Chinese firm signs Mubarak port early contractor involvement
2 May 2025
Beijing-headquartered China Harbour Engineering Company, a subsidiary of China Communications Construction Company (CCCC), has signed an early contractor involvement (ECI) agreement with Kuwait to develop the next phases of Kuwait’s Grand Mubarak Port.
According to local media reports, the initial works cover surveying, investigation, hydrological observation, geophysical exploration, testing, model testing, process simulation, design review, owner inspection, preliminary design of sand retaining embankments and on-site services and management.
The project launch ceremony was held in mid-April and was attended by several high-profile representatives from Kuwait and China, including Fu Xuyin, China’s vice-minister of the Ministry of Transport, Zhang Jianwei, the Chinese ambassador to Kuwait, and Nora Mohammad Al-Mashaan, Kuwait’s minister of public works.
In January, MEED reported that Kuwait’s cabinet had approved a bid from China Communications Construction Company to implement all stages of its Mubarak Al-Kabeer Port project.
The country ramped up its efforts on the project after meetings between Kuwaiti and Chinese officials in June last year.
In 2023, the two countries signed a memorandum of understanding for developing infrastructure works for the port.
Phase one of the project cost $1.2bn and was completed in 2014.
The project’s first phase included site levelling and the development of a marina, quay walls, berths, a navigational terminal and port buildings.
The port is not operational because the phase one works did not include vital equipment such as cranes.
It is understood that the completion of phase two will allow the port to start operations.
The full scope for phase two of the project is expected to include:
- Construction of loading and unloading facilities
- Construction of quay walls and reclamation
- Construction of container yard and back of the port
- Infrastructure works
- Construction of buildings
- Construction of container terminal
- Construction of associated facilities
- Installation of safety and security systems
A third phase is also planned, which will further expand the port.
The latest developments follow a series of agreements signed in September 2023 to deliver some of Kuwait’s immediate development goals between 2024 and 2028. These agreements will position Chinese companies to play a leading role in the Fourth Kuwait Master Plan 2040.
READ THE MAY 2025 MEED BUSINESS REVIEW – clck 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:
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> AGENDA 1: GCC shelters from the trade wars
> AGENDA 2: Gulf markets slide as US tariff shockwaves hit
> GCC CONTRACTORS: Contractors take on more work in 2025
> INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector
> INTERVIEW: Roshn outlines its procurement strategy
> LEADERSHIP: Rethinking investments for a lower-carbon future
> 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
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Focus shifts to delivery of Iraq utilities expansion12 May 2026

Iraq’s power and water sector recorded its largest year of investment on record in 2025, with more than $17bn in combined contract awards.
Several long-planned water infrastructure schemes finally reached contract award stage amid mounting supply pressures in the south of the country and a growing reliance on new desalination projects.
Iraq awarded $10bn-worth of water infrastructure contracts between January 2025 and May 2026, according to regional projects tracker MEED Projects.
This compares with just $1.8bn in total awards across 2022, 2023 and 2024, when only one seawater desalination plant reached the contract award stage.
Desalination projects
Attention is now turning to the delivery phase of new plants led by a series of major desalination and water treatment projects in Basra governorate.
In February, Iraqi officials said the flagship $2.42bn Basra seawater desalination plant could be financed through the Iraqi-Chinese Fund, weeks after the main engineering, procurement and construction (EPC) contract was awarded to PowerChina.
Located on the Arabian Gulf coast in Al-Faw, the plant is designed to produce 1 million cubic metres a day (cm/d) of potable water. The project also includes a water transmission network supplying 11 cities and a dedicated 300MW power plant.
Baghdad had earlier announced plans for four additional desalination plants across the province in July 2025. These include the Shatt Al-Arab plant, planned to produce 120,000 cm/d of desalinated water, and the Al-Faw and Al-Siba plants, each with a capacity of 72,000 cm/d.
The joint venture of Baghdad-headquartered Al-Rida Investment Group and PowerChina has been appointed as the main contractor for each project, with construction expected to begin in the third quarter of 2026.
Additional schemes include the $72m Safwan desalination plant and the $70m Abu Flous desalination project. Abu Flous is being undertaken by the Ministry of Water Resources and is designed to have a capacity of 72,000 cm/d.
The push to advance new projects follows warnings issued last year by Iraq’s High Commission for Human Rights about a worsening humanitarian situation linked to declining river flows and rising salinity levels in the Shatt Al-Arab waterway.
Alongside municipal water projects, Iraq is also advancing large industrial water infrastructure schemes tied to the energy sector. Last August, Iraq approved the award of the Common Seawater Supply Project package for the Artawi oil field to South Korea’s Hyundai Engineering & Construction.
The estimated $3.16bn contract covers the engineering, procurement, supply, construction, commissioning and operation of a major seawater treatment facility. Construction is expected to begin in 2026, further reflecting the scale of projects now in the execution stage.
Power expansion
In parallel, Iraq’s power sector is undergoing one of its largest expansion programmes in decades as the government attempts to address chronic electricity shortages, diversify fuel sources and strengthen regional grid connectivity. Over $40bn-worth of projects are under execution, following $4.2bn in new contracts last year.
In August 2025, the Iraqi cabinet approved five major power generation schemes with a combined capacity exceeding 10GW. The projects represent one of the country’s largest-ever single rounds of power project approvals.
The centrepiece of the programme is three independent power producer (IPP) combined-cycle plants at Al-Faw, Abu Ghraib and Kirkuk, with a total capacity of 7,500MW.
The largest schemes are the 3,000MW Al-Faw plant in southern Iraq, with US-based General Electric as the EPC contractor, and the 3,000MW Abu Ghraib facility near Baghdad. Both projects will be implemented under 25-year build-own-operate models.
A 1,500MW combined-cycle plant in Kirkuk will also be developed under long-term power purchase agreements backed by sovereign guarantees from the Finance Ministry. US-based GE Vernova is the technology provider for all three projects.
Furthermore, the government has approved two thermal power plants in Najaf and Youssifiyah, with planned capacities of 1,500MW and 1,800MW, respectively.
This is part of a wider 20-year electricity strategy unveiled last year in partnership with Siemens Energy and GE Vernova. The programme aims to add 57GW of new generation capacity through a mix of gas-fired, thermal and renewable energy projects.
Electricity shortfall
The scale of the challenge means timely project execution will be critical. Iraq currently produces about 28GW of electricity, according to the Electricity Ministry, but demand during peak summer periods is estimated at more than 50GW. The shortfall continues to result in widespread outages and pressure on the national grid.
The fragility of the system was exposed again in March, when Iraq suffered nationwide electricity blackouts after a sudden drop in gas supplies to the Rumaila power plant in Basra. The disruption led to the loss of about 1,900MW of generation capacity and triggered a nationwide grid collapse.
The incident highlighted Iraq’s continued dependence on associated gas production from the oil sector. With regional geopolitical tensions affecting oil exports and production, gas availability for power generation has become increasingly vulnerable.
Solar plants
As part of a strategy to diversify energy sources, the country inaugurated the first phase of the 300MW Karbala solar IPP plant in September 2025, marking Iraq’s first utility-scale solar scheme connected to the national grid.
Developed by a consortium of Norway’s Scatec, Egypt’s Orascom Construction and Iraq’s Al-Bilal Group, the project forms part of the government’s target to add 10GW of solar energy by 2030.
These plans also include the 1GW solar IPP in Najaf, now under construction and scheduled for commissioning in 2028.
Looking further ahead, the Iraqi government announced in February that it has allocated more than 140 sites for new solar power plants, following a six-month identification process. The locations are distributed across several regions, including the outskirts of Baghdad and areas such as Nahrawan, Al-Nasr, Al-Salam, Al-Hamamiyat, Taji and Al-Husseiniya.
Meanwhile, regional interconnection projects are also becoming increasingly important. Iraq is progressing with plans to integrate into the GCC electricity grid through a new 400kV transmission link between Kuwait’s Al-Wafra station and Iraq’s Al-Faw station.
The first phase of the project will allow 500MW of electricity imports into Iraq, rising to 1,800MW over time. Iraq is targeting full integration of the GCC-Iraq grid by the end of 2026.
MEED’s June 2026 report on Iraq also includes:
> OVERVIEW: Iraq enters era of resilience, reform and rising risks
> OIL & GAS: Iraqi oil and gas sector in crisishttps://image.digitalinsightresearch.in/uploads/NewsArticle/16797622/main.gif -
Abu Dhabi announces $15bn infrastructure PPP projects12 May 2026
The Abu Dhabi Investment Office and the Abu Dhabi Projects and Infrastructure Centre have launched a AED55bn ($15bn) public-private partnership (PPP) pipeline of 24 projects to be tendered in 2026 and 2027.
The projects will be tendered across the transport, infrastructure and social sectors.
According to a statement published by the Abu Dhabi Media Office, the transport sector accounts for 11 road projects, with AED35bn ($9.5bn) of construction capex, covering more than 300 kilometres of new and upgraded roads, tunnels, intersections and related network works.
The infrastructure pipeline includes five projects budgeted at AED11bn ($3bn), covering dams, water storage, flood control, stormwater upgrades and urban landscaping.
Social infrastructure includes eight projects budgeted at AED9bn ($2.5bn), covering sports facilities, specialist healthcare assets, schools and university campuses.
The statement added that the pipeline forms part of Abu Dhabi’s infrastructure delivery plan and will be executed through PPP structures.
It is also intended to support company establishment in the emirate, local content objectives, and supply-chain and industrial capacity.
.@InvestAbuDhabi and @ADPIC_ae have launched a AED55 billion public-private partnership pipeline, marking the next phase of Abu Dhabi’s long-term infrastructure delivery strategy, ahead of preparations to host Abu Dhabi Infrastructure Summit 2026. pic.twitter.com/a8U1LWURSz
— مكتب أبوظبي الإعلامي (@ADMediaOffice) May 11, 2026
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Saudi Arabia tenders GCC rail link from Kuwait to UAE border12 May 2026

Saudi Arabia has begun the procurement process to deliver its portion of the GCC railway, which will connect all six member states.
Saudi Arabia Railways (SAR) issued a tender for design consultancy services for the project on 7 May, with a bid submission deadline of 30 June.
It includes the concept design, preliminary design and Issued for Construction (IFC) design stages of the network.
SAR requires the selected consultant to review, update and complete the existing preliminary design of the network.
The kingdom’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, at Saudi Arabia’s border with the UAE. The route length in Saudi Arabia will be about 672 kilometres (km).
The railway will interface with the Kuwait National Rail Road (KNRR) project on the Kuwaiti side. Last year, MEED exclusively reported that the KNRR design contract was awarded to Türkiye’s Proyapi Muhendislik ve Musavirlik Anonim Sirketi.
The KNRR forms part of the wider GCC rail network. GCC railway projects have been progressing with renewed impetus since the six member states signed the Al-Ula Declaration in January 2021.
In October last year, the Qatari cabinet approved a draft agreement paving the way for a railway link between Qatar and Saudi Arabia as part of the GCC railway network.
GCC railway line
Under the overall plan, the railway will span 2,186 kilometres, beginning in Kuwait, passing through Dammam in Saudi Arabia, reaching Bahrain via a planned causeway, and continuing from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman.
The network’s route length within each member state is as follows: 684km in the UAE, 672km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.
The railway is designed for passenger trains travelling at 220 kilometres an hour (km/h) and freight trains operating at 80-120km/h.
With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but divided between its constituent parts.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
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Kuwait tenders upstream oil project12 May 2026
State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to develop power infrastructure to provide electricity to the country’s Bahra oil field.
The project focuses on constructing an 11kV, 72MW main intake in the Bahra-A area.
It also includes the development of 11kV, 20MW substations in the Bahra-A2 area, and the conversion of a substation in the Bahra-A1 area in northern Kuwait.
An initial meeting for the project is scheduled for 7 June, and bids are due by 9 August.
Kuwait’s oil and gas sector has been severely impacted by the blockade of the Strait of Hormuz, through which all of its crude exports are normally shipped.
The country recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16792080/main.png -
Chinese company signs deal to develop Syria cement plant12 May 2026
China’s Jiangsu Pengfei Group has signed a deal with Damascus-based Al-Hasan Holding Group (HHG) to develop a cement plant in Syria’s Raqa governorate.
The “strategic agreement” was signed on 29 April, according to a statement from HHG.
The clinker production line will have a capacity of 5,000 tonnes a day (t/d).
Syria is seeking to expand cement production capacity to meet demand from the domestic construction sector.
HHG is an integrated investment conglomerate headquartered in Damascus with a portfolio of companies across sectors including industry, trade, energy, construction, tourism and services.
It was founded by the Syrian businessman Hassan Kamel Al-Hasan.
Jiangsu Pengfei Group is a manufacturer of rotary kiln and grinding equipment.
The company is involved in the design, manufacture and service of equipment in the fields of building materials, metallurgy and the chemical industry.
It is also an engineering, procurement and construction service provider that has completed more than 100 cement production line projects.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16792079/main.jpg

