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• 
  Gulf markets slide as US tariff shockwaves hit

  24 April 2025

  

   

  This package also includes:

  > GCC shelters from the trade wars
  > Lower oil prices raise Gulf’s fiscal pressure
  > Gulf utility projects unbothered by Trump tariffs so far

  ---

  Gulf markets fell sharply after the US announced a new tariff regime on 2 April, triggering declines as trading resumed after Eid. The 10% baseline import duty and levies on aluminium and industrial metals led to selloffs across regional indices.

  Almost all major Gulf indices were dragged down by the tariff shock and began the week on Sunday 6 April with losses: Kuwait’s market dropped 5.7% and Qatar’s fell 4.2%, while the Muscat Securities Market Index declined 2.1% and Bahrain’s All Share Index fell approximately 2.5%. 

  Saudi Arabia’s Tadawul All Share Index (Tasi) fell 6.1% at the start of trading on 6 April, marking its steepest single-day decline since March 2020 and wiping out over SR500bn ($133.3bn) in value. The index partially recovered, rebounding 0.7% on 7 April and rising 3.7% on 10 April after the US announced a 90-day tariff suspension, its largest daily gain in nearly five years.

  Almost all major Gulf indices were dragged down by the tariff shock

  The Abu Dhabi Securities Exchange and Dubai Financial Market followed similar trajectories as trading resumed on Monday 7 April. Dubai’s DFM index dropped 3.1%, led by a 5.7% fall in Dubai Islamic Bank. Abu Dhabi’s main index slipped 2.6%, with Adnoc Gas down nearly 5%. 

  Both indices began recovering on 10 April. By 14 April, Dubai’s index had risen 1.8%, led by a 4.7% gain in Emirates NBD and a 3.2% rise in Dubai Islamic Bank, while Abu Dhabi’s index climbed 0.9%.

  Equities dropped sharply across the region on 6 and 7 April, with blue-chip and sector-leading stocks in banking, real estate and energy posting heavy losses. The UAE’s Emaar Properties fell nearly 9% during intraday trading before closing 2.5% lower. 

  The aluminium sector came under scrutiny following the reinstatement of the 25% US import duty. However, the impact was limited, as Gulf aluminium exports, particularly from Bahrain and the UAE, represent a modest share of total output. 

  Oil price drop

  The energy sector was not immune to the volatility. Brent crude dropped nearly 15% to around $64 a barrel – one of its steepest weekly declines in over a year. This slide is significant, given that fiscal breakeven oil prices are estimated at $90.9 for Saudi Arabia and $124.9 for Bahrain. Saudi Aramco lost over SR340bn in market value on 6 April before recovering 1% the next day.

  Gulf petrochemicals producers also came under pressure. Saudi-based petrochemicals manufacturer Sabic is forecast to report a 47% year-on-year decline in Q1 earnings, according to a Riyad Capital report. The report cited softer product pricing and weaker demand from key markets including China and the US as the main cause.

  Oil, energy and most petrochemicals products are exempt from US tariffs. While Gulf trade exposure to the US remains modest, the wider effects were felt through sentiment, capital flows and commodity pricing, and the deeper threat lies in reduced global demand, prolonged oil price weakness and weakened investor appetite. 

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  Sarah Rizvi
• 
  Market awaits Kuwait’s Shagaya solar tender

  24 April 2025

  Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE), through the Kuwait Authority for Partnership Projects (Kapp), could issue the request for proposals (RFPs) for a contract to develop the Gulf state's first utility-scale solar photovoltaic (PV) plant project before the summer.

  According to an industry source, the independent power project (IPP) tender documents are awaiting final approval before they are released to the market.

  MEWRE prequalified six consortiums and companies that can bid for the contract, MEED reported in August last year.

  The Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one project is understood to have a capacity of 1,100MW.

  The consortiums and companies that had been prequalified to bid for the contract are:

  • Acwa Power (Saudi Arabia) / Alternative Energy Projects Company (local)
  • Trung Nam Construction (Vietnam)
  • EDF Renewables (France) /  Abdullah Al-Hamad Al-Sagar and Brothers Company (local) /  Korean Western Power Company (Kowepo, South Korea)
  • Jinko Power (Hong Kong) / Jera (Japan) 
  • Abu Dhabi Future Energy Company (Masdar, UAE) / Fouad Alghanim & Sons General Trading Contracting Company (local)
  • TotalEnergies Renewables (France)

  The 1,100MW solar PV IPP project is located in the Jahra governorate, about 100 kilometres from the capital, Kuwait City.

  Kapp issued the request for qualifications for the contract in January 2024.

  The package to be tendered comprises the Al-Dibdibah and Shagaya renewable energy phase three, zone one project, Kapp said when it issued the request for qualifications to interested bidders.

  In August 2022, a team led by London-headquartered consultancy firm EY won the transaction advisory contract for the next phases of Kuwait’s renewable energy programme.

  London-headquartered DLA Piper is the legal adviser, while Norwegian engineering services firm DNV is the client’s technical and environmental adviser.

  2030-50 strategy

  Kuwait aims to have a renewable energy installed capacity of 22,100MW by 2030 as part of the 20-year strategy that was announced in March, which ends in 2050.

  Minister of Electricity, Water & Renewable Energy, Salem Falah Al-Hajraf, confirmed that the strategy also involves installing distributed or rooftop solar farms, with the state procuring the energy output from solar PV farms.

  Kuwait aims to reach net-zero carbon emissions by 2060.

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  Jennifer Aguinaldo
• 
  PIF firm appoints Jeddah mixed-use project contractor

  23 April 2025

  Saudi Real Estate Company (Al-Akaria), backed by Saudi Arabia’s Public Investment Fund (PIF), has appointed its subsidiary firm, Tamear, as the main contractor for its Porta Jeddah project.

  The mixed-use development will have a built-up area of about 123,000 square metres. The project includes the construction of a four-star hotel, an office building, two retail and food and beverage buildings, a leisure and cinema building, open areas and other associated infrastructure.

  It is located within the Al-Nahda district of Jeddah. 

  London-headquartered architectural firm Chapman Taylor is the project architect. 

  Jeddah-based Burouj Engineering Consultant is the project consultant.

  MEED reported in March that Al-Akaria was preparing to award the contract to build its Porta Jeddah project.

  In its 2024 financial statement released on 19 March, Al-Akaria said it was preparing to award contracts for projects including the Porta Jeddah mixed-use development in Jeddah and the Al-Narjis office project in Riyadh.

  In March last year, MEED exclusively reported that Al-Akaria had issued the main contract tender inviting firms to bid.

  Prior to that, in June 2023, Al-Akaria signed an agreement with US-based hotel operator Hilton to operate and manage the Canopy by Hilton hotel within the Porta Jeddah development.

  The property will have 183 keys and will include 55 serviced apartments, several retail outlets, meeting spaces and leisure and sports facilities.

  GlobalData expects the Saudi construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

  The commercial construction sector is estimated to grow by 3.9% in real terms in 2024 and register an annual average growth of 3.6% in 2025-28, supported by the government’s plan to boost tourism, coupled with the construction of hotels, stadiums and data centres.

  

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  Yasir Iqbal
• 
  Transformers market to reach $89bn by 2030

  23 April 2025

  The global transformers market is on a strong growth trajectory, projected to reach $89.34bn in 2030, driven by rising electricity demand, renewable integration, and grid modernization, according to a recent report by GlobalData.

  The Asia-Pacific (Apac) region is set to lead the charge with robust investments, while the Europe, Middle East, and Africa (Emea) region is poised to grow fastest, fueled by infrastructure upgrades and power sector reforms across developing economies in the Middle East and Africa, reveals GlobalData, a leading data and analytics company.

  “The global transformers market is witnessing substantial growth, fueled by an escalating demand for electricity, a definitive transition to renewable energy sources, and the imperative to modernise aging grid infrastructures," notes Bhavana Sri Pullagura, senior power analyst at GlobalData.

  

  Technological innovations, the evolution of market standards, and the burgeoning economic strength of developing nations further support this growth trajectory.

  GlobalData’s report, “Transformers Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast to 2030,” reveals that the global market for power transformers is projected to reach $35.83bn, while the distribution transformers market is anticipated to attain $53.51bn in 2030.

  The Asia Pacific power transformers market is set to grow from $12.35bn in 2024 to $18.96bn in 2030. 

  “National electrification programs, expanding renewable energy portfolios, market reforms, and the substantial industrial bases in China and India are poised to contribute to the new infrastructure development, thereby bolstering the regional market," explains Pullagura.

  With the demand for power set to increase in the Middle East and Africa, the Emea is estimated to be the fastest growing region, with a compounded average growth rate (CAGR) of 7.7%, over the forecast period.

  Distribution transformers market

  The Apac region is projected to be the largest distribution transformers market, with an anticipated value of $32.51bn in 2030. The diverse market conditions within the Emea region suggest that more established European markets, such as Germany and the UK, will prioritise the replacement of aging infrastructure to ensure continued reliability.

  Conversely, countries in Africa and the Middle East are expected to demonstrate significant demand for distribution transformers, spurred by the ongoing power sector reforms.

  The growth in the Emea is likely to be at a CAGR of 9.1% and the Americas market is estimated to grow at a CAGR of 6.9% over the forecast period.

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  MEED Editorial
• 
  Saudi Arabia holds high-level nuclear talks

  23 April 2025

  

   

  Riyadh has initiated bilateral discussions with several countries with nuclear technology providers that have been invited to bid for a contract to develop Saudi Arabia’s first large-scale nuclear power plant project.

  “One-one, government-to-government discussions and meetings are being held or scheduled,” a source familiar with the project tells MEED.

  The Chinese, South Korean, French and Russian nuclear contractors are understood to be among those keen to pursue the project, which has been in the planning stage since the mid-2010s.

  Saudi Arabia restarted procurement proceedings for its first large-scale nuclear power plant project in Duwaiheen in 2022.

  MEED previously reported that the companies that have been invited and are expected to bid for the contract include:

  • China National Nuclear Corporation (CNNC, China)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Rosatom (Russia) 
  • EDF Group (France)

  The project client, Saudi Arabia’s King Abdullah City for Atomic and Renewable Energy (KA-Care), has set and extended the bid submission deadlines several times since 2022.

  According to the source, the bid deadline is “more like a moving target, running in parallel with the progress in the bilateral government-to-government talks”.

  The ongoing conflict between Israel, Gaza and other neighbouring countries appears to be a major contributing factor in the extended procurement timeline of the Duwaiheen nuclear plant project. Some sources allude that the project will likely feature in US President Trump’s expected visit to Riyadh over the coming weeks.

  It is understood that Riyadh is using its nuclear power plant project, along with its plan to enrich uranium sources as part of its industrial strategy, as a bargaining chip with the US government. The White House is pushing for the normalisation of relations between Israel and Saudi Arabia and is opposed to uranium enrichment.

  2.8GW project

  The Duwaiheen nuclear power plant is expected to be procured using a traditional design-and-build model. 

  In September 2016, MEED reported that Saudi Arabia was carrying out technical and economic feasibility studies for the first reactors and was also considering possible locations for the kingdom’s first nuclear project, a 2.8GW facility.

  A site at Khor Duwaiheen, on the coast near the UAE and Qatari borders, was subsequently chosen for the first project.

  In March 2022, Saudi Arabia announced the establishment of a holding company – understood to be the Duwaiheen Nuclear Energy Company – to develop nuclear power projects in the country to produce electricity, desalinate seawater and support thermal energy applications.

  Duwaiheen Nuclear Energy Company received three bids for the project management consultancy package for the nuclear plant project in 2023.

  MEED understands that the following companies submitted proposals for the contract:

  • Atkins (UK/Canada)
  • Worley (Australia)
  • Assystems (France)

  Two of the three bidders have had previous engagements with the Saudi nuclear energy project. 

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  Jennifer Aguinaldo