim to advance the UAE National Strategy for Artificial Intelligence 2031 and the UAE Net Zero by 2050 initiative.

  “The collaboration between Ewec, Taqa and Masdar will drive investment of around AED36bn ($9.8bn) in energy supply infrastructure in Abu Dhabi with around 75% of that to be invested in renewable and conventional power generation.

  “The remaining 25% will be invested in grid infrastructure, which will be added to the regulated asset base and will receive the regulated return,” the firms said.

  The round-the-clock solar plus bess project is understood to require $6bn in investment, which implies that the BOO contract for the Dhafra OCGT is roughly $1.35bn.

  The advanced grid infrastructure will account for the remaining $2.45bn.

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  Jennifer Aguinaldo
• 
  Australian firm wins Trojena dams subcontract

  Administrator

  3 April 2025

  Australian firm Glaass has won a subcontract from Italian contractor Webuild for the Trojena dams project in Neom, Saudi Arabia.

  In an official statement, the firm said its contract scope covers providing comprehensive quality, health, safety and environmental services for the project, which involves around 2,800 field workers.

  Neom awarded Webuild a $5bn contract in late 2023. The deal covers the construction of three dams that will form a freshwater lake for the Trojena ski resort.

  The main dam will be 145 metres high and 475 metres long at its crest. It will be built using 2.7 million cubic metres of roller compact concrete (RCC).

  Some 650,000 cubic metres of RCC will be used to build a dam within the planned lake, creating an island below the water level.

  The kidney-shaped dam will be 38 metres high and 700 metres long. It will be connected to the nearby Lake Village by an underwater tunnel. The landscaping and other attractions within the dam are known as the Enchanted Forest.

  The third dam will be 65 metres high and 490 metres long at its crest. It will be constructed using 4.15 million cubic metres of rockfill. The works also include the lakebed line and the foundations for the Bow Building, a concrete structure at the end of the lake that will overhang the valley below and incorporate a hotel.

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  Hear directly from the gigaproject owners at the biggest construction event—The Saudi Giga Projects 2025 Summit, happening in Riyadh from 12-14 May 2025. Click here to know more

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  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > DATABANK: Saudi Arabia’s growth trend heads up

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13609655/main.gif

  Yasir Iqbal