Alfanar and BYD win 2.5GW battery storage contract
22 January 2025
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National Grid Saudi Arabia, a wholly-owned subsidiary of Saudi Electricity Company (SEC), has awarded the local Alfanar Company an engineering, procurement and construction (EPC) contract for five battery energy storage system (bess) facilities with a total combined installed capacity of up to 2,500MW, equivalent to about 10,000 megawatt-hours (MWh).
China's BYD Auto won the contract for the design; supply; supervision of installation, testing and commissioning; and maintenance of the bess plants.
MEED previously reported that the planned facilities, each with a capacity of 500MW or about 2,000MWh, are located in – or in proximity to – the following cities and load centres:
- Riyadh
- Qaisumah
- Dawadmi
- Al-Jouf
- Rabigh
The EPC contract value is over $2bn, according to estimates from regional projects tracker MEED Projects.
The scope includes the construction of bess substations and associated infrastructure.
The main applications for the planned bess facilities include load shifting, black start, frequency regulation and voltage support.
They are expected to replace part-load operation of existing power plants by charging and discharging electricity according to system load variations and primary and secondary reserves, among other potential applications.
In August last year, National Grid Saudi Arabia awarded the EPC contracts for three energy storage systems to Riyadh-based investment group Algihaz Holding.
The projects are located in Najran, Madaya and Khamis Mushait.
According to an industry source, the contracts are valued at more than $800m.
Surging growth
The overall capacity of deployed bess facilities globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to GlobalData.
The global information services provider named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.
Carmakers Tesla, Volkswagen, Stellantis, General Motors, Mitsubishi Motors and Hyundai were identified as the key end-markets for battery products to date.
GlobalData expects battery energy storage deployment to increase “due to a large number of countries opting for battery storage systems to enhance their power sector transformation”.
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Jedco maps next phase of Jeddah airport expansion22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.
The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.
The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.
The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.
Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.
The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.
T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.
The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.
Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.
In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.
Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.
Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).
These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.
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Contractor wins $105m Medina university hospital deal22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.
The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.
Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.
The contract duration is three years, with delivery targeted for late 2029.
The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.
The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.
Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.
Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19870032/main.jpg -
Oman tenders Thumrait Industrial City infrastructure22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.
The tender was issued on 14 September, with bids due by 12 November.
The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.
In addition, Madayn intends to build plug-and-play industrial units and a facilities building.
The first phase of the development will cover about 120,000 square metres (sq m).
Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.
The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.
In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.
According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.
The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.
Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.
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Kuwait halves drilling contractor pool22 September 2026

State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.
Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.
The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.
The full list of contractors that are now qualified to participate in tenders is:
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An earlier list, which was published on 11 February, included 51 qualified companies.
The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Abu Dhabi expects 45% emissions cut as electricity demand rises21 September 2026
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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.
The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.
The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.
Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.
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The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.
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