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Al-Jouf Cement and Engie to build captive solar plant

20 November 2024

Saudi-listed Al-Jouf Cement Company has signed an agreement with French utility developer and investor Engie to construct and operate a solar power plant for 25 years at the company's site Turaif.

The solar plant will have a generation capacity of 22MW.

Al-Jouf will purchase the electricity generated from the plant for 25 years starting from the actual commencement of the plant’s operations.

In a bourse filing on 19 November, Al-Jouf said the project cost will be lower than the company’s current production costs from its heavy fuel oil power plant and lower than the industrial electricity costs if connected to the national grid.

It added: "The solar power plant is expected to contribute approximately 25% of the company’s electricity needs upon completion. Al-Jouf Cement Company will not incur any financing for the project, as it will not bear any capital or operational expenses."

According to the company’s initial estimates, the positive impact of cost reduction will gradually begin to appear from the first year of operation. The financial impact will be determined based on prevailing fuel prices at that time.

The positive impact, compared to the current industrial electricity tariff from the Saudi Electricity Company, is expected to be SR3.6m annually.

The contract will also have a positive environmental impact by reducing carbon emissions by 1,481,100 tonnes, supporting the Saudi government’s efforts to decarbonise the energy-intensive cement sector and the company's strategy to enhance the consumption of renewable energy.

It is the second major commercial and industrial renewable energy project for Engie in Saudi Arabia, following the signing of a similar contract with agricultural group Nadec in 2019.

Photo credit: Pixabay (for illustrative purposes only)

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Jennifer Aguinaldo

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  • Trump 2.0 targets technology

    30 January 2025

     

    As Donald Trump settles into his second term, dubbed ‘Trump 2.0’, the administration is set to bring about a seismic shift in global technology, artificial intelligence (AI) regulation, data sovereignty, cryptocurrency and the ever-escalating US-China tech war.

    The central role that technology is expected to play was demonstrated at Trump’s inauguration on 20 January, where Tesla and SpaceX CEO Elon Musk, Meta CEO Mark Zuckerberg, Alphabet Inc CEO Sundar Pichai and Amazon founder Jeff Bezos had prime seats.

    With Trump championing policies prioritising domestic interests and reshaping international dynamics, Middle Eastern investors and companies will play a key role in shaping this new era of tech-infused geopolitics.

    The wheels are already turning. On 22 January, just two days after Trump’s inauguration, he announced that Abu Dhabi- based AI-focused fund MGX has teamed up with US-based tech firms Oracle and ChatGPT creator OpenAI, and Japan’s Softbank, to form the Stargate project, which aims to invest $500bn to build AI infrastructure in the US.

    When announcing the project, Trump described it as “the largest AI infrastructure project by far in history”.

    America first

    Two weeks earlier, on 7 January, Hussain Sajwani, founder and chairman of UAE-based Damac Properties and Damac Group, made headlines by pledging $20bn to develop data centres in the US.

    Sajwani’s $20bn commitment to US data centres is not just a business transaction – it demonstrates the UAE’s strategic pivot to align with Trump’s America First policy. Unlike the real estate deals offered by Sajwani that Trump publicly declined in 2017, the latest investment offer places resources directly into the US, promising jobs, innovation and a fortified tech infrastructure in states including Texas, Ohio and Michigan.

    For MGX, Sajwani and other Gulf investors, the deal offers not only financial returns but also political capital in an administration that values loyalty and mutual economic benefit. 

    The timing is also strategic: as Trump prepares to loosen regulatory constraints on AI and data, Gulf nations have the opportunity to tap into US expertise while positioning themselves as indispensable partners in the rapidly shifting tech landscape.

    Tech wars

    Geographically and politically, the Middle East – particularly the GCC states – sits in the middle of the simmering tech war between China and the US, which may boil over during the Trump presidency.

    The decoupling of the two economies is expected to continue, with Trump reinforcing policies that discourage US companies from engaging with Chinese firms.

    Policies could involve stricter foreign investment vetting and expanded technology transfer restrictions to China. The Trump administration has also threatened to impose high tariffs on Chinese goods, which could disrupt the established ties between US and Chinese tech industries. 

    The ongoing tensions could lead to a bifurcation of global supply chains, with significant implications for companies operating in both markets.

    For Middle Eastern countries, this decoupling offers a rare window of opportunity. As the US and China distance from one another, GCC players can position themselves as neutral ground for technology partnerships. The region could bridge the two worlds by attracting global firms to invest in regional tech hubs that offer a haven for talent and innovation.

    Trump’s America First policies are also expected to accelerate the development of the US semiconductor sector, a critical component of the tech war. While this could disrupt global supply chains, it may also create demand for GCC investments in US tech manufacturing and research facilities, further deepening economic ties.

    Another transformative area of Trump’s second term will be his approach to AI.

    On 13 January, just days before Trump took office, the White House issued a brief of a regulation by the Department of Commerce imposing controls on the exports of advanced computing integrated circuits that support AI.

    The regulation’s final draft divides countries into three tiers. Chip exports to the top-tier countries, comprising 18 of the closest US allies, are “without limit”, while the third tier is reported to comprise countries of concern, including Macau (China) and Russia.

    All other nations and states, including those in the GCC, are presumed to be mid-tier countries, where a cap of approximately 50,000 graphics processing units between 2025 and 2027, will apply.

    Individual companies from these countries will be able to achieve higher computing capability if they comply with US regulations and obtain validated end-user status.

    The White House brief is no longer available online, but a copy of the regulation can still be found in the Federal Register, the US government’s daily journal.

    Middle Eastern investors and companies will [help shape] this new era of tech-infused geopolitics

    Deregulation likely

    The regulation-heavy approach of former president Joe Biden’s administration will likely give way to a deregulatory environment, emphasising commercial innovation over antitrust crackdowns.

    For GCC countries such as Saudi Arabia and the UAE, this presents a double-edged sword. Both nations have ambitious AI investment plans – Abu Dhabi’s MGX partnership with BlackRock and Microsoft aims to mobilise $100bn for AI infrastructure, while Riyadh’s Project Transcendence seeks to redefine the region’s technological footprint. Trump’s deregulatory policies could catalyse innovation and partnerships with US firms, offering access to cutting-edge AI solutions.

    The emphasis on deregulation may also create challenges. Without robust ethical and safety guidelines, the global AI ecosystem could face reputational risks, making cross-border collaborations more complex. For the GCC, balancing the benefits of US technological advancements with the need for ethical AI development will be a delicate dance.

    As geopolitical tensions rise, the effects of Trump’s focus on data sovereignty will reach far beyond US borders. Nations increasingly prioritise data protection, creating stricter regulations to control where and how data is stored, and the GCC, with its ambitious AI and data centre projects, must adapt swiftly to these changes.

    The outlook for developing energy-hungry data centres in the US could be further bolstered by plans to deregulate the energy industry. 

    “If energy deregulation is unleashed, the biggest beneficiaries of Trump’s energy policies could be in data centre buildout, with implications for US leadership in AI, both in next-generation technologies and economic dominance over the coming generation,” according to a report by GlobalData’s TS Lombard.

    For Middle Eastern businesses, Trump’s policies could mean stricter requirements when working with US tech firms. Data from US companies and citizens may need to be stored domestically, complicating cross-border operations. 

    However, this also presents an opportunity for the GCC states to bolster their data sovereignty frameworks, attracting investments from companies seeking alternatives to US or Chinese infrastructure.

    The unexpected should be expected, and the future belongs to those who adapt the fastest

    Backing Bitcoin

    Cryptocurrency is another major opportunity for the GCC. 

    Trump’s surprising endorsement of Bitcoin – the price of which recently surged past $75,000 – signals a potential shift in US crypto policy. A more favourable regulatory environment under Trump could drive mainstream adoption of cryptocurrencies, attracting investors and innovators alike.

    As regional players such as the UAE have been pioneers in blockchain technology, this could catalyse further growth. 

    Dubai’s Blockchain Strategy 2025, aimed at positioning the emirate as a global blockchain hub, aligns well with Trump’s pro-Bitcoin stance. By collaborating with US firms and leveraging blockchain’s potential for financial and governmental applications, the GCC could cement its position as a leader in the cryptocurrency space.

    As his backing of Bitcoin demonstrates, Trump’s position on tech issues is hard to predict. This was reinforced when he issued an executive order allowing social media application TikTok to resume services to its 170 million users in the US. 

    On 18 January, the Chinese-owned app stopped working in the US after a law banning it on national security grounds came into effect. Trump had previously supported plans to ban the app. 

    For business and government alike, the message is clear: the unexpected should be expected, and the future belongs to those who adapt the fastest.

    As Trump reshapes the global tech landscape, GCC investors like Sajwani are well positioned to capitalise on the changes. The US-China decoupling, AI deregulation and a focus on data sovereignty create openings for Middle Eastern nations to assert themselves as key players in the global tech economy.

    Challenges remain. Trump’s America First policies could lead to tighter restrictions on foreign investments, requiring Gulf investors to navigate a more complex regulatory environment. Additionally, the potential talent drain to the US, driven by Trump’s prioritisation of domestic commercial interests, could slow the region’s AI ambitions.

    To stay competitive, GCC nations will need to double down on their investments in education, infrastructure and innovation. By fostering homegrown talent and creating favourable conditions for international partnerships, the region can mitigate the risks of Trump’s policies while reaping the rewards. 

    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:

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    30 January 2025

    Morocco’s Office National de L’Electricite et de L’Eue Potable (Onee) plans to procure nine independent water projects (IWP), including the Grand Casablanca and Nador IWPs, according to an industry source.

    A developer team comprising Spain's Acciona and the local firms Afriquia Gaz and Green of Africa won the $875m contract to develop the Grand Casablanca seawater reverse osmosis (SWRO) project in 2023. It has a capacity of  548,000 cubic metres a day (cm/d).

    The project is expected to reach financial close imminently. 

    The final approval process for Morocco's second IWP in Nador, Oriental region, is underway. The planned facility will have a capacity of 250,000 cm/d.

    The other seven planned IWP schemes and their planned capacities – significantly smaller compared to the first two IWPs – are located in the following regions:

    • Agadir (extension of an existing plant): 45,000 cm/d
    • Guelmin: 34,000 cm/d
    • Tarfaya: 470 cm/d
    • Essaouira: 42,800 cm/d
    • Tiznit-Sidi Ifni : 54,600 cm/d
    • Tantan: 47,200 cm/d
    • Boujdour: 60,000 cm/d 

    MEED previously reported that the client was expected to issue the request for qualifications (RFQ) for the Nadaro IWP  project in the first half of 2024.

    To be located in Morocco’s Oriental region, the Nador SWRO IWP is expected to cater to the cities of Nador, Oujda, Berkane, Taourirt and Saidia.

    US/India-based Synergy Consulting is the financial adviser for the Grand Casablanca and Nador IWP projects.

    These projects align with Morocco’s National Water Plan 2020-50 and address the country’s scarce water supply.

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  • Saudi Arabia holds sewerage plant site visits

    30 January 2025

    Representatives from more than 20 firms participated in the site visits conducted by Saudi Water Partnership Company (SWPC) for two upcoming independent sewage treatment plant (ISTP) projects in the kingdom.

    SWPC conducted the site visits on 28 January, according to a source familiar with the projects.

    Located in Mecca, the first scheme, Arana ISTP, will have an initial capacity of 250,000 cubic metres a day (cm/d), expandable to 500,000 cm/d.

    The second scheme, Hadda ISTP, will also be located in Mecca and will have an initial capacity of 100,000 cm/d, expandable to 250,000 cm/d.  

    SWPC expects to receive bids for the contracts by 5 May. However, the bid deadline is likely to be extended until the early summer, the source said.

    Expected to be operational by 2028, both projects will be implemented on a 25-year build, own, operate and transfer model.

    They also include treated sewage effluent (TSE) re-use systems consisting of transmission pipelines and TSE tanks.

    In March last year, SWPC signed a 25-year water-purchase agreement with a team comprising the local Miahona Company and Belgium's Besix for the contract to develop and operate the proposed Al-Haer ISTP in Riyadh, part of the third batch of the kingdom's ISTP programme.

    The Miahona/Besix team offered to develop the project for SR1.9407 ($0.5173) a cubic metre, while the second-lowest bid, from a team comprising Spain's Acciona and the local Tawzea, was SR2.2041 a cubic metre.

    The Al-Haer ISTP project involves the development of a water treatment plant with a capacity of 200,000 cm/d.

    It also includes the development of a TSE reuse system that covers a 32-kilometre pipeline with a capacity of 400,000 cm/d, a pumping station and TSE reservoir tanks with a capacity of 200,000 cubic metres.

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  • Alpha Dhabi acquires controlling interest in NCTH

    29 January 2025

    Abu Dhabi-listed Alpha Dhabi Holding has acquired a controlling 73.73% interest in Abu Dhabi-listed National Corporation for Tourism & Hotels (NCTH) after selling assets from Alpha Dhabi Hospitality Holding (ADHH) and Murban Energy to NCTH in exchange for shares.

    In a statement, Alpha Dhabi said the transaction strengthens NCTH’s position and Alpha Dhabi Holding’s investment in the domestic and international luxury hospitality sector.

    The deal involves the transfer of four key hotel assets, including two in Abu Dhabi – the St Regis Saadiyat Island Resort and Al-Wathba, a Luxury Collection Desert Resort & Spa. The other two hotels are the Cheval Blanc Randheli in the Maldives and the Cheval Blanc Seychelles.

    The properties increase NCTH’s portfolio to eight hotels with nearly 1,500 keys.

    In May 2023, Alpha Dhabi Holding said it had a 36.4% shareholding in NCTH. The share acquisition was executed via a purchase from an existing shareholder for a total consideration of AED730m ($199m).

    According to GlobalData, Abu Dhabi’s tourism sector is set for further expansion in 2025, with projections indicating a continued increase in both visitor numbers and hotel capacity.

    The emirate aims to attract 39.3 million visitors by 2030, and this growth strategy will likely see the tourism sector’s contribution to GDP increase from nearly $13.3bn in 2023 to $24.5bn by 2030.

    Domestic tourism expenditure is expected to reach approximately $8.7bn by 2025, with the hotel sector anticipated to grow to 863 properties, with about 168,700 rooms.

    READ MEED’s YEARBOOK 2025

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  • LIVE WEBINAR: Saudi Gigaprojects 2025

    29 January 2025

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    Topic: Saudi Gigaprojects 2025 – latest updates

    Date & time: 11:00 AM, Wednesday 19 February 2025

    Agenda:

    • Latest update to January 2025 on the gigaprojects programme and the Saudi projects market in general, with full data analysis for 2024 
    • Assessment of recent managerial changes on some gigaprojects plus insight on the ‘pause’ in gigaprojects spending last year and its implications 
    • Analysis on the latest contracts and spending up to the end of January 2025 
    • Highlights of key contracts to be tendered and awarded in 2025 
    • Analysis of top contracts by work already awarded on the gigaprojects 
    • Evaluation of market capacity and resource expectations, including the latest demand signalling for key materials 
    • Key drivers and challenges going forward plus MEED’s outlook for the future short and long-term prospects on the gigaprojects programme 
    • Q&A session

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

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