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  • Riyadh takes the diplomatic initiative

    Administrator

    2 April 2025

     

    Saudi Arabia has been at the centre of regional diplomatic activity through the early months of 2025, positioning itself as an intermediary in the Ukraine conflict and at the forefront of engagement with the new regime in Syria.

    The role of regional mediator is one that has in recent years been more closely associated with Qatar – particularly in relation to the Gaza conflict – and, on occasion, Oman.

    Riyadh’s decision to throw its weight behind diplomatic initiatives is part of what Abdulaziz Sager, chairman of the Saudi-based Gulf Research Centre, has described as a “bold multi-alignment strategy”, which seeks to balance Riyadh’s economic and security concerns and its regional leadership ambitions.

    Multipronged initiatives

    The kingdom has gained plaudits for its efforts to resolve the Ukraine war in particular. Following his talks with Crown Prince Mohammed Bin Salman (MBS) in Jeddah on 11 March, Ukraine’s President Volodymyr Zelenskyy said: “Saudi Arabia provides a crucial platform for diplomacy, and we appreciate this.”

    Zelenskyy added that he had “a detailed discussion on the steps and conditions needed to end the war” with the crown prince.

    The previous month, US secretary of state Marco Rubio had said Saudi Arabia had played an “indispensable role” in setting up bilateral negotiations between Moscow and Washington to discuss the conflict.

    Russia’s President Vladamir Putin has also praised the Saudi leadership for providing a platform for high-level meetings with the US and “creating a very friendly atmosphere”.

    Whether all this leads to a lasting peace deal for Ukraine remains to be seen, but Saudi Arabia’s attitude to conflict may be coloured somewhat by its own experiences over the past decade in Yemen.

    It is now 10 years since it launched a bombing campaign against Yemen’s Houthi rebels in March 2015, and the war has not gone as Riyadh had hoped, with the Houthis proving far more resilient than anticipated.

    Saudi Arabia’s southern border has at least been relatively quiet since a truce took hold in 2022, but a comprehensive peace deal has proved elusive.

    Riyadh has also been re-engaging in the Levant this year, in light of the new regime in Damascus.

    The new Syrian president Ahmed Al-Sharaa travelled to Riyadh in early February, on his first trip abroad since taking power. Saudi Foreign Minister Prince Faisal Bin Farhan had been in Damascus a week earlier.

    There are some key issues at stake for Riyadh. The regime of President Bashar Al-Assad had overseen the industrial-scale production of the amphetamine-type stimulant Captagon, much of which was smuggled into Saudi Arabia and other Gulf states. Saudi efforts to disrupt the trade – both at its borders and via lobbying of the Syrian authorities – had failed to stem the flow of drugs.

    In addition, Hasan Alhasan, senior fellow for Middle East Policy at the International Institute for Strategic Studies, has pointed out that between 500,000 and 2.5 million de facto Syrian refugees are thought to be living in Saudi Arabia – a fact that gives Riyadh a clear interest in Syria’s stability, particularly if it wants to encourage them to return home.

    “Saudi Arabia views the fall of the Assad regime as an opportunity to reassert its influence in the Levant,” he asserted in a recent commentary.

    The ousting of Assad in late 2024 and the recent Israeli campaign against Hezbollah has also changed the situation on the ground in Lebanon, encouraging Saudi Arabia to reconsider its approach there too.

    MBS hosted Lebanon’s recently elected President Joseph Aoun on 3 March. Following their meeting, Saudi Arabia said it would look again at allowing Lebanese exports to Saudi Arabia and letting its own citizens travel to Lebanon.

    Manoeuvring around Trump

    The Saudi diplomatic push may also be motivated by a desire to ensure that relations with Washington remain on a positive footing in the wake of Donald Trump’s re-election as US president.

    At first, it appeared that the bilateral relations would follow a similar pattern to Trump’s first term.

    In January, MBS said in a phone call with Trump that Saudi Arabia was planning to invest some $600bn in the US over the coming four years, which the US president suggested should probably be increased to $1tn. This echoed the signing of $460bn-worth of defence deals when Trump made Saudi Arabia his first foreign trip as president in May 2017.

    Riyadh appears to have conceded to Trump’s higher figure, with the US president saying in early March: “I said I'll go if you pay $1tn to American companies, meaning the purchase over a four-year period of $1tn, and they've agreed to do that. So, I'm going to be going there.”

    However, other aspects of the bilateral relationship are more difficult and less predictable. Trump had been pushing Saudi Arabia to join Bahrain, the UAE and Morocco in normalising relations with Israel, but in light of the war in Gaza and Trump’s own plans for the ethnic cleansing of Palestinians from the strip, that looks like a stretch too far.

    Trump will nevertheless have been pleased by the decision by Saudi Arabia and the other members of the Opec+ bloc in early March to unwind some of the production restrictions they had voluntarily agreed.

    From April onwards, the eight-strong group will start to bring 2.2 million barrels a day back onto the market over the course of 18 months. That fits in with Trump’s call in January, soon after taking office, for Riyadh and Opec to do more to help bring oil prices down.

    However, that decision may also create fiscal challenges for the Saudi government, as any rise in production could be more than offset by lower prices.

    Saudi Aramco has announced plans to trim its dividend payouts this year to $85.4bn – down from $124bn in 2024. These payments are a vital source of revenues both for the central government and for its Public Investment Fund (which holds a 16% stake in Aramco)

    All that could force some public sector spending constraint in the kingdom, in a sign that balancing diplomacy and financial interests is not always straightforward.

    MEED’s April 2025 report on Saudi Arabia includes:

    > 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
    > BANKING:     Saudi banks work to keep pace with credit expansion

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483143/main.gif
    Dominic Dudley
  • Investing in Saudi Arabia’s infrastructure opportunities

    Administrator

    2 April 2025

     

    With a background in private banking and asset management, Edmond de Rothschild is an established player in infrastructure investment. Since launching its infrastructure platform in 2014, the firm has raised over $6.5bn, ranking among Europe’s top infrastructure debt investors.

    The bank prides itself on a conviction-led approach. “We at Edmond de Rothschild are a company that has convictions. Private markets are not a broad, generalist approach for us; we adopt a highly focused strategy, particularly in infrastructure,” says Jean-Francis Dusch, CEO of Edmond de Rothschild Asset Management UK and global head of infrastructure and structured finance.

    This strategic approach has allowed Edmond de Rothschild to establish itself as a key player in infrastructure finance, growing from a small team of fewer than 10 people in 2014 to one that has now raised billions in capital. “We decided to focus first on real estate, then private equity with very specific strategies, and finally infrastructure, where we maintain a global approach,” says Dusch.

    Edmond de Rothschild initially engaged in advisory services for governments and private consortiums, providing expertise in project implementation. The firm’s work in the public-private partnership (PPP) space led to the development of a dedicated infrastructure lending platform. “In less than 10 months from the initial idea being discussed, we raised $400m. Fast forward to today, and we have now raised more than $6.5bn, positioning us as a major player in infrastructure debt,” says Dusch.

    Saudi infrastructure

    Saudi Arabia’s Vision 2030 has set the stage for significant infrastructure development, and Edmond de Rothschild is positioning itself to play a crucial role. “Saudi Arabia is already the largest infrastructure market in the region, and we see significant opportunities to contribute,” says Dusch.

    A major part of Edmond de Rothschild’s approach focuses on debt financing rather than equity. “The platform I represent is dedicated to debt. There has been a lot of equity investment from the kingdom and the strong regional banks, as well as large global banks. However, as infrastructure investment accelerates, we anticipate a liquidity gap that we can help bridge,” says Dusch.

    This is particularly relevant given Saudi Arabia’s ambitious infrastructure programmes. “With Vision 2030 driving development, the need for private liquidity will increase. Our goal is to provide that liquidity in a structured way, supporting sustainable capital structures while ensuring robust returns for investors,” he says.

    To reinforce its commitment, Edmond de Rothschild has established a local joint venture in Saudi Arabia.

    The firm takes a diversified approach to infrastructure, ensuring it remains at the forefront of evolving sector trends. “Ten years ago, infrastructure was primarily about transport and social infrastructure,” says Dusch. “But we have always believed it also includes renewable energy, digital infrastructure and decarbonisation efforts.” 

    The shift toward digital infrastructure has been particularly notable. “The rise of AI and data-driven technologies has increased demand for digital infrastructure. Sustainable data centres, fibre optics and digital connectivity are becoming key pillars of modern infrastructure investment,” says Dusch.

    Edmond de Rothschild’s portfolio comprises a mix of greenfield and brownfield infrastructure projects. “As a project financier, our natural inclination is to focus on new projects. However, when managing
    investor capital, we also look at brownfield projects that require modernisation. About 30% of our portfolio is greenfield, and 70% is brownfield,” says Dusch.

    This focus aligns with the evolving nature of infrastructure investment. “Assets need to be modernised,
    especially in energy transition and digitalisation,” he says. “Many brownfield projects are still in a growth phase, so while they are technically existing assets, they require significant new investment.”

    Broader region

    While Saudi Arabia is the focus, Edmond de Rothschild is also eyeing broader regional expansion. “Our goal is to develop a multibillion-dollar infrastructure programme in the region, as we did in Europe. The first step is Saudi Arabia, where we have strong local partners. However, we aim to expand our coverage to other GCC countries over time,” says Dusch.

    We don’t need to do everything – we focus on areas where we can add real value

    This approach mirrors the firm’s European expansion strategy. “In Europe, we started with a focused mandate in core markets and gradually expanded,” he says. “We plan to follow a similar trajectory in the Middle East, leveraging our experience and track record to drive growth.”

    One of the critical questions for international investors is whether Saudi projects are investment-ready. “It’s a mix,” he acknowledges. “Like in Europe, large programmes are announced, and while not every project is immediately ready, there is a concrete pipeline of opportunities.”

    Edmond de Rothschild sees particular potential in small to mid-sized projects. “The debt instruments we offer are currently more suited to small and medium-sized projects rather than megaprojects. However, as the market evolves, we anticipate broader participation,” he says.

    Saudi Arabia’s infrastructure financing model is also undergoing a shift. “Previously, infrastructure was largely government-led with a first-generation PPP approach. Now, we are seeing more private sector initiatives. Europe has largely transitioned to private infrastructure development, and Saudi Arabia is following a similar path,” says Dusch.

    Long-term commitment

    With infrastructure demand growing across sectors, Edmond de Rothschild will remain selective with its strategy. “We don’t need to do everything – we focus on areas where we can add real value. That is what has made us successful, and that’s the approach we will continue in Saudi Arabia and beyond.” 

    MEED’s April 2025 report on Saudi Arabia includes:

    > 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
    > BANKING:     Saudi banks work to keep pace with credit expansion

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13550738/main.jpg
    Colin Foreman
  • Is this the end for Middle East studies?

    Administrator

    2 April 2025

    Commentary
    Edmund O’Sullivan
    Former editor of MEED

    The arrest and proposed deportation of Columbia University student Mahmoud Khalil and sanctions against others involved in Gaza conflict protests at the Ivy League college in 2024 are a disaster for those involved. Whether or not deserved – the conversation still rages among political pundits – the crackdown’s wider implications for academic freedom continue to resound.

    On 14 March, the White House ordered the university to tighten disciplinary and admissions procedures and end the independence of its Middle Eastern, South Asian and African Studies department or risk losing federal financial support. 

    It is a reminder of how much private US universities still depend on government money.

    There are further threats to higher education’s financing from private donors, both in relation to the student protests and fresh scrutiny being directed towards the statements, lectures and published works of academic staff on Middle Eastern topics.

    US state universities, which largely depend on public finance, are under the same pressure. And similar patterns can be seen in Canada and in the UK, where a Bristol University academic was sacked in 2021 following complaints about his stance against Zionism. Middle East specialists at universities worldwide are increasingly cautious about what they write and say.

    And this is not only about contemporary matters. Anyone teaching Middle East history is obliged to cover the events leading to the 1917 Balfour Declaration and its ramifications. This could be tackled in the past provided that care was taken to ensure all versions of the event were covered. But that may now be impossible. Only one narrative is becoming acceptable.

    Uncertain future

    This may be a short-term storm that will eventually blow over, although that is unlikely. The war to control the Middle East narrative triggered by the 7 October 2023 attacks on Israel could even intensify if the fighting continues.

    Balanced reporting on developments in the region is difficult to locate. Those seeking alternative perspectives are being driven towards the fringes of the media, though that too is under siege via online management and censorship.

    All this raises profound questions. Is there any point attempting Middle East studies when it is impossible to talk about contentious moments in the region’s recent past without the threat of sanctions that could be career-ending?

    Unless this issue is addressed, the discipline may lose its purpose in shedding light on recent events. Among the many victims of a new era of destruction, the demise of free-thinking Middle East faculties is one that we may in due course have the most reason to lament.

    Connect with Edmund O’Sullivan on X

    More from Edmund O’Sullivan:

    > Trump’s foreign policy shakes global relations
    > Between the extremes as spring approaches
    > A leap into the unknown
    > Middle East faces a reckoning
    > Biden leaves a mixed legacy
    > Desperate days drag on
    > The beginning of the end
    > The death of political risk
    > Italy at centre of new reduced Europe
    > US foreign policy approach remains adrift

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13543160/main.jpg
    Edmund O’Sullivan
  • Saudi Arabia’s growth trend heads up

    Administrator

    1 April 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13578976/main.gif
    MEED Editorial
  • March 2025: Data drives regional projects

    Administrator

    31 March 2025

    Click here to download the PDF

    Includes: Commodity tracker | Construction risk | Brent Spot Price | Construction output

    READ THE MARCH MEED BUSINESS REVIEW – click here to view PDF

    Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

    Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf hits six-month growth streak
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13578533/main.gif
    MEED Editorial
  • Two bid for Madinat Zayed IPP contract

    Administrator

    28 March 2025

     

    Abu Dhabi-based utility and offtaker Emirates Water & Electricity Company (Ewec) has received bids for a contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in the emirate.

    According to industry sources, two teams led separately by France’s Engie and Saudi Arabia’s Aljomaih Energy & Water submitted bids for the Madinat Zayed OCGT independent power producer (IPP) project on 28 March.

    Aljomaih is understood to have partnered with the local Etihad Water & Electricity (Etihad WE) for its bid.

    The Madinat Zayed IPP is expected to begin commercial operations in Q3 2027. It will provide up to 1,500MW of backup generation, which can be operational “at very short notice”. 

    “Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system,” Ewec said when it issued the tender for the project in July last year.

    “[This type of plant] will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources.”

    Capacity buildout

    Abu Dhabi’s current electricity generation installed capacity sits at about 22GW, with gas-fired plants accounting for 68.7% of the total, and renewable and nuclear power contributing 12% and 19%, respectively.

    Construction work is under way for a 1,500MW solar photovoltaic (PV) power plant and a 2,457MW combined-cycle gas turbine (CCGT) plant.

    Two solar IPPs with a combined capacity of 3,000MW are under bid evaluation or main contract bid, while the tendering proceedings are under way for the Taweelah C CCGT IPP, in addition to the Madinat Zayed OCGT.

    The procurement processes are also under way for the 140MW Al-Sila wind IPP, the emirate’s first independent battery energy storage system plant, and another major CCGT, the 3.3GW Al-Nouf 1 project.

    In January, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for a 5,200MW solar PV plant with a 19 gigawatt-hour battery energy storage system, which is expected to provide round-the-clock solar power.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13579141/main.gif
    Jennifer Aguinaldo
  • Masdar completes Valencia solar deal

    Administrator

    28 March 2025

    Abu Dhabi Future Energy Company (Masdar), through its Spanish subsidiary Satea, has closed an investment agreement for the construction and commissioning of solar photovoltaic installations with a total capacity of 234MW in Valencia, Spain.

    The project has the potential to add a battery energy storage system with a capacity of 259MW, Masdar announced on 27 March.

    A joint venture of Genia Solar Energy and Solar Ventures initially promoted the project.

    The plant will be located in the municipalities of Ayora, Jarafuel and Zarra. 

    It is expected to be operational in the first half of 2027.

    Watson Farley & Williams, G-advisory, EY and Finergreen advised Solar Ventures and Genia Solar Energy, while Broseta, Solida and Perez-Llorca advised Saeta Yield on the transaction.

    In July last year, Masdar announced it had reached an agreement with Spanish utility company Endesa to become a partner for 2.5GW of renewable energy assets in Spain.

    Masdar said at the time that it planned to invest €817m ($887m) to acquire a 49.99% stake, with an enterprise value of €1.7bn, representing one of Spain’s biggest renewable energy deals.

    The portfolio that Masdar planned to acquire consisted of 48 operational solar plants with an aggregated capacity of 2GW.

    Masdar and Endesa, a subsidiary of Italian energy giant Enel, said at the time that they aim to add 500MW of battery energy storage systems to the projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13578644/main.jpg
    Jennifer Aguinaldo
  • Miahona wins $267m Modon wastewater plant deal

    Administrator

    28 March 2025

    Saudi Authority for Industrial Cities and Technology Zones (Modon) has awarded the local Miahona Company a contract for the construction and operation of an industrial wastewater treatment plant in Jeddah.

    The contract is valued at SR1bn ($266.7m), Miahona said in a bourse filing on 26 March.

    This project scope includes the rehabilitation, development, construction, operation and maintenance of wastewater treatment systems.

    The wastewater treatment plant will be located in Jeddah 1st Industrial City.

    According to Miahona, the project scope includes capital investment, land utilisation, service provision and revenue generation through treated water sales, within a 25-year rehabilitation, operation and transfer (ROT) framework.

    Last year, Miahona Company and Belgium’s Besix won the contract to develop and operate the Al-Haer independent sewage treatment plant (ISTP) project in Riyadh, Saudi Arabia.

    Another local firm, Power & Water Utility Company for Jubail & Yanbu (Marafiq), subsequently joined the developer team.

    The Al-Haer ISTP project involves the development of a water treatment plant with a capacity of 200,000 cubic metres a day (cm/d).

    It also includes the development of a treated sewage effluent (TSE) reuse system that covers a 32-kilometre pipeline with a capacity of 400,000 cm/d, a pumping station and TSE reservoir tanks with a capacity of 200,000 cubic metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13578624/main.jpg
    Jennifer Aguinaldo
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