Related Articles

• 
  Local/Saudi joint venture wins Oman industrial city deal

  1 September 2025

  

   

  A joint venture of Omani firm Sarooj Construction Company and Saudi Arabia's Al-Rawaf Contracting has secured a contract worth RO17.4m ($45m) covering the construction of infrastructure facilities for the first phase of Al-Mudhaibi Industrial City in the sultanate’s North Al-Sharqiyah Governorate.

  The first phase of the infrastructure development covers an area of about 2.5 million square metres (sq m).

  The scope includes the construction of road, water and sewerage networks; lighting; water tanks; security fences; surveillance devices; and several industrial units, each with an area of 500 sq m, in the development's Madayn complex.

  The development will also have administrative offices with manufacturing workshops, private parking lots and truck entrances.

  The contract was awarded by Oman’s Public Establishment for Industrial Estates (Madayn).

  According to an official statement, the industrial city is expected to be a key enabler for the industrial sector in Oman’s North Al-Sharqiyah Governorate, which offers potential in mining, food and tourism, among other industries.

  According to UK analytics firm GlobalData, the construction industry in Oman expanded by 2.1% in real terms in 2024, supported by rising foreign direct investment (FDI) in rail and road infrastructure, renewable energy and housing projects. According to the National Centre for Statistical Information, the total FDI in the country rose by 25.2% in 2023.

  The Omani construction industry is expected to register an annual average growth rate of 4.2% in 2025-28, supported by investments as part of the Oman Vision 2040 plan.

  The industrial construction sector was expected to grow by 2.8% in real terms in 2024, before rebounding at an annual average growth rate of 4.1% in 2025-28, supported by investments in the construction of manufacturing and mining facilities.

  

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  Yasir Iqbal
• 
  Libya oil project due to come online this year

  1 September 2025

  

   

  The new early production facility (EPF) that is being installed at Libya’s Mabruk field is expected to come online between 15 November and 15 December this year, according to industry sources.

  The facility is expected to have production ramped up to 30,000-35,000 barrels a day (b/d) of oil before the end of January 2026.

  The Mabruk oil field is operated by Mabruk Oil Operations, a joint venture of Libya’s National Oil Corporation (NOC) and France’s TotalEnergies.

  One source said: “When the facility comes online, production will be gradually increased over a time period of around four to six weeks.

  “Six weeks will be enough to optimise production. Things are going very well with the project and it is being rigged up right now.

  “There is some uncertainty about how much oil the wells are going to produce and how much the wells have been damaged.”

  The Mabruk field currently has a small EPF installed that has a maximum production of about 7,000 b/d.

  Several wells are connected to the existing EPF at the moment, but when the bigger EPF comes online, all of the wells from the field will be hooked up to the new facility.

  Production operations via the small EPF started on 9 March 2025 at a rate of 5,000 b/d, according to NOC.

  When production started in March, it was the first time that the field had produced oil in more than 10 years.

  In 2015, the terrorist group Islamic State attacked the Mabruk oil field in Libya, killing guards, abducting foreign workers and forcing the field to shut down.

  The larger EPF that is being installed is being leased by Mabruk Oil Operations from US-based SLB.

  It is being installed by Libya-based Black Gold Automation & Control, which has been subcontracted by SLB

  The smaller EPF, which was commissioned earlier this year, was installed directly by SLB.

  More than a year ago, SLB was awarded the project to develop upstream facilities at the Mabruk field as part of a scheme to restart production.

  The project had an estimated investment value of $150m.

  The onshore Mabruk field, also known as C17, is located about 140 kilometres southeast of Libya’s El-Sider oil terminal.

  Produced crude oil from the field will be transported to the nearby Al-Dhara oil field and then will be exported from the El-Sider oil terminal.

  

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  Wil Crisp
• 
  Regional chemicals spending set to soar

  29 August 2025

  

   

  With the energy transition gaining momentum and demand for transport fuels plateauing, it is no longer lucrative for state-owned hydrocarbons producers in the Middle East and North Africa (Mena) region to channel significant amounts of their crude oil towards refineries.

  This does not mean that regional energy producers have curtailed their spending on refinery expansions or greenfield projects, however. A total of $21.62bn was spent on Mena downstream oil projects in 2024, with capital expenditure (capex) at nearly $7bn so far this year, according to data from regional projects tracker MEED Projects.

  Mena energy producers have also ramped up their investment in expanding gas processing potential, as global demand for natural gas – especially from the power generation sector – rises exponentially. 

  The region invested a total of $25.67bn in gas processing projects in 2024, and in 2025, MEED Projects puts that figure at $9.3bn year-to-date.

  Meanwhile, the surge in petrochemicals projects in the Mena region over the years has also been significant. 

  The drive among regional players to increase petrochemicals output capacity is being facilitated by a rapid rise in chemicals demand from various industries and supply chains, as well as by the fact that converting oil and gas molecules into high-value chemicals is economically rewarding for hydrocarbons producers.

  

  Preparing for growth

  Global petrochemicals capacity is poised to grow significantly by 2030. Asia is set to dominate this, driven by a high demand for petrochemicals in the automotive, construction and electronics industries, according to UK analytics firm GlobalData.

  The Middle East is also set to undergo an increase in production capacity, with a total capacity of 122.1 million tonnes a year (t/y) projected in 2025-30. Capex on production plants is expected to reach $69bn in the coming years, according to a recent report by GlobalData.

  Steady spending

  An estimated $17.8bn was spent on engineering, procurement and construction (EPC) contracts for chemicals projects in 2024, with spending year-to-date of about $5.8bn, MEED Projects says.

  The region’s biggest chemicals project under EPC execution is the $11bn Amiral project in Saudi Arabia, which represents the expansion of Saudi Aramco Total Refining & Petrochemical Company (Satorp) in the petrochemicals sector. 

  Satorp, in which Saudi Aramco and France’s TotalEnergies hold 62.5% and 37.5% stakes, respectively, operates a
  refinery complex in Jubail that has the capacity to process 465,000 barrels a day (b/d) of Aramco’s Arabian Heavy crude oil grade to produce refined products such as diesel, jet fuel, gasoline, liquefied petroleum gas, benzene, paraxylene, propylene, coke and sulphur.

  Integrated with the existing Satorp refinery in Jubail, the Amiral complex will house one of the largest mixed-load steam crackers in the Gulf, with the capacity to produce 1.65 million tonnes a year (t/y) of ethylene and other industrial gases.

  This expansion is expected to attract more than $4bn in additional investment in several industrial sectors, including carbon fibres, lubricants, drilling fluids, detergents, food additives, automotive parts and tyres.

  Another large-scale project under execution is the Al-Faw integrated refinery and petrochemicals project in Iraq. State-owned Southern Refineries Company brought on board China National Chemical Engineering Company in May 2024 to develop the estimated $8bn project.

  The Al-Faw project is being implemented in two stages. The first phase involves developing a refinery will have a capacity of 300,000 b/d and will produce oil derivatives for both domestic and international markets. The second phase relates to the construction of a petrochemicals complex with a capacity of 3 million t/y.

  EPC works are also progressing on the $6bn Ras Laffan petrochemicals complex in Qatar, which will have an ethane cracker that will be the largest in the Middle East and one of the largest in the world.

  The project is being developed by a joint venture (JV) of QatarEnergy and US-based Chevron Phillips Chemical (CPChem). QatarEnergy owns a majority 70% stake in the JV. CPChem, which is 50:50 owned by US firms Chevron and Phillips 66, holds the remaining 30%.

  The Ras Laffan petrochemicals complex is expected to begin production in 2026. It consists of an ethane cracker with a capacity of 2.1 million t/y of ethylene. This will raise Qatar’s ethylene production potential by nearly 70%.

  The complex includes two polyethylene trains with a combined output of 1.68 million t/y of high-density polyethylene polymer products, raising Qatar’s overall petrochemicals production capacity by 82%, to almost 14 million t/y.

  A JV of South Korean contractor Samsung Engineering and CTCI of Taiwan was awarded the EPC contract for the ethylene plant, which is understood to be valued at $3.5bn. The EPC contract for the polyethylene plant was awarded to Italian contractor Maire Tecnimont, which announced that the value of its contract was $1.3bn.

  

  Chemicals uptick

  While the downstream hydrocarbons sector in the Mena region has so far seen significant capex allocated to refinery modification and expansion projects, and robust spending on gas processing projects, chemicals schemes are set to dominate spending going forward.

  Data from MEED Projects suggests that the value of planned chemicals projects in the Mena region is four times greater than the combined value of downstream oil and gas projects.

  Saudi Arabia’s liquids-to-chemicals programme, which aims to attain a conversion rate of 4 million b/d of Saudi Aramco’s crude oil production into high-value chemicals, accounts for the majority of planned chemicals projects in the region.

  Aramco has divided its liquids-to-chemicals programme in Saudi Arabia into four main projects. It has made progress this year by signing JV investment agreements with international partners for these projects:

  • Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery. Front-end engineering and design on the project is under way and is being performed by Samsung E&A.
     
  • Conversion of the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. China’s Sinopec is a JV partner in the project.
     
  • Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. US oil and gas producer ExxonMobil has signed a memorandum of understanding with Aramco to potentially invest in the project.
     
  • Building a crude oil-to-chemicals complex in Ras Al-Khair in the kingdom’s Eastern Province. Progress on this project remains slow.

  Separately, Aramco subsidiary Saudi Basic Industries Corporation (Sabic) is in advanced negotiations with bidders for a project that involves building an integrated blue ammonia and urea manufacturing complex at the existing facility of its affiliate, Sabic Agri-Nutrients Company, in Jubail.

  The $2bn-$3bn project, which is known as the low-carbon hydrogen San VI complex, is part of Sabic’s Horizon 1 low-carbon hydrogen programme that will be developed at Sabic Agri-Nutrients’ facility in Jubail Industrial City.

  The planned San VI complex will have an output capacity of 1.2 million metric t/y of blue ammonia and 1.1 million metric t/y of urea and specialised agri-nutrients.

   

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  Indrajit Sen
• 
  Kuwait’s political hiatus brings opportunity

  29 August 2025

  Commentary
  John Bambridge
  Analysis editor

  After Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah took the unusual step of suspending Kuwait’s parliament in May 2024, the country anticipated a rush of reforms and the unblocking of the project pipeline.

  In March 2025, the government delivered on the most significant part of that, passing the long-awaited new public debt law, allowing $65bn in sovereign and Islamic bonds to be issued over the next 50 years. In June, Kuwait began moving ahead with plans to issue bonds worth an estimated KD2bn ($6.6bn) to cover its projected financing needs for the 2025-26 fiscal year.

  With the ability to now take on debt as needed, the country’s budget can be decoupled to a degree from the volatility of global oil market cycles. Also significant is the reported consideration of the setup of a KD50bn ($163bn) domestic investment fund that could become a transformative engine for Kuwait’s future.

  March also heralded a new mortgage law that has ended prior restrictions, bringing property loans more in line with international norms in a way that will open up new avenues of growth for the banking and real estate sectors.

  In the projects market, however, while the value of planned projects has swollen, actual contract awards increased only modestly in 2024 and are on track for a similar performance in 2025. The more optimistic industry analysts have chalked this up as a temporary situation that will be corrected when the projects now in pre-execution push through to the execution phase. More cynical observers have suggested, however, that there may be more wrong with Kuwait’s project sector than just budgeting.

  The Al-Zour North independent power and water plant phase 2 & 3 is a case in point, having travelled through several planning iterations from the point of its launch in 2006 up until its final award in August. This comes despite Kuwait’s rapid approach to the limits of its own power generation capacity – limits it then exceeded in April 2025, when soaring temperatures caused demand for electricity to outstrip supply, bringing power cuts.

  Despite all this, the award of the long-awaited Al-Zour North scheme is a hopeful sign that Kuwait is on the move once again – as it will need to be. With an enfeebled private sector, atrophied contracting industry and mounting public wage bill, the policy needs of the day are great in Kuwait.

  While the emir’s consolidation of power has given the government a rare opportunity to act decisively – with the political hiatus already delivering key outcomes that years of parliamentary debate could not – the real test will be whether a credible economic transformation can be set in motion while Kuwait still has the time to act.

  

   

  ---

  MEED’s September 2025 report on Kuwait includes:

  > GOVERNMENT: Kuwait looks to capitalise on consolidation of power
  > ECONOMY: Kuwait aims for investment to revive economy
  > BANKING: Change is coming for Kuwait’s banks
  > OIL & GAS: Kuwaiti oil activity rising after parliament suspension
  > POWER & WATER: Signs of project progress for Kuwait's power and water sector
  > CONSTRUCTION: Momentum builds in Kuwait construction
  > DATABANK: Kuwait’s growth picture improves

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

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  John Bambridge
• 
  GlobalData forecasts Egypt construction growth

  29 August 2025

  Register for MEED’s 14-day trial access 

  Egypt’s construction industry is poised for significant growth, with GlobalData projecting a real-term increase of 4.7% in 2025.

  This growth is expected to be fuelled by a surge in net foreign direct investment (FDI) and substantial government spending on renewable energy and industrial construction projects. According to the Central Bank of Egypt, net FDI rose by 9.3% year-on-year in the first half of the 2024/25 financial year, increasing from E£278.6bn ($5.5bn) in July-December 2023 to E£304.5bn during the same period in 2024.

  The influx of foreign capital is anticipated to strengthen the construction sector, which is further supported by the government’s 2025/26 budget, approved in June 2025. The budget allocates total expenditure of E£4.6tn, marking an 18% increase over the previous fiscal year. Key allocations include E£100bn for the electricity and renewable energy sector, E£77bn for water and wastewater projects, and E£5.2bn for railways.

  Looking ahead, the construction industry’s output is projected to grow at an average annual rate of 7.4% between 2026 and 2029. This growth will be driven by investments in housing, renewable energy and transport infrastructure, alongside the government’s target of developing 10GW of renewable energy capacity by 2028.

  Sector-specific forecasts point to a promising outlook across various construction segments.

  The commercial construction sector is expected to grow by 6% in 2025 and at an average annual rate of 6.6% between 2026 and 2029, supported by a rebound in tourism and hospitality.

  The industrial construction sector is anticipated to expand by 12.2% in 2025, with robust average annual growth of 9.1% through 2029, driven by investments in manufacturing and rising external demand.

  Infrastructure construction is projected to grow by 3.6% in 2025 and at an average annual rate of 6.9% from 2026 to 2029, underpinned by investment in roads, rail and ports – including the construction of 1,160 bridges by 2030.

  The energy and utilities construction sector is expected to grow by 3.7% in 2025, with an average annual rate of 7.8% between 2026 and 2029, driven by investments in renewable energy and water infrastructure.

  Institutional construction is forecast to grow by 4.2% in 2025 and at an average annual rate of 6.6% from 2026 to 2029, supported by public investment in education and healthcare.

  Finally, the residential construction sector is projected to grow by 4.7% in 2025, with an average annual growth rate of 7.7% from 2026 to 2029, addressing the country’s growing housing deficit.

  

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