meed-logo

line1 line2 line3
SIGN IN / REGISTER

Middle East defence spending accelerates

7 May 2023

 

Global military spending reached a record high of $2.24tn in 2022, up 3.7 per cent year-on-year, according to newly compiled data from the Stockholm International Peace Research Institute (SIPRI), as the Ukraine war and tensions in East Asia prompted governments to ramp up their investment in equipment.

It marks the eighth consecutive year of growth in global defence expenditure. The sharpest rise was in Europe, where there was a 13 per cent increase in spending, but the Middle East and North Africa (Mena) region was not far behind, with an 11.2 per cent rise on the previous year.

“The continuous rise in global military expenditure in recent years is a sign that we are living in an increasingly insecure world,” said Nan Tian, a senior researcher with SIPRI’s military expenditure and arms production programme.

“States are bolstering military strength in response to a deteriorating security environment, which they do not foresee improving in the near future.”

Rising regional outlay

The rise in the Mena region’s total to $168bn was mostly due to an increase in spending by Saudi Arabia and Qatar and, to a lesser extent, Lebanon and Iran.

As has long been the case, Saudi Arabia dominated the picture, with a defence outlay of $75bn in 2022 – up 16 per cent on the year before and its first increase since 2018.

Military spending data for the Middle East is often opaque. Other large spenders, according to SIPRI’s database, include Israel ($23.4bn), Qatar ($15.4bn), Algeria ($9.1bn), Kuwait ($8.2bn), Iran ($6.8bn) and Oman ($5.8bn).

However, the institute has no estimates for a number of other countries, most notably the UAE. Its most recent figure for the UAE is for 2014, at which point the defence budget was an estimated $22.8bn, the region’s second-biggest after Saudi Arabia that year.

There are also no current estimates for defence spending by the countries suffering the greatest instability, including Libya, Sudan, Syria and Yemen.

Others have drawn up figures for the UAE, though. The London-based International Institute for Strategic Studies (IISS) estimated the UAE’s defence spend was $20.4bn last year in its recently published Military Balance 2023 report. That marked a 6 per cent rise on the previous year’s estimate.

While the UAE may not have the largest budget in the region, IISS says its armed forces are “arguably the best trained and most capable of all GCC states”.

Unclear Iranian picture

The outlay by Iran is also a matter of some debate, given the questions over the value of the rial and the country’s high inflation rate of around 40 per cent.

SIPRI says that, in local currency terms, Iran’s defence spending grew by 38 per cent to IR1,988tn in 2022. That is equivalent to some $46.9bn at the government’s official exchange rate, but far less at the open market rate used by SIPRI.

Inflationary pressures have become a common concern for countries around the world, even if few are having to cope with price rises as rapid as in Iran. Many Western countries are also dealing with an energy supply crisis due to the war in Ukraine, which has led to prices spiking upwards and sanctions being imposed on Moscow.

The Middle East’s oil exporters have benefitted from elevated oil prices, making it easier to afford the rise in defence spending.

However, the most notable direct consequence of the conflict in Ukraine for the Middle East has been the surge in military cooperation that has followed between Russia and Iran. Moscow’s failure to quickly take control of Ukraine has led to a drawn-out conflict and, as its weapons inventory has become depleted, it has imported drones from Iran to fill in some of the gaps.

That cooperation may yet extend in the other direction, with Iranian media reporting in March a potential deal for Tehran to receive Russian Sukhoi Su-35 fighter jets. Iran will also have gained useful information about the performance of its Shahed 131, Shahed 136 and Mohajer-6 drones in the war.

Lingering Gulf concerns

Such developments will likely concern other Gulf governments, even if regional tensions have eased somewhat due to the rapprochement between Saudi Arabia and Iran, announced via a China-brokered agreement in March.

That fits into a broader regional trend for de-escalation and diplomatic advances. Recent talks between Saudi officials and Yemen’s Houthi rebels in Sanaa could yet pave the way to resolving that conflict – further discussions between the two sides are due to take place in May, possibly in Muscat.

The levels of violence in Libya and Syria have also been on a downward trajectory over the past year, but both remain susceptible to further outbreaks of fighting, as does Iraq.

Elsewhere, though, relations between Algeria and Morocco remain problematic, and the prospects of any peace deal between the Israelis and Palestinians look as distant as ever with the hardline government of Israel’s Prime Minister Benjamin Netanyahu in office.

Any reduction in regional tensions will be a welcome development given the high burden of defence spending on local economies. As IISS points out, many Mena countries’ defence budgets are very large relative to the size of their economies.

As has long been the case, Oman spends more as a proportion of its GDP than any other country in the region, with its 2022 outlay equivalent to 5.9 per cent of GDP, according to IISS calculations.

It is followed by Kuwait at 5 per cent and Saudi Arabia at 4.5 per cent.

The average for the region is 3.8 per cent of GDP, more than double the global average of 1.7 per cent. The overall trend for rising budgets means that the economic burden is unlikely to fall away any time soon.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10816511/main.gif
Dominic Dudley

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Bahrain moves Sitra IWPP prequalifications

    20 December 2024

    Bahrain’s Electricity & Water Authority (EWA) has moved the last day for interested companies to submit their statements of qualifications (SOQs) for a contract to develop the state’s fourth independent water and power project (IWPP).

    The Sitra IWPP is a combined-cycle gas turbine (CCGT) plant, which is expected to have a production capacity of about 1,200MW of electricity. The project’s seawater reverse osmosis (SWRO) desalination facility will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water.

    According to industry sources, EWA moved the last day for SOQ submissions from 11 to 25 December.

    The integrated plant replaces the previously planned Al-Dur 3 IWPP. It is expected to be fully operational by the second quarter of 2029.

    It will be developed on a brownfield site and strategically located in Sitra “to ensure resource efficiency and service delivery”. It is expected to be fully operational by the second quarter of 2029.

    MEED previously reported that the client intends to float the tender for the Sitra IWPP to prequalified utility developers by May 2025. 

    The state utility is procuring Bahrain’s first independent water project (IWP) in Al-Hidd along with the Sitra IWPP.

    The Al-Hidd SWRO plant is expected to have a production capacity of about 60 MIGD of potable water.

    The two BOO projects will be procured under a public-private partnership framework for 20-25 years.

    Sixty representatives from utility developers and contracting firms attended a market-sounding event for the two separate utility build, own and operate (BOO) projects in Manama on 21 October.

    The firms that sent representatives to the event in Manama include France’s Engie, Japan’s Mitsui, Saudi Arabia’s Acwa Power, AlJomaih Electricity & Water Company and Ajlan & Bros, and Kuwait’s Gulf Investment Corporation, among others, said sources.

    EWA’s transaction advisory team comprises KPMG Fakhro as the financial consultant, WSP Parsons Brinckerhoff as the technical consultant and Trowers & Hamlins as the legal consultant.

    Bahrain’s first three IWPPs are Al-Dur 1, Al-Hidd and Al-Dur 2.

    MEED understands that EWA’s Sitra IWPP will likely be Bahrain’s last CCGT plant project. Solar power is expected to account for all future electricity generation capacity.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13161142/main.gif
    Jennifer Aguinaldo
  • Taqa to award Dhafra open-cycle gas power plant contract

    20 December 2024

     

    Abu Dhabi National Energy Company (Taqa) is expected to imminently award a contract to build an open-cycle gas turbine (OCGT) power generation plant project in Abu Dhabi.

    The Al-Dhafra OCGT plant is being tendered on a fast-track basis and is expected to have an installed capacity of between 1,000MW and 1,100MW.

    “We expect news of an award perhaps next week,” a source close to the tender proceedings tells MEED.  

    Engineering, procurement and construction (EPC) contractors are understood to have submitted their proposals for the contract in late September.

    MEED reported in the same month that Taqa plans to procure an estimated 5,000MW of gas-fired power plant capacity, mainly to support the UAE’s artificial intelligence (AI) strategy.

    In addition to Al-Dhafra, sources said a second site is being considered for the projects in Al-Nouf.

    Earlier this month, MEED reported that Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) is working with both Taqa and Abu Dhabi Future Energy Company (Masdar) to implement the power plant projects that support the UAE capital’s AI strategy.

    According to an industry source, the planned Al-Dhafra OCGT power generation plant is designed to provide backup power to the round-the-clock (RTC) solar independent power project (IPP) that Masdar is developing.

    Related read: Region plays high-stakes AI game

    The solar IPP capacity being considered is about 5,000MW, and the battery energy storage system (bess) is approximately 20 gigawatt-hours. This would enable approximately 1,000MW of RTC or 24×7 power between April and October of every year, industry sources tell MEED.

    One of the sources said these fast-track projects comprise the AI strategy’s first phase, with Ewec planning to publicly tender the succeeding phase or phases of the project.

    The UAE National Artificial Intelligence Strategy 2031 has set eight strategic objectives, including building a reputation as an AI destination, deploying AI in priority sectors, attracting AI talent and ensuring strong governance and effective regulation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13160851/main1544.gif
    Jennifer Aguinaldo
  • Acwa Power applies for $1.9bn capital increase

    20 December 2024

    Saudi utility developer and investor Acwa Power has submitted its application to raise additional capital to the kingdom’s Capital Market Authority (CMA).

    The move aligns with the Acwa Power board’s previous recommendation to increase its capital through offering rights issue shares for a total offering value of SR7.125m ($1.9bn), the company said in a regulatory filing on 19 December.

    The capital injection is expected to support Acwa Power’s ongoing investments in renewable energy infrastructure and help the company scale its operations in line with its financial goals.

    The company previously stated that it expects a substantial increase in its average annual investment commitments between 2024 and 2030.

    The firm anticipates investing between $2bn and $2.5bn a year over the next six years, twice the scale of its previous commitment to invest between $1bn and $1.3bn annually.

    Last week, it was reported that the utility developer lost over $25bn in market value, highlighting global and regional market volatility. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13160769/main.gif
    Jennifer Aguinaldo
  • Driving tech in the Middle East

    20 December 2024

     

    Heading into 2025, a spate of technological breakthroughs are set to fundamentally reshape industries worldwide, driving unprecedented innovation across critical sectors. 

    Cutting-edge developments in artificial intelligence (AI), renewable energy, digital currencies, transportation and healthcare are converging to create transformative opportunities, according to the Tech Predictions 2025 report by GlobalData Thematic Intelligence.

    AI stands at the forefront of this technological revolution, with generative models and autonomous systems pushing the boundaries of what is possible. 

    Simultaneously, advancements in battery technology and mineral exploration are accelerating the global transition to sustainable energy solutions. 

    In the Middle East, these global technological trends are not just being adopted but actively amplified

    Emerging technologies such as blockchain are revolutionising finance, while the mobility sector is being reshaped by autonomous and electric transportation technologies.

    Healthcare is experiencing a digital renaissance, leveraging AI, telemedicine and bio-technology to deliver more personalised and accessible medical services. 

    The future of work is being redefined by hybrid models and sophisticated digital collaboration tools, all underpinned by increasingly robust cybersecurity innovations that protect against evolving digital threats.

    Regional priorities

    In the Middle East, these global technological trends are not just being adopted but actively amplified through strategic national initiatives. 

    Regional governments and enterprises are making significant investments in AI-driven startups, renewable energy infrastructure and advanced technologies. From pioneering smart city projects like Neom to emerging leadership in cryptocurrency and gaming industries, the Middle East is positioning itself as a global innovation hub.

    The region’s commitment to technological diversification is evident in its targeted investments across multiple sectors. 

    Global technology giants are establishing significant cloud and data centre infrastructure, while local initiatives in health tech, gaming and digital innovation are gaining international recognition.

    These efforts collectively demonstrate the Middle East’s strategic vision to transform its economic landscape and establish a prominent role in the global digital economy.

    By embracing these technological advancements, the region is not merely adapting to global trends, but actively shaping a more interconnected, sustainable and digitally sophisticated future.

    ARTIFICIAL INTELLIGENCE

    The global AI market is on a trajectory of major growth, with projections indicating it will surpass $1tn by the end of the decade.

    Generative AI is emerging as a particularly transformative capability, promising to drive growth through unprecedented automation and a reimagining of traditional business models.

    Another emerging trend is the increasing focus on small language models (SLMs), which offer greater cost-effectiveness, enhanced security and simplified management over their larger counterparts and are especially powerful in domain-specific applications.

    Big tech firms such as Microsoft, Open AI and Amazon are well-positioned in both the generative AI and SLM spaces.

    Looking ahead, the next technological frontier appears to be agentic AI – intelligent, autonomous systems that are capable of sophisticated multi-step reasoning and dynamic context adaptation. This holds immense potential and could revolutionise efficiency and customer experiences across diverse sectors.

    Market winners will successfully develop and implement enterprise AI solutions while laggards risk obsolescence.

    The Middle East is positioning itself as a global AI innovation hub, with countries including the UAE and Saudi Arabia investing heavily in areas such as AI governance, autonomous systems and smart city technologies.

    Projects like Saudi Arabia’s Neom and Dubai’s smart city initiatives are integrating AI for urban management, enhancing infrastructure and optimising public services through real-time data analysis.

    DATA CENTRES

    The demand for AI-ready data centres is surging as cloud providers like Microsoft Azure, Amazon Web Services and Google Cloud expand their capabilities to host advanced AI models, such as Open AI’s GPT-4. According to GlobalData, total investment in data centres reached $70.6bn in 2024 and is projected to grow by 5% to $74.3bn in 2025.

    This rapid growth is bringing challenges such as power shortages and increasing pressure from governments to reduce energy consumption in alignment with climate targets.

    The International Energy Agency estimates that data centre electricity consumption will hit 1,000 terawatt-hours by 2026, doubling from 2023 levels. To meet this rising demand sustainably, tech giants are turning to low-carbon energy solutions, including solar, wind, biofuel and nuclear power. 

    The Middle East data centre market is experiencing rapid growth, driven by increased digital adoption and internet access. The region’s data centre construction market is projected to reach $4.39bn by 2029, growing at a compound annual growth rate of 10.99%. 

    The UAE has the highest concentration of data centres, while Saudi Arabia is the fastest-growing regional market, attracting global players like Google and Huawei. 

    Sustainability initiatives are also gaining traction, with both countries aiming for significant renewable energy integration in their power mix. 

    Overall, the Middle East and North Africa region is poised for major investment in the development of data infrastructure.


    The region’s data centre construction market is projected to reach $4.39bn by 2029 

    CYBERSECURITY

    The cybersecurity landscape is undergoing a transformation, with the market projected to expand to $208.5bn by 2025, representing a 10% growth from $188.8bn in 2024. 

    This growth will be accompanied by increasingly sophisticated threats that leverage AI to create more complex and dangerous cyber attacks.

    AI is shaping both defensive and offensive cybersecurity strategies. Cybercriminals are now utilising generative AI to craft more convincing phishing attempts and develop more advanced malware. 

    The scale of this threat is alarming, with AI-powered malware attacks surging by an extraordinary 275% in 2024 compared to 2023, presenting unprecedented challenges for cybersecurity vendors and organisations worldwide.

    Ransomware attacks continue to escalate, with criminals estimated to have extracted $1.1bn in ransom payments during 2023. 

    The democratisation of cyber attack tools through AI and ransomware-as-a-service platforms is making more sophisticated attacks increasingly accessible to less technically skilled individuals. 

    While direct ransom payments remain unbanned, emerging regulations are expected to introduce mandatory breach reporting and enhance international collaborative efforts to combat these threats.

    In line with global trends, cybersecurity is a growing concern in the Middle East, with governments and enterprises prioritising advanced cyber defence strategies, including AI-based security solutions and regional collaboration to enhance risk assessment, address cyber risks and detect fraud.

    CRYPTOCURRENCIES

    The digital financial landscape is undergoing a transformation as cryptocurrencies are increasingly accepted by institutional investors as a mainstream asset. 

    This, alongside regulatory developments that could create a more favorable environment for digital asset adoption, are positioning the sector for significant growth in 2025. 

    The anticipated regulatory approach suggests increased institutional interest and broader mainstream acceptance of cryptocurrency technologies.

    The US is expected to develop a more accommodating regulatory framework for cryptocurrencies, potentially reducing enforcement barriers and creating a more welcoming global environment for financial innovation. This shift could make it easier for financial institutions to invest in and manage crypto assets, signalling a potential mainstream breakthrough for digital currencies.

    The Middle East is similarly emerging as a cryptocurrency hub, with Dubai leading in regulatory frameworks and blockchain innovation. 

    Crypto exchanges, tokenised real estate projects and interest in decentralised finance are gaining momentum throughout the region.

    HEALTH TECH

    The healthcare industry stands on the cusp of a technological revolution, with AI and three-dimensional (3D) printing poised to transform medical care and patient outcomes.

    AI is rapidly emerging as a game-changing technology in the fields of medical diagnostics and imaging. 

    Computer vision technologies are already demonstrating remarkable capabilities in assisting radiologists, enabling quicker and more precise identification of abnormalities in medical scans. 

    This technological frontier is experiencing explosive growth, with the global computer vision market projected to expand from $19bn in 2023 to $125.1bn by 2030, signalling the immense potential of AI in healthcare.

    Also emerging as a revolutionary technology in healthcare, 3D printing enables the production of highly personalised medical devices such as prosthetics and implants. 

    This technology promises to dramatically reduce production costs while providing customised solutions tailored to individual patient needs. 

    The 3D-printing healthcare market is forecast to grow from $1.4bn in 2023 to $9bn by 2035, reflecting the technology’s enormous potential to reshape medical device manufacturing.

    In the Middle East region, governments are investing in health tech startups that are adopting emerging technologies, including the use of AI analytics or predictive diagnostics and telemedicine based on patient data, as a means of enhancing healthcare access and boosting efficiency.

    FUTURE OF WORK

    The future of work is undergoing a profound metamorphosis, with technology emerging as the primary catalyst for transforming traditional workplace environments. This evolution promises a more dynamic, collaborative ecosystem in which human capabilities are augmented and enhanced by digital technologies.

    Generative AI is poised to become a cornerstone of workplace innovation, capable of driving unprecedented levels of automation and business process optimisation. 

    The generative AI market is projected to reach $75.7bn by 2028, reflecting the huge potential of these intelligent systems to reshape organisational productivity and efficiency.

    Hybrid working models are rapidly transitioning from experimental approaches to standard operational practices. 

    Despite some organisations advocating for a return to traditional office environments, sophisticated collaboration technologies are enabling employees to work effectively across diverse settings. This flexibility represents more than a temporary trend – it signifies a fundamental reimagining of workplace dynamics and productivity.

    Talent acquisition and development will face significant challenges as digital technologies continue to evolve. 

    Automation, AI, augmented reality, virtual reality and digital twin technologies are creating an urgent need for comprehensive workforce upskilling. 

    By 2025, proficiency in data management and generative AI tools will become an expected competency across various professional roles, not merely for technical positions.

    Remote work and hybrid models are being embraced, driven by investments in digital infrastructure and upskilling initiatives. AI-driven human resources tools and collaboration platforms are helping to shape a more flexible and digitally enabled workforce in the Middle East.

    GAMING

    The gaming software industry is poised for significant growth, with projections indicating an expansion from $219bn in 2023 to $246bn by 2025, and an ambitious target of $337bn by 2030.

    This trajectory is being driven by transformative technologies including AI, augmented reality, virtual reality, e-sports and cloud gaming.

    Co-streaming is emerging as a revolutionary approach to content delivery in the increasingly popular field of e-sports, enabling several streamers to broadcast events simultaneously. 

    In 2024, content created by co-streamers demonstrated significantly higher engagement rates compared to official streams, a trend expected to continue gaining momentum in 2025. This innovative approach is reshaping audience interaction and creating new monetisation opportunities.

    The boundaries between streaming platforms and social media are becoming increasingly blurred. Platforms such as Twitch and YouTube are integrating with social media applications such as TikTok and Instagram, enabling real-time interactions and creating enhanced monetisation channels.

    This convergence represents a fundamental transformation in how gaming content is created, shared and consumed.

    The Middle East is rapidly emerging as a significant gaming ecosystem, with substantial investments in e-sports, mobile gaming and local game development. Saudi Arabia, in particular, is positioning itself as a global gaming hub through strategic initiatives like the Savvy Gaming Group.

    FUTURE MOBILITY

    The future of mobility is poised for a radical transformation, driven by technological innovation and evolving societal needs. Emerging trends such as autonomous vehicles, electric mobility, shared transportation, electrification and enhanced connectivity are reshaping how people and goods will move in the coming years.

    China is emerging as a global leader in both electric and autonomous vehicle technology, and in the case of the latter is positioning itself to be the first to deploy commercial Level 4 autonomous driving at scale. 

    Benefitting from supportive government policies and more relaxed regulatory environments, China is advancing faster than the US in autonomous vehicle development. 

    Breakthrough advances in battery technology are meanwhile set to unlock new frontiers in mobility, particularly for electric vertical take-off and landing (eVTOL) vehicles. 

    Innovations in lithium-ion and solid-state battery technologies are expected to make commercial eVTOL operations viable within the next 12-18 months. Solid-state batteries are particularly promising, offering superior energy efficiency, rapid charging capabilities and enhanced durability that could revolutionise aerial transportation.

    The Middle East is likewise witnessing transformations in mobility that include the expansion of electric vehicles, autonomous transport pilots and innovative urban mobility solutions like smart public transit systems. Projects such as Neom in Saudi Arabia are setting the stage for futuristic transportation networks.


    Autonomous vehicles and electric mobility are reshaping how people and goods will be transported

    BATTERIES

    The lithium-ion battery market is poised for substantial growth, with projections indicating an expansion from $130.5bn in 2023 to an impressive $408.3bn by 2035. This trajectory represents a consistent 10% annual growth rate, reflecting the increasing global demand for advanced energy storage solutions.

    Lithium-ion batteries will maintain their technological supremacy, characterised by superior energy density and rapid charging capabilities. Simultaneously, sodium-ion batteries are emerging as an intriguing alternative, attracting significant investment.

    Geopolitical complexities and potential mineral supply disruptions – particularly concerning lithium, nickel and cobalt – are anticipated to create temporary global battery shortages. Despite ongoing advances in recycling technologies, these supply-chain challenges will pose significant obstacles for manufacturers and consumers alike.

    With the push for renewable energy and electric vehicles, the Middle East is exploring advanced battery technologies. Efforts are being made to localise battery production and establish strategic partnerships for energy storage solutions that are tailored to the region’s climatic conditions.

    Morocco is planning to establish the region’s first battery gigafactory, with a planned capacity of 20 gigawatt-hours annually, focusing on electric vehicle batteries.

    Meanwhile, Saudi Arabia is also establishing battery manufacturing capabilities to meet growing demand for lithium-ion batteries due to investments in renewable energy projects and EV adoption.

    MINERALS

    The global demand for critical minerals is experiencing an unprecedented surge, driven by ambitious net-zero targets and the rapid adoption of transformative energy transition technologies. Lithium, copper, nickel, cobalt and rare earth elements have become pivotal resources in the production of electric vehicles, solar panels and wind farms, creating significant pressure on mineral prices and global supply chains.

    China’s historical monopoly on rare earth element production has gradually diminished, with its market share dropping from a near-total 97% in 2010 to approximately 70% today. 

    While other nations are pursuing diversification strategies, China remains a dominant force in both rare earth element production and refinement, maintaining substantial control over this critical market segment.

    Latin America is emerging as a crucial player in the critical minerals landscape. Countries like Argentina, Bolivia and Chile boast extensive lithium reserves, while Brasil holds the world’s third-largest rare earth element reserves. This geological wealth positions the region as a potential game-changer in global mineral supply.

    The Middle East region’s focus on economic diversification has likewise spurred interest in mining critical minerals. Significant mining projects are under way, including copper and gold projects in Oman and expansions of existing gold mines in Saudi Arabia. 

    There is a regional race to secure lithium deposits and access to other rare earth elements necessary for the technology and energy sectors. 

    GLOBALDATA REPORTS

    This article was written by GlobalData Thematic Intelligence. Click here to see more thematic research.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13140018/main.jpg
    MEED Editorial
  • Saudi Arabia retenders Shoaiba 6 water contract

    20 December 2024

    Saudi Water Authority (SWA), the kingdom’s main producer of desalinated water, has retendered a contract to build a new water desalination plant on Saudi Arabia’s western coast, using reverse osmosis technology.

    When the Shoaiba 6 seawater reverse osmosis (SWRO) plant was previously tendered, Jeddah-based Alfatah Water & Power offered the lowest bid for the contract.

    The retendered contract indicates a capacity of between 500,000 cm/d and 545,000 cm/d.

    SWA expects to receive bids for the retendered contract by 10 January 2025.

    Shoaiba 6 is one of four contracts that SWA has tendered this year using an engineering, procurement, construction and commissioning (EPCC) contracting model.

    The other three SWRO projects are Yanbu 5, Ras Al-Khair and Jubail.

    VA Tech Wabag submitted the lowest bid for Yanbu 5 and won the $317m contract to build the plant in September. The plant will have the capacity to treat 300,000 cm/d of seawater.

    However, on 16 December, SWA cancelled the contract and informed the bidders that it intended to recalibrate the plant’s capacity and issue a new tender over the coming weeks.

    The Jubail and Ras Al-Khair SWRO projects will each have the capacity to treat 600,000 cm/d of seawater.

    MEED recently reported that Najran-based Emar Al-Janoub for Contracting (EJC) had won the contract to build the Ras Al-Khair SWRO plant.

    EJC offered SR2.346bn ($625.6m) to win the contract, seeing off competition from other bidders including the local Civil Works Company and Saudi Services for Electro Mechanic Works, and the Saudi branch of India’s VA Tech Wabag. 

    SWA is the world’s largest producer of desalinated water, with a capacity of at least 6.6 million cm/d. Plants using older and more energy-intensive techniques, such as multi-stage flash technology, account for the majority of the current capacity.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13158622/main.gif
    Jennifer Aguinaldo