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  Nemetschek launches in Saudi Arabia

  14 May 2025

  Germany-headquartered architecture, engineering, construction and operation (AEC/O) software provider Nemetschek Group has signed multiple agreements with local partners, coinciding with the opening of its office in Saudi Arabia.

  The companies that signed memorandums of understanding (MOUs) with Nemetschek include:

  • Nesma  Infrastructure & Technology
  • BuildingSmart International
  • Concerted Solutions
  • Wakecap 

  The $14bn ($15.5bn) software firm is looking to invest in the Middle East market, particularly Saudi Arabia, as part of its regional expansion strategy, according to its chief executive, Yves Padrines.

  "Nemetschek will invest in talent, technology, know-how … and in training young people to become more productive, sustainable and capable of addressing the building lifecycle issues," Padrines told the ongoing Saudi Giga Projects Forum in Riyadh.

  "We will do everything in our power to help you achieve the 2030 Vision," he said, referring to the kingdom's long-term economic programme

  Product suites

  Nemetschek's product suites cover the entire build lifecycle, adding an "o" for operation to the conventional AEC software technology suite.  

  "Forty two per cent (42%) of buildings and infrastructure globally are at the end of their lifecycle," Padrines said, highlighting the need to ensure those assets do not worsen the build environment's contribution to carbon emissions, which sits at approximately 40% of the global total.

  Nemetschek's AEC/O software products have around 7.5 millions users globally, and the firm is keen to participate in the design and execution of the multibillion-dollar-a-year construction market in the Middle East.

  Some 90% of projects globally struggle with budget and time, due to silos and the lack of collaboration. "There is a need to streamline the workflow, implement interoperable solutions like Open BIM for projects to align with budget and delivery timeline," the executive explains.

  Delays in construction projects, coupled with an estimated 20% of materials waste, can be avoided by adopting such solutions, including, where applicable, digital twins both for greenfield and existing assets, concludes Padrines.

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  Jennifer Aguinaldo
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  Egypt discusses importation of Qatari natural gas

  14 May 2025

  Egypt is exploring partnerships with Qatar to import natural gas in order to meet domestic demand, according to a statement.

  Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi met with Qatar’s Minister of State for Energy Affairs Saad Bin Sherida Al-Kaabi to explore ways to accelerate the implementation of joint natural gas projects, the statement said.

  The two sides discussed signing long-term contracts to supply natural gas from Qatar to meet local needs.

  They also discussed enhancing cooperation in energy infrastructure to achieve common interests, given both countries’ potential in liquefied natural gas (LNG) trading and liquefaction and regasification activities.

  Separately, the potential to boost cooperation in research and exploration to expand production capacity from QatarEnergy’s concession areas in Egypt was discussed.

  The two ministers discussed the latest developments in QatarEnergy’s drilling plans, particularly in Egypt’s Nefertari, Cairo and Masry regions.

  Al-Kaabi expressed QatarEnergy’s interest in expanding operations and increasing investments in research and exploration in Egypt.

  Recently, QatarEnergy, the Egyptian Natural Gas Holding Company (EGAS) and Chevron agreed to a deal that will see QatarEnergy acquire some of Chevron’s stake in the North El-Dabaa offshore block.

  During the meeting, Badawi and Al-Kaabi discussed potential investment opportunities in Egypt’s oil, gas and petrochemicals sectors.

  In February, MEED revealed that the total value of active Egyptian gas projects had fallen by 79% since the start of 2019.

  The decline comes amid a steep drop in domestic gas output, which has increased the need for costly imports.

  At the start of 2019, the total value of active gas projects in Egypt was $41.5bn. By February this year, it had sunk to $8.6bn, according to data from regional project tracker MEED Projects.

  Despite the billions of dollars of investment in upstream projects in Egypt’s gas sector in recent years, production has been dropping since it peaked in 2021, according to the Energy Institute’s Statistical Review of World Energy.

  In 2021, Egypt produced 67.8 billion cubic metres (bcm) of gas. This fell to 64.5 bcm in 2022 and 57.1 bcm in 2023.

  In May 2024, Egypt’s domestic gas output hit a six-year low, down by about 25% from its 2021 peak.

  Declining domestic production has led to a severe energy shortage in Egypt.

  Last year, the North African country had to resort to load-shedding to keep its grid functioning amid a lack of gas supply and rising demand, while the deepening energy crisis strained Cairo’s budget as it grappled with a heavy subsidies bill.

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  Wil Crisp
• 
  Dorra gas project package bidders get more time

  13 May 2025

  

  Al-Khafji Joint Operations (KJO) has allowed contractors additional time to prepare proposals for one of the offshore engineering, procurement and construction (EPC) packages of the Dorra gas field development project.

  MEED reported in March that KJO was pushing forward with a major project to produce gas from the Dorra offshore field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.

  KJO has divided the scope of work on the Dorra gas field development project, which is estimated to be valued at up to $10bn, into four EPC packages – three offshore and one onshore.

  According to sources, contractors bidding for offshore package one now have until 19 May to prepare bids. The previous bid submission deadlines for the package were 6 May, 22 April, 8 April and 24 March.

  The EPC scope of work on the Dorra gas field development project packages and their submission deadlines are as follows:

  • Package 1: Seven offshore jackets and laying of intra-field lines – 19 May
  • Package 2A: Seven production deck modules and associated corrosion-resistant, alloy-lined pipes connecting to the gas compression plant – 30 June
  • Package 2B: Compression and auxiliary platforms, accommodation platform, associated trunklines and cables connecting to the shoreline – 30 June
  • Package 3: Onshore gas processing plant – 30 June

  The following contractors are understood to be among those bidding for the three offshore packages:

  • Lamprell (Saudi Arabia/UAE)
  • Larsen & Toubro Energy Hydrocarbon (India)
  • McDermott (US)
  • NMDC Energy (UAE)
  • Saipem (Italy)

  Contractors bidding for offshore packages 2A and 2B have the option of submitting a combined proposal, sources previously told MEED.

  The Dorra field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

  Kuwait and Saudi Arabia have been working together to develop the offshore field since it was discovered in 1965. The two sides expect to produce about 1 billion cubic feet a day of gas from the asset and have agreed to split the gas output equally.

  A geopolitical tussle over ownership of the asset has hampered progress.

  Iran, which calls the field Arash, claims that it partially extends into its territory and that Tehran should be a stakeholder in any development project. 

  Kuwait and Saudi Arabia maintain that the Dorra field lies entirely in the waters of their shared territory, known as the Neutral Zone or Divided Zone, and that Iran has no legal basis for its claim. 

  In February 2024, Kuwait and Saudi Arabia reiterated their claim over Dorra through a joint statement issued during an official meeting between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud in Riyadh.

  KJO, which is jointly owned by Saudi Aramco subsidiary Aramco Gulf Operations Company and Kuwait Gulf Oil Company, a subsidiary of state-owned Kuwait Petroleum Corporation (KPC), is understood to have issued the tenders for the project in August last year.

  MEED reported in September 2023 that Aramco and KPC had selected France’s Technip Energies to carry out front-end engineering and design (feed) and pre-feed work on the Dorra offshore field development project.

  The original feed work for a project to develop the field was performed more than a decade ago. However, due to changes in technology, the engineering design needed to be updated before the project could reach a final investment decision.

  ALSO READ: Construction starts on Kuwait Gulf Oil Company headquarters

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  Indrajit Sen
• 
  Dubai Municipality meets $22bn tunnels package bidders

  13 May 2025

  Dubai Municipality has met with the teams that are planning to bid for the contracts to develop the first two packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project.

  In a social media post, Fahd Al-Awadhi, director of the drainage and recycled water projects department at Dubai Municipality, said that the municipality had hosted a workshop for the DSST project.

  He said the gathering brought together project leaders, technical advisers and public-private partnerships (PPP) specialists to align on the strategic direction, procurement structure and delivery plan for the DSST.

  The session covered:

  • a comprehensive overview of DSST packages J1 and W
  • the shift from a pumped to a gravity-based system
  • the engineering, procurement and construction (EPC) and developer procurement timelines
  • bid submission structures and evaluation processes
  • geotechnical planning and no-objection certificates coordination mechanisms

  MEED previously reported that five consortiums have formed or are being formed to bid for the J1 and W contracts.

  The overall project aims to convert Dubai’s existing sewerage system from a pumped system to a gravity system by decommissioning the existing pump stations and providing “a sustainable, innovative, reliable service for future generations”.

  Under the current plan, the $22bn project is broken down into six packages, which will be tendered as PPP packages with concession periods lasting 25-35 years.

  The project client, Dubai Municipality, issued the request for proposals for the DSST's J1 and W packages earlier this month.

  According to industry sources, the consortiums that have been formed or are forming to bid for the J1 and W contracts include:

  • China Railway Construction Corporation (China)
  • Etihad Water & Electricity (local) / Larsen & Toubro (India) / Wade Adams (local) / PowerChina (China)
  • Itochu (Japan) / Plenary (Australia) / Samsung C&T (South Korea) / Webuild (Italy)
  • Vision Invest (Saudi Arabia) / China Railway Engineering Group (China)

  A fifth team, led by Belgian contracting firm Besix, is also being formed, according to one of the sources. 

  MEED understands that bids are due on 30 September for packages J1 and W.

  The two packages will be developed using "typical concession agreement" models and will be financed 80:20 by debt and equity.

  The consortiums can bid for either or both packages. 

  DSST six packages

  The first package, J1, comprises Jebel Ali tunnels (North) and terminal pump stations (TPS). The tunnels will extend approximately 42 kilometres (km), and the links will extend 10km. 

  The other tendered package, W for Warsan, comprises 16km of tunnels, TPS and 46km of links.

  The remaining packages include J2, which covers the southern section of the Jebel Ali tunnels and will extend 16km and have a link stretching 46km.

  J1, J2, W and J3 will comprise the deep sewerage tunnels, links and TPS components of the overall project.

  J1, J2 and W will be procured under a design, build, finance, operate and maintain model with a concession period of 25-35 years.

  J3 will be procured under a design, build and finance model with a concession period of 25-35 years. Once completed, Dubai Municipality will operate J3, unlike the first three packages, which are planned to be operated and maintained by the winning PPP contractors.  

  The project’s remaining two packages entail expanding and upgrading the Jebel Ali and Warsan sewage treatment plants. MEED understands that these packages will be procured at a later stage.

  Separate contracts for packages J1 and W are being tendered first, followed by J2 and J3, with the requests for proposals to be issued sequentially, staggered about six to 12 months apart.

  The overall project will require a capital expenditure of about AED30bn ($8bn), while the whole-life cost over the full concession terms of the entire project is estimated to reach AED80bn.

  Photo credit: Dubai Municipality

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  Jennifer Aguinaldo
• 
  PIF launches AI investment arm

  13 May 2025

  Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud has launched Humain, a new company that will operate and invest across the artificial intelligence (AI) value chain.

  Saudi sovereign wealth vehicle the Public Investment Fund (PIF) will own Humain, which will function as a “unified operating company”.

  Prince Mohammed, the Saudi Prime Minister and PIF chairman, will chair Humain.

  The new company will provide a range of AI services, products and tools, including “next-generation data centres, AI infrastructure and cloud capabilities, and advanced AI models and solutions”.

  The company will also offer one of the world’s most powerful multimodal Arabic large language models, the PIF said.

   It added: “The company will enable capabilities to develop and deliver AI solutions locally, regionally and globally.”

  The PIF and its companies are actively investing in building an AI ecosystem and fostering international AI partnerships.

  In November, it was reported that Saudi Arabia was planning a new AI project with backing of up to $100bn.

  Known as Project Transcendence, the state-backed entity will invest in data centres, startups and other related infrastructure to develop AI.

  The entity is expected to be set up with a structure similar to Alat, which aims to transform the kingdom into a global manufacturing hub for electronics and advanced industries and is backed by $100bn in capital from the PIF.

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  Jennifer Aguinaldo