Abu Dhabi and Riyadh compete for capacity
24 March 2025
Electricity generation installed capacity from renewable and nuclear energy sources is expected to overtake conventional installed capacity in Abu Dhabi by 2029.
Based on known projects that are under various stages of procurement and in line with a plan to procure 1.5GW of renewable capacity annually until the mid-2030s, as well as an assumption that the contracts for thermal capacities expiring between 2025 and 2029 will not be renewed, the UAE capital could see its total electricity generation installed capacity rise to approximately 38.5GW by 2029, up from around 22GW as of the end of 2024.
This figure includes the 5.2GW capacity from the solar photovoltaic (PV) project being built by Abu Dhabi Future Energy Company (Masdar), which is expected to come on stream in 2027. The project will supply up to 1GW of baseload capacity in tandem with a 19 gigawatt-hour battery energy storage system plant.
By 2029, the share of renewable energy is expected to reach 37% and nuclear energy 14% of total installed capacity. Capacity from gas-fired fleets is forecast to be 49%, down from 69% this year.
This scenario assumes that all projects under procurement and construction achieve commercial operations according to their timeline, that all four gas-fired fleets with a combined expiring capacity of 7.2GW are not extended, and that another 1.5GW solar PV project will be launched next year, following the Al-Zarraf solar IPP.
This further implies that at least 1.5GW of renewable energy capacity will start operating annually from 2026, and planned gas-fired power plants will be completed successively between 2027 and 2029. It precludes the launch of new thermal power projects apart from those already known or announced.
This massive capacity buildout, equivalent to between 16GW or 70% and 21GW or 94%, if the round-the-clock solar capacity is included, of its current installed capacity, requires Abu Dhabi to rapidly upgrade its grid infrastructure and deploy substantial battery energy storage capacity to ensure grid resilience and flexibility.
Competing for capacity
It also tests the capacity of developers and engineering, procurement and construction (EPC) contractors, which are equally beholden to pursue new contracts in Saudi Arabia.
The kingdom faces a pending deadline to decommission ageing liquid fuel-fired plants as part of an overall energy transition plan for its electricity sector. It aspires to procure 20GW of renewable energy capacity annually until 2030 "subject to demand growth", and have renewable sources account for half its electricity generation capacity at the end of the forecast period.
According to MEED Projects and MEED data, Saudi Arabia entered what could be the busiest period for power generation capacity buildout in its history this year, with over 50GW of power generation projects under construction, or about to start construction.
This is equivalent to over a quarter of its current installed capacity, which will also require a 60% expansion of its electricity grid coverage.
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The scale and volume of contracts in both jurisdictions are a positive development for many developers and contractors, following a major slowdown in the years before and after the Covid-19 pandemic.
Even those extremely cautious about solar PV projects' ability to deliver desired profits, or those obliged to say no to thermal projects that do not offer a clear carbon capture path, can pivot to the rapidly expanding battery energy storage projects or, indeed, the potential hydropower projects in Neom in Saudi Arabia.
Retreating bidders
It must be noted, however, that several international utility developers are shifting their geographical focus away from the region and have expressed a desire not to compete in the upcoming tenders for power generation projects.
As a result, the latest tenders in Riyadh and Abu Dhabi generally received fewer-than-expected bids. This trend may continue due to distinct factors affecting each fuel type.
“The volume of utility-scale gas projects is outstripping the availability of credible developers,” notes a senior executive with an advisory firm in the UAE. “Either they are already overloaded, withdrawing from the gas market, or uninterested in a particular country.”
Another key issue for developers and EPC contractors, regardless of the location of these projects, is the gas turbine original equipment manufacturer (OEM) gridlock, which affects delivery time and prices.
In general, top OEM manufacturers are caught between two choices: expand their capacity to accommodate rising demand and secure substantial cash flow going forward, or ignore the short to medium-term demand and eliminate the risk of building capacity that may be stranded beyond 2030, when clients may stop procuring new gas utility plants.
On the other hand, interest in renewables may remain intact, subject to improving returns prospects, another expert tells MEED.
Nonetheless, these developments translate to significant opportunities, particularly for local developers, EPC contractors and other OEM manufacturers – such as Italy's Ansaldo Energia – which have remained on the fringes of the region's utility power projects markets for many years.
Chinese firms that previously only focused on EPC, for instance, are gradually stepping up to the role of utility developers, which can help ensure that the region's offtakers continue to secure world-record-low tariffs for future projects.
This, however, may also seal the decisions by more established developers to exit the region for good.
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Brent hits $112 a barrel following Saudi oil field attack22 October 2026
Oil prices climbed more than 3% on 22 October after a drone targeting Saudi Aramco’s Shaybah oil field development killed two people and injured two others a day earlier, adding to concerns over energy supplies as attacks on Saudi energy infrastructure intensified.
Global benchmark Brent crude hit $112.30 in early trading on 22 October, but later pared gains and was trading at $111.52 a barrel as of 11am GST.
Three residents and a Saudi citizen were killed in two separate incidents in Saudi Arabia’s Eastern Province on 21 October, authorities said, as attacks on the kingdom accelerated following an escalation of hostilities with the Iran-backed Houthi group in neighbouring Yemen.
Overnight, the Saudi-led coalition fighting the Houthis in Yemen announced that it had intercepted and destroyed four drones in the Eastern Province.
Saudi air defences intercepted a drone attempting to target a processing facility at Saudi Aramco’s Shaybah oil field development on the morning of 21 October, the Saudi Ministry of Energy said.
The official Saudi Press Agency (SPA) carried a statement quoting an energy ministry official as saying the attempted attack resulted in the deaths of two residents – a Filipino and a Nepali – and injuries to two others – an Indian and a Pakistani – after debris fell due to the interception.
Following the interception, a fire broke out in a vehicle belonging to a contractor at the Shaybah oil field, outside the facility’s perimeter, with no impact on operations.
Dammam airport attack
Separately, a Houthi attack on King Fahd International airport in Dammam on the evening of 21 October killed an Indian resident and a Saudi citizen.
Eight people were also injured in the attack, including a Saudi national, a Nepali, and two nationals each from India, Yemen and Bangladesh. Injuries ranged from minor to critical, the Saudi General Authority of Civil Aviation (Gaca) said the next day.
“The attack also caused property damage, the extent of which is currently being assessed. Further updates will be provided,” Gaca said, adding that operations had since resumed at Dammam airport.
Saudi Arabia has come under sustained attack from the Iran-aligned Houthi rebel group in October, including strikes on Riyadh’s international airport in what authorities described as the kingdom’s deadliest incidents in years, as the war with the group escalates.
The Houthi militias also struck an administrative building at Aramco’s headquarters in Dhahran, in the Eastern Province, on 13 October, resulting in a limited fire.
The Houthi rebels opened a new front in the regional war between Iran and the US in mid-July, when they breached a four-year truce with Saudi Arabia in Yemen’s civil war, which began in 2014, and started attacking Saudi vessels and Aramco energy assets along the Red Sea, including repeated strikes on the Jizan refinery.
The 1,200-kilometre East-West pipeline operated by Aramco was also hit by Houthi missiles in September, and once directly by Iran in April.
The East-West pipeline transports crude from Saudi Arabia’s Eastern Province oil fields to the Red Sea port city of Yanbu on the kingdom’s west coast. It has a pumping capacity of 7 million barrels a day.
Saudi Arabia relies heavily on the East-West pipeline to bypass the volatile Strait of Hormuz maritime chokepoint and ship crude from its Red Sea coast. Riyadh has increasingly used the line to route exports away from Hormuz since the US-Iran conflict began on 28 February – a tactical advantage most of its Gulf neighbours lack.
Aramco resumed crude exports via the pipeline at the start of October.
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Dewa International signs energy and infrastructure MoUs22 October 2026
Dubai Electricity & Water Authority’s (Dewa) new development arm, Dewa International, has signed four memorandums of understanding (MoUs) with international partners to explore investment and project development opportunities in the energy, water and infrastructure sectors.
The agreements, signed during Dubai’s Water, Energy, Technology and Environment Exhibition (Wetex 2026), follow the launch of the wholly owned subsidiary in June, as reported by MEED.
At the time, the utility said the arm would be used to export Dubai’s energy and water infrastructure model, with a focus on developing conventional and clean energy projects for global markets.
At Wetex, Dewa International signed an MoU with France’s EDF Power Solutions to explore potential joint participation in solar, wind, battery energy storage and pumped-storage hydropower projects.
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Its flagship Mohammed Bin Rashid Al-Maktoum Solar Park is the largest single-site solar park in the world. The utility is currently advancing the project’s seventh phase, with Abu Dhabi Future Energy Company (Masdar) recently submitting the lowest bid for the project, as exclusively reported by MEED.
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QatarEnergy and TotalEnergies to develop Lebanon solar plant22 October 2026
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State-owned QatarEnergy and France’s TotalEnergies have agreed to jointly develop a solar power plant in Lebanon.
The agreement was announced on 16 October during the Qatari prime minister’s official visit to Beirut, where he held a joint press conference with Lebanese Prime Minister Nawaf Salam.
According to a statement published by the Lebanese Prime Minister's Office, the plant will be an initial project under a broader framework for energy cooperation between Qatar and Lebanon. Its capacity, location, investment value and implementation schedule have yet to be disclosed.
Qatar’s Prime Minister Sheikh Mohammed Bin Abdulrahman Bin Jassim Al-Thani said: “The aim is to develop a major investment project that benefits the Lebanese economy, as well as the Qatari companies and entities participating in it.”
Separately, Salam said the Lebanese and Qatari governments were “close to reaching an agreement” to rehabilitate, develop and modernise Lebanon’s electricity-generation infrastructure.
The proposed project would cover the country’s various electricity-generation sources and associated infrastructure, aiming to improve the reliability of electricity supplies and reduce costs.
The project would use a build, operate and transfer model, under which Qatari entities would finance, implement and operate the facilities without upfront investment costs for the Lebanese treasury, Salam said.
Salam also said the proposal was being prepared with support from the International Finance Corporation, and that he hoped to present it to the Lebanese government soon.
The wider initiative is intended to address Lebanon’s longstanding electricity-generation shortfall and overcome financing constraints that have delayed infrastructure projects in the sector.
As MEED previously reported, the Lebanese government continues to advance broader reforms to the country’s electricity sector.
In August, Lebanon’s Electricity Regulatory Authority invited private sector companies to submit expressions of interest (EoIs) for several upcoming power-generation projects.
The EoIs cover up to five grid-connected solar photovoltaic projects with a combined installed capacity of 350 megawatts-peak. The projects are also expected to include battery energy storage systems with a combined capacity of 1,000 megawatt-hours.
The regulator is also seeking proposals for distributed dual-fired thermal power plants with net capacities of 20MW-100MW.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
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Building resilience into infrastructure delivery21 October 2026

The regional disruptions earlier this year tested Gulf supply chains, challenging the movement of goods and construction materials and raising questions about the ability of infrastructure programmes to maintain momentum.
For the UAE Ministry of Energy & Infrastructure, the experience reinforced the importance of the systems that support project delivery, from transport networks and customs procedures to domestic manufacturers and international suppliers.
“The disruption reinforced an important principle: infrastructure resilience is ultimately about the ability of the national system to continue operating under pressure,” says Mohammed Al-Mansoori, undersecretary for infrastructure and transport affairs.
Supply resilience
The ministry worked with ports, customs authorities, transport and rail operators, contractors, suppliers and the private sector to maintain the flow of essential goods and construction materials. It monitored critical materials and project schedules, identified alternative sources and adjusted procurement and delivery arrangements.
The response included movement exemptions and facilitation measures for more than 6,600 lorries, while rail freight operations increased from approximately one journey a week to as many as seven journeys a day. Priority and green corridors were activated, customs procedures facilitated and critical shipments prioritised at ports.
According to Al-Mansoori, these measures contributed to an estimated 25% reduction in transport costs, a 40% improvement in customs clearance times and an increase of approximately 15% in port capacity during the response period.
For infrastructure projects, the ministry worked with local manufacturers and suppliers to identify alternative sources of road and construction materials meeting the required technical specifications and quality standards. This helped reduce reliance on disrupted international supply routes and support ongoing projects.
The experience also highlighted the value of existing coordination mechanisms and partnerships.
“It also reinforced a fundamental principle: resilience means ensuring that critical infrastructure delivery does not depend on a single supplier, a single route or a single mode of transport,” Al-Mansoori says.
The ministry is planning to build on this experience by diversifying suppliers, strengthening domestic manufacturing and improving supply-chain monitoring.
Resilience is increasingly being incorporated into procurement planning. For critical materials and services, the ministry aims to identify risks early, broaden the pool of qualified suppliers and ensure viable alternatives are available.
The approach supports the UAE’s wider industrial objectives, including the national in-country value programme, which seeks to direct a greater share of procurement expenditure into the national economy.
“Our objective is not simply to purchase more locally. It is to help create competitive national supply chains,” Al-Mansoori says.
Domestic suppliers must be able to meet the technical requirements, quality standards and volumes demanded by major infrastructure programmes. Localisation is therefore about developing competitive industrial capabilities while shortening supply chains, improving responsiveness and encouraging investment.
“Localisation is not simply a procurement choice; it is an investment in national capability and long-term resilience,” Al-Mansoori says.
The ministry is also working with contractors to manage pressures from fluctuating material, insurance and transport costs. Its approach combines commercial discipline with early engagement to prevent external pressures from affecting project delivery.
“Our approach is based on early engagement, transparency and disciplined commercial management,” Al-Mansoori says. “Long-term infrastructure delivery depends on strong contractors as much as it depends on strong contracts.”
Contractors remain responsible for normal market and contractual risks, but the ministry seeks to assess exceptional pressures objectively, supported by evidence of their impact on costs and schedules. Realistic planning, early procurement and proactive risk management also help maintain momentum.
“The objective is to strike the right balance between protecting the government’s commercial interests and securing best value for money, while maintaining an efficient, sustainable contracting market capable of continuing to deliver strategic infrastructure projects,” Al-Mansoori says.
Resilience means ensuring that critical infrastructure delivery does not depend on a single supplier, a single route or a single mode of transport
Project delivery
The ministry’s focus on measurable outcomes is reflected in the Emirates Road enhancement project, which involves widening approximately 25 kilometres of Emirates Road from three to five lanes in each direction, alongside major improvements to Interchange No. 7.
The works are expected to increase road capacity by up to 65% and reduce journey times by up to 45%.
The project illustrates the ministry’s emphasis on assessing infrastructure by the benefits it delivers, rather than simply the scale of construction.
“Infrastructure success should be measured by the value it creates – not just by the kilometres we build,” Al-Mansoori says.
That principle is increasingly important as the UAE balances new construction with the long-term costs of operating and maintaining its assets. Decisions made during planning and construction can influence maintenance requirements, operating costs and performance for decades.
For Al-Mansoori, resilience, domestic capability and effective delivery are closely connected. Stronger local supply chains can reduce exposure to external shocks, while closer engagement with contractors can help projects withstand cost pressures.
Don’t miss MEED’s MENA Construction Summit 2026, taking place under the patronage of the UAE Ministry of Energy & Infrastructure
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Riyadh tenders Expo 2030 Adaptation and Innovation Pavilion21 October 2026

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Expo 2030 Riyadh has tendered the design-and-build main contract for the Adaptation and Innovation Pavilion in the exhibition’s Technology District.
The pavilion will be built on a plot of at least 12,710 square metres and will feature a two-level basement, ground-level public areas, an elevated skywalk, visitor experience areas, food and beverage outlets, retail space, VIP facilities, offices, back-of-house areas, exhibition spaces, an amphitheatre and a resonance hall.
The facility is being designed to accommodate a minimum of 20,000 visitors a day at peak periods, with an anticipated average of about 15,000 visitors a day. The project targets LEED Gold certification.
The tender was issued on 1 October, with bids due on 6 January 2027.
The design-and-build contractor will be responsible for completing, reviewing, verifying, coordinating and technically integrating the design, including specialist contractor design portions and coordination with the novated lead design consultant.
The scope includes completing early works and substructure activities, including grading, bulk earthworks, excavation, cut and fill, soil improvement, raft foundations, reinforced-concrete basement walls, basement columns through to the ground-floor slab, waterproofing, mechanical, electrical and plumbing (MEP) provisions, and backfilling.
The contractor will also deliver the superstructure and building envelope, including structural works, facade engineering and installation, roofs, waterproofing, external finishes, and permanent facade access and maintenance systems. The internal works will cover front-of-house and back-of-house areas, public and core spaces, internal finishes, fixtures, fixed fittings, joinery, circulation areas, lobbies, stairs, toilets, storage, waste areas and associated builder’s works.
The building services package includes MEP systems, information and communications technology, extra-low-voltage systems, building management systems, security, fire and life safety systems, specialist lighting and vertical transportation.
The contract also covers the visitor experience package, including procurement, installation, integration, testing, commissioning and handover of visitor-facing environments, media, immersive and audiovisual technologies, interactive elements, experiential lighting, digital content, interpretive and wayfinding systems, controls and supporting infrastructure.
Within-plot infrastructure and utilities, landscaping, public realm works, paving, planting, irrigation, signage, street furniture, drainage, stormwater systems, external lighting, security, and fire and life safety systems are also included.
The contractor will be responsible for procurement, off-site fabrication, construction, testing and commissioning, performance verification, training, operations and maintenance documentation, operational readiness, handover, defects rectification and close-out.
The main works tender is based on a 60% RIBA Stage 3 design, with the Stage 3 design to be completed to 100% through an addendum.
Early works and substructure works, as well as the lead design consultant, will be novated to the contractor. Visitor experience works are included as a provisional sum.
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