A case study in procurement
18 March 2025

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While it may not be in the headlines as much as some of its more eye-catching official gigaproject counterparts, Roshn has already delivered thousands of residential units in Saudi Arabia as it seeks to fill the upscale and community living housing map.
Launched in 2020, the Roshn gigaproject is a component of the Vision 2030 plan to achieve 70% home ownership among Saudi nationals by 2030. Alongside the National Housing Company, it is the delivery vehicle for government-backed housing construction as Riyadh seeks to meet the shortfall in available stock.
Its first project was its Sedra community in the north of the capital. Currently on its fourth of eight delivery phases, the multibillion-dollar masterplanned development will comprise 30,000 homes over 20 million square metres (sq m) when completed.
Roshn’s second Riyadh community under construction is Warefa in the northeast of the capital. More compact than Sedra, it will have 2,300 units over an area of 1.4 square kilometres, with 150,000 sq m of green open space.
Three years after the launch of its first projects, Roshn announced Marafy, its first scheme in Jeddah and its largest mixed-use development to date. Designed to accommodate more than 130,000 residents, Marafy will be built around an 11-kilometre, 100-metre-wide canal, linking with Obhur Creek in the northern outskirts of the kingdom’s second city.
Already breaking ground, Marafy’s first core component is the Alarous residential community, which will offer 18,000 units over a 4 million sq m land area.
Elsewhere in the kingdom, Roshn’s other planned community projects include Almanar in Mecca, Alfulwa in Hofuf and Aldanah in Dhahran. Between them, these schemes total more than 50,000 units. It is expected that thousands of additional homes in other parts of the kingdom will be announced by the developer in the next two years.
Delivering such projects at many different locations is a complex exercise, requiring procurement strategies that not only encompass on-time and on-budget completion, but also ensure that local content is maximised while at the same time maintaining stringent quality standards.
Tasked with handling Roshn’s overall procurement strategy is Iain McBride, the gigaproject developer’s head of commercial.
It is expected that thousands of additional homes in other parts of the kingdom will be announced by the developer in the next two years
Like other gigaprojects in the kingdom, McBride and his procurement team have had to deal with the twin challenges of soaring cost inflation and maximising local content in materials and equipment.
The five official gigaprojects – Diriyah, Neom, the Red Sea Project, Qiddiya and Roshn – are free to employ their own procurement rules and processes, and each has taken a different approach to address its specific requirements. For example, Red Sea Global uses a construction management approach wherein it contracts directly with companies and suppliers that would normally work as subcontractors under the main contractors.
Similarly, Diriyah Company employs a strategy of bundling several smaller contract packages into a single large contract, as a means of consolidating work to ensure lower costs and maintain contractor interest.
Hear directly from the gigaproject owners at the biggest construction event – The Saudi Gigaprojects 2025 Summit, happening in Riyadh from 12-14 May 2025. Click here to know more
Demand signalling
The nature of Roshn’s mainly residential projects means that from the outset it knew it would need thousands of items with similar specifications, such as doors; glass panes; sanitaryware; and heating, ventilation and air-conditioning systems.
To secure this supply chain, early on the company identified local manufacturers of these products and reached long-term agreements with them for the delivery of required materials.
“Our first step was signing a lot of long-term partnership agreements through master purchase agreements where we could leverage preferential rates,” says McBride, speaking to MEED in late January.
“Ultimately, it's all about balance and risk – derisking the opportunities for the supply chain by telling them how many doors, for example, we're going to need each quarter for the next five to 10 years. It gives confidence to the manufacturers that they can start committing to.”
Roshn was the first of the gigaprojects to publicly signal its demand requirements. In 2021, it announced that it would require at least 5 million doors, 3.5 million air-conditioning units, 4.3 million windows, 80 million sq m of tiles and 6.5 million pieces of sanitaryware. These numbers have since changed, but they are indicative of the scale of the supply chain challenge.
Armed with the knowledge that Roshn is both supported by its parent, sovereign wealth vehicle the Public Investment Fund (PIF), and that it is a central element of Saudi Vision 2030, local manufacturers had the confidence to commit to investing in production capacity to meet its needs.
Significantly, most of these deals have been with manufacturers within the kingdom, thereby maximising the local content aspects. Just as importantly, Roshn has not had to make any fixed orders – so-called ‘take-or-pay agreements’ – with suppliers, such is the latter’s faith in the developer.
“For the time being, we’ve not had to make any firm commitments,” says McBride. “We did look at it at one point, but our approach has always been to keep it as simple as possible by listening to the supply chain and seeing what they need. When we were speaking to them, it wasn’t their number one driver; they weren’t screaming at us saying, ‘We need you to give us a firm order’.
“Now, many people think a take-or-pay agreement is essential – where you commit to ordering [a certain quantity] of materials over a period of months or years and, if you don’t, you have to pay a penalty, thereby adding risk and complexity for the developer.
“What we were able to agree instead was that we'll be open and transparent with [the suppliers about] what we need. We said to ourselves, ‘Let's get a good price that works, whether we buy directly from the supplier or whether we include that supplier within our tenders with major contractors’. And we’ve seen great success with that approach, with multiple companies.”
The localisation push is supported by the design process. Wherever possible, the designs for Roshn’s projects incorporate and specify equipment and materials that are known to be manufactured locally.
There have been instances where specific, specialised materials and products are not produced in the kingdom, or not in the quantities required, such as marble and certain architectural facades.
Where this is the case, Roshn is keen to explore how it can help to build in-kingdom capacity. The developer has initiatives through which it looks to co-invest in production facilities that come with high capital requirements.
As McBride explains, Roshn is only one part of the huge and rapidly accelerating Saudi projects market ecosystem, and in helping to increase capacity, it is also putting itself in a position to help other developers with their supply chain needs.
A case in point is Roshn’s contract with China Harbour Engineering Company, which was awarded the $2bn deal in 2023 to build villas at Sedra and Warefa.
Part of the contract requires the Chinese contractor to set up a precast manufacturing facility on site at Sedra. In this way, Roshn could not only ringfence the plant for its own needs, but when it no longer requires the output, other projects could benefit from its production capacity.
“The factory has a 15-year lifespan, so any additional capacity will be there for another 10 years after our requirements are met,” says McBride. “In Riyadh, we have Expo 2030, the new airport, the stadiums and many other projects that could draw on its output.”
There are some situations where even this is not enough, particularly when it comes to contracting expertise. One such case is Roshn’s mandate to develop a 45,000-seat stadium in the southwest of Riyadh as part of the kingdom’s Fifa World Cup 2034 plans. On such a complex, highly engineered project, Roshn has insisted that an international contractor teams up with a local company as a condition of tender participation.
This insistence is based on Roshn’s experience overseeing the construction of a football stadium in Dammam alongside co-developer, Saudi Aramco. The project, which is being built by a joint venture of Belgium’s Besix and the local Albawani, is proceeding at a rapid pace and progress has been relatively trouble-free.
McBride says: “If we have to go abroad, let’s go abroad. But make sure it’s done in a smart way and that we’re not just throwing money out of the kingdom.”
Early contractor involvement
On the issue of contracting, it is well known that the massive amount of work in Saudi Arabia is stretching contractors to the limit, pushing up prices and straining labour, engineering and equipment resources.
Roshn’s approach to this challenge has been to engage with contractors at the earliest possible stage of project planning, specifically at the design phase, through an early contractor involvement (ECI) procurement framework. In this way, the company is able to obtain contractor feedback during concept and design and subsequently lower construction risk by improving a project’s constructability.
“It's about signposting the demand by getting the contractor in early, where you can really influence the design, the buildability and the value-engineering opportunities,” says McBride. “Ideally, we bring them in as quickly as possible during the concept stages, when there's very little cost to changing things.
“The worst thing for a contractor is receiving a [request for proposal] cold. They have to … come back in four weeks and then be squeezed for a best price, whereas with ECI they can add value. They really appreciate that.”
When asked to quantify the cost benefits of such an approach, McBride is forthright: “It’s not even a case of doing the maths,” he says. “We have a great example of where it’s worked on our Aldanah project in Dammam. We selected the contract very early on and locked in the floor plans and facades that we wanted. We were then able to deliver a street of 10 show homes [that took] not much more than four months to design and construct.
“The saving, in terms of time, was massive; we probably halved the duration. I probably wouldn’t be exaggerating if I said it saved about a year.
“There are two ways you can follow your engineer,” he continues. “One: you can follow them early and make sure that the way you're looking to save costs is in areas that are not impacting the customer.
“Or two: the worst thing you can do is get to the end and you have a full structural design that could be over-engineered and you’re spending money in the wrong places.
“We don’t want to get to a point where we're trying to value-engineer by cutting things out that are important to customers,” McBride explains. “And that's what you avoid by having this early contractor involvement.”
The company is able to obtain contractor feedback during concept and design and subsequently lower construction risk by improving a project’s constructability
Unlike the other gigaprojects, Roshn has been in the favourable position of being able to raise some revenue by marketing and selling its properties off plan. While this has been beneficial from a development perspective, it has also meant that the developer must get its pricing and housing specifications right if it is to develop homes within an already-defined budget.
Having a contracting partner on board during the design and specification stage facilitates the conversation between the property sales team, which is informing on market requirements, and the builder, who can deliver within the designed cost and quality parameters.
This is in contrast to many real estate developments for which sales are completed before the construction estimates come in, potentially undermining the business case.
The step beyond ECI is for contractors and suppliers to partner with Roshn to inject equity into the projects by acting as co-developers. McBride points to several planned mid-rise towers at Marafy that could be a starting point for this.
Contractors financing projects or bringing in replacement equity has long been an ambition in the region, but builders have been reluctant to adopt this approach. Nonetheless, McBride is confident that it could happen, indicating that there has already been strong interest from the contracting community.
Cost inflation
Another major talking point in Saudi construction is the escalating costs caused by high inflation, logistical challenges and a tightening of contracting and skilled labour capacity.
In many cases, this has required the rescoping of projects, revisions to timelines and even the scrapping of elements. Neom is arguably the best example of this, as it has reprioritised The Line and is facing an estimated cost of $50bn for building each of its first three modules – far in excess of original estimates.
Roshn’s approach to the challenge is to be as open and transparent as possible with the contractor and supplier community. This has involved outlining a long-term pipeline of work that gives the supply chain confidence about its requirements, enabling them to fix in long-term pricing structures. In return, the developer expects prices to come in competitively.
“It’s no secret within the supply chain market that Roshn has quite aggressive price points,” says McBride, a former chartered surveyor who, prior to joining Roshn, worked as a quantity surveyor and cost-management director at consultants Faithful+Gould (now AtkinsRealis) and Rider Levett Bucknall.
“What we're trying to do is engage early, build trust with the contractors, let them see we’re a good client that's going to pay and have honest and fair contracting terms, and work together to try and solve issues post-contract.
“We don't mind if there's inflationary pressures because of commodity prices increasing. But what we're trying to avoid is inflationary prices through just the demand increasing.
“An innovative way that we've implemented this even on our lump-sum contracts – our traditional Redbook or older contracts – is that we have preferred supplier agreement clauses in them,” he adds.
“So, rather than a traditional bill of quantities (BoQ) that has a rate, a quantity, a total, within our rate section we have the material supply rate, the installation rate and then everything else, such as overhead profit. We protect the installation rate, so it's not a percentage of the material; it's a fixed SR100 a square metre to install, for example.
“One of the big frustrations for contractors is [that the supplier has] a material we think they're going to deliver. It's maybe not available, so they submit alternative materials. The client keeps rejecting it – it's not what they want – and it becomes a delay; it's painful.”
McBride gives the example of a pre-approved bathroom sink. Thanks to Roshn’s relationships with key long-term suppliers, the company is able to negotiate better rates for sanitaryware than would be available to a contractor on an ad hoc basis. If the developer’s rates for sinks are better than the BoQ, it splits the savings 50:50 with the contractor.
“The contractors are winning out of that exercise, we're winning out of it and, ultimately, the customers are winning out of it as well, because we’re passing on those savings,” says McBride.
Flexibility
The benefits to contractors and suppliers extend to payment terms. In today’s sellers’ market, vendors are effectively able to pick and choose the clients they want to work for. As a result, clients – including the gigaprojects – have had to introduce more flexible payment terms and develop market reputations for paying on time.
Roshn may lead the pack on this, with an average payment time from invoice to payment of just 13 days in 2024. A decade ago, this would have been unheard of, but it is now increasingly becoming the norm among the gigaprojects.
In addition, like its PIF peers, Roshn has done away with tender fees and tender bonds, viewing them as outdated means of enforcing vendor participation, especially given the tight liquidity and cashflow situation in the projects market in Saudi Arabia.
Will such flexibility ever extend to performance bonds? McBride is sceptical, pointing to the fact that Roshn’s strong relationship with local banks allows to it facilitate credit agreements between contractors and their lenders. Being a gigaproject developer supported by the PIF – and by tacit extension the state – also helps provide the underlining ease of mind for financers.
Nonetheless, Roshn also takes a proactive approach with advanced payments, enabling up to 20% of the total contract value at the initial stage of the project.
“We've been quite clever in how we do this,” says McBride. “We don't go and release 20% straight away. We’ll do 10% and then, when we’ve evidence that you’ve expended that 10% on mobilisation and site establishment, we’ll release the second 10% tranche.”
Subcontractors
One of the chief sticking points in the kingdom’s projects ecosystem in the past decade has been the capacity and capability of its subcontractors.
The payments crisis in 2017-20 forced many main and general contractors to reduce their permanent labour forces, plant and general resources. Wary of a repeat, most have retained their leaner structure and so have turned increasingly to subcontractors for their manpower and delivery requirements.
In theory, this makes sense, but in practice subcontractors in Saudi Arabia are themselves often overstretched in terms of both delivery capacity and labour availability. In turn, they frequently use their own subcontractors, which then also outsource, to the point that specific elements of a project may be completed by companies very far down the supply chain – with the quality issues that this implies.
Roshn’s solution is to ensure any subcontractor on site goes through a vetting process encompassing quality and financial checks, thereby ensuring it has full visibility on every company on site.
Increasingly, Roshn is dealing with suppliers directly, under supply-install contracts. This can create interfacing issues with the main contractors, however, which are ultimately responsible for the project’s delivery.
“We have to be quite careful on that,” McBride says. “We have to go through all the checks and balances during the prequalification process because if we are going to give a subcontractor to a contractor that we're saying is pre-vetted by Roshn, we could be opening the door to lots of claims from the main contractor against us. So, vetting for us is absolutely crucial.”
Roshn is also working with smaller suppliers and subcontractors to help them evolve and grow, so that they can start taking on smaller main contractor roles themselves.
“Not every construction package we award is in the billions of riyals,” says McBride. “Our thinking is to let the big tier-one contractors focus on the multibillion-riyal deals while we encourage the smaller ones to grow as part of our supplier development programme.”
To achieve this, the developer holds events and bootcamps with its vendors to discuss best practices on subjects including health and safety, variation procedures and how to submit good tender returns.
Roshn is also working with smaller suppliers and subcontractors to help them evolve and grow
Building information modelling
Vendor education also extends to the use of building information modelling (BIM) and other construction technologies.
BIM is mandatory on Roshn’s projects, as it is on the other gigaprojects. While use of the technology is standard across almost all main contractors in the region, its take-up among smaller companies in the supply chain has been slower, with firms pointing to the cost of its adoption and integration as a barrier, as well as the fact that some clients, particularly government ones, view it as providing limited benefit.
Roshn’s task in this area is made difficult because its projects are less complex from an engineering and construction perspective.
“We’re building villas; it’s completely different to building stadiums or airports,” McBride says. “Can these contractors build from [two-dimensional] drawings? Yes, of course they can. You're not going to convince a smaller contractor that all of these benefits will make it easier to build because they know how to build. They've been doing it for decades.
“But the savings are in making it easier to procure, savings in the repeatability, and in the change control. If you upskill yourself on a Roshn project, you are building your capability, which you can then [demonstrate] to other clients as proof you can go after bigger and more complex projects. It's something that the whole industry has to get behind.”
Indeed, there is much to learn from Roshn’s approach to delivering its infrastructure and building plans. While the comparatively straightforward nature of its projects means that its procurement strategies may not be suited to those gigaprojects with more iconic designs, for many other developers it is a case study in efficient processes that have proven effective in delivering work on time and to budget.
This is just as well given that Roshn is set to embark on the next stage of its journey, with its focus on the more complex Marafy city development in Jeddah and Roshn Stadium in Riyadh. However, the evidence suggests that from a procurement strategy perspective, it is well-positioned to also make this a success.
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Local firm wins Jeddah stormwater contract5 March 2026
Saudi Arabia’s Alkhorayef Water & Power Technologies (AWPT) has won a five-year contract from Jeddah Municipality for stormwater network services in the city.
The contract covers the operation and cleaning of stormwater and surface water networks in the airport’s sub-municipality area of Jeddah, AWPT said in a statement to the Saudi stock exchange.
Valued at $25m, the contract forms part of ongoing efforts by Saudi municipalities to maintain and upgrade urban stormwater infrastructure as cities expand and face increasing pressure on drainage systems.
According to regional projects tracker MEED Projects, Jeddah Municipality awarded two major stormwater infrastructure contracts in 2025.
The awards covered phases one and two of the King Abdullah Road-Falasteen Road (KAFA) tunnel project, each valued at about $175m.
The contracts were awarded to Saudi contractor Thrustboring Construction Company for the construction of large-diameter stormwater drainage tunnels. US-based Aecom is the consultant for the project.
As MEED previously reported, the contracts for the three-year scheme were initially tendered in 2024.
In January, AWPT won another contract with state-owned utility National Water Company (NWC) to operate and maintain water assets in Tabuk City.
The scope of work includes the operation and maintenance of water networks, pump stations, wells, tanks and related facilities over a 36-month period.
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US-Israel attack on Iran incurs heavy regional price5 March 2026

The joint US-Israeli military campaign against Iran, launched on 28 February under operations codenamed Epic Fury and Operation Roaring Lion, has pulled the GCC into the most destabilising regional confrontation in a generation.
Six days into the crisis, the scale of collateral damage to Gulf capitals is becoming fully visible in damaged infrastructure, grounded aircraft, shuttered ports, halted energy production and a darkening investment climate.
Every member of the GCC has absorbed Iranian missile or drone strikes, despite none having launched offensive operations against Tehran.
In contrast to the restrained signalling from Iran during the 12-day war in June 2025 – when it choreographed its Gulf retaliation to a single base in Qatar – this campaign represents a deliberate effort to punish the US and states harbouring its assets.
By 4 March, Iran had fired 186 ballistic missiles at the UAE alone, according to the UAE Ministry of Defence, with all but one intercepted, but with lethal debris falling across Abu Dhabi and Dubai. Of 812 drones launched toward the UAE, 57 made impact.
Across the Gulf, however, the overall damage tallied so far is stark, particularly at US military bases. Iranian volleys have been directed with special intensity at the US Navy’s 5th Fleet headquarters in Bahrain and the Al-Udeid airbase in Qatar, alongside every US airbase and associated radar and satellite communications system across the region.
Strangled logistics
The Strait of Hormuz – the 33-kilometre-wide channel between Iran and Oman – was also declared closed to traffic by the Islamic Revolutionary Guard Corps (IRGC) the same day the US-Israeli attacks began.
Closing the strait, through which approximately 20 million barrels of crude oil pass every day, has been a perennial Iranian threat, and now Tehran is making good on it.
The strait is the sole maritime exit for much of the energy exported from the Gulf states, making up around a fifth of all seaborne oil traded globally in total.
At least five vessels have been struck so far in enforcement of the blockade, but the real impediment to ships is now the withdrawal of war risk cover by insurance underwriters – leaving ships inside and outside of the strait stranded.
Oil prices have responded accordingly, with Brent crude rising above $80 a barrel – up from closer to $60 – and with analysts placing $100 a barrel firmly back on the table if the disruption runs for more than a few weeks.
LNG shutdown
If the Hormuz closure has convulsed oil markets, the direct attack on Qatar’s energy infrastructure has delivered a separate and arguably more structurally significant blow.
Iranian drones struck QatarEnergy’s facilities at both Ras Laffan Industrial City and Mesaieed Industrial City, forcing a complete halt to all liquefied natural gas (LNG) production and associated output.
Qatar, which operated 14 LNG trains with a combined annual capacity of 77 million tonnes – accounting for roughly 20% of global LNG trade – now operates none. Doha, incensed, has cut ties with Iran.
European benchmark gas futures meanwhile jumped almost 50% within hours of the announcement. Asian LNG spot prices rose by more than a third. Country-level squeezes have been even harder, with gas prices spiking by 93% in the UK, for example.
Qatari production had been filling the void left in Europe by its boycott of Russian gas, so its halting of production now places European energy stocks under significant stress. Asian buyers, including Bangladesh, India and Pakistan, will also be feeling the strain.
Regional trade risk
The same war risk exclusions that have grounded the tanker fleet apply with equal force to container shipping, bulk carriers and general cargo vessels – extending the disruption beyond energy into every category of goods that moves through Gulf ports.
And the ports themselves are also in jeopardy. Jebel Ali in Dubai – the region’s busiest port – was temporarily closed after fire broke out from debris falling from missile interceptions overhead. Other regional ports have also seen various suspensions.
The world’s major container carriers have also drawn their own conclusions. MSC, Maersk, Hapag-Lloyd and CMA CGM have all halted Hormuz crossings entirely.
Importers across the Gulf – a region that is overwhelmingly dependent on seaborne trade for food, consumer goods, construction materials and industrial inputs – face costly re-routing.
Vessels are discharging Gulf-bound containers at Salalah in Oman, Khor Fakkan, Sohar and Duqm, from where onward delivery might be arranged overland. Spot freight rates for Gulf-destined cargo are in turn rising sharply as feeder capacity is overwhelmed.
Travel under assault
The Gulf’s aviation hubs have also been brought to a relative standstill.
A drone strike on Dubai International, the busiest airport on earth for international travel, was the most dramatic incident, but several airports have been hit and sweeping airspace closures have grounded all but a handful of flights over the Gulf.
On the worst day so far, more than 1,500 flights to or from Middle Eastern destinations were cancelled. The broader long-haul linkage through the Gulf from Europe to Asia has also been severed, forcing international legs to reroute away from the Gulf corridor.
Drone and shrapnel strikes on luxury hospitality projects in the region have meanwhile dealt a heavy blow to the GCC’s touristic safe-haven status. The region’s busy meetings, incentives, conferences and exhibitions (MICE) calendar is in disarray.
Gulf tourism entered 2026 in a strong position. Regional travel bookings had reached close to $101bn – 23% above pre-pandemic levels. Luxury hotel occupancy across Dubai, Abu Dhabi, Doha and Riyadh had set successive records through the first two months of the year. That momentum has been destroyed inside of a week.
Tourism Economics projects a fall in Middle East travel arrivals of around 11% year-on-year even in an optimistic scenario where the conflict resolves within weeks – meaning 23 million fewer visitors and a $34bn contraction in tourism spending.
If the conflict runs for two months, the projected decline steepens to 27%, with up to 38 million lost arrivals and $56bn in foregone receipts.
Long-term risks
The IMF had projected GDP growth of about 4% across the six GCC economies in 2026, driven substantially by non-oil diversification and fuelled by sustained inflows of foreign capital, foreign talent and foreign visitors.
Each of those flows is now disrupted, and some portion of the disruption will outlast the immediate security situation. Businesses could also restructure themselves to mitigate for elevated scenario of future regional risk.
The GCC states find themselves in a position of extraordinary and largely undeserved exposure. They did not initiate this conflict, and several of them invested heavily in diplomatic outreach and mediation between concerned parties.
The region is nevertheless absorbing the consequences.
The preferred Gulf instruments of mediation, back-channel diplomacy and economic persuasion have been rendered irrelevant by the speed and scale of events.
The region’s airlines, ports, refineries, LNG complexes, hotels, conference centres, stock exchanges and carefully constructed global image are all paying a price set by decisions made elsewhere. And the bill is still running.
Investors will reassess, and the governments of the GCC now face the question of how to restore peace and order in a region being actively contested militarily by the US.
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Iraq prepared a four-part plan for its emergency oil shutdown5 March 2026

Iraq had prepared a sweeping four-part “emergency plan” for a large-scale oil field shutdown in order to deal with the closure of the Strait of Hormuz, according to an internal document obtained by MEED.
The document shows that on 3 March, Abdul Karim, the director general of state-owned Basra Oil Company (BOC), wrote to the Iraqi Oil Ministry’s deputy minister for extraction seeking approval to implement the plan.
In the correspondence, Karim said that the plan was previously “discussed and presented to the leadership of the oil sector”.
He added: “Due to the lack of tanker availability starting tomorrow, export operations from our oil storage facilities will stop.”
The plan consists of four phases, starting with the complete shutdown of nine fields, which was due to be fully implemented on 3 March.
The nine fields due to be closed were:
- West Qurna-1
- Ratawi
- Gharraf
- Majnoon
- Rumaila South
- Luhais
- Tuba
- Subba
- Hadba
The second phase of the plan involves reducing production at Iraq’s Halfaya field by 50%.
The plan aims to temporarily maintain the operation of the natural gas liquids (NGL) plant at the field.
This part of the plan was also scheduled to be fully implemented on 3 March.
The third phase of the plan was focused on the “complete shutdown of field production” at the West Qurna-2 field.
The plan notes that some oil will be retained at the field “to sustain electricity generation”. No date is given for the completion of the third phase of the plan.
The fourth phase of the plan involves reducing production at the Faihaa field by 50%.
The plan notes that sufficient production will be maintained to sustain the central processing facility (CPF) gas project at the site.
The fourth phase of the plan was scheduled to be fully implemented on 4 March 2026.
The correspondence also noted that “in the event that heavy crude exports completely stop, Maysan fields will be fully shut down”.
Karim also said that, at the time, the current oil storage capacity was 6,350 thousand barrels, with a total available space of 3,700 thousand barrels.
Of the 3,700 thousand nameplate capacity available, 1,300 thousand barrels of spare capacity in Tuba could not be utilised because it could collapse the receiving jetties inside the facility.
He also pointed out that the production cuts did not include the North Rumaila field and the Zubair field in order to maintain gas processing rates.
Iraq’s oil and gas sector is facing mounting challenges amid the US and Israel’s ongoing war with Iran.
In the south of the country, oil exports have been paralysed by the closure of the Strait of Hormuz, and, in the country’s northern region of Iraqi Kurdistan, exports via the Iraq-Turkiye Pipeline have fallen to zero.
On 2 March, Iran’s Revolutionary Guard Corps said the Strait of Hormuz is closed and warned that any vessel attempting to pass through will be attacked.
READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDFRiyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.
Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
> RAMADAN: Data disproves the Ramadan slowdown story> INDUSTRY REPORT: Chemicals producers look to cut spending> INDUSTRY REPORT: Global petrochemical project capex set to rise until 2030> MARKET FOCUS: Egypt’s crisis mode gives way to cautious revival> LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth> INTERVIEW: Abu Dhabi’s Enersol charts acquisitions pathTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15869493/main.png -
Egypt strengthens its economic position4 March 2026

MEED’s March 2026 report on Egypt includes:
> COMMENT: Egypt’s crisis mode gives way to cautious revival
> GOVERNMENT: Egypt adapts its foreign policy approach
> ECONOMY & BANKING: Egypt nears return to economic stability
> OIL & GAS: Egypt’s oil and gas sector shows bright spots
> POWER & WATER: Egypt utility contracts hit $5bn decade peak
> CONSTRUCTION: Coastal destinations are a boon to Egyptian constructionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15858071/main.gif -
Power and water assets face strategic risk amid Iran attacks4 March 2026

Recent attacks on energy infrastructure across the GCC have drawn renewed attention to the strategic importance of the region’s power and water sector.
On 2 March, Qatar’s Ministry of Defence announced that the country had come under two drone attacks launched from Iran.
One drone targeted a water tank owned by Mesaieed Power Plant, while another targeted a power facility in Ras Laffan Industrial City.
Elsewhere in the region, Saudi Aramco shut down its Ras Tanura refinery following a drone strike, while US cloud provider Amazon Web Services reported service outages after incidents at two data centres in the UAE.
Desalination reliance
Across the GCC, desalination now provides the majority of drinking water. In Kuwait, about 90% of potable water comes from desalination plants, while the figure is about 70% in Saudi Arabia. In the UAE and Oman, the figures are 42% and 86%, respectively. While the geopolitical narrative tends to be dominated by oil, it is power and water infrastructure that is perhaps most critical to everyday life.
For instance, the Ras Al-Khair desalination plant in Saudi Arabia is among the largest operational facilities of its kind. According to MEED Projects, the plant produces about 1.1 million cubic metres a day (cm/d) of desalinated water.
Using a typical domestic water consumption benchmark of roughly 250 litres per person per day, that output is sufficient to supply potable water for around four million people.
Other large projects operate on a similar scale. The Yanbu phase 3 desalination plant produces roughly 550,000 cm/d, while the Shuaibah 3 independent water project (IWP), commissioned near Jeddah last year, has a capacity of 600,000 cm/d. Facilities of this scale can supply drinking water to populations of between two million and four million people.
The region’s reliance on large coastal desalination facilities also creates structural vulnerabilities, as most plants are located along the Gulf coastline to allow seawater intake.
Many are also integrated with thermal power plants, producing electricity and desalinated water at the same site. This configuration offers operational efficiencies, but concentrates critical infrastructure in a limited number of locations.
In February, Kuwait signed a 25-year energy conversion and water purchase agreement for the Al-Zour North independent water and power plant (IWPP) phases two and three. Once completed, the facility will add 2,700MW of power and 545,000 cm/d of desalinated water to Kuwait’s supply network
Separately, Kuwait’s Council of Ministers recently approved plans for the Kuwait Authority for Partnership Projects (Kapp) to tender the first phase of the Nuwaiseeb power and water desalination plant as an IWPP project. The first phase of the scheme will have an estimated power generation capacity of 3,600MW and a desalination capacity of 341,000 cm/d.
While several GCC states maintain strategic water storage reserves, these typically cover only a limited number of days of consumption in major cities. This makes water infrastructure one of the most sensitive categories of critical assets in the region.
Electricity infrastructure
Standalone electricity infrastructure is equally central to the functioning of GCC economies. Power generation supports residential demand, large industrial complexes, transport networks and digital infrastructure.
One example is the UAE’s Barakah nuclear power plant in Abu Dhabi, which has a total capacity of 5.6GW across four reactors. According to Emirates Nuclear Energy Corporation (Enec), the plant’s four APR1400 reactors produce 40TWh annually, which is equivalent to around 25% of the UAE’s electricity needs.
At the same time, Gulf electricity systems are becoming increasingly interconnected. The GCC Interconnection Authority grid links the national networks of member states and enables countries to exchange electricity during periods of peak demand or supply disruption.
According to WorldBank studies, desalination plants typically operate continuously because water storage capacity is limited relative to demand. Similarly, power grids must balance supply and demand in real time.
Amid ongoing missile and drone attacks on GCC states, Iran said on Monday that it was closing off the Strait of Hormuz, a critical maritime route. GCC countries import roughly 85% of their food, much of it transported by sea, while the strait handles about a fifth of global oil supply. Disruptions to power and water infrastructure across the region could have even more immediate consequences.
READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDFRiyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.
Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
> RAMADAN: Data disproves the Ramadan slowdown story> INDUSTRY REPORT: Chemicals producers look to cut spending> INDUSTRY REPORT: Global petrochemical project capex set to rise until 2030> MARKET FOCUS: Egypt’s crisis mode gives way to cautious revival> LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth> INTERVIEW: Abu Dhabi’s Enersol charts acquisitions pathTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15856956/main.jpg
