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  Iranian drone attack on Fujairah oil hub injures three

  5 May 2026

  The UAE has accused Iran of attacking the country with a new barrage of missiles and drones, setting an oil facility ablaze in the emirate of Fujairah and wounding three Indian nationals.

  The UAE’s Ministry of Defence said its air defences “engaged” a total of 12 ballistic missiles, three cruise missiles and four drones launched from Iran on 4 May.

  The country’s Ministry of Foreign Affairs condemned “in the strongest terms the renewed terrorist, unprovoked Iranian attacks targeting civilian sites and facilities”.

  The foreign ministry statement added that the UAE will not tolerate any threat to its security and sovereignty, and warned that the country reserves the “full and legitimate right to respond” to the attacks.

  Earlier in the day, a crude oil tanker affiliated with Abu Dhabi National Oil Company (Adnoc) was hit by two drones in waters off the UAE and Oman, while transiting the Strait of Hormuz.

  The attacks on 4 May mark the first on the UAE since Iran and the US agreed to a ceasefire on 8 April, with peace talks remaining deadlocked.

  Iran has maintained a stranglehold on the strategic Strait of Hormuz, and the US has imposed a naval blockade in response.

  On 3 May, US President Donald Trump said the US would begin escorting ships through the strait from the following day. US Central Command said it would use guided-missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.

  Iran’s unified military command warned commercial ships against accepting the US offer and said American forces “will be attacked if they intend to approach and enter the Strait of Hormuz”.

  Fujairah Oil Industry Zone attacks

  The Fujairah Oil Industry Zone (FOIZ) has suffered at least half a dozen attacks since March, after the war between Iran and the US broke out on 28 February.

  Fujairah benefits from its strategic geopolitical location outside the Strait of Hormuz, through which about a fifth of the world’s oil and gas supplies normally passes.

  Major midstream oil and gas companies operate key storage and export hubs for oil and refined products in Fujairah, including Abu Dhabi National Oil Company (Adnoc Group), Saudi Aramco – through its subsidiary Aramco Trading – Vopak Horizon, VTTI, Shell, Fujairah Oil Terminal, Brooge Petroleum & Gas Investment Company (BPGIC), Emirates National Oil Company (Enoc), Ecomar, Mount Row and GPS Chemoil.

  Fujairah is crucial to the operations of Adnoc Group subsidiary Adnoc Onshore, which operates a main oil terminal (MOT) there. Located approximately 300 kilometres north of Abu Dhabi, the terminal facilitates the import and export of various crude oil grades, particularly Murban, from the company’s onshore and offshore fields.

  Additionally, the Abu Dhabi Crude Oil Pipeline (Adcop) connects milestone pole (MP) 21 at the Habshan oil facility in Abu Dhabi, where stabilised crude produced from Adnoc Onshore fields is gathered for dispatch, to the Fujairah MOT.

  BPGIC is an oil storage and services firm that was established in 2013 in Fujairah and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.

  Separately, in September 2021, BPGIC began operations at the second phase of its Fujairah oil storage complex, adding 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.

  BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.

  The third phase increased BPGIC’s oil storage capacity by 3.5 times, raising it to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.

  The third-phase expansion project consists of an oil storage facility with a capacity of 2.5 million cubic metres, a modular 25,000-barrel-a-day (b/d) refinery, and a larger 180,000-b/d conventional refinery.

  BPGIC also co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produces low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.

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  Indrajit Sen
• 
  UAE signs aircraft deal with Brazil’s Embraer

  5 May 2026

  The UAE’s Tawazun Council for Defence Enablement has formally awarded a contract to Brazilian manufacturer Embraer for the procurement of the C-390 Millennium aircraft.

  The agreement comprises 10 firm orders, with an additional 10 options, representing a significant strategic effort to enhance the UAE’s operational airlift and logistics capabilities. The deal is the largest single-country international order for the C-390 aircraft to date and establishes a critical foothold for the platform in the Middle East.

  The contract was signed by Nasser Humaid Al-Nuaimi, secretary general of the Tawazun Council for Defence Enablement, and Bosco da Costa Jr, president and CEO of Embraer Defence & Security. The deal was signed in the presence of Sheikh Mansour Bin Zayed Al-Nahyan, vice-president and deputy prime minister of the UAE, and Francisco Gomes Neto, president and CEO of Embraer.

  The procurement decision was reached following a technical evaluation and field-testing campaign conducted within the UAE’s specific operational environment. This process ensured that the aircraft could meet the high performance and reliability standards required by the UAE Air Force and Air Defence. According to Tawazun officials, the C-390 was identified as the platform best suited to optimise lifecycle costs while maintaining high mission readiness across diverse and complex terrains.

  Equipped for multi-mission versatility, the C-390 will enable the UAE military to perform varied roles, including troop and cargo transport, airdrop logistics and medical evacuations. Its design allows for seamless interoperability with national assets and partner forces, as well as the ability to operate from unpaved runways in challenging conditions. This flexibility is intended to support a wide range of military and humanitarian operations over the long term.

  Beyond the acquisition of the aircraft, the contract also supports the growth of the UAE’s domestic defence sector. Embraer and UAE-based defence and technology firm Generation 5 Holding have signed an exclusive strategic partnership agreement to support the C‑390 Millennium programme in the UAE. Signed at the Make it in the Emirates 2026 platform in Abu Dhabi, the agreement covers the development of comprehensive maintenance, repair and overhaul and after-sales support capabilities in the UAE and the wider Middle East, aimed at ensuring mission readiness, rapid response and long-term fleet sustainability for regional operators.

  The partnership also includes opportunities for industrial and supply-chain integration linked to the C‑390, alongside training programmes for technical, maintenance and operational personnel to support knowledge transfer and workforce development. Both companies said the agreement underscores a long-term commitment to building local support and industrial participation for the C‑390 fleet, with implementation to follow after the conclusion of ongoing conditions.

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  Colin Foreman
• 
  Teams prepare $5bn Asir-Jizan highway PPP bids

  5 May 2026

  

   

  Three groups are preparing to submit proposals for an estimated SR20bn ($5bn) contract to develop and operate the Asir-Jizan highway project.

  Saudi Arabia’s Roads General Authority, the National Centre for Privatisation & PPP and the Aseer Development Authority (Asda) have set a new deadline of 31 May for firms to submit bids.

  MEED understands the tender was issued in September last year, with bid submission previously due in March 2026.

  According to sources close to the project, the consortiums that are planning to bid include:

  • Shaanxi Construction Engineering / Safari / Lamar Holding (China/local/local)
  • Makyol / Shibh Aljazira Contracting / Tamasuk (Turkiye/local/local)
  • China Harbour Engineering Company / Vision Invest (China/local)
  • Alayuni / Limak Holding / Nesma & Partners / Plenary (local/Turkiye/South Korea/local/Australia)

  In August last year, five groups were qualified to bid for the contract. However, the consortium comprising Turkiye’s IC Ictas and local firm Algihaz Holding has decided not to pursue the project. South Korea’s Samsung C&T, previously part of the Plenary group, has also withdrawn.

  The 136-kilometre Asir-Jizan highway will have three lanes in each direction and include six intersections, 57 bridges totalling 18km and 11 tunnels totalling 9km.

  The project is one of four planned highway schemes in the kingdom’s privatisation and public-private partnership pipeline.

  The route begins in Al-Farah in Asir and extends to the Red Sea through Jizan.

  The 30-year contract will follow a design, build, finance, operate and maintain model.

  

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  Yasir Iqbal
• 
  Financing deal signed for Egyptian biofuels facility

  5 May 2026

  A financing deal has been signed for a planned biofuels facility to be developed at the Suez Canal Economic Zone in the Egyptian town of Ain Sokhna.

  Several regional companies are involved in the project, including Qatari conglomerate Al-Mana Holding and Vision Invest, a Saudi Arabian infrastructure investor and developer.

  The Arab Energy Fund, a multilateral impact financial institution, acted as the global structuring bank and co-mandated lead arranger for the financing deal, and is also the project’s largest lender.

  Under current plans, the facility will be constructed on a 100,000-square-metre site and is expected to produce up to 200,000 tonnes a year of biofuels, including sustainable aviation fuel (SAF) and hydrotreated vegetable oil, as well as biopropane and bionaphtha.

  Commercial operations are scheduled to start by the end of next year.

  In a statement, Green Sky Capital, one of the signatories to the financing deal, said that the project reinforces the region’s role in global energy transition value chains.

  A long-term offtake deal has been agreed with the London-headquartered oil and gas company Shell.

  Green Sky Capital has also entered into a technology agreement with France’s Axens and an engineering procurement and construction contract with Paris-headquartered SeaOwl.

  The investment firm Rothschild & Co acted as financial adviser to Green Sky Capital on the transaction.

  Ali Shaikh, chief executive of Green Sky Capital, said: “The signing of this financing marks a defining step in the development of our SAF platform and underscores the strategic importance of this project for the region.”

  In December last year, the Suez Canal Economic Zone Authority signed a preliminary deal with Al-Mana Holding relating to the biofuels facility.

  In a statement released last year, Egypt’s cabinet said the project would be implemented in three phases, with a $200m investment covering the first phase.

  The planned facility forms part of Egypt’s broader strategy to reduce reliance on traditional fuels, enabling the country to export more of the hydrocarbons it produces.

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  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 construction

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

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  Wil Crisp
• 
  Hassan Allam awarded Egypt urea plant contract

  5 May 2026

  Egypt’s Hassan Allam Construction has been awarded a contract focused on overhauling three urea plants, according to a statement released by its parent company, Hassan Allam Holding.

  The contract covers civil, mechanical, electrical and instrumentation works for a larger project to revamp the three urea plants of Misr Fertilisers Production Company (Mopco) and develop a new carbon dioxide recovery unit in the Damietta Free Zone.

  The upgrade project is expected to increase production capacity at the three urea plants from 1,940 metric tonnes a day (t/d) to 2,150 t/d.

  In its statement, Hassan Allam Holding said that the upgrade would “boost production efficiency”.

  It also said that it would reinforce Mopco’s position “as a leader in Egypt’s industrial landscape”.

  In November last year, Mopco announced plans to invest up to $250m to increase its production capacity by 10%.

  Egyptian Petrochemicals Holding Company is the largest shareholder, holding a 31.47% stake.

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  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 construction

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16683342/main.jpg

  Wil Crisp