meed-logo

line1 line2 line3
SIGN IN / REGISTER

Middle East contract awards: January 2024

22 February 2024

 

The region kicked the new year off with $30.5bn of contract awards, which is the biggest value ever recorded in the first month of the year since MEED began tracking contract awards in January 2014. 

Six countries in the region recorded contract award values above $1bn, led by Saudi Arabia with $11bn. The oil sector saw the biggest value of deals signed at $8.1bn followed by the construction industry with $7.4bn.

Saudi Arabia

The biggest contract awarded in Saudi Arabia in January stems from the Neom gigaproject. Italian contractor WeBuild secured an estimated SR20bn ($5bn) contract to build dams that will create an artificial lake at the heart of the Trojena mountain resort, which is due to host the Asian Winter Games in 2029.

In December 2023, the value of work already awarded at Neom was only a fraction of the hundreds of billions of dollars-worth of expected contracts that have yet to be inked. About $21bn of contracts have been tendered, while the majority of projects have entered the design stage.

UAE

The UAE recorded the second-biggest value of deals let in January, with $7.9bn of awards. The largest deal signed was a $2.4bn contract awarded by Abu Dhabi National Oil Company (Adnoc) to Egyptian contractor Engineering for Petroleum & Process Industries (Enppi) to build a west-to-east pipeline to transport crude oil produced in Abu Dhabi to the UAE’s northern emirate of Fujairah.

Download the Middle East contracts awarded for January 2024
Qatar

Qatar saw the third-largest value of deals signed in January at $5.1bn, spurred by four awards worth a total of $6bn for engineering, procurement and construction (EPC) works on the Ruya project, which aims to increase oil production from the Al Shaheen offshore oil field by about 100,000 barrels a day (b/d).

The winner of the biggest package, valued at $2.1bn, was a consortium of the US’ McDermott and Qingdao McDermott Wuchuan Offshore Engineering Company.

Following the conclusion of the Fifa World Cup 2022, the expectation now is that Qatar will resume its development plans and start awarding major contracts.

There are currently several strategic projects in the country’s pipeline that are expected to provide renewed impetus to the construction and transportation market and present opportunities to contractors in the short term.

Egypt

Egypt saw $1.98bn of deals signed in January, with the largest comprising two chemicals contracts worth a total of $2bn. The contracts are for phase three of a nitrogen fertiliser and phosphate industrial complex project in Egypt’s Ain Sokhna region and were won by a team of Petrojet and Ballestra and a team of Petrojet and Wuhan Engineering.

Oman

Oman, meanwhile, recorded $1.96bn of awards in January, the biggest an $800m contract for the Marsa liquefied natural gas (LNG) terminal. French energy major TotalEnergies selected Technip Energies to build the LNG bunkering and export terminal in Oman’s northern city of Sohar. 

Kuwait

Kuwait saw $450m of contracts signed in January, most of which was due to a $442m deal let by the Electricity & Water Ministry for the rehabilitation of the Al Zour South power and water distillation station. 

Algeria

Algeria rounded out the list of countries that recorded more than $1bn in contract signings in January, with $1.2bn of deals signed. The country saw 1GW of solar photovoltaic contracts awarded during the month by state-owned Algerian Renewable Energies Company (Shaems). Algeria expects the solar projects to generate $3.2bn-$3.6bn in investment.

Related reads:
Iraq

Iraq recorded $605m of deals inked in January, with the biggest a $400m contract awarded by the Oil Ministry to Petrochina for the Nahr Bin Omar gas utilisation project.

Tunisia

Tunisia recorded a contract award value of $200m off the back of a single deal – a design-and-build contract for the construction of a 2.1-kilometre viaduct linking Tunis and Bizerte, let by the Equipment, Housing & Land Planning Ministry to China’s Sichuan Road & Bridge Group. The European Investment Bank and African Development Bank are co-financing the project.

Jordan

Jordan saw $137m of deals signed in January, the largest an $80m contract inked by the country’s water authority for package one of a project to construct sewer networks, pumping stations and force mains in areas of Karak. 

Kuwait

Kuwait recorded $127m of awards in the first month of the year, the largest a $42m contract awarded by the Electricity, Water & Renewable Energy Ministry to South Korea’s Taihan Electric Wire Company for the supply and installation of 400kV overhead lines running from Khairan to Wafra and Sulaibiya. 

Bahrain

Bahrain, meanwhile, saw a single $69m deal signed in January, let by the Electricity & Water Authority to TBEA Shandong Luneng Taishan Cable Company for the construction of a 400kV grid substation and 220kV subsystem in Jasra. 

Libya

Libya also recorded a single contract award for the month – a $64m deal signed by the Libyan Administration of Roads & Bridges with Egypt’s The Arab Contractors for the reconstruction of two bridges in the city of Derna.

For more up-to-date information on the region’s largest projects, go to MEED Projects, which tracks trillions of dollars-worth of schemes.

MEED Projects is a subscriber-only service that provides comprehensive, up-to-date and accurate project information. It monitors industry and business development opportunities through market data tailored to your needs.

Be the first to know about new projects; we provide the data so you can win the business. If you would like to see a demo of MEED Projects, or just want to find out more, register your details online or call +971 (0) 4 818 0200.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11523334/main.gif
Sneha Abraham

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

Click here to register
Exclusive from Meed
Related Articles
  • Petro Rabigh and Honeywell sign NEP agreement

    31 January 2025

    Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) has signed a non-binding agreement with US-headquartered Honeywell to explore the deployment of Honeywell UOP’s naphtha-to-ethane-and-propane (NEP) technology.

    The non-binding memorandum of understanding (MoU) represents a significant milestone in leveraging advanced technologies to transform butane and naphtha into high-value feedstocks for light olefin production, such as ethylene and propylene, a joint statement said.

    NEP converts light naphtha and butanes into ethane and propane, providing what Honeywell describes as "a flexible, cost-effective, and sustainable solution" for ethylene and propylene production.

    The MoU aims to enhance productivity, operational efficiency and sustainability "through the production of value-added petrochemical products from crude oil".

    Supported by the Energy Ministry, the initiative also aligns with the goals of Saudi Vision 2030 to drive innovation in the energy sector, promote liquid-to-chemical (LTC) processes, and improve energy efficiency and economic resilience, the statement added.

    Petro Rabigh was originally established as a basic topping refinery, with crude oil processing facilities, at Rabigh on the kingdom’s Red Sea coast to the north of Jeddah.

    However, in 2005, Aramco and Japan's Sumitomo Chemical Company formed an equal joint venture to transform the business into an integrated refinery and petrochemicals complex.

    In August last year, Aramco announced signing an agreement with Sumitomo Chemical to acquire an additional 22.5% stake in Petro Rabigh.

    Aramco and Sumitomo Chemical presently own 37.5% shares each in Petro Rabigh, with the remaining 25% shares trading on the Saudi Exchange (Tadawul) since 2008.

    Following the completion of the transaction, which is priced at SR7 ($1.86) a share, Aramco will become the majority shareholder in Petro Rabigh, with a 60% stake, and Sumitomo Chemical will retain a 15% stake.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13353977/main.jpg
    Jennifer Aguinaldo
  • Ewec gives battery IPP bidders more time

    31 January 2025

     

    Abu Dhabi-based utility offtaker Emirates Water & Electricity Company (Ewec) has extended the last day for companies to submit their proposals for a contract to develop and operate a battery energy storage system (bess) project.

    Called Bess 1, the 400MW project will closely follow the model of Abu Dhabi’s independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

    The first plant will be in Al-Bihouth, about 45 kilometres (km) southwest of Abu Dhabi, and the second plant will be in Madinat Zayed, about 160km southwest of the city.

    According to industry sources, the last day for bid submission has been extended from the end of January to 3 March.

    MEED previously reported that up to four consortiums are considering bidding for the contract.

    Ewec issued the request for proposals to prequalified companies in July last year and initially set 30 November 2024 as the last day to submit proposals. 

    Ewec prequalified 11 managing partners that can bid either individually or as part of a consortium with other prequalified bidders. These are:

    • Acwa Power (Saudi Arabia)
    • China Electrical Equipment International
    • EDF (France)
    • International Power (Engie)
    • Jera (Japan)
    • Jinko Power (China)
    • Korea Electric Power Corporation (Kepco, South Korea)
    • Marubeni (Japan)
    • Sembcorp Utilities (Singapore)
    • SPIC Huanghe Hydropower Development Company (China) 
    • Sumitomo Corporation (Japan)

    Ewec prequalified 18 other companies that can bid as part of a consortium. These are:

    • Abrdn Investcorp Infrastructure Investments Manager (UK)
    • AGP Capital (US)
    • Al-Masaood (UAE)
    • Al-Fanar Company (Saudi Arabia)
    • Alghanim International (Kuwait)
    • Aljomaih Energy & Water Company (Jenwa, Saudi Arabia)
    • Amplex-Emirates (local)
    • ATGC Transport & General Trading (local)
    • Amea Power (local)
    • China Electric Power Equipment & Technology (China)
    • China Machinery Engineering Corporation (China)
    • GE Capital EFS Financing (US)
    • Itochu (Japan)
    • Korea Western Power Company (Kowepo, South Korea)
    • Pacific Green (US)
    • Samsung C&T (South Korea)
    • Swift Energy (Malaysia)
    • X-Noor Energy Equipment Trading  (UAE)

    The planned facility is expected to provide up to 800 megawatt-hours (MWh) of storage capacity.

    The ESA will be for 15 years, commencing on the project’s commercial operation date, which falls in the third quarter of 2026. 

    MEED previously reported that at least two teams comprising infrastructure investors, developers and contractors have been formed and are preparing to submit their proposals for the contract.

    According to Ewec, the bess project will provide additional flexibility to the system and ancillary services such as frequency response and voltage regulation.

    Global bess market

    The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

    The report named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    READ MEED’s YEARBOOK 2025

    MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

    Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

    > GIGAPROJECTS INDEX: Gigaproject spending finds a level
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13352692/main.gif
    Jennifer Aguinaldo
  • Jordan gives go-ahead for open banking test

    31 January 2025

    UAE-based Fintech Galaxy has received approval from the Central Bank of Jordan (CBJ) to test open banking services within the country’s regulatory sandbox, JoRegBox. It is the first company to secure such approval, marking a key step in Jordan’s financial technology strategy.

    The sandbox will allow the firm to trial open banking under CBJ supervision. It aims to ensure compliance with global and local standards while promoting financial inclusion.

    Through its FINX Connect platform, Fintech Galaxy will provide third-party providers with secure, consent-driven access to customer financial data.

    The regulatory approval is expected to accelerate the adoption of open banking in Jordan, enabling financial institutions to offer more customer-centric digital services.

    The initiative aligns with Jordan’s executive programme for the Economic Modernisation Vision (2023–25), which aims to position the country as a regional fintech hub.

    The firm, led in Jordan by Zaid Khatib, plans to integrate with major banks and financial institutions, offering open banking services focused on Personal Finance Management (PFM) and Business Finance Management (BFM).

    The company has raised $9m for platform development and regional expansion. Jordan’s approval comes as regional regulators push for greater financial sector digitisation, with open banking frameworks being tested across the GCC.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13353319/main1027.jpg
    Sarah Rizvi
  • Client prepares Ras Al-Khair steel plant contract award

    31 January 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Aramco, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) and Chinese steel manufacturing conglomerate Baoshan Iron & Steel Company (Baosteel) are preparing to award an engineering, procurement, installation and construction (EPIC) contract to build an integrated steel plate manufacturing complex in Saudi Arabia.

    “The commercial bids were submitted in late October. After several rounds of clarifications, the process is nearing completion with a contract award expected to be finalised shortly,” sources close to the project told MEED.

    The steel plate-producing complex will be located in Ras Al-Khair Industrial City in Saudi Arabia’s Eastern Province.

    MEED understands that the project is divided into eight packages. The first three are understood to include early works, site preparation and infrastructure development works. The other packages are:

    • Package 4: Direct reduced iron (DRI)
    • Package 5: Steel melt plant
    • Package 6: Plate mill plant
    • Package 7: Auxiliary plants and other infrastructure
    • Package 8: Port and materials handling

    The facility is expected to have a production capacity of up to 1.5 million tonnes a year. It will mainly cater to industrial sectors such as pipelines, shipbuilding, rig manufacturing, offshore platform fabrication and tank and pressure vessel manufacturing, as well as the construction, renewables and marine sectors.

    Aramco signed a memorandum of understanding with Baosteel to conduct an engineering and feasibility study for the proposed steel plate complex in September 2021.

    The plant will be equipped with a natural gas-based DRI furnace and an electric arc furnace, which will reduce carbon dioxide (CO2) emissions from the steel-making process by up to 60% compared to a traditional blast furnace.

    The DRI plant will be compatible with hydrogen without major equipment modifications, potentially reducing CO2 emissions by up to 90% in the future, Aramco said.

    The complex will be “the first facility of its kind in the kingdom and the GCC region, advancing the regional steel industry ecosystem”, it said.

    “The project aims to enhance the domestic manufacturing sector through localising the production of heavy steel plates, transferring knowledge and creating export opportunities,” Aramco added.

    The steel plate complex will receive support from the Saudi government’s Shareek incentives programme for large companies. It also falls under Aramco’s local industrial investments programme, Namaat.

    Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud previously listed Ras Al-Khair as one of the kingdom’s four special economic zones.

    READ MEED’s YEARBOOK 2025

    MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

    Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

    > GIGAPROJECTS INDEX: Gigaproject spending finds a level
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13353592/main.jpg
    Yasir Iqbal
  • Masdar meets renewable’s moonshot challenge

    31 January 2025

     

    Register for MEED’s 14-day trial access 

    Abu Dhabi Future Energy Company (Masdar) is off to a great start this year by taking on a project that addresses what UAE Minister of Industry and Advanced Technology Sultan Al-Jaber describes as the “moonshot challenge of our time”, the intermittency of renewables.

    Masdar, along with state utility Emirates Water & Electricity Company (Ewec), announced the project on 14 January. The $6bn project comprises 5,200MW solar and 19 gigawatt-hour (GWh) battery energy storage system (bess) plants.  

    It is designed to deliver up to 1,000MW of uninterrupted “baseload” power from a renewable source, a first in the world in terms of its scale.

    “The country leadership’s will to deploy cutting-edge technology despite perceived risks, the growing experience of Masdar in developing battery energy storage projects globally, along with the decline in battery prices helped expedite the project,” Abdulaziz Alobaidli, chief operating officer of Masdar, tells MEED. “It’s a major achievement, over 15 years since the first single-site 10MW project was procured in Abu Dhabi.”

    It has a lot to do with our culture to never say no to the impossible 

    Alobaidli was referring to Masdar’s first 10MW solar photovoltaic (PV) plant located on the north side of Masdar City, which was connected to the Abu Dhabi electricity grid in April 2009.

    The executive says the 5.2GW/19GWh project was fast-tracked thanks to the broader collaboration of the key relevant stakeholders who facilitated the overall permitting proceedings.

    He also stressed that they have obtained the necessary experience by developing renewable energy projects in developed and developing countries over the past decade and a half, with their current portfolio sitting at around 32GW.

    “It has a lot to do with our culture to never say no to the impossible,” explains Alobaidli.

    “We solved a two-decade problem by jointly evaluating the technical and commercial feasibility of the project, doubling down on our global development experience, and the strategic relationship we have built with key solar and bess suppliers … it helped that the battery technology has reached a desired level of cost competitiveness along with improved efficiency.

    “The collaborative spirit of our client, Ewec, has facilitated the development of the project and gave us confidence that we can bring it to the finish line.”

    Fast-track project

    Masdar announced the selection of contractors and sub-contractors for the project a few days after its launch.

    It selected India’s Larsen & Toubro and Beijing-headquartered PowerChina to undertake the project’s engineering, procurement and construction (EPC) contract.

    Masdar also picked Shanghai-based Jinko Solar and Beijing-headquartered JA Solar to supply solar PV modules. They will supply solar PV modules amounting to 2.6GW each, with maximum efficiency and production for 30 years.

    Another Chinese firm, Fujian-based Contemporary Amperex Technology Company Limited (CATL), will supply its Tener product line for the bess plant.

    The project will be structured as a classic public-private partnership (PPP), funded by equity and syndicated debt.

    It is being deployed on a fast-track basis, with financial close expected by the second quarter of 2025 and commercial operations set for 2027.

    Alobaidli says they are in the process of deployment and starting the mobilisation of contractors, following months of technology assessments and technical workshops.

    He also says Masdar is open to considering co-investors or codevelopers in the project “if they will complement” its capability to deliver the project.  

    Masdar has also engaged several banks and lenders, which have been conducting due diligence on the project, particularly on the selected battery technology.

    The executive, who previously served as general manager of Masdar subsidiary, Shams Power Company, says declining battery prices provide significant opportunities for their adoption at larger scale and long-hours applications.

    “This is significant for the industry, and we see demand and supply growing, including the number of suppliers in the market. Security of supply and more competitive battery price is key.”

    AI connection

    MEED first reported on the planned round-the-clock renewable project in October last year. At the time, sources indicated that the project was envisaged to support the state’s artificial intelligence (AI) strategy.

    This was confirmed by a social media post on 14 January, when UAE President Sheikh Mohamed Bin Zayed Al-Nahyan said the project would help power advancements in AI and emerging technologies in addition to being a significant step on the UAE’s journey towards net zero.

    Alobaidli says the project, which will be the first of many, “will definitely unlock opportunities for AI and other industries, which require base and round-the-clock load”.

    Global expansion

    While the 5GW/19GWh project is the largest single project by far to be deployed by Masdar, the experiences it gained by growing organically and through mergers and acquisitions, especially over the past decade, should help ensure it delivers the project within time and budget.

    The project’s execution is also unlikely to hamper Masdar’s ongoing global expansion, given its goal to expand its renewable energy portfolio to 100GW by 2030.

    Masdar has been expanding its global footprint as well as the type of assets it deploys or acquires, which range from onshore and offshore solar, onshore and offshore wind and, now, battery energy storage plants.

    It has been bidding for new projects close to home, such as in Saudi Arabia and Oman, as well as in developing countries or acquiring stakes in projects across nearly every region of the world, from the Philippines, Malaysia and Indonesia in Southeast Asia, to Africa, more mature markets in Europe such as Greece and Spain, and the Americas.

    “We are not just running after capacity. We look at profitability and the impact of these acquisitions on our earnings and P&L,” explains Alobaidli. “More importantly, we focus on the impact of these projects on the local communities.”

    Alobaidli stresses that Masdar is focusing on prudent risk-reward factors as it expands its operations to avoid overexposure and ensure every deal is robust and backed by objective risk analysis.

    “We are backed by three very strong institutions,” he points out, referring to Abu Dhabi National Oil Company, Abu Dhabi National Energy Company (Taqa) and sovereign wealth fund Mubadala. “So every investment opportunity is thoroughly assessed to ensure it meets our growth objectives and stakeholders’ expectations.”

    READ MEED’s YEARBOOK 2025

    MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

    Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

    > GIGAPROJECTS INDEX: Gigaproject spending finds a level
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13347001/main.jpg
    Jennifer Aguinaldo