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• 
  Webuild wins $600m Diriyah Square project deal

  14 July 2025

  Italian contractor Webuild has announced that it has won a $600m contract from Diriyah Company for a package for the Diriyah Square project.

  The contract relates to construction works on package three of the Diriyah Square project. It involves the finishing and mechanical, electrical and plumbing works on more than 70 buildings and public spaces within Diriyah Square.

  These assets cover a total area of about 365,000 square metres.

  Webuild is already working on the underground multi-storey car park at Diriyah Square.

  The three-floor underground car park will serve the mixed-use Diriyah Square district, which will include leisure and entertainment, hotels, retail, grade A offices, the King Salman Grand mosque and residential units designed in the traditional Najdi architectural style.

  The car park has a floor area of 1 million square metres, with underground roads and tunnels below Diriyah Square, and a capacity for 10,500 cars.

  The parking facility will directly connect commuters with all of Diriyah’s destinations, including Wadi Hanifah, the Western Ring Road and a national motorway. It will be a key component of the City of Riyadh Arterial Road system.

  In an official statement on its website, Webuild said that the construction works on the car park are 55% completed.

  MEED reported in January 2021 that Diriyah Company had selected Webuild for the super basement car park at the Diriyah project in Riyadh.

  Diriyah gigaproject

  The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

  The company awarded several significant contracts last year, including three contracts worth over SR21bn ($5.5bn). These included an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.

  In July last year, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.

  Then in December, Diriyah Company awarded an estimated SR5.8bn ($1.5bn) contract to a joint venture of local firm Nesma & Partners and the local branch of Man Enterprise for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.

  Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.

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

  UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

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

  > AGENDA: UAE-Turkiye trade gains momentum > INTERVIEW 1: Building on UAE-Turkiye trade > INTERVIEW 2: Turkiye's Kalyon goes global > INTERVIEW 3: Strengthening UAE-Turkiye financial links > INTERVIEW 4: Turkish Airlines plans further growth > CURRENT AFFAIRS: Middle East tensions could reduce gas investments > GCC REAL ESTATE: Gulf real estate faces a more nuanced reality > PROJECTS MARKET: GCC projects market collapses > INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation > INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia > LEADERSHIP: Nuclear power makes a global comeback > LEVANT MARKET FOCUS: Levant states wrestle regional pressures > GULF PROJECTS INDEX: Gulf projects index continues climb > CONTRACT AWARDS: Mena contract award activity remains subdued > ECONOMIC DATA: Data drives regional projects > OPINION: A farcical tragedy that no one can end

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

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  Yasir Iqbal
• 
  Penspen to expand workforce in Neutral Zone

  14 July 2025

  

   

  UK-based engineering and project management company Penspen is expanding its headcount in the Neutral Zone, which is shared by Saudi Arabia and Kuwait, according to a senior executive.

  Penspen currently has 130 employees working in the Neutral Zone, also known as the Divided Zone. The company expects to increase the headcount to 200 by the end of the year, according to Neale Carter, the company’s executive vice-president for the Middle East, Africa and Asia-Pacific.

  “It’s a challenging environment, but we’re very pleased to be there,” he said.

  Penspen was invited to join the tendering programme for a range of projects for state-owned Kuwait Gulf Oil Company (KGOC), which is a partner in Al-Khafji Joint Operations (KJO) alongside Saudi Arabia’s Aramco Gulf Operations Company (AGOC).

  Penspen was previously the project management consultant for KJO in the Neutral Zone from 2006 until 2017, when US-based Jacobs replaced them in the role.

  Penspen then went through the tendering process in 2022 and won the contract back in 2023.

  The current contract is a five-year project management consultancy services contract.

  The Neutral Zone has seen an uptick in oil and gas activity in the past couple of years.

  In May, MEED reported that KJO has more than 20 projects currently ongoing to develop the Khafji field, which is located in the shared territory.

  Additionally, KJO is currently in the tendering phase with engineering, procurement and construction (EPC) works on the Dorra gas field development project, which is also located in the Divided Zone.

  KJO has divided the scope of work on the Dorra gas field development project, which is estimated to be valued at up to $10bn, into four EPC packages – three offshore and one onshore.

  In May, Saudi Arabia and Kuwait announced a new oil discovery in the shared territory.

  The oil was discovered in the North Wafra Wara-Burgan field, located five kilometres north of the onshore Wafra field, within Wafra Joint Operations – a 50:50 joint venture of Kuwait Gulf Oil Company and US energy company Chevron.

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

  UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

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

  > AGENDA: UAE-Turkiye trade gains momentum > INTERVIEW 1: Building on UAE-Turkiye trade > INTERVIEW 2: Turkiye's Kalyon goes global > INTERVIEW 3: Strengthening UAE-Turkiye financial links > INTERVIEW 4: Turkish Airlines plans further growth > CURRENT AFFAIRS: Middle East tensions could reduce gas investments > GCC REAL ESTATE: Gulf real estate faces a more nuanced reality > PROJECTS MARKET: GCC projects market collapses > INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation > INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia > LEADERSHIP: Nuclear power makes a global comeback > LEVANT MARKET FOCUS: Levant states wrestle regional pressures > GULF PROJECTS INDEX: Gulf projects index continues climb > CONTRACT AWARDS: Mena contract award activity remains subdued > ECONOMIC DATA: Data drives regional projects > OPINION: A farcical tragedy that no one can end

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

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  Wil Crisp
• 
  Saudi Arabia signs deals for $8.3bn of renewables projects

  14 July 2025

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  A consortium of Acwa Power, Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco) has signed power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) for seven renewable energy projects that will require $8.3bn of investment.

  The projects, which have a total capacity of 15,000MW, include five large-scale solar photovoltaic plants with a total capacity of 12,000MW and two large-scale wind energy plants with a total capacity of 3,000MW.

   

  Financial closes are expected by the third quarter of 2025. The projects are scheduled to start operating in the second half of 2027 and the first half of 2028.

  The projects are part of Saudi Arabia’s National Renewable Energy Programme (NREP), which is led and supervised by the Energy Ministry. PIF has committed to developing 70% of Saudi Arabia’s renewable energy target capacity by 2030.

  With the addition of these new projects, Acwa Power's solar and wind portfolio in Saudi Arabia now comprises 21 projects, representing more than 34GW of combined renewable capacity. Acwa Power's total renewable capacity portfolio, which includes projects in other countries, totals 51.9GW.

  The Public Investment Fund (PIF) is the largest shareholder in Acwa Power; it is listed on the Saudi Stock Exchange (Tadawul) with a 44% stake. The PIF wholly owns Badeel. The PIF holds a 16% stake in Aramco, which is also listed on the Tadawul.

  Acwa Power recently said it is raising SR7.1bn ($1.9bn) with a rights issue to finance its equity contributions in its growing portfolio of domestic and international energy and water projects, as part of its plan to triple managed assets by 2030.

  According to the prospectus for the rights issue, between 75% and 85% of the proceeds will go towards funding its share in current and upcoming projects, while up to 20% may be used for mergers and acquisitions. The remainder will support corporate activities and early-stage project development to accelerate delivery timelines.

   

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  Colin Foreman
• 
  Eni signs $1.35bn Algerian oil and gas deal

  14 July 2025

  Algeria’s state-owned oil and gas company Sonatrach and the Italian company Eni have signed a production-sharing hydrocarbons contract (PSC) estimated to be worth $1.35bn.

  The contract covers the exploration and exploitation of the Zemoul El-Kebir concession area, located in the Berkine Basin, approximately 300 kilometres east of Hassi Messaoud, according to a statement by Sonatrach.

  The deal with Eni is the latest in a string of high-profile agreements that Sonatrach has announced with international oil and gas companies.

  The contract with Eni was signed under Hydrocarbons Law No 1913 and extends for a period of 30 years, with an extendable option for an additional 10 years.

  It includes a seven-year exploration period, with $110m of the estimated $1.35bn investment budget expected to be used in the exploration phase.

  In its statement, Sonatrach said: “The work programme associated with this contract includes the use of innovative technological methods, including the latest digital solutions related to exploitation, in addition to the use of modern technologies to improve production and recover reserves.

  “It is worth noting that, within the framework of implementing this contract, preference is given to the use of local content and the use of subcontracting services from national operators.”

  Expected production from the area covered by the deal has been estimated at 415 million barrels of oil equivalent, including 9.3 billion cubic metres of gas, over the contract period.

  The signing of the final PSC with Eni follows a provisional deal that was signed between Sonatrach and Eni on 19 May 2024.

  As well as signing the PSC relating to the Zemoul El-Kebir concession area, the two parties also signed a gas agreement aimed at defining the terms of the hydrocarbons contract relating to the marketing of dry gas quantities from the operating area, intended for export.

  A framework agreement was also signed between Sonatrach and Eni Corporate University, aiming to develop the skills of Sonatrach employees and transfer knowledge through the Eni Corporate University training institution, for a period of three years.

  In June, Algeria awarded five out of the six oil and gas exploration licences it offered during its 2024 bidding round, a move viewed as a success by stakeholders in the country’s energy sector.

  The companies that were awarded blocks included France’s TotalEnergies, state-owned QatarEnergy, Eni and PTTEP of Thailand.

  The latest licensing round was followed by meetings between Algeria’s President Abdelmadjid Tebboune and delegations from US-based oil and gas companies ExxonMobil and Chevron.

  Project activity across Algeria’s energy, industrial and manufacturing sectors is steadily building as the country focuses on a vertically-integrated strategy that leverages the exploitation of its natural resources.

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

  UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

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

  > AGENDA: UAE-Turkiye trade gains momentum > INTERVIEW 1: Building on UAE-Turkiye trade > INTERVIEW 2: Turkiye's Kalyon goes global > INTERVIEW 3: Strengthening UAE-Turkiye financial links > INTERVIEW 4: Turkish Airlines plans further growth > CURRENT AFFAIRS: Middle East tensions could reduce gas investments > GCC REAL ESTATE: Gulf real estate faces a more nuanced reality > PROJECTS MARKET: GCC projects market collapses > INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation > INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia > LEADERSHIP: Nuclear power makes a global comeback > LEVANT MARKET FOCUS: Levant states wrestle regional pressures > GULF PROJECTS INDEX: Gulf projects index continues climb > CONTRACT AWARDS: Mena contract award activity remains subdued > ECONOMIC DATA: Data drives regional projects > OPINION: A farcical tragedy that no one can end

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

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  Wil Crisp
• 
  Pursuit of political stability dominates Maghreb

  11 July 2025

  

   

  Across the Maghreb, amid a range of external and internal pressures, the pursuit of political stability is emerging as the overarching preoccupation for governments as they compete for trade, growth and investor interest.

  Wracked by drought, years of disruption due to Covid-19 and the impact of the war in Ukraine on grain prices, and now facing the boot of arbitrary US tariffs, the economies of the region need certainty more than anything.

  With fast-growing populations, all of the Maghreb countries face serious challenges in maintaining sufficient job creation to cater to their youth, and with local spending constraints, attracting foreign investment is key.

  None of the Maghreb countries seem to understand this better than Morocco, which has been rolling out what might be described as a GCC-style vision for the country. Most recently, in September 2024, it launched the Digital Morocco 2030 strategy to use artificial intelligence to improve access to services in rural and underserved areas.

  Such initiatives are central to Morocco’s broader New Development Model (NDM) strategy, first laid out in 2021 and recognised by bodies such as the Washington-based IMF as a key driver of economic transformation in the country. Key indicators for the NDM include doubling the country’s GDP per capita to $16,000 by 2035, doubling the rate of women in the workforce, raising renewables to 40% of total energy consumption and developing the digital sector to account for 5% of GDP.

  Rabat is also widening the country’s social security net, having expanded family allowances in 2023, and with plans to expand old-age pensions and unemployment benefits in 2025. The government is also improving access to services for Amazigh speakers in answer to loud political calls since the 2016-17 Amazigh-led Hirak Rif movement protests.

  From creating jobs to supporting vulnerable groups and minorities, the common thread in Rabat’s domestic policy is expediting measures to address emerging risks to social and political stability at source.

  Externally, Morocco has meanwhile intensified its diplomatic campaign for international recognition of its semi-autonomy plan for Western Sahara. First proposed in 2007, the scheme initially received little traction, but the situation changed significantly in 2020 with then US President Donald Trump’s recognition of Moroccan sovereignty over the territory as part of a deal to normalise ties with Israel. In 2022, Spain also shifted its stance to one of support for Rabat’s autonomy plan, followed by France in early 2024 and by the UK in June 2025 – each country for their own reasons.

  The fresh support is a diplomatic sea change for Morocco after 30 years of across-the-board rejection of its claims to the territory and calls for Sahrawi self-determination. It also boosts Rabat’s effort to secure more foreign direct investment (FDI) into Western Sahara and local projects, such as the Morocco-UK XLinks energy initiative.

  For Madrid, the recognition also resolves a point of contention between the two neighbours, particularly ahead of the pending co-hosting of the 2030 Fifa World Cup by Morocco, Spain and Portugal.

  Advances in Algiers

  Across the border in Algeria, the wheels of legislative change have also been slowly turning, with new hydrocarbons and investment laws, accompanied by the lifting of some restrictions on foreign ownership, raising the possibility of boosting inbound FDI.

  The government is also emphasising private sector-led growth and the rationalising of public spending, as well as initiatives to improve the business environment by reforming public banks and state-owned enterprises.

  President Abdelmadjid Tebboune secured his re-election for a second term in September 2024 with the support of 84.3% of the vote, in a reassuring referendum on the political stability of the country’s post-Bouteflika political order.

  Although the country’s politics remain marred by the suppression of the opposition, the broader shake-up in government is reflected in the ongoing reforms and demonstrates the country’s political awareness of the need to deliver.

  In a mirror image of Morocco’s diplomatic journey, Algiers has worsening foreign relations with Paris and Madrid due to its staunch opposition to the Western recognition of Moroccan claims to the Western Sahara region.

  In May 2025, Algeria expelled 15 French diplomatic agents, citing their “irregular positions” on the geopolitical issue. The incident matched similarly negative responses by Algeria to Spain in 2022.

  Trouble in Tripoli

  Libya remains deeply mired in the political deadlock between its two administrations – even as the years of rivalry between the administration has made it clear to all involved of the need for reunification for the stability of the country.

  Talks to establish a unified interim government and hold national elections have stalled over the past year, however, with armed clashes between rival militias in Tripoli in May 2025 only reaffirming the precarious state of affairs in the country.

  The UN remains central to Libya’s peace process, and in early 2025, the UN appointed Hanna Tetteh as the Special Representative for Libya, while a 20-member Libyan Advisory Committee was established to address contentions over the proposed electoral process.

  In May, the committee then outlined some potential solutions, but political consensus remains elusive, leaving little near-term hope for a resolution to the situation in the country.

  Turbulence in Tunisia

  Tunisia, meanwhile, faces issues stemming largely from political instability inflicted upon it under President Kais Saied, who has ruled by decree since dissolving the country’s parliament in 2021. In March 2025, Saied dismissed his third prime minister in less than two years and appointed Sara Zaafarani in their place.

  Saied was re-elected in an October 2024 election with over 90% of the vote, but the process was marred by both low turnout and the arrest of several opposition figures.

  Tunis, under Saied’s leadership, is the exception to the rule amid the Maghreb's pursuit of greater political stability. One rare area of success for the president has been in extracting financial support out of the EU in exchange for curbing trans-Mediterranean migration routes emanating from Tunisia.

  More broadly, however, Tunisia’s deepening economic challenges, low growth and deteriorating public services under the watch of Saied’s autocratic political experiment serve to underline how the region’s most viable route to economic prosperity remains through providing the kind of political stability in which investors can trust.

  The region’s need for trade and growth-boosting policies will only be emphasised from 1 August, when Trump’s pledge for tariffs of 30% on Algeria and Libya, 25% on Tunisia and 20% on Morocco comes due.

  While the US only reflects a small fraction of the outbound trade of each of these countries, further dents to growth are something that the region can ill-afford. Here, too, political stability may be key in enabling the respective powers that be to make diplomatic overtures compelling enough to entice Trump to back down.

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  MEED’s August 2025 report on the Maghreb also includes:

  > ECONOMY: Maghreb economies battle trading headwinds
  > LIBYA OIL: Oil company interest in Libya increases
  > ALGERIA INDUSTRY: Algeria’s industrial strategy builds momentum 
  > POWER & WATER: Slow year for Maghreb power and water awards
  > CONSTRUCTION: World Cup 2030 galvanises Morocco construction

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  John Bambridge