Sembcorp’s Manah 2 solar IPP begins operations
3 January 2025Oman’s Manah 2 solar independent power project (IPP) has commenced commercial operations.
The 588MW solar IPP achieved commercial operations four months ahead of schedule, its main shareholder, Singapore-based utility developer Sembcorp, has announced.
Oman’s Nama Power & Water Procurement Company signed the 20-year power-purchase agreement (PPA) with the developer team, comprising Sembcorp and Hong Kong-based Jinko Power Technology, in March 2023.
The project was the first renewable energy contract the Singaporean firm had won in the Middle East region.
Sembcorp owns an 80% stake in a joint venture comprising its subsidiary, Sembcorp Utilities, and Jinko Power, which will implement the project.
Manah 2 and another project, Manah 1, were previously named Solar IPP 2022 and 2023.
Three developer consortiums submitted technical and financial proposals for the Manah 1 and Manah 2 contracts in late September 2022.
To be located 150 kilometres southwest of Muscat, the Manah 1 and 2 solar projects comprise the second utility-scale renewable energy projects to be tendered by OPWP, after Ibri 2, which has been operational since 2021.
Manah 1 is undergoing commissioning.
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LIVE WEBINAR: GCC Projects Market 2025 MEED Editorial
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Topic: GCC Projects Market 2025
Date & time: 11:00 AM GST, 20 March 2025
Agenda:
- Introduction and overview of the GCC projects market
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- Top clients and contractors
- Assessment of main market drivers
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Dubai property market rebounds in February Colin Foreman
13 March 2025
Property prices in Dubai rebounded in February following a decline in January. Average property prices hit a record high of AED1,505 ($410) per square foot, reflecting a month-on-month increase of 1.41% or a rise of AED20.94 compared to January 2025, according to a statement from property agent Better Homes.
The report also said there was a 17% increase in sales volume, reaching AED41bn across 14,929 transactions, marking a 15% month-on-month rise. This resurgence underscores Dubai's resilience and enduring appeal as a global property investment hub.
The rebound comes just a month after a slight decline in property prices, which had marked the first decrease in over two years.
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Siemens Energy wins $1.6bn Saudi deal Jennifer Aguinaldo
13 March 2025
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
The Rumah 2 and Nairiyah 2 CCGT plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.
The value of the contract Siemens Energy won is $1.6bn.
Siemens Energy will supply six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, two SGen6-2000P generators and associated auxiliary equipment for each site.
The power plants are designed to replace ageing oil-fired stations, reducing carbon dioxide emissions by up to 60% compared to traditional oil-based power generation.
The project includes long-term maintenance agreements to support the plants’ operational reliability over the next 25 years, Siemens Energy said.
It added: “Core components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently expanding to increase local production capacity and support Saudi Arabia’s energy sector.”
MEED reported in November last year that a developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company had partnered with Siemens Energy for the projects’ gas turbines contract.
The consortium tapped Harbin Electric to undertake the projects’ EPC.
The power generation projects will be developed using a build, own and operate (BOO) model over 25 years, with principal buyer Saudi Power Procurement Company (SPPC) as the sole offtaker.
SPPC previously indicated that the four power plants will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.
SPPC’s transaction advisory team for the Rumah 1 and Nairiyah 1 and Rumah 2 and Al-Nairiyah 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie.
Photo credit: Siemens Energy
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese 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:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global Colin Foreman
13 March 2025
Commentary
Colin Foreman
EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.
In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.
The region’s active projects market has created unprecedented demand for contractors. Most notably, project clients in Saudi Arabia have been actively courting international construction companies to come and work in the kingdom.
Many international contractors exited the region over the past decade, which has meant Chinese contractors have had little competition as they stepped in to fill the void and deliver crucial projects.
On top of exploiting the shifting competitive landscape, Chinese successes have been able to meet the budgetary requirements of many projects, offering cost-effective solutions and even providing financing.
At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.
The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese 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:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483117/main.gif