meed-logo

line1 line2 line3
SIGN IN / REGISTER

Cop28 must deliver on promises

25 October 2023

Commentary
Jennifer Aguinaldo
Energy & technology editor

 

There is a good chance that the average delegate attending the 2023 Conference of the Parties of the UN Framework Convention on Climate Change (Cop28) will skip visiting or driving past the key clean energy installations in the UAE.

These include the wind turbines on Sir Baniyas Island, 9.5 kilometres (km) off Jebel Dhana in Abu Dhabi; the $29bn Barakah nuclear power plant in Al-Gharbia, close to the border with Saudi Arabia; the solar farms in Sweihan and Al-Dhafra in Abu Dhabi; and Dubai’s Mohammed bin Rashid al-Maktoum Solar Park, 50km from Expo City, the venue for Cop28.

For many delegates, a trip to these sites is unnecessary. They are aware of the UAE’s green credentials, with the country having ploughed billions of dollars into investments aimed at decarbonising its economy, and more still to come.

For others, however, a single statistic undermines the positive environmental steps that the world’s sixth-largest crude exporter has taken. State-backed energy firm Abu Dhabi National Oil Company (Adnoc) plans to increase its oil production capacity from 4 million barrels a day (b/d) to 5 million b/d by 2027.

Double-edged strategy

Critics, who include the head of the Catholic Church, Pope Francis, have warned of the dangers of a double-edged energy transition strategy. Cop28 president-designate Sultan al-Jaber, managing director and CEO of Adnoc, prefers to describe such an approach as pragmatic.

An agreement requiring developed countries to provide loss and damage funding to countries most affected by climate change was a key takeaway from last year’s UN climate change conference in Egypt (Cop27). However, there was a lack of progress on the phasing down or out of fossil fuels.

The onus is now on the UAE, whose energy transition approach embraces energy sources from fossil fuels to green hydrogen, to deliver a more productive conference.

The hope is that the UAE’s status as an oil- exporting country, and the selection of an oil industry stalwart to lead this year’s negotiations, will not distract from the important tasks that the 12-day event aims to tackle.

Cop28 will see the first global stocktake of the progress countries have made towards their emissions reduction commitments or nationally determined contributions (NDCs).

Al-Jaber has also promised to supercharge climate finance and put more pressure on developed countries to fulfil the commitment they made at Cop15 in Copenhagen to mobilise $100bn annually by 2020. This target has been missed repeatedly.

A UAE finance initiative that will provide $4.5bn to help unlock Africa’s clean energy potential was announced in early September and is an example of such commitment.

Al-Jaber’s insistence on putting oil and gas companies at the heart of the climate dialogue is proving both decisive and divisive, however, depending on which side of the climate debate one supports.

“This is your opportunity to show the world that, in fact, you are central to the solution,” he told the oil and gas-dominated Adipec conference held in Abu Dhabi on 2-5 October.

How can green ammonia compete with grey ammonia if the gas for the grey ammonia is provided at a fraction of world market prices?
Cornelius Matthes, Dii Desert Energy

Cyril Widdershoven, global energy market analyst at Netherlands-based consultancy Verocy, supports Al-Jaber’s views. 

“The main Cop28 outcome will be linked to an even and rational transition from hydrocarbons to renewables, taking into account the overall need to cut emissions and [carbon] footprint,” he says. 

The summit will lead to a realisation that hydrocarbons will be a major part of the overall energy scene for decades to come, as the world is not yet ready to be fully electrified, Widdershoven adds.

The oil and gas industry’s increased presence at, and participation in, Cop28 is expected to make an impact.

“There will be huge pressure on the oil and gas industry to participate in the decarbonisation of energy systems, first by eliminating methane flaring and then eliminating emissions from their own operations by 2030,” says Paddy Padmanathan, co-founder and vice-chairman of clean energy firm Zhero and former CEO of Saudi utility developer Acwa Power.

“Abu Dhabi can influence the national oil companies to sign up to this, and Adnoc and Saudi Aramco should be able to influence the international oil companies to sign up.”

Top 10 UAE clean energy projects

Walking the talk

The UAE has shown leadership by being the first country in the Middle East and North Africa (Mena) region to initiate the phasing out of fossil fuel subsidies in 2015, Cornelius Matthes, CEO of Dubai-based Dii Desert Energy, tells MEED. 

“It was also the first Mena country to introduce a net-zero 2050 target in 2021, and has an unparalleled track record in building some of the largest solar plants in the world at record-low prices.”

Since other countries in the region have already followed the UAE’s lead, the expectation is for Cop28 to provide impetus for similar initiatives to accelerate.

With Abu Dhabi leading, Zhero’s Padmanathan expects it will also be possible to secure financial commitments
to the Loss & Damage Fund that was established at Cop27.

A declaration from the world’s 46 least-developed countries cited a “strong outcome operationalising the new Loss & Damage Fund” among their key expectations and priorities for Cop28.

Home to more than 14 per cent of the world’s population, these countries contribute about 1 per cent of emissions from fossil fuels and industrial processes and most are on the front line of the climate crisis. The majority need funds to deal with the impact of climate change in sectors such as agriculture, while others require funds to develop clean energy sources. 

Tripling initiative

The goal of tripling global renewable energy capacity is expected be included in the agenda for Cop28.

This is in line with the International Energy Agency’s recommendation that the world needs to triple global renewable energy capacity by 2030 if the 1.5 degrees Celsius cap on global warming that was agreed in Paris in 2015 is to still be within reach.

However, this goal needs a clear mechanism to be effective, according to an expert in the renewable energy field.

“There will be a big song and dance around the commitment to tripling solar and wind deployment by 2030, but given there will be no mechanism for holding anyone responsible for it, and for sure there will be no consequence … I cannot see how meaningful such pledges can be,” the expert tells MEED.

Hard issues 

The wider Mena region, which will share the spotlight and scrutiny associated with Cop28, will have to demonstrate a willingness to talk about the reduction of all harmful emissions, not only carbon, says Matthes.

The easiest option is to phase out fossil fuel subsidies, as they encourage energy waste and profit wealthy populations disproportionately.

“How can green ammonia compete with grey ammonia if the gas for the grey ammonia is provided at a fraction of world market prices?” Matthes asks.

Introducing a cost for all harmful emissions is another opportunity that can automatically improve bankability for energy transformation projects. To their credit, the UAE and Saudi Arabia have recently introduced voluntary carbon markets, which are seen as steps in the right direction.

Initiatives to boost energy efficiency across the Mena region should also be part of the conversation. These range from efforts to use air conditioning, cooling and water more discriminatingly; electrify transportation; deploy battery energy storage systems; and increase the decarbonisation of the production, shipping, refining and upstream use of oil and gas.

“The region’s waste of energy should be reduced and eliminated before even thinking about how to produce energy,” says Matthes.

Possible scenarios

Despite promises of inclusivity and productiveness, there is a strong probability that most Cop28 negotiators will get only a fraction of what they hope to take away from the summit.

“In a complex system like the Cop negotiations, we need to be realistic about what can be achieved,” says Matthes. “As we have seen in the past ... the same countries always manage to dilute compromises and block long-overdue and necessary developments.”

A likely post-Cop28 scenario could include an agreement requiring the oil and gas industry to do and spend more to decarbonise their products and operations, share in the financial burden of climate change mitigation, and if possible, curb production. This could avoid the use of wording that proved contentious at Glasgow’s Cop26 when a deal that called for the “phase out” of coal-fired power had to be amended to “phase down” following pressure from some countries. 

Climate change advocates will have to live with the fact that fossil fuels, and their entire supply chain, are not likely to be penalised further or disappear. Major change is unlikely until the world is ready to be fully electrified, or until the fear that halting oil production could cause energy insecurity and economic chaos can be overcome.

The Global North countries will have to weigh the best options to reach their net-zero carbon emission targets by 2050 without risking their economic growth. However, countries such as the UK are in the process of pushing back some of their energy transition targets.

Meanwhile, most Global South countries will continue to bear the brunt of the worsening climate crisis, albeit with some support from top carbon-emitting and wealthy nations.

Rightly or wrongly, this could highlight the merit of Al-Jaber’s preferred pragmatic and inclusive approach to Cop28 in terms of technologies, fuels and the representation of sectors.

“A convergence of interests and the dramatic changes to the status of the global energy transition over the past few years … could help countries find new momentum and solutions that might not have seemed feasible in the past,” says Matthes.

Image: Cop28 president-designate Sultan al-Jaber engages with Pope Francis on driving positive outcomes for climate action. Credit: Cop28

https://image.digitalinsightresearch.in/uploads/NewsArticle/11210573/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Egypt places fuel order for El-Dabaa nuclear plant

    21 November 2025

    Egypt’s government has signed a nuclear fuel purchase order for the first unit of the El-Dabaa nuclear power plant, which is expected to be operational in 2026.

    The fuel order was signed with Russia’s State Atomic Energy Corporation (Rosatom).

    The signing ceremony was attended by Egypt’s Prime Minister Mostafa Madbouli. It included senior officials from Egypt’s Ministry of Electricity & Renewable Energy and the Nuclear Power Plants Authority (NPPA).

    The agreement coincided with the installation of the VVER-1200 Generation III+ reactor pressure vessel for the project’s first unit.

    The El-Dabaa nuclear power plant will have four units, each capable of generating 1,200MW of electricity. The VVER-1200 Generation III+ reactor model has been selected for all four units.

    Egypt and Russia signed the initial inter-governmental agreement for the North African state’s first nuclear facility in November 2015.

    Rosatom, the project’s main contractor, announced that it started the production of electrical components in Saint Petersburg for a reactor vessel for the plant in June 2022.

    The two countries also agreed on broader cooperation covering nuclear technology, medical radioisotopes, technical applications such as 3D printing, and communications.

    El-Dabaa project status

    In September 2023, the Egyptian Nuclear & Radiological Regulation Authority (ENRRA) granted a construction permit for the plant’s fourth reactor. ENRRA granted the construction permit for unit three in March that year and units one and two in June 2022 and October 2022, respectively.

    In November 2022, South Korea’s Doosan Enerbility signed a contract valued at $1.2bn with state-owned South Korea Hydro & Nuclear Power (KHNP), a subsidiary of Korea Electric Power Corporation (Kepco), for the project.

    Rosatom subsidiary ASE earlier appointed KHNP as the single supplier for constructing the turbine islands.

    The simultaneous installation of the reactor pressure vessel and fuel order indicates that Unit 1 has transitioned from civil construction into the core mechanical and systems-installation phase.

    The latest advancements align with Egypt’s annual Nuclear Energy Day, observed on 19 November to mark the 2015 agreement that initiated the El-Dabaa project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15132504/main37223922.jpg
    Mark Dowdall
  • Iraq unveils 20-year plan to add 57GW of power capacity

    21 November 2025

    Register for MEED’s 14-day trial access 

    Iraq has unveiled a 20-year plan to add 57GW of new power capacity in partnership with Germany’s Siemens Energy and US-based GE Vernova.

    The programme aims to expand the electricity sector through new gas-fired plants, renewable energy schemes and long-term maintenance plans for existing plants.

    Prime Minister Mohammed Shia Al-Sudani announced the plan on 19 November as he launched a project to build the 1,400MW Al-Youssifiyah thermal power plant under a build-own-operate (BOO) model.

    Located about 30 kilometres from Baghdad, there have been previous attempts to restore the Al-Youssifiyah plant, which has been stalled since it was destroyed during the Gulf War. 

    In 2015, the project was cancelled amid civil unrest in the region. 

    No official timeline was given for the latest “implementation phase” of the project.

    In a statement, however, the prime minister said the country will move towards an alternative financial model for electricity investments.

    “We have adopted an investment financial model that addresses the injustices of previous phase contracts to provide an attractive environment for investment,” he said.

    “We have worked to reduce the tariff rate and provide up to a 43% [reduction] from previous contracts while preserving public funds,” he added. 

    MEED understands that these savings refer to reduced generation costs under a model supported by long-term power purchase agreements (PPAs).

    Al-Sudani has also directed the ministry to calculate the actual cost of producing electricity and recover it through improved billing and collection.

    Iraq’s government has also set a target of adding more than 7GW of solar capacity by 2030 to reduce reliance on oil- and gas-fired generation. The country continues to face chronic electricity shortages, especially during the summer months, as it aims to meet 24-hour demand.

    In August, the government approved five major power generation projects, with a combined capacity exceeding 10,000MW.

    The projects include three major independent power producer (IPP) combined-cycle plants at Al-Faw, Abu Ghraib and Kirkuk, totalling 7,500MW. 

    The Iraqi cabinet also approved the development of two thermal power plants, one in Najaf and the other in Youssifiyah, with output capacities of 1,500MW and 1,800MW, respectively.

    Furthermore, in September, Iraq started power generation at its first utility-scale solar plant.

    The first phase of the 300MW Karbala solar power plant has started generating 22MW, with plans to increase to the full capacity of 300MW by the end of the year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15131975/main2817.jpg
    Mark Dowdall
  • Kuwait upstream project to be completed in 2027

    21 November 2025

     

    State-owned upstream operator Kuwait Oil Company (KOC) is expecting its project to install depletion compression systems and sulphur recovery units (SRUs) to be completed in the middle of 2027, according to industry sources.

    KOC signed a contract with Kuwait-based engineering contractor Spetco earlier this year, and construction work is currently ongoing.

    In November last year, Spetco submitted a bid of KD126.5m ($412m), beating bids from companies based in China, Saudi Arabia and India.

    The project involves installing new units at the facilities known as Early Production Facility 50 (EPF-50) and Jurassic Production Facility 3 (JPF-3).

    Tender documents were originally made available on 17 September 2023, with a bid deadline of 17 December that year.

    Due to scope changes, the deadline was extended several times before bids were ultimately submitted ahead of a 15 October 2024 deadline.

    Scope changes

    In August last year, MEED reported that the estimated budget for the project had been increased from about $380m to approximately $460m due to scope changes.

    The project uses the build-own-operate-transfer contract model.

    EPF-50 and JPF-3 are sour hydrocarbons processing and handling facilities located in North Kuwait, designed to handle high-pressure (HP) sour hydrocarbons from several Jurassic wells in North Kuwait fields.

    The project was launched to sustain production from the facilities by installing compression systems and SRUs.

    Boosting compression

    The contract’s original scope of work was divided into two parts, according to the tender documents that were released in September 2023.

    The first part focused on installing a new medium-pressure (MP) compression system and SRU at EPF-50.

    The second part focused on installing a new MP compression system and SRU at JPF-3.

    The EPF-50 and JPF-3 facilities receive sour wet hydrocarbons reservoir fluids through flowline gathering networks and trunk lines.

    Crude, gas and water are separated in a separation section that is currently receiving well fluid at 1,100 pounds a square inch gauge (psig), and the crude is stabilised for export after desalting.

    The separation section consists of HP, MP and low-pressure (LP) separators in series. MP and LP gases are compressed to HP and combined with gas from HP separators.

    The gas is then treated in gas sweetening and dehydration units before being exported via pipeline.

    As the well fluid pressure depletes to MP, the combined feed from the inlet production headers and test header will be routed through a crude pre-heater to the new MP separator, which operates at about 425-450 psig.

    The new compressors will compress the gas from MP to HP.

    The EPF-50 facility can currently process 200 million standard cubic feet a day (scf/d) of gas, 50,000 barrels a day (b/d) of oil and 130 tonnes a day (t/d) of sulphur.

    Originally, the upgrade project was expected to increase the volume of sulphur it can process to 270-310 t/d, but after the proposed changes to the scope, the capacity is now likely to be larger.

    The JPF-3 facility can currently process 150 million scf/d of gas, 50,000 b/d of oil and 200 t/d of sulphur.

    Originally, the planned upgrade was expected to increase the volume of gas that the facility can process to 240 million scf/d and the volume of sulphur to 440 t/d.

    Due to the scope changes, the capacity of JPF-3 will now be increased by more than the volumes outlined in the original tender documents.

    It is currently unclear by how much the capacities of EPF-50 and JPF-3 will increase under the new project scope.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15129453/main.png
    Wil Crisp
  • Regional rail construction surges ahead

    21 November 2025

     

    > This package also includes: Middle East becomes a hub as rail networks mature

    The GCC is at the centre of global rail construction activity after a decade of stop-start activity. Progress is being made on several large-scale rail schemes, providing renewed opportunities for international contractors to re-enter the market.

    From the Qiddiya high-speed rail in Saudi Arabia to the planned expansion of Dubai’s metro network and the long-awaited revival of the GCC railway, a new wave of projects is shaping the region’s economic future.

    Well-timed resurgence

    According to data from regional projects tracker MEED Projects, the region boasts a pipeline of over $140bn-worth of railway schemes. Several factors are driving the renewed focus on major infrastructure.

    Firstly, the region’s post-pandemic recovery has been underpinned by robust fiscal performance. Higher oil prices since 2022 have strengthened government balance sheets, enabling public investment in capital projects. Unlike in previous cycles, however, the current wave of spending is guided by a clearer vision rooted in diversification and long-term national development strategies.

    Saudi Arabia’s Vision 2030, the UAE’s Centennial Plan 2071 and Oman’s Vision 2040 all emphasise connectivity, mobility and urban liveability as essential components of sustainable growth. Governments are therefore prioritising infrastructure that forms the backbone for tourism, logistics and housing development.

    Secondly, project delivery capabilities have matured across the GCC. Local developers, contractors and authorities have gained experience delivering large and complex schemes such as the Dubai and Riyadh metros and Doha’s Fifa World Cup infrastructure. This has built confidence and the capacity to handle more ambitious undertakings.

    Thirdly, global construction markets are shifting. With slowing growth in some developed economies, the GCC offers a stable, well-capitalised and politically supportive environment for investment. 

    In addition, international contractors, consultants and suppliers are facing shrinking margins elsewhere and are therefore refocusing on the Gulf region’s more promising project pipelines.

    Strong prospects

    Saudi Arabia has a pipeline of about $60bn-worth of rail projects. The long-discussed Saudi Land Bridge, connecting the Red Sea to the Gulf through Riyadh, is being prepared for procurement. Once complete, it will be a 1,300-kilometre (km) corridor from Jeddah to Dammam, transforming freight logistics and positioning Saudi Arabia as a regional trade hub.

    The kingdom’s planned Qiddiya high-speed rail, meanwhile, will link King Salman International airport with Qiddiya entertainment city. It is part of Riyadh’s broader mobility masterplan and reflects the government’s intention to integrate developments with efficient public transport.

    Riyadh also continues to expand its metro system, with Line 7 currently under tendering. This addition will extend the network’s reach to growing urban districts, further embedding mass transit into the daily life of the city.


    Dubai is moving forward with the proposed Metro Gold Line

    In the UAE, the momentum is just as strong. The ongoing Etihad Rail project is entering a new phase with the anticipated rollout of passenger services, connecting Abu Dhabi, Dubai and eventually the northern emirates. Freight operations are already under way, providing a backbone for industrial connectivity and cross-border trade. Plans for an Abu Dhabi–Dubai high-speed link are also progressing as bid evaluation continues for the main construction works.

    Dubai is also going ahead with the proposed Metro Gold Line, which is designed to serve new growth corridors and improve connectivity to emerging districts. 

    Meanwhile, regional integration is back on the agenda with the GCC Railway, a long-delayed project that is finally gaining traction. Once realised, the network will connect Kuwait to Oman via Saudi Arabia, Bahrain, Qatar and the UAE, and governments are now actively coordinating to align standards, timelines and funding mechanisms.

    The GCC offers a stable, well-capitalised and politically supportive environment for investment

    Evolving delivery models

    While public funding remains central to these initiatives, the GCC’s infrastructure landscape is also seeing a gradual shift towards new delivery and financing models.

    Public-private partnerships (PPPs) are gaining traction, especially in Saudi Arabia. The proposed Qiddiya high-speed rail project is planned as a PPP, while several components of Hafeet Rail are being delivered through joint ventures providing financing arrangements.

    This evolution comes with challenges, however. These frameworks must balance investor confidence with
    public value, creating a need for clear risk allocation and transparent governance.

    The scale and ambition of the ongoing projects have not gone unnoticed internationally. Leading construction, engineering, and technology firms are either expanding or returning to the region after years of reduced activity. 

    Global rail specialists are competing for lucrative contracts in the region, while international consultancies are increasingly embedded in master planning and programme management roles.

    The resurgence in project activity within the regional rail sector means firms will have many prospects to explore. 

    “The regional market has not been this exciting in a long, long time,” a senior executive from a major international rail firm told MEED. 

    “The market is shaping up for a golden era in rail and we will make sure that we give it our full attention.”

    Another executive added: “This is primarily because of the resources available to governments now compared to in previous years, but more importantly [it is due to] the intent and will to make the projects happen.”

    The GCC’s clear project pipeline and decisive execution are also a draw. Several rail projects in the region, such as Dubai Metro and Etihad Rail, have progressed from concept to implementation in relatively short timeframes.

    Moreover, sustainability and innovation are becoming central to the GCC’s value proposition. Digital engineering, modular construction and low-carbon materials are being adopted more widely. 

    Developers are under pressure to meet environmental standards and align with global best practices. Commitment to these concerns, particularly through the UAE and Saudi Arabia’s net-zero goals, further enhances the region’s attractiveness to global investors.

    Bringing together transport, tourism, logistics and sustainability is creating a practical approach to modern urban development

    Challenges ahead

    Despite the optimism, challenges remain. Cost pressures, supply chain disruptions and competition for skilled labour could slow progress or inflate project budgets. 

    The rapid pace of project launches also risks overstretching local capacity. Maintaining quality, timelines and financial discipline will require strong governance and careful coordination between various government agencies.

    Long-term success depends on integrating infrastructure investment with broader social and economic goals. Transport systems must connect to affordable housing, job clusters and educational hubs, otherwise benefits remain limited. 

    That said, the GCC has shown remarkable adaptability. The lessons learned from previous cycles, especially the importance of phasing, master planning and stakeholder alignment, are helping to shape current strategies. Authorities are more selective, prioritising projects that yield clear economic multipliers and align with national visions.

    The current wave of infrastructure expansion looks set to position the GCC region as a global rail construction hotspot. The projects will also define the physical and economic landscape of the region for decades to come.

    By connecting cities, ports, and industries, these projects are reshaping the region’s economy. Bringing together transport, tourism, logistics and sustainability is creating a practical approach to modern urban development.

    If the previous era of regional construction was defined by skyscrapers and luxury resorts, the coming decade will be defined by connectivity and integration. The GCC’s major projects today are not about scale alone, but also about building more connected economies that can sustain growth.

    The renewed momentum also presents an opportunity for regional governments to amplify their national ambitions by building more diversified economies, reducing carbon emissions and enhancing liveability.

    Main image: Haramain high-speed train in Jeddah, Saudi Arabia

    Middle East becomes a hub as rail networks mature: MEED interviews Martin Vaujour, Alstom’s Africa, Middle East and Central Asia region president

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15132273/main.gif
    Yasir Iqbal
  • Middle East becomes a hub as rail networks mature

    21 November 2025

     

    The resurgence in investment in metro and intercity lines means the region is no longer an emerging market for the global rail industry. It is now an established hub with an expanding network of projects and, increasingly, the need for ongoing servicing, upgrades and new technologies.

    “We are reaching a point where it is not just about building new lines. Customers are now understanding that it is not enough to just buy new trains – they also need long-term partnerships to service and maintain them efficiently,” says Martin Vaujour, Alstom’s Africa, Middle East and Central Asia region president.

    Alstom, which has supplied rolling stock and systems for major schemes in the region such as the Riyadh Metro, is now seeing growing demand for both new-build contracts and service agreements. “There are still lots of new investments,” he says, “but also growing activity in signalling projects, service projects and spare parts – areas that used to be small but are now taking off. That is a [source] of satisfaction for me, because those businesses are less risky, have better margins and create long-term relationships with customers.”

    The change is an important development as the region becomes a mature market with diverse opportunities for the rail industry. “There was a time when countries would just buy materials with export credit,” says Vaujour. “Now, they are supporting local capacity to service and maintain trains. The mindset is evolving, and that is a very positive sign.”

    Saudi expansion

    Buoyed by the opening of Riyadh Metro at the end of 2024, Saudi Arabia remains an important market. “They are happy with the success [of Riyadh Metro],” says Vaujour. “There is extension work on the existing lines, new rolling stock being discussed and a potential Line 7 project. The network is expanding, and that is a great success story.”

    The next wave of growth in Saudi Arabia includes the planned Qiddiya Express high-speed line, which has recently attracted expressions of interest. 

    “That project has been on our radar for some time,” says Vaujour. “It is under the umbrella of the Royal Commission for Riyadh City, which is very well organised and structured. That gives the project strength and credibility.”

    The scheme is being developed as a public-private partnership, a model that Vaujour says fits Saudi Arabia’s stable economic environment. “Public-private partnerships (PPPs) take longer to put together because they are more complex to structure, but in countries like Saudi Arabia – stable and with the capacity to raise debt – why not?” he says. 

    “We are fine with PPPs. We have experience from France, the UK and Spain.”

    While Alstom does not invest directly, it plays a key role in structuring deals. “We are facilitators and advisers,” says Vaujour. 

    “Our job is to accompany the customer, to adjust and iterate with them, and to help find the best solution. PPP is one of the tools in the box – not the simplest one, but one that works.”

    The challenge in the market today is not a lack of opportunity, but deciding where to focus. 

    “Our main problem is not the market; it is how to be selective,” he says. “We have more than enough opportunities to ensure a nice trajectory of growth. The difficulty is to pick our battles and fight for the right ones.”

    The challenge in the market today is not a lack of opportunity, but deciding where to focus

    Shifting focus

    In Africa and Central Asia, Alstom has long-term locomotive and commuter train partnerships that offer years of visibility. In the Gulf, by contrast, the model remains dominated by engineering, procurement and construction-style projects. 

    “It is more big projects, where civil contractors team up with us to deliver metros or airport people movers,” says Vaujour.

    As regional urban transport networks become established, attention is turning to intercity and high-speed rail. “In the Gulf, the Abu Dhabi-Dubai high-speed project is probably the most advanced, while Qiddiya Express and upgrades to the Haramain line in Saudi Arabia could also accelerate momentum.”

    Interest in high-speed connections between Riyadh, Doha and Kuwait is also growing, although such schemes will depend on electrification. “High-speed rail comes with electrification,” Vaujour notes. “And that means significant investment.”

    In addition to new infrastructure, the rail sector is being reshaped by technology. Alstom is investing in clean traction systems, such as hydrogen and battery-powered trains, as well as in autonomous operations.

    “Hydrogen and battery traction are progressing, but they are still in an early stage,” says Vaujour. “Diesel will continue to dominate freight for some time, because there is no clean technology yet that can deliver that level of power. But for passenger services, we are starting to see progress.”

    Driverless trains are another major growth area. “Customers everywhere are interested, partly because it is increasingly hard to find drivers, and also because software drives more efficiently than humans. It is more energy-efficient and reduces wear and tear,” says Vaujour.

    As the Middle East’s networks expand, upgrading existing infrastructure is becoming as important as building new lines. Signalling systems are central to this evolution. “You cannot just create new lines every year – it is too expensive,” says Vaujour. “Signalling allows you to double train frequency. It is what makes networks more efficient.”

    The evolution reflects a wider transformation of the region’s rail sector. “The Middle East has become an established rail hub,” says Vaujour. “It is no longer just about building – it is about operating, maintaining and evolving.” 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15131845/main.gif
    Colin Foreman