Qatar awards $95m infrastructure contracts

23 July 2025

 

Qatar’s Public Works Authority (Ashghal) has awarded two contracts, worth about QR350m ($95m), for the construction of roads in Qatar.

The first contract, worth QR235m ($65m), was awarded to the local firm Al-Mohannadi for Roads & Trading & Contracting. The scope of work involves the construction of link roads from Mazrooah to Attoriya and Bu-Thaila in Zones 71 and 72.

In April, Ashghal selected US-based engineering firm KEO International Consultants for a QR41m ($11m) contract to provide supervision consultancy services for the project.

The other contract, valued at QR108m ($30m), was awarded to another local firm, Attikat, for the construction of access roads to Al-Karaana camel race track.

The announcement follows Ashghal’s awarding of two contracts worth QR3.3bn ($931m) for the completion and operations and maintenance of schemes in Qatar North and Qatar South earlier this month.

The first contract, worth over QR1.6bn ($446m), for the Qatar North scheme was awarded to the joint venture of local firms Al-Mohannadi for Roads & Trading & Contracting and Aktor Qatar.

The QR1.7bn ($480m) contract for the Qatar South scheme was awarded to a joint venture of Beijing-headquartered China Harbour Engineering Company and local firm Alcat Contracting.

In May, Ashghal announced its five-year project plan valued at about QR81bn ($22bn). The plan covers a range of infrastructure projects to be implemented between 2025 and 2029.

The plan’s most important project is the Strategic Outfalls project, which will be launched this year. The project will be developed in two phases and aims to reuse stormwater for irrigation and cooling in the northern and southern areas of Doha.

According to local media reports, the project’s tunnelling work will begin this year, followed by sub-tunnelling in early 2026.

Market overview

After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

There are strategic projects worth more than $5bn in the bidding phase and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities to contractors in the near term.


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

UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

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

> PROJECTS MARKET: GCC projects market collapses
> GULF PROJECTS INDEX: Gulf projects index continues climb
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/14319912/main.gif
Yasir Iqbal
Related Articles
  • Maghreb economies stabilise

    25 July 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14332021/main.gif
  • July 2025: Data drives regional projects

    24 July 2025

    Click here to download the PDF

    Includes: Commodity tracker | Construction risk | Brent Spot Price | Construction output


    MEED’s August 2025 report on the Maghreb includes:

    > GOVERNMENT: Pursuit of political stability dominates Maghreb
    > ECONOMY: Maghreb economies battle trading headwinds
    > OIL & GAS: Oil company interest in Libya increases 

    > INDUSTRY: Algeria’s industrial strategy builds momentum
    > POWER & WATER: Slow year for Maghreb power and water awards
    > CONSTRUCTION: World Cup 2030 galvanises Morocco construction
    > DATABANK: Maghreb economies stabilise

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14332530/main.gif
  • Maghreb pushes for stability

    24 July 2025

    Commentary
    John Bambridge
    Analysis editor

    The Maghreb region continues to prioritise political stability as a foundation for long-term economic development, with Morocco emerging as a frontrunner in aligning its governance with investor expectations.

    Trade disruptions and fluctuating commodity prices have impacted the recent growth trajectories of the Maghreb markets, yet signs of resilience are evident as governments pivot towards diversified industrial strategies.

    Morocco’s regulatory reforms and infrastructure upgrades are proving to be an effective lure for foreign investment. The country’s steady stock market performance, despite external pressures, reflects this underlying confidence and highlights Rabat’s relative resilience within the region.

    Another key driver in Morocco is the infrastructure investment ahead of the 2030 Fifa World Cup. As a host nation, Morocco is undertaking projects to deliver new stadiums and improve transport networks. This momentum is expected to ripple through the construction and tourism sectors, bolstering GDP growth – projected at 3.9% in 2025 – and job creation.

    Algeria is meanwhile accelerating its efforts to develop higher-value manufacturing to leverage its abundant natural resources. Through investment-friendly reforms and new laws, recent policies are laying the groundwork for a strengthened private sector and an investment environment that can boost employment and deliver long-term industrial growth.

    In Libya, despite persistent political fragmentation and instability, international interest in the oil sector is returning as production has recovered to its highest level in a decade. This presents a rare bright spot for the Libyan economy, but sustained gains will require lasting political stability and security.

    Tunisia, meanwhile, continues to grapple with economic and political fragility. Incremental government progress is being made in securing international financial support and pursuing structural reforms, and investment in sectors such as tourism and renewable energy is gaining cautious traction. But social and political stability is a must if the country is going to escape its current economic stagnation and stimulate renewed growth.

    Energy and power are key sectors for the Maghreb as a whole, and the region has a burgeoning pipeline of projects in both – with an emphasis on renewables and green hydrogen. A weak start to project activity in 2025 leaves the hope that the region might better deliver on its potential in the second half.

    Overall, despite its economic and political challenges, rising energy demand and the proximity of European markets present clear opportunities for the Maghreb and chart a potential path forward for growth and investment – lending cautious optimism to the region’s future.

     


    MEED’s August 2025 report on the Maghreb includes:

    > GOVERNMENT: Pursuit of political stability dominates Maghreb
    > ECONOMY: Maghreb economies battle trading headwinds
    > OIL & GAS: Oil company interest in Libya increases 

    > INDUSTRY: Algeria’s industrial strategy builds momentum
    > POWER & WATER: Slow year for Maghreb power and water awards
    > CONSTRUCTION: World Cup 2030 galvanises Morocco construction
    > DATABANK: Maghreb economies stabilise

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14311064/main.gif
    John Bambridge
  • Shell and Kuwait to develop Egypt gas field

    24 July 2025

    A joint venture of UK-based Shell and a state-owned Kuwaiti oil company have approved plans for a project to develop Egypt’s Mina West gas field, according to a statement from the North African country’s Ministry of Petroleum and Mineral Resources.

    Kuwait Foreign Petroleum Exploration Company (Kufpec) and Shell have announced the final investment decision (FID) for the project.

    Shell has a 60% stake in the project and Kufpec holds the remaining 40% stake.

    The Mina West field was discovered in October 2023 and is located in the Northeast Imtiaz area of the Mediterranean Sea.

    Its production will be tied back to the existing West Delta Deep Marine (WDDM) infrastructure.

    Egypt’s petroleum ministry said the project will help boost domestic gas production in the country.

    Egypt is struggling to meet domestic demand for natural gas, and earlier this year, it had to halt production at several industrial facilities due to gas shortages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14322186/main4343.jpg
    Wil Crisp
  • Egypt expected to complete gas project next year

    24 July 2025

    The project to develop a fourth production train at Egypt’s Western Desert gas complex in Amriya is now scheduled to come online next year, amid concerns about whether the facility will have access to required volumes of natural gas, according to sources.

    State-owned Egyptian Natural Gas Company (Gasco) is developing the facility, known as Train D, which has been dogged by problems for years.

    In February 2023, the project was on track to be completed by the start of 2024, but it has since suffered delays due to a range of issues, including procurement problems.

    Now the project is progressing slowly due to uncertainty about whether feedstock will be available when it eventually comes online.

    One source said: “The project is now progressing very slowly because there is little point in bringing it online if there is no gas available for it to process.”

    Egypt is struggling to meet domestic demand for natural gas, and earlier this year it had to halt production at several industrial facilities due to gas shortages.

    Facilities that were hit by the disruptions included Egyptian fertiliser producers.

    The main contracts for the fourth production train at Egypt’s Western Desert gas complex, worth a total of $295m, were awarded to Egypt-based Enppi and Petrojet in February 2020.

    In September 2023, Egypt’s cabinet approved granting a “golden licence” to Gasco for the project, which would increase the capacity of the Western Desert gas complex via a fourth production line with a design capacity of 600 million cubic feet a day (cf/d).

    The golden licence is awarded to projects identified by the Egyptian state as strategic and gives the project certain privileges. It is not widely understood exactly how the licence will benefit the project.

    The Gasco project is expected to provide employment opportunities for some 2,500 workers.

    It spans about 33 acres in Amriya’s Nahda Industrial Zone.

    The project aims to increase the production of natural gas derivatives, meet the raw material needs of petrochemical factories, and ensure a steady supply of liquefied petroleum gas to support local market demands.

    The fourth train will boost the capacity of the Western Desert gas complex from 950 million cf/d to 1,550 million cf/d.

    The scope of the project includes:

    • Installation of an evaporator
    • Installation of air-cooled condensers
    • Installation of a safety and security system
    • Excavation work
    • Installation of associated facilities

    In June 2021, Gasco secured a $200m syndicated loan from bankers to expand the Western Desert gas complex in Amriya.

    The lenders included Banque Misr, Banque du Caire, CIB, QNB, Al-Ahli, Arab African International Bank and Bank Audi.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14322266/main.jpg
    Wil Crisp