Related Articles

• 
  Firms bag $850m Qatar substation contracts Jennifer Aguinaldo

  8 May 2025

  Four local and international firms have won contracts for the construction of seven high-voltage substations in Qatar.

  State-backed Qatar General Electricity and Water Corporation (Kahramaa) signed the contracts, which have a total combined value of approximately QR3.1bn ($850m), with the following firms:

  • Elsewedy Cables Qatar Company (local/Egypt)
  • Voltage Engineering (local),
  • Best/Betas Consortium (Turkey)
  • Taihan Cable & Solution (South Korea)

  Kahramaa said the projects aim to “meet electrical network demand in light of the country's fast-growing …urban development”.

  The contracts include the provision and installation of underground cables and overhead lines extending around 212 kilometres to connect these substations.

  Qatari companies won the largest share, equivalent to 58.4% or QR1.8bn, of the total contract value.

  This reflects “our great confidence in the capabilities of the local private sector and its pivotal role in achieving our development vision and achieving Qatar National Vision 2030”, said Kahramaa president Abdulla Bin Ali Al-Theyab.

  Qatar Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, and senior executives from Kahramaa and the contracting firms signed the deals in a ceremony held in Doha.

  Al-Kaabi said the projects will help “ensure our networks' continued and sustainable ability to accommodate the unprecedented growth of the power sector and meet the increasing electricity demand."

  Kahramaa said the contractors will undertake the construction of electrical substations and the connection of cables and overhead lines, as well as the development of some existing substations to increase their capacity.

  Qatar has been ramping up its power generation capacity in recent years.  

  Qatar's Emir, Sheikh Tamim bin Hamad Al-Thani, inaugurated the Ras Laffan and Mesaieed solar photovoltaic (PV) power plants on 28 April.

  The two plants have a combined capacity of 875MW and will more than double Qatar’s solar energy production to 1,675MW.

  In February, Qatar Electricity & Water Company (QEWC) and Kahramaa signed a power-purchase agreement for a 511MW peak electricity generation plant at Ras Abu Fontas, which will have a total cost of approximately QR1.6bn. The peak power plant is scheduled to become operational by January 2027.

  A consortium led by South Korea's Doosan Enerbility, and that includes Beijing-headquartered PowerChina, will undertake the Ras Abu Fontas peak power plant's engineering, procurement and construction contract, with Germany's Siemens Energy supplying the plant's gas turbines.

  Photo credit: Kahramaa

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13838850/main.jpg

  Jennifer Aguinaldo
• 
  OQ to take interest in Oman renewable projects Jennifer Aguinaldo

  8 May 2025

  OQ Alternative Energy (OQAE), part of Oman's state-backed energy group OQ, will be taking shares in Oman's renewable energy independent power projects (IPP), starting with the Ibri 3 solar scheme.

  "The direction seems to be for OQ Alternative Energy to own up to 25% shares in the upcoming solar and wind IPP projects in the sultanate," says a source familiar with the plans.

  Before this development, private developers and investors owned the total shares in such projects, similar to the existing structure in Saudi Arabia.

  With this policy change, Oman will now be more closely aligned with the existing project structure in the UAE, where either Abu Dhabi National Energy Company (Taqa), Abu Dhabi Future Energy Company (Masdar), or the state utility, Dubai Electricty & Water Authority (Dewa), owns stakes in these projects.

  The planned 25% ownership share by OQAE, however, will be slightly lower than the typical 40% to 60% shares that Taqa, Masdar or Dewa owns in the UAE's renewable energy IPP projects.

  Currently, OQAE owns a 51% share in three renewable energy projects that are being developed in partnership with France's TotalEnergies for the state-backed firm, Petroleum Development Oman (PDO).

  The Riyah-1 and Riyah-2 wind power plants will be located in Amin and West Nimr fields in southern Oman, while the North Solar project will be located in northern Oman.

  Each plant will have a capacity of 100MW, Total Energies announced in December.

  PDO will purchase the electricity from the plants through long-term power-purchase agreements with the developer team, whose 49% shares are owned by TotalEnergies.

  OQAE is also part of Hyport Coordination Company, a consortium comprising Belgium's Deme Concessions and BP Oman, which plans to develop a green hydrogen project in Duqm that can produce more than 50 tonnes a year of green hydrogen in its first phase by 2029.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13838800/main.jpg

  Jennifer Aguinaldo
• 
  Data centres churn investments Jennifer Aguinaldo

  8 May 2025

  

   

  Global investment firm KKR appointed retired US Army general and former Central Intelligence Agency director David Petraeus as chairman of its Middle East operations in mid-April.

  The move is indicative of the region’s importance as a destination for the firm’s future investments, and capitalises on the strength of the relationships Petraeus has forged with Gulf country leaders during his years as a top US military strategist.

  KKR’s most recent commitment in the region entails acquiring a stake in UAE-based Gulf Data Hub (GDH), which operates seven data centres in the UAE and Saudi Arabia. The UAE firm plans to build additional data centre facilities in Kuwait, Qatar, Bahrain and Oman, and KKR has committed to support its $5bn expansion plan.

  “[Petraeus' appointment] is a good move on their part. It reinforces the region’s growing status and importance as a data centre investment destination, due to a significant interest in artificial intelligence (AI) deployments,” says a senior executive with an international data centre operator.

  KKR’s prior investments in the region include a partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, and acquiring a portfolio of commercial aircraft from Abu Dhabi’s Etihad Airways in 2020.

  The private equity firm’s investment in GDH, however, shows only part of the picture as far as the rapidly evolving data centre investment landscape is concerned.

  In March, Abu Dhabi-based critical infrastructure-focused sovereign investor ADQ and US-headquartered power developer Energy Capital Partners agreed to establish a 50:50 partnership to build new power generation and energy infrastructure that will serve the long-term needs of data centres and industrial clusters in the US and selected other international markets.

  The two firms plan to make total capital investments of more than $25bn across 25GW-worth of projects. The combined initial capital contribution from the partners is expected to amount to $5bn.

  That announcement came a day after UAE National Security Adviser and Deputy Ruler of Abu Dhabi, Sheikh Tahnoon Bin Zayed Al-Nahyan, met with US President Donald Trump at the White House. During the meeting, the UAE is understood to have committed to a 10-year, $1.4tn investment framework for the US.

  Tech funds

  In the past 24 months, Abu Dhabi and Riyadh in particular have set up funds, sometimes in partnership with global firms, to invest in AI and data centre infrastructure, both domestically and abroad.

  Abu Dhabi’s MGX aims to build $100bn in assets under management within a few years, along with US-headquartered and Blackrock-backed Global Infrastructure Partners and Microsoft, the fund's key partners. It is part of the US’ Stargate consortium, which aims to mobilise up to $500bn to build AI infrastructure in the US over the next four years.

  In Riyadh, a $100bn AI initiative known as Project Transcendence is expected to invest in data centres, technology startups and other related infrastructure for the development of AI.

  US-based Silver Lake announced in March 2025 that, together with MGX, it has become a minority shareholder in state-backed, Abu Dhabi-based Khazna Data Centres, one of the region’s largest data centre operators.

  In 2023, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) partnered with US-based DigitalBridge to develop data centres in Saudi Arabia and across the GCC states.

  In early 2025, Saudi Arabia-based DataVolt – which is owned by Vision Invest, a major shareholder in Saudi utility developer Acwa Power and a public-private partnership advocate – signed a preliminary agreement to build a data centre in Neom, Saudi Arabia. The 1.5GW, $5bn facility is the first of many such schemes that DataVolt is planning.

  Not to be outdone, the founder of Dubai-based private real estate developer Damac pledged to invest $20bn in data centre projects in several US cities earlier this year.

  And there is more to the growing – if outsized – number of bidirectional data centre-focused investment flows than meets the eye.

  Given the global AI race and mounting competition, investment decisions regarding data centres are moving from a simple, commercial focus to account for complex geopolitical considerations, according to Jessica Obeid, a partner at Dubai-headquartered New Energy Consult.

  “As the US weaponises its technological advancements, decisions to invest in US-based data centres hedge against the risks of US export controls, positioning developers in proximity to suppliers, ensuring reliable access to components.

  “Yet, this access could become costlier, driven by trade tariff wars, heightened regulations and limited access to grid infrastructure,” Obeid says.

  She adds that the GCC is quickly positioning itself as a global digital hub, driven by cost-competitive energy, advanced infrastructure and strong government backing.

  “Proximity to reliable power supply at an affordable cost, and speed in licensing processes and grid connections, are increasingly becoming strategic factors in data centre deployment – and the GCC offers that.”

  Powering AI strategies

  Almost all of the GCC states have formulated AI strategies that aim to improve operational efficiencies, create jobs and support their energy transition and net-zero initiatives.

  As a result, analysts expect the region to register double-digit annual growth in data centre construction activities in the next few years.

  In a recent update, global consultancy PwC projected that the Middle East data centre capacity could triple from 1GW in 2025 to 3.3GW in five years’ time.

  According to data from regional projects tracker MEED Projects, as of April, an estimated $12bn-worth of data centre construction projects are in the planning stage, in addition to over $820m under bid and $7bn under construction.

  Li-Chen Sim, assistant professor of civil security at Abu Dhabi’s Khalifa University, says that AI investments are, on the one hand, “all part of a carefully conceived strategy to … diversify out of a hydrocarbons-driven economy, to create new revenue streams from overseas data centres, build new growth sectors, support business requirements and offer more knowledge-based jobs as opposed to traditional manufacturing from domestic investments”.

  On the other hand, AI investments also aim to future-proof the hydrocarbons sector, which Sim expects will continue to be a significant driver of growth, revenue and exports, even as the use of renewable power grows.

  However, the ability of Gulf states to execute their plans for leveraging AI to diversify economies and create jobs –and specifically to address youth unemployment – depends on two factors, according to Obeid.

  The first factor is the ability of countries to advance their AI goals from infrastructure to capital and partnerships. The second involves the speed with which they can build up adequate human capital and a skilled workforce.

  “We will have to see how governments align their educational curricula with the AI policies and electricity infrastructure development,” she says.

  Ecosystem investment

  AI and data centre investments go beyond the facilities that house thousands of advanced graphics processing units, miles of cables and many cooling systems. To run and execute applications – particularly AI inferencing tasks – data centre facilities require a substantial amount of energy. 

  Moreover, data centres in the Middle East and North Africa region face elevated environmental risks due to the high ambient temperatures, which increase energy demand for cooling, as well as water requirements.

  This presents both a challenge and an opportunity, according to Obeid. "The GCC has an opportunity to advance innovation in energy and cooling technologies. Liquid cooling is necessary for AI workloads, and small modular reactors will become central in these data centres.” 

  In January, Abu Dhabi’s Emirates Water & Electricity Company (Ewec) appeared to show the way with a plan to build a round-the-clock solar photovoltaic (PV) plant combined with a battery energy storage system (bess) facility.

  The 5.2GW solar PV and 19 gigawatt-hour bess plant is expected to deliver renewable power as baseload, and UAE President Sheikh Mohamed Bin Zayed Bin Sultan Al-Nahyan has said that the project will help power advancements in AI and emerging technologies, and support the delivery of the UAE National AI Strategy 2031 and 2050 Net Zero initiative.

  Sim agrees that renewables combined with battery storage is part of the answer when it comes to building sustainable data centres. “Globally, data centres consume about 1% of electricity, and this figure – together with carbon emissions by data centres – is expected to grow significantly.”

  He notes that Goldman Sachs Research forecasts that global power demand from data centres will increase 50% by 2027, and 165% by the end of the decade, compared to 2023.

  “The other part of the puzzle with regard to sustainability is water consumption by data centres, particularly those in the Gulf, where high temperatures necessitate even more cooling measures.

  “Singapore, for instance, has pioneered integrated water systems that recycle treated wastewater for reuse – and this circular water model could be an option for data centres in the Gulf, instead of using expensive desalinated water,” says Sim.

  As things stand, the GCC can play a key role in the advancement of these and other technologies, along with efficiency measures and the optimisation of server utilisation through AI applications such as digital twins, says Obeid.

  This is just as well, since the region appears to be on the cusp of a boom in inbound and outbound investments that will build data centre capacity abroad and closer to home.

  “We are at a pivotal moment for innovation, where the intersection of digital advancements and energy innovation could position the GCC as a global leader, shaping the future of sustainable digital infrastructure,” concludes Obeid.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13732105/main5907.jpg

  Jennifer Aguinaldo
• 
  Oman receives 200MW wind IPP bids Jennifer Aguinaldo

  8 May 2025

  

   

  Oman’s Nama Power & Water Procurement Company (Nama PWP) has received two bids for the contracts to develop and operate two wind farm projects in the sultanate.

  Nama PWP tendered the contracts to develop the Jalan Bani Bu Ali (JBB) and Dhofar 2 wind independent power producer (IPP) projects in September last year and initially set early February 2025 as the tender closing date.

  The bid deadline was subsequently extended, with the final date set on 6 May.

  MEED understands that the companies that submitted proposals for the contract include Singapore’s Sembcorp and a team led by France’s EDF Renewables.

  Located in South Sharqiyah Governate, the Jalan Bani Bu Ali wind IPP will have a capacity of  91MW-105MW and has a commercial operation target of Q1 2027.

  It is one of the three planned wind schemes catering to Oman’s Main Interconnection System (MIS).

  Adjacent to the existing Dhofar wind 1 IPP in Shaleem and Al-Hallaniyat Islands in Dhofar Governorate, the Dhofar 2 wind plant will have a capacity of 114MW-132MW and will be operational in Q2 2027.

  It will cater to the smaller Dhofar Power System (DPS).

  Nama PWP prequalified developers that can bid for the five planned wind IPPs in September.

  In addition to Sembcorp and EDF, the prequalified bidders included:

  • Acwa Power (Saudi Arabia)
  • Sumitomo (Japan)
  • TotalEnergies (France)
  • Masdar (UAE)
  • Alfanar (Saudi Arabia)
  • Elecnor (Spain)
  • Goldwind (China)
  • GED / Marafiq (Saudi Arabia)
  • Hero Asia Investment (Hong Kong)
  • Itochu (Japan)

  The remaining three wind farms will be tendered separately, according to a source familiar with the projects.

  The two upcoming wind projects catering to the MIS are: 

  • Duqm wind IPP: Located in Ras Madrakah in Duqm, the project will have a capacity of 234MW-270MW, with commercial operations expected in Q4 2027
  • Mahoot wind 1 IPP: Located in Mahoot in the Al-Wusta Governorate, the wind farm will have a capacity of 342MW-400MW, with a commercial operation target of Q4 2027 

  The other wind farm catering to the DPS is the Sadah wind IPP. Located in Sadah in the Dhofar Governorate, it will have a capacity of 81MW-99MW and is due for commercial operation in Q4 2027.

  Nama PWP appointed KPMG Lower Gulf as the financial adviser, UK/US-headquartered Dentons as the legal adviser and Australia’s Worley as the technical adviser for the wind IPPs.

  Renewable energy, mainly derived from solar photovoltaic power plants, accounted for an estimated 6% of Oman’s electricity production capacity as of 2023. Oman aims to reach net-zero carbon emissions by 2050.

  Nama PWP is expected to award the contract to develop the sultanate’s fourth utility-scale solar photovoltaic IPP, Ibri 3, imminently.

  ---

  READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF

  Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking

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

  > AGENDA 1: GCC shelters from the trade wars > AGENDA 2: Gulf markets slide as US tariff shockwaves hit > AGENDA 3:  Lower oil prices raise Gulf’s fiscal pressure > SYRIA: Syria makes progress towards reunification > GCC CONTRACTORS: Contractors take on more work in 2025 > MINERALS: Saudi Arabia and Oman open up their minerals potential > INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector > INTERVIEW: Roshn outlines its procurement strategy > LEADERSHIP: Rethinking investments for a lower-carbon future > UAE REPORT: UAE is poised to weather the storm  > GULF PROJECTS INDEX: Gulf projects index inches upwards > CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025 > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s new world order

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13838343/main.jpg

  Jennifer Aguinaldo
• 
  Miral to develop Disney theme park on Yas Island Colin Foreman

  7 May 2025

  Register for MEED’s 14-day trial access 

  The Walt Disney Company and Abu Dhabi’s Miral have signed an agreement to build a Disney theme park resort on Yas Island.

  US-based Disney said it will be its seventh theme park resort. The others are in California and Florida in the US; Paris in France; Hong Kong and Shanghai in China; and Tokyo in Japan.

  In a statement, Disney highlighted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to the largest global airline hub in the world, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

  The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, and dining and retail experiences.

  Miral will develop and build the resort. Disney’s in-house design and engineering unit, Walt Disney Imagineering, will lead creative design and operational oversight to provide a world-class experience. Miral will operate the resort.

  Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island and has worked with several local and international contracting companies. It is working on an expansion to the Waterpark on Yas Island. The local Alec is the contractor.

  In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.

  In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.

  Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam of the Netherlands was the contractor for the Arena and Germany’s Ed Zueblin was the contractor for Clymb.

  Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park. 

  ---

  READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF

  Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking

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

  > AGENDA 1: GCC shelters from the trade wars > AGENDA 2: Gulf markets slide as US tariff shockwaves hit > AGENDA 3:  Lower oil prices raise Gulf’s fiscal pressure > SYRIA: Syria makes progress towards reunification > GCC CONTRACTORS: Contractors take on more work in 2025 > MINERALS: Saudi Arabia and Oman open up their minerals potential > INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector > INTERVIEW: Roshn outlines its procurement strategy > LEADERSHIP: Rethinking investments for a lower-carbon future > UAE REPORT: UAE is poised to weather the storm  > GULF PROJECTS INDEX: Gulf projects index inches upwards > CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025 > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s new world order

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13833548/main.jpg

  Colin Foreman