Related Articles

• 
  Bahrain tenders 1,500MW Sitra IWPP

  1 September 2025

  Bahrain’s Electricity & Water Authority (EWA) has launched an international tender for the Sitra independent water and power plant (IWPP).

  The project will deliver 1,400MW-1,500MW of power and 30 million imperial gallons a day (MIGD) of desalinated water.

  EWA president Kamal Bin Ahmed Mohammed said that the scheme will be procured through a build, own and operate model in partnership with the private sector.

  Seven international companies and consortiums have been prequalified to bid. These are:

  • Abu Dhabi National Energy Company (Taqa, UAE)
  • Acwa Power (Saudi Arabia)
  • China Energy Engineering Corporation and China Datang (Overseas Hong Kong, China)
  • Gulf Investment Corporation (Kuwait)
  • Jera (Japan)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Sumitomo Corporation (Japan)

  China Energy Engineering Corporation and China Datang are bidding together as a single prequalified entity for the Sitra IWPP project.

  MEED previously reported that EWA had received statements of qualifications from nine interested firms in December 2024.

  The project will use reverse osmosis desalination technology and is expected to be commissioned in phases.

  Initial operations, covering 600MW of power and 30 MIGD of water, are scheduled for the second quarter of 2028. Full commercial operations are targeted for the second quarter of 2029.

  The project is in line with EWA’s plan to replace old plants with new, more efficient ones that reduce natural gas consumption.

  The Sitra IWPP follows other recent EWA initiatives, including the planned 60 MIGD Al-Hidd independent water plant and the announcement of Bahrain’s first solar-powered electricity and water production facility.

  The solar project, with capacity of 150MW, is expected to be tendered in the fourth quarter of this year.

  ---

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

  Gulf heads into a new era of aviation; Maghreb’s resilience rises despite global pressures; GCC banks expand issuance amid demand

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

  > AGENDA 1: Middle East invests in giant airports > AGENDA 2: Broader region upgrades its airports > AGENDA 3: Global air travel shifts east > CURRENT AFFAIRS: Syria wrestles fragile security situation > GCC BANKS: Gulf banks navigate turbulent times > BANKING: Strategic planning enters a new era of volatility > CONSTRUCTION: Soudah Peaks outlines project construction plans > INTERVIEW: SETS leads Saudi heritage preservation charge > LEADERSHIP: From plastic leakage to leadership in the Gulf > MAGHREB MARKET FOCUS: Maghreb pushes for stability

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14580386/main.jpg

  Mark Dowdall
• 
  Adnoc set to become a chemicals major

  1 September 2025

  This package also includes:
  > Regional chemicals spending set to soar 

  ---

  

   

  At a time when global chemicals giants like Saudi Basic Industries Corporation (Sabic) and Dow Chemical are facing financial pressure due to rising feedstock costs and decreasing sales margins, Abu Dhabi National Oil Company (Adnoc) – a relatively small player in the space – is undertaking an ambitious inorganic growth strategy.

  In the past 12 months, the company has initiated merger and acquisition transactions that could propel it towards becoming a major global chemicals producer.

  The Abu Dhabi energy giant took the first step in that direction by announcing the acquisition of German chemicals producer Covestro in October 2024, making a takeover offer of €14.7bn ($16.3bn). Covestro’s expertise lies in areas such as chemical recycling, which are key for the future of the energy industry and a target area for Adnoc.

  The agreement between XRG – Adnoc’s international business subsidiary – and Covestro, which will run until the end of 2028, includes several obligations on the part of Adnoc, including maintaining Covestro’s existing business activities, corporate governance and organisational business structure.

  Regulatory approvals

  Adnoc’s takeover deal for Covestro has received approvals from regulators in India and South Africa. However, it is still under scrutiny in the EU, with the European Commission having launched an in-depth investigation into the pending deal under its Foreign Subsidies Regulation, which targets non-EU firms perceived to benefit from unfair state subsidy.

  [Adnoc] has initiated merger and acquisition transactions that could propel it towards becoming a major global chemicals producer

  In early August, the European Commission said it had 90 working days – until 2 December – to make a decision. Adnoc, meanwhile, has contested the investigation into its takeover bid for Covestro, saying that the transaction will add value for all stakeholders.

  Covestro’s supervisory and management boards have supported the takeover offer from Adnoc, and in April the firm said it remains hopeful that the transaction will close in the second half of 2025.

  Potential merger

  Adnoc announced a bigger transaction than the Covestro acquisition deal in March, with Austrian energy company OMV. The two companies agreed the terms of a binding framework agreement for a proposed combination of their shareholdings in Abu Dhabi’s Borouge and Austria-based chemicals producer Borealis.

  Simultaneously, Adnoc also entered into a share purchase agreement with Canada-based Nova Chemicals Holdings – a company indirectly wholly owned by Abu Dhabi’s sovereign wealth institution, Mubadala Investment Company – for 100% of Nova Chemicals Corporation.

  Adnoc and OMV have also agreed that on completion of the planned merger of Borouge and Borealis, the new entity – which will be known as Borouge Group International – will acquire Nova Chemicals Corporation for $13.4bn including debt, further expanding its footprint in North America.

  Borouge Group International will be listed on the Abu Dhabi Securities Exchange (ADX), subject to approval by the UAE Securities & Commodities Authority (SCA) and ADX.

  Under the terms of the agreement, Adnoc and OMV will hold equal stakes of 46.94% in Borouge Group International, with joint control and equal partnership. The remaining 6.12% will be in free float, subject to SCA approval and assuming all existing Borouge free float shareholders agree to exchange their existing shares in Borouge for shares in Borouge Group International.

  Adnoc and OMV will hold equal stakes of 46.94% in Borouge Group International, with joint control and equal partnership

  Upon completion of the deal, Adnoc will transfer its stake in Borouge Group International to XRG, which is also on course to take control of its parent company’s 24.9% stake in OMV.

  The purchase price is about 7.5 times the company’s expected long-term profits before interest, taxes, depreciation and amortisation (Ebitda), and is expected to be debt financed through capital markets. 

  Borouge Group International plans to raise up to $4bn of primary capital in 2026 to qualify for inclusion on global stock index MSCI and secure an investment-grade credit rating, targeting through-the-cycle net leverage of up to 2.5 times Ebitda.

  The proposed deal assumes a primary cash injection of €1.6bn ($1.67bn) by OMV into Borouge Group International. This will be reduced on closing in line with the equity value of Borouge and Borealis after expected dividend payments up to completion.

  The upcoming Borouge 4 project – which is the fourth expansion phase of Borouge’s petrochemicals complex in Ruwais, Abu Dhabi – is likely to be among the key growth drivers, with projected recontribution by the end of 2026, when the estimated $6.2bn project is expected to be commissioned.

  Recontribution of Borouge 4, when fully operational, is expected to be at a cost of approximately $7.5bn including debt, and accretive to operating cash flows and dividends per share, with an estimated through-the-cycle Ebitda of approximately $900m.

  If Adnoc’s potential takeover of Covestro were to be blocked by the European Commission, the acquisition of Nova, together with the recontribution of the Borouge 4 petrochemicals project, will still create a major polyolefins producer in the form of Borouge Group International, which could be valued at more than $60bn and would be the world’s fourth-largest by nameplate production capacity. 

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14579349/main.jpg

  Indrajit Sen
• 
  Kuwait invites bids for Al-Khairan phase one IWPP

  1 September 2025

  Kuwait has opened the bidding process for the Al-Khairan phase one independent water and power producer (IWPP) project.

  The project is being procured by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy.

  It will have a minimum net capacity of 1,800MW of power and 33 million imperial gallons a day (MIGD) of desalinated water. It will be located at Al-Khairan, adjacent to the existing Al-Zour South thermal plant, about 100 kilometres south of Kuwait City.

  Three consortiums have been prequalified:

  • Abu Dhabi National Energy Company (Taqa) with A H Al-Sagar & Brothers Company and Jera Company
  • Acwa Power Company with Gulf Investment Corporation
  • China Power International Holding with Malakoff International and Abdul Aziz Al-Ajlan Sons Company

  Two individual companies have also been cleared to participate:

  • Nebras Power                                                                                                                                               
  • Sumitomo Corporation

  The Al-Khairan IWPP project is part of Kuwait's long-term plan to expand power and water production capacity through public-private partnerships (PPPs).

  The winning bidder will sign a set of PPP agreements covering financing, design, construction, operation and transfer of the project.

  The investment period is set at 28 years and six months, with the energy conversion and water purchase agreement covering a 25-year supply period.

  The request for prequalification package is available for KD8,000 ($26,188) from Kapp. The deadline to purchase the documents is 15 October. 

  Bids must be submitted by 31 December.

  ---

  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

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14579300/main.jpg

  Mark Dowdall
• 
  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.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14578842/main.gif

  Yasir Iqbal
• 
  Wood Group accepts Sidara takeover deal

  1 September 2025

  Register for MEED’s 14-day trial access 

  UK-based Wood Group has agreed to a $292m conditional takeover bid from Dubai-based Sidara, according to statements issued by both companies.

  The acceptance of the offer by Wood is expected to end negotiations that have lasted more than a year and involved several rejected offers.

  Under the terms of the deal, Sidara will take on $1.6bn of Wood Group's debt and inject $450m of cash into the company.

  The deal is conditional on Wood Group publishing its delayed results and ensuring that certain debt facilities are not terminated, among other requirements.

  At the end of April, Wood Group’s shares were suspended on the London Stock Exchange because the company did not publish its accounts for 2024 on time.

  The company, which is struggling with ongoing financial problems, employs more than 4,000 people in the Middle East, having increased its headcount by 500 in 2024.

  Recently, Sidara lowered its bid proposal for Wood Group after Britain's Financial Conduct Authority launched a probe into some of Wood Group's contracts and charges.

  Wood Group’s chairman, Roy Franklin, is now due to step down following a court meeting on 7 January 2026, when shareholders will vote on the acquisition.

  Despite the company’s ongoing financial problems, it has continued to win contracts in the Middle East and North Africa region.

  In May, the company secured a contract to perform detailed engineering work on an engineering, procurement and construction (EPC) package that is part of a $7.5bn project to boost oil production at the Lower Zakum offshore hydrocarbons concession in Abu Dhabi.

  The work was awarded to Aberdeen-headquartered Wood as a sub-contract by Abu Dhabi-based Target Engineering Construction Company, the main contractor performing EPC works on package five of the Lower Zakum Long-Term Development Plan 1 project.

  Also in May, the company was awarded several decarbonisation contracts with a total value of about $100m, for flare gas reduction and carbon efficiency project solutions across Iraq’s largest oil fields.

  Under the terms of the contracts, Wood will deliver brownfield EPC and modifications solutions to “enhance operational efficiency and minimise environmental impacts”, according to a statement released by the company.

  In its statement, Wood said that the projects will support Iraq’s commitment to reduce gas flaring by 78% by the end of 2025.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14575691/main0840.jpg

  Wil Crisp