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• 
  Kahramaa awards $3.7bn Ras Abu Fontas contract

  12 May 2025

  Qatar General Electricity and Water Corporation (Kahramaa) has signed strategic and power-purchase agreements with QatarEnergy, Qatar Electricity & Water Company and Japan's Sumitomo Corporation in a consortium with Luluah Sky Energy to develop a new power generation and water desalination plant in Ras Abu Fontas.

  The plant will have an electricity production capacity of 2,400MW and water desalination capacity of 110 million gallons a day (MGD).

  The project will cost  QR13.5bn ($3.7bn), and is expected to provide about 23% of Qatar's total power and 20% of its water production once completed.

  "The agreement comes as part of Kahramaa's ongoing efforts to strengthen supply security and promote sustainability within the electricity and water sectors and is in alignment with Qatar National Vision 2030,"  the Qatar News Agency said.

  The new Ras Abu Fontas facility will help meet growing demand for energy and water, driven by the country's rapid population and economic growth.

  It will also enhance the efficiency of the national grid and support the integration of renewable energy sources, reflecting Qatar's commitment to developing a modern, sustainable energy infrastructure.

  The agreement includes a three-phase commissioning plan for the facility/

  The first power date is set for 25th April 2028, with 836MW of power coming online.

  The final water date is scheduled on 1st August 2028, to reach a final water capacity of 110MGD.

  The target full operations date is scheduled for 1st June 2029, with total power capacity reaching 2,400MW.

  This is the latest and largest in a series of contracts awarded by Kahramaa over the past several weeks.

  In late February, Kahramaa and QEWC signed a power-purchase agreement (PPA) for the peak electricity generation plant at Ras Abu Fontas.

  The total contractual capacity for the units is 511MW, with a total cost of approximately QR1.6bn ($439.5m). The peak power plant is scheduled to become operational by January 2027.

  Last week, the state utility also signed four contracts, which have a total combined value of approximately QR3.1bn ($850m),  for the construction of substations and overhead transmission lines.

  It awarded the contracts to the following firms:

  • Elsewedy Cables Qatar Company (local/Egypt)
  • Voltage Engineering (local)
  • Best/Betas Consortium (Turkey)
  • Taihan Cable & Solution (South Korea)

  Kahramaa said the projects aim to “meet electrical network demand in light of the country's fast-growing …urban development”.

  The contracts include the provision and installation of underground cables and overhead lines extending around 212 kilometres to connect these substations.

  Photo credit: Qatar News Agency

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  Jennifer Aguinaldo
• 
  Dubai Chambers empowers its companies to go global

  12 May 2025

  

   

  How important is expanding the overseas footprint of Dubai-based companies to the growth of Dubai’s economy?

  Dubai is well known as a trading hub, so it is very essential for us, especially after the major restructuring that the chamber went through three years ago, concentrating on new mandates. One of the new mandates is to expand and internationalise our companies. This is not limited only to large corporations and family businesses; it also covers the expansion and internationalisation of small and medium companies. 

  Dubai has a very competitive edge in terms of offering quality services, so we think it is the right time to give growth leverage for our companies internationally and take advantage of fast and high-growth markets. We have witnessed a lot of success stories when it comes to large corporations such as Emirates and DP World and a lot of family businesses have had very successful international expansion, so we thought of offering customised programmes, either through the trade missions we organise or our network of 34 offices around the world, to encourage and empower our companies to go global and have opportunities that will not only help their growth but will also sustain their growth.

  How does Dubai Chambers decide where to take a trade mission?

  There are several factors that we take into consideration. One is the bilateral trade between Dubai and the specific market. We always try to have a balance between natural markets that we have in India, East Africa and the Middle East and new markets that we are trying to explore, like West Africa and Asean markets.

  We also try to match the products and services offering that we have with markets that depend on these products and services and then we contact the relevant parties from the authorities and chambers and international markets to arrange the trade mission.

  We are today in Mozambique. What are the next African markets that you will take a mission to?

  This year, this is the only African trade mission … next year, we will definitely have a trade mission, and one might be to the Central African region, and the other might be to the Francophone countries, but we have not decided yet on the calendar for next year. We should always have a trade mission to Africa as it is a market with a high appetite from our companies.

  Dubai Chambers has set a target of having 50 international offices by 2030. Where are you looking to open the additional 16 offices?

  We will expand into markets with high growth, such as Africa, in addition to new markets that we are yet not covering, perhaps in Eastern Europe and other areas. We are studying the relevant markets, and before the end of the year, we will announce new offices.

  What are some of the big challenges that Dubai-based companies experience in expanding overseas and how does Dubai Chambers help them overcome them?

  There are natural challenges that happen in any new market, such as getting the due diligence done and understanding who the companies are to deal with. One of the ways we try to support this is through the vetted B2B meetings that we do pre-mission to ensure they meet companies that went through some due diligence in terms of background checks, including utilising our relationships with the chambers of the country we are targeting. The second thing is in some markets, there are limitations on the repatriation of capital or a lot of non-tariff trade barriers, either around certification or standardisations, and we always try to improve awareness and education about these through our network of international offices. We try to ease the process at the end of the day.

  There are natural challenges that happen in any new market, such as getting the due diligence done and understanding who the companies are to deal with

  One of the big topics of discussion in the past couple of days has been access to foreign currency and getting payments.

  Foreign currency is similar to the repatriation of capital. This is very subjective as it depends on the product you deal with. For example, when it comes to services, exports usually happen with the money paid in Dubai or online. When it comes to commodities, it depends – some investors establish a subsidiary in Africa and try to circulate the money within the continent; others try to have an arrangement with banks. We are blessed in Dubai that there are several already there. In other cases, traders will always find a way, like buying other commodities that they export and then liquidate by selling them in Dubai. 

  Markets with high growth always come with their challenges; if you want a market with low challenges that is a market that is already mature with lower yields that might not be interesting for SMEs. Large corporations might be fine with very low margins because they have volume, but the small ones like to tap markets with bigger yields so they can gain more. There are different ways to deal with these challenges; some companies have the challenge of language and standardisation and the list goes on – it depends on the product and the markets.

  We often hear cities being described as the next Dubai. This has been said in the past of both Luanda and Djibouti – so what does it take to become Dubai? What should these cities be doing?

  The whole city functions like a corporation. Lots of cities and officials from other countries only look at the exterior or take a very shallow view of Dubai with skyscrapers and nice malls and a busy airport. But lots of planning goes behind this. There is a strategic plan, lots of restructuring and continuous improvement of legislation to make sure Dubai is open when it comes to doing business. It is very easy to do business; it is safe to invest. That’s why Dubai, for three years in a row, has ranked number one for greenfield FDI projects. 

  Even looking at the wider picture, you might have a friendly environment to do business and friendly legislation, but you don’t have what it takes for the global multinational companies to have a regional HQ there in terms of schooling for children, safety and security for their family … and the services that are required – complementary services for companies like a strong financial sector and insurance. 

  It requires really proper planning. In Dubai, the majority of revenue is not based on oil; the main secret is to be efficient and productive and not have a fear of making mistakes if the intention is good … It is deeper than what people see: it is about understanding where you want to go, you have a plan and stick to this plan and you are resilient in terms of changes globally… You need to develop and fix things as you go rather than waiting for the perfect moment and perfect plan, which will never come.

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  Elizabeth Bains
• 
  Soudah to tender infrastructure package by year-end

  12 May 2025

  

   

  Saudi Arabia’s Soudah Development Company (SDC) plans to tender the contract for the development of its site-wide infrastructure package by December of this year.

  The Soudah Peaks development is a mountain tourism destination set 3,015 metres above sea level on the kingdom's highest peak in the Asir region.

  According to Fathi Al-Asir, development procurement senior manager at SDC, the company is also in final talks with Saudi Electricity Company about connecting the development to the electricity grid.

  Al-Asir says that the utility infrastructure catering to Soudah Peaks will include one bulk supply point with a capacity of 380kV /132kV, two primary substations and 142 distribution substations.

  The development will also require 15 water storage tanks and pump stations. The tanks will have a storage capacity of 93,150 cubic metres, to cater to an expected demand of about 10,984 cubic metres a day (cm/d).

  A total of 14 sewage treatment plants are also planned, with a total capacity of 10,690 cm/d. The development will require 52 sewage lifting stations.

  The infrastructure package will also cover 24 mobile telecommunications or GSM (global system for mobile communications) towers and the relocation of eight existing GSM towers, as well as a package for the drainage culvert.

  In March, SDC appointed US-based engineering firm Aecom as the lead design consultant for the Soudah Peaks development.

  Aecom’s scope of work covers the design work for the first phase of the development.

  The masterplan covers an area of more than 635 square kilometres and consists of six development zones: Tahlal, Sahab, Sabrah, Jareen, Rijal and Red Rock. The development will have 2,700 hotel rooms, 1,336 residential units and 30 other attractions.

  The masterplan will be developed in three phases.

  The first phase will include the development of five of the six zones, namely Tahlal, Sahab, Sabrah, Rijal and Red Rock. 

  Jareen will be developed as part of the third phase, when the infrastructure and connectivity are fully established within the development.

  Launched in 2021, SDC is wholly owned by Saudi Arabia’s sovereign wealth vehicle, the Public Investment Fund.

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  Jennifer Aguinaldo
• 
  Red Sea to open airport passenger terminal

  12 May 2025

  The main passenger terminal building at the Red Sea International airport in Saudi Arabia is expected to become fully operational in the next few months, Ben Edwards, group head of cost, commercial and procurement, Red Sea Global, told the Saudi Giga Projects summit organised by MEED and GlobalData in Riyadh on 12 May.

  "We are approaching completion of the airport, and the main terminal building will be fully operational in the next few months," Edwards said.

  In June last year, the gigaproject developer announced that the construction works on its Red Sea International airport are 80% complete.

  Several hotels have been opened as part of the first phase of the development. According to Edwards, several other hotels are approaching completion in line with the developer's commitment to deliver 25 hotels by 2025.

  The executive said construction work was completed last year for a private island, which is now open.

  Airport project contractors

  Local contractor Masah Specialised Construction is carrying out the construction works on the terminal building.

  In 2020, a joint venture of local contractors Nesma & Partners Contracting Company and Almabani General Contractors won an estimated $250m contract covering the airside infrastructure.

  The contract includes designing and building a 3,700-metre runway, a seaplane runway, taxiways and pavement works, aeronautical navigational aids, aerodrome ground lighting, airside utilities, helipads, roads and associated buildings.

  TRSDC awarded the design contract for the airport to the UK’s Foster + Partners in October 2023. Canada’s WSP is working as a sub-consultant for Foster + Partners in engineering.

  In October 2023, Red Sea International airport welcomed a ceremonial flight operated by national carrier Saudia.

  Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud launched the Red Sea project in 2017.

  In January 2021, Red Sea Global signed a deal with Ireland’s DAA International to deliver airfield and terminal operations, aviation services, facilities management, commercial activities and corporate and financial services for the airport.

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  Jennifer Aguinaldo
• 
  Iraq power sector turns a page

  12 May 2025

  

   

  In April and May, the world’s top gas turbine original equipment manufacturers signed preliminary agreements with the Iraqi government to build or add a combined total of 38GW of power generation capacity in Iraq, which is more than the country’s known installed capacity.

  US-based GE Vernova has agreed to build up to 24GW of combined-cycle gas turbine (CCGT) power plants in the country, while Germany’s Siemens Energy will develop about 14GW.

  Separately, several gigawatts of solar photovoltaic (PV) plant projects are in various stages of implementation, or are being negotiated by the Iraqi government and private developers and investors such as the UAE’s Abu Dhabi Future Energy Company (Masdar), France’s Total Energies, QatarEnergy and US-based UGT Renewables.

  There is also a plan to roll out a major solar procurement round this summer, in which 150 companies have reportedly expressed interest in bidding.

  “There was a meeting over a month ago, where the prime minister instructed the governors to allow investors to negotiate with the local governments to build solar and wind farms and connect these to low- to medium-voltage grids,” says an Iraq energy expert based outside the country.

  This helps to explain the announcement made by Wasit Province in early May, which said it has launched tenders for 25 solar and wind projects with a combined capacity of 3GW.

  Yet, the fact remains that Iraq has virtually zero operational solar or wind power capacity on its grid to date, and continues to experience extended power outages, particularly in the summer months, when peak demand outstrips available capacity.

  “It feels like we’ve been here before," the independent consultant says, noting that he has heard similar announcements and deals in the past few years.

  “The main difference that we’re looking for is the seriousness and political will to implement and execute these proposed projects, which will have to include establishing funding sources.”

  Many share the same sentiment, due to the slow pace of project implementation following years of intermittent and violent conflicts in parts of the country.

  This makes it easy to overlook some of the recent advances that have been made on certain projects in Iraq's power sector.

  Firms including GE Vernova and Siemens Energy, as well as a significant number of Chinese engineering, procurement and construction (EPC) contractors, have been making progress on projects to rehabilitate or modernise existing electricity generation plants, while several greenfield projects are also being planned or negotiated.

  Siemens Energy broke ground on a new CCGT plant in Nasiriyah in Iraq’s southern Dhi Qar Governorate in early April. Meanwhile, GE Vernova is carrying out a project at the 1,250 MW Bazyan power plant, in the Iraqi Kurdistan region, to complete the first upgrade of the advanced gas proven technology running on its 9E.03 gas turbine fleet.

  The winning contractor for Iraq’s first waste-to-energy (WTE) public-private-partnership project, Shanghai-based SUS International, also broke ground on the project in late March.

  Waste-to-energy

  The pace at which the contract to design, build, own and operate Iraq’s first WTE project was tendered and awarded defied expectations: the process of prequalifying bidders began in August 2022, the contract was awarded in January 2025 and the project broke ground three months later.

  Located in Nahrawan, in Baghdad, the estimated $500m project will have a design capacity of 3,000 tonnes a day (t/d).

  The facility will feature three incineration lines and a 100MW steam turbine generator set, and is expected to generate 780,000 megawatt-hours (MWh) of electricity a year.

  The project has a two-year construction period and a 25-year investment period.

  Baghdad Municipality will provide 3,000 t/d of municipal solid waste, and the energy purchase fee will be based on committee recommendations, covering landfill costs and environmental and public health requirements.

  Payment will be managed by the ministries of health, electricity and the environment, as well as Baghdad Municipality, for a maximum production of 100MW, with further negotiations required if production exceeds this limit.

  The Iraqi cabinet has authorised the National Investment Commission to issue the investment licence for the project and sign the contract with the winning bidder, SUS Environment.

  Artawi solar project

  The highly anticipated 1GW solar project in the southern Basra region has also reached the construction stage.

  The project is a key part of TotalEnergy’s $27bn energy projects programme in Iraq, which includes a treatment facility for associated natural gas from five southern oil fields – West Qurna 2, Majnoon, Artawi, Tuba and Luhais; the $4bn common seawater supply project; and the development of the Artawi oil field.

  In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the project at the Artawi field, which is also known as Ratawi.

  A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project, with TotalEnergies retaining the remaining 50%.

  The 1GW Artawi solar scheme will be developed in phases that will come online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

  The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the PV power station site and 132kV booster station.

  Multi-faceted issue

  Addressing Iraq’s significant power deficit – which some estimates put at up to 29% – carries major geopolitical, economic and sustainability implications.

  The US and its Gulf allies are keen to wean Iraq off its dependence on energy imports from Iran. Efforts to achieve this include a project to interconnect Iraq's electricity grid with that of the GCC Interconnection Authority.

  Moreover, Iraq's overall recovery and political stability rely on the reconstruction of its infrastructure, from roads, railways and ports to schools, healthcare facilities and water and sanitation projects. All of these require a reliable power supply, which, in turn, will further drive electricity demand.

  In addition to deploying renewable energy to meet future demand, Iraq has initiated steps to explore the development of a power generation plant using flare gas.

  In March last year, the Electricity Ministry signed a preliminary agreement with Siemens Energy and US firm SLB, formerly Schlumberger, to explore such a project.

  To be located in Southern Iraq, the planned flare gas-to-power project will help reduce carbon dioxide emissions and capture value from gas that would otherwise be wasted.

  MEED understands the planned flare gas-to-power plant could have a generation capacity of up to 2,000MW, and may require 250 million standard cubic feet of gas a day.

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  Jennifer Aguinaldo