Related Articles

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  Syria signs deal for 100MW solar power plant

  2 September 2025

  Syria’s Public Establishment for Transmission & Distribution of Electricity has signed a contract with Syrian-Turkish Energy Company to build a 100MW solar power plant in Hama Governorate.

  Located in the Kafr Buhum area, the project will be connected to the high-voltage network at 230kV, increasing electricity supply and potentially reducing outage hours.

  According to the authority's general director, Khaled Abu Di, the project will “utilise clean renewable energy technologies through the use of photovoltaic panels”.

  He said that the deal followed several months of proposal evaluations, with the chosen bid selected on the basis of efficiency and economic feasibility.

  Construction and preparation are expected to take 12 months, after which the plant will enter service at full capacity.

  The project is part of wider efforts to rebuild Syria's electricity sector, which has faced years of infrastructure damage and supply shortages.

  In June, MEED reported that Syria's Electricity Ministry had signed a $7bn memorandum of understanding with a Qatar-led consortium for 5GW of gas and solar power capacity.

  The agreement covers the development of four combined-cycle gas turbine power plants with an installed capacity of 4GW, and a 1GW solar power plant.

  The projects will be implemented under build-own-operate and build-operate-transfer models alongside power-purchase agreements.

  Once completed, they are expected to double the country's output.

  

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  Mark Dowdall
• 
  October deadline for Abu Dhabi underwater museum

  2 September 2025

  

   

  Abu Dhabi has set a deadline of 31 October for contractors to submit their proposals to build an underwater marine museum in the UAE capital.

  The client, the Environment Agency – Abu Dhabi (EAD), issued the tender in November last year. The previous bid submission deadline was 31 August.

  According to the official notice, the project scope includes the construction, production, transportation, installation and handover of the museum elements, based on the pre-specified design.

  The notice also outlines that the scope includes the fabrication and transportation of museum components, along with “site preparation of the seabed”.

  The EAD is seeking a single bidder with experience of similar projects and a team of qualified professionals, including marine, structural and civil engineers; technical diving teams; quantity surveyors; and planning engineers.

  Abu Dhabi Tourism Strategy 2030

  Building the underwater museum supports the Abu Dhabi Tourism Strategy 2030, which was approved in May 2024. Abu Dhabi’s Department of Culture & Tourism is leading the strategy’s execution.

  The strategy seeks to achieve a 7% year-on-year growth by increasing the number of visitors from 24 million in 2023 to 39.3 million by 2030.

  The plan also aims to increase the tourism and travel sector’s contribution to the UAE’s GDP from about AED49bn ($13.34bn) in 2023 to AED90bn ($24.5bn) by 2030.

  In April 2024, the Abu Dhabi Projects & Infrastructure Centre announced that the Abu Dhabi Executive Council had approved the launch of 144 projects in the emirate.

  These were approved with a total expenditure of approximately AED66bn ($18bn) and cover several sectors, including natural resources, tourism, education and human capital, and housing and quality of life.

  Of the total investment, AED59bn ($16.1bn) was allocated to establishing housing and public facilities throughout the emirate, AED4bn ($1.1bn) was allocated for education and human capital projects and about AED1.9bn ($517.4m) was earmarked for the emirate’s natural resources and to enhance infrastructure development. The remaining AED1.1bn ($300m) was allocated to schemes that aim to boost tourism.

  UK data analytics firm GlobalData expects the UAE construction industry to register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects.

  GlobalData expects the commercial construction sector to expand by 5.6% in 2025-28, supported by a recovery in tourism activities and investments in the hospitality sector.

  

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  Yasir Iqbal
• 
  Adnoc earns $316m from additional share sale in logistics unit

  2 September 2025

  Abu Dhabi National Oil Company (Adnoc Group) has earned proceeds of about AED1.16bn ($316m) from the listing of an additional 222 million shares in its subsidiary Adnoc Logistics & Services (Adnoc L&S), equating to about 3% of the issued share capital, on Abu Dhabi Securities Exchange (ADX).

  Following this transaction, the free float of Adnoc L&S shares on ADX has increased to 22%. Adnoc Group listed 19% of shares in Adnoc L&S on 1 June 2023 through an initial public offering (IPO) from which the parent entity earned $769m in proceeds.

  Adnoc Group priced the additional 3% offering at AED5.25 ($1.42) a share, “at the tightest discount for a secondary sell-down in the region”.

  The offering received strong demand from institutional investors in the GCC and internationally, with over-subscription levels of almost seven times during an accelerated book build of approximately four hours, which is among the highest seen in a secondary sell-down in the region.

  Following the additional share sale, Adnoc L&S is expected to enter the MSCI index in the future.

  Adnoc L&S has been delivering strong financial and operating performance with total shareholder return in excess of 170%. In the first half of 2025, the company reported a revenue increase of 40% year-on-year, and earnings before interest, taxes, depreciation and amortisation (Ebitda) growing 26% to $735.19m, having reached Ebitda of $1.14bn, doubling since the time of its IPO.

  Adnoc L&S has also accrued $26bn of long-term contracted revenues and forward contracts totalling more than 960 years, providing visibility and resilience. Growth investments remain on track, with Adnoc L&S targeting revenue growth in the high 20% range year-on-year for 2025, along with mid-20% Ebitda growth in the same period.

  

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  Indrajit Sen
• 
  Bahrain tenders 1,500MW Sitra IWPP

  1 September 2025

  Bahrain’s Electricity & Water Authority (EWA) has launched an international tender for the Sitra independent water and power plant (IWPP).

  The project will deliver 1,400MW-1,500MW of power and 30 million imperial gallons a day (MIGD) of desalinated water.

  EWA president Kamal Bin Ahmed Mohammed said that the scheme will be procured through a build, own and operate model in partnership with the private sector.

  Seven international companies and consortiums have been prequalified to bid. These are:

  • Abu Dhabi National Energy Company (Taqa, UAE)
  • Acwa Power (Saudi Arabia)
  • China Energy Engineering Corporation and China Datang (Overseas Hong Kong, China)
  • Gulf Investment Corporation (Kuwait)
  • Jera (Japan)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Sumitomo Corporation (Japan)

  China Energy Engineering Corporation and China Datang are bidding together as a single prequalified entity for the Sitra IWPP project.

  MEED previously reported that EWA had received statements of qualifications from nine interested firms in December 2024.

  The project will use reverse osmosis desalination technology and is expected to be commissioned in phases.

  Initial operations, covering 600MW of power and 30 MIGD of water, are scheduled for the second quarter of 2028. Full commercial operations are targeted for the second quarter of 2029.

  The project is in line with EWA’s plan to replace old plants with new, more efficient ones that reduce natural gas consumption.

  The Sitra IWPP follows other recent EWA initiatives, including the planned 60 MIGD Al-Hidd independent water plant and the announcement of Bahrain’s first solar-powered electricity and water production facility.

  The solar project, with capacity of 150MW, is expected to be tendered in the fourth quarter of this year.

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

  Gulf heads into a new era of aviation; Maghreb’s resilience rises despite global pressures; GCC banks expand issuance amid demand

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

  > AGENDA 1: Middle East invests in giant airports > AGENDA 2: Broader region upgrades its airports > AGENDA 3: Global air travel shifts east > CURRENT AFFAIRS: Syria wrestles fragile security situation > GCC BANKS: Gulf banks navigate turbulent times > BANKING: Strategic planning enters a new era of volatility > CONSTRUCTION: Soudah Peaks outlines project construction plans > INTERVIEW: SETS leads Saudi heritage preservation charge > LEADERSHIP: From plastic leakage to leadership in the Gulf > MAGHREB MARKET FOCUS: Maghreb pushes for stability

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

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  Mark Dowdall
• 
  Adnoc set to become a chemicals major

  1 September 2025

  This package also includes:
  > Regional chemicals spending set to soar 

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  At a time when global chemicals giants like Saudi Basic Industries Corporation (Sabic) and Dow Chemical are facing financial pressure due to rising feedstock costs and decreasing sales margins, Abu Dhabi National Oil Company (Adnoc) – a relatively small player in the space – is undertaking an ambitious inorganic growth strategy.

  In the past 12 months, the company has initiated merger and acquisition transactions that could propel it towards becoming a major global chemicals producer.

  The Abu Dhabi energy giant took the first step in that direction by announcing the acquisition of German chemicals producer Covestro in October 2024, making a takeover offer of €14.7bn ($16.3bn). Covestro’s expertise lies in areas such as chemical recycling, which are key for the future of the energy industry and a target area for Adnoc.

  The agreement between XRG – Adnoc’s international business subsidiary – and Covestro, which will run until the end of 2028, includes several obligations on the part of Adnoc, including maintaining Covestro’s existing business activities, corporate governance and organisational business structure.

  Regulatory approvals

  Adnoc’s takeover deal for Covestro has received approvals from regulators in India and South Africa. However, it is still under scrutiny in the EU, with the European Commission having launched an in-depth investigation into the pending deal under its Foreign Subsidies Regulation, which targets non-EU firms perceived to benefit from unfair state subsidy.

  [Adnoc] has initiated merger and acquisition transactions that could propel it towards becoming a major global chemicals producer

  In early August, the European Commission said it had 90 working days – until 2 December – to make a decision. Adnoc, meanwhile, has contested the investigation into its takeover bid for Covestro, saying that the transaction will add value for all stakeholders.

  Covestro’s supervisory and management boards have supported the takeover offer from Adnoc, and in April the firm said it remains hopeful that the transaction will close in the second half of 2025.

  Potential merger

  Adnoc announced a bigger transaction than the Covestro acquisition deal in March, with Austrian energy company OMV. The two companies agreed the terms of a binding framework agreement for a proposed combination of their shareholdings in Abu Dhabi’s Borouge and Austria-based chemicals producer Borealis.

  Simultaneously, Adnoc also entered into a share purchase agreement with Canada-based Nova Chemicals Holdings – a company indirectly wholly owned by Abu Dhabi’s sovereign wealth institution, Mubadala Investment Company – for 100% of Nova Chemicals Corporation.

  Adnoc and OMV have also agreed that on completion of the planned merger of Borouge and Borealis, the new entity – which will be known as Borouge Group International – will acquire Nova Chemicals Corporation for $13.4bn including debt, further expanding its footprint in North America.

  Borouge Group International will be listed on the Abu Dhabi Securities Exchange (ADX), subject to approval by the UAE Securities & Commodities Authority (SCA) and ADX.

  Under the terms of the agreement, Adnoc and OMV will hold equal stakes of 46.94% in Borouge Group International, with joint control and equal partnership. The remaining 6.12% will be in free float, subject to SCA approval and assuming all existing Borouge free float shareholders agree to exchange their existing shares in Borouge for shares in Borouge Group International.

  Adnoc and OMV will hold equal stakes of 46.94% in Borouge Group International, with joint control and equal partnership

  Upon completion of the deal, Adnoc will transfer its stake in Borouge Group International to XRG, which is also on course to take control of its parent company’s 24.9% stake in OMV.

  The purchase price is about 7.5 times the company’s expected long-term profits before interest, taxes, depreciation and amortisation (Ebitda), and is expected to be debt financed through capital markets. 

  Borouge Group International plans to raise up to $4bn of primary capital in 2026 to qualify for inclusion on global stock index MSCI and secure an investment-grade credit rating, targeting through-the-cycle net leverage of up to 2.5 times Ebitda.

  The proposed deal assumes a primary cash injection of €1.6bn ($1.67bn) by OMV into Borouge Group International. This will be reduced on closing in line with the equity value of Borouge and Borealis after expected dividend payments up to completion.

  The upcoming Borouge 4 project – which is the fourth expansion phase of Borouge’s petrochemicals complex in Ruwais, Abu Dhabi – is likely to be among the key growth drivers, with projected recontribution by the end of 2026, when the estimated $6.2bn project is expected to be commissioned.

  Recontribution of Borouge 4, when fully operational, is expected to be at a cost of approximately $7.5bn including debt, and accretive to operating cash flows and dividends per share, with an estimated through-the-cycle Ebitda of approximately $900m.

  If Adnoc’s potential takeover of Covestro were to be blocked by the European Commission, the acquisition of Nova, together with the recontribution of the Borouge 4 petrochemicals project, will still create a major polyolefins producer in the form of Borouge Group International, which could be valued at more than $60bn and would be the world’s fourth-largest by nameplate production capacity. 

  

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  Indrajit Sen