meed-logo

line1 line2 line3
SIGN IN / REGISTER

Diriyah CEO sets the record straight

17 February 2025

 

Register for MEED’s 14-day trial access | Beat the queue for the Saudi Gigaprojects 2025 summit (12-14 May)

There can be few busier people in Saudi construction right now than Jerry Inzerillo, group CEO of Diriyah Company, the developer behind the $63.2bn Diriyah gigaproject.

A charismatic New Yorker with the distinctive accent to match, he has been the most visible persona behind what is arguably one of the most impressive and advanced projects of the kingdom’s $1tn capital expenditure drive. 

Centred around the At-Turaif Unesco World Heritage Site on the western outskirts of Riyadh, Diriyah has opened its first assets to the public, most notably the retail-focused Bujairi Terrace and its first hotel, the Luxury Collection Bab Samhan Hotel.

These are already proving popular; even on a weekday lunchtime, the former was packed with Saudis enjoying a meal or simply walking between the rows of upscale boutiques enveloped in Diriyah’s characteristic Najdi architectural style. 

At night, Bujairi Terrace is so busy that advanced tickets are required just to enter the precinct to avoid overcrowding.


Opened in December 2022, Diriyah's Bujairi Terrace offers an array of restaurants and cafes

Asset manager role

Managing this is a new challenge for Diriyah Company as it transitions from a developer primarily focused on infrastructure delivery to one that is now also operating as an asset manager for its completed elements. 

“Think about it: right now in the day, we have 40,000 construction workers on site, but last night, we had 13,000 people visiting At-Turaif,” Inzerillo said in early January.

“We’re trading; we’re open; we’re earning revenues from Bab Samhan, the first of 40 hotels to open. It’s already trading very, very well – it’s going to be a very popular hotel.

“I’ve been here 6.5 years now and I’m more optimistic than I’ve ever been.”

Visitors are not just there to shop and eat. Diriyah’s protocol department now has more than 20 staff to handle between nine and 15 protocol moments a day.

“Heads of state, cabinet members and prominent CEOs come every day to see His Royal Highness [Crown Prince Mohammed Bin Salman]. They view the masterplans, see it being built and then have a meal before going to the Unesco site,” says Inzerillo.

I’m seeing robust interest and activity now, not just kicking the tyres as we say in New York. I’m seeing people really coming up to us now. We have dozens of deals right now. We’re very far down the road in terms of equity
Jerry Inzerillo, group CEO of Diriyah Company 

Concrete proof of delivery

The Diriyah CEO spoke with MEED at the opening of two new $200m substations built by Saudi Electricity Company to serve the gigaproject specifically. His presence at the event was a reminder of how keen Diriyah Company is to tell the world – and potential investors – about the development’s progress.

It is no secret that the gigaprojects programme has failed to attract the amount of local or foreign sector investment that it may have initially expected. Opinions vary, but it is fair to say a lack of clarity on project scopes, timeframes and visions, combined with the Covid pandemic and missteps in the initial communication strategy on what the gigaprojects stood for, have all been stumbling blocks in drawing in private investment.

However, this is changing as the gigaprojects themselves start to be delivered and more concrete proof of their demand potential is made clear.

Not that Inzerillo has any doubts about their ultimate investment potential and successful delivery. When asked about these issues, his response was clear: “Look I think there are two factors [behind these issues] and I don’t see them as unhealthy. In fact, it’s the opposite – I see them as healthy,” he asserts.

“Our [Saudi Arabia’s] intention was to take tourism from 3% of GDP to 10% by 2030, while our target was to attract 100 million visits by the same date. We achieved this by December 2023. We’ve already broken 5% of GDP and we feel very confident that we’ll make the 10% objective.

“We’re now putting the infrastructure in the new 58 million square-metre King Salman International airport and other transport infrastructure around the country. All the gigaprojects are opening hotels; for example, look at the great work being done along the Red Sea coast; the great work being done now on Qiddiya.

“So, I think what happened was a lot of people said, ‘Ok, we believe in Saudi Arabia. We certainly believe in its vision. But you know what? We’re going to wait a year or two till we see evidence that the projects are progressing as projected. We intend to be in the kingdom a long time, so let’s wait a year or two before committing.’”

JOIN THE LEADERS BUILDING VISION 2030 AT THE 3RD EDITION OF MEED's SAUDI GIGAPROJECTS SUMMIT
12-14 May – Riyadh, Saudi Arabia
CLICK HERE TO REGISTER YOUR INTEREST

Optimistic outlook

Inzerillo highlights Covid’s impact on the investment environment, adding that it delayed investment plans by two years, but appetite has now caught up.

“I’m seeing robust interest and activity now, not just kicking the tyres as we say in New York,” he states. “I’m seeing people really coming up to us now. We have dozens of deals right now. We’re very far down the road in terms of equity.

“I’m feeling very, very optimistic. I mean, you would think the CEO would naturally be optimistic, but I’m seeing a lot of evidence now.”

This bullishness is underpinned by three huge contracts awarded last year, totalling more than $5.6bn to build the North Cultural and Qurain Avenue districts, forming core components of the Diriyah Gate (DG) 1 phase of the gigaproject, as well as hotel and leisure assets on its residential and hospitality-focused Wadi Safar district.

The pace of activity is continuing into 2025 with a number of major contracts under tender or bid evaluation on the DG2 second phase, including three interchanges on King Khalid Road, the King Salman Grand Mosque, Royal Diriyah Opera House, infrastructure development works, the Northern Community and Diriyah Arena assets. 

Just as significant was the award in early January of a $114m contract covering architectural construction and design services for DG2’s Boulevard District. One of the centrepieces of this second phase, the boulevard will be almost two kilometres long and will be lined on both sides by luxury boutiques and restaurants. Construction work on the boulevard should start in 2026.


One of the largest palaces in Diriyah, Salwa Palace extends over an area of 10,000 square metres

On time, on budget

Maintaining this pace of procurement is important given some of the – often negative – headlines following the ‘pause’ in gigaproject spending in the first half of 2024 as the government and the gigaproject companies’ owner, the Public Investment Fund (PIF), assessed their priorities and expenditure allocations in the face of soaring costs and timelines that threatened to be missed.

While much of this attention has been on Neom, particularly its The Line component, other gigaprojects such as The Red Sea, Roshn and Qiddiya threaten to be put into the same basket, an argument Inzerillo is keen to set straight.

“Now, one has to deal with real economic facts, and that is that post-Covid, you had major supply chain issues, which caused this hyperinflation. We’ve taken that into consideration and made adjustments. We’re on time, we’re on budget,” he stresses. 

“We’ve been very fortunate because of our track record. We have a rockstar team. None of our funding has been even touched in the slightest by the PIF.”

Diriyah has had success in mitigating soaring materials and contracting costs primarily by bundling different works packages into the three ‘mega’ contracts awarded in 2024 as a means of consolidating work to just a handful of contractors. 

At the same time, it secured long-term supply agreements from local manufacturers for key materials such as windows, doors and concrete. Scope revisions, such as the incorporation of the originally planned DG3 residential district into the DG1 element, have also contributed to putting a lid on cost pressures. 

“We always said we had five gigaprojects,” explains Inzerillo. “We had the DG1 historical district. We had DG2, which is 500 tech companies, 100 media companies and 50 entertainment companies. And then there was talk about DG3. When we revisited DG3, it really was just an extension of DG1. So now what we’ve done is [merged] what was called DG3 into DG1. In other words, we merged two phases into one family, but the investment remains the same.”

Reprioritisation of resources

As for last year’s re-evaluation of the gigaprojects’ priorities and delays to the programme overall, Inzerillo attributes these to unforeseen events.

“Now, here’s the other point about the reprioritisation,” he says, referring to last year’s slowdown in gigaproject activity. “Three years ago, no one had any definitive evidence that Saudi Arabia would win the 2027 Asian football games. Three years ago, no one knew that we would be able to win the Winter Asian Games. Three years ago, no one knew we would win the 2030 World Expo in Riyadh. And three years ago, no one predicted the Kingdom of Saudi Arabia would win the 2034 World Cup.

“So, what would need to happen to do those four global events? The answer is, of course, it requires a reprioritisation of resources because now there’s a giant emphasis on delivering these events, especially in Riyadh …. It’s a natural recalibration to host these global events to diversify the economy and certainly hyper stimulate tourism.”


The PIF is expected to provide another SR12bn this year for further development at the gigaproject

Investor interest

Inzerillo, who started his varied, five-decade career in the kitchens of a Brooklyn catering company and then onto senior hotel management positions in the US and South Africa before heading up both IMG Artists and the Forbes Travel Guide, is equally forthright about Diriyah’s investment potential and the success it has had to date, even if much of it has yet to be formally announced. 

“We have a very big interest from investors now,” he says. “I’m seeing my investment division getting really busy, which is very encouraging. I think that when we get to this time next year, we’re going to see a big repetition of what I call replacement equity.

“On some of the commercial assets right now, we’re getting great interest from foreign equity. We’ve had several cases now where foreign partners, such as Saudi, GCC and international partners, have seen the project out of the ground. They can really see it right in front of them. 

“We have a major development with a retail developer from Italy and one from Colombia on buying hotels and going into residential sales with us as joint-venture partners. Funding has been front-loaded from the PIF, which is why it’s important to be a gigaproject within the PIF family. What’s also important is that it allows us to keep up the pace and, more importantly, maintain our quality.” 

To date, the PIF has funded all of the infrastructure works on the gigaproject and is expected to provide another SR12bn this year for further development. 

But at some point, Diriyah Company and the other PIF project subsidiaries are expected to obtain financing, particularly once they start earning revenues. Neom and Red Sea Global have already successfully raised funds through a combination of bond issuances and corporate loan agreements, and Diriyah itself is likely to go down the same route.

Likewise, it is expected to eventually go public when the time is right.

“When will that happen,” says Inzerillo. “That will obviously depend on PIF’s input, which is very important, but we’ve already started the process of getting ready for an initial public offering at some point. I’d be very happy to see that happen before 2030 as I think it would be a great accomplishment. And I’m optimistic to that effect.”

With its first assets up and running and a record value of contracts awarded in 2024, Diriyah is developing at a rapid pace and its CEO is clearly confident it will have most of its core components ready by the launch of the World Expo 2030. 

Much still needs to be done, however. Line 2 of the Riyadh metro will be extended into the development, where it will interchange with the planned Line 7, linking the new King Salman International airport with Qiddiya via Diriyah. The Q Express, a planned express train linking the airport with the entertainment gigaproject, will also stop at Diriyah. All three projects will be handled by other clients and, therefore, somewhat out of Diriyah Company’s direct control. 

Likewise, it remains unclear what the full impact of Expo 2030 and the 2034 World Cup will be on the project ecosystem in the capital. Combined with the giant New Murabba development and ongoing works on the King Salman Park and Sports Boulevard megaprojects, the market is not likely to settle any time soon. 

And despite all the positive talk, there are still very few concrete announced investments in the gigaprojects. Yet, with its first areas already opened and other key elements well under way, Diriyah is arguably better placed than most to capitalise on this unprecedented investment opportunity.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13396510/main.gif
Edward James

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai tenders stormwater drainage projects

    14 August 2026

    Dubai Municipality has issued three tenders for stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.

    The projects cover drainage networks for Hind 4, connections to the stormwater network in Dubailand and a stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman.

    The three tenders were issued through the municipality’s Sewerage and Recycled Water Projects Department.

    All three have bid submission deadlines of 10 September.

    Hind 3 and Hind 4 are two of four zones within Hind City. The Dubai government renamed the Al-Minhad area and surrounding areas as Hind City in 2023. The 83.9-square-kilometre area is served by Emirates Road, Dubai–Al-Ain Road and Jebel Ali–Lehbab Road.

    The DS-316-C1 project covers the construction of sewer and stormwater networks in Hind 4. The stormwater network will include gravity drainage pipelines with diameters of up to 1,600 millimetres (mm), while the sewer network will include pipelines of up to 800mm.

    The TF-24-C1 project will connect developers’ areas in Dubailand to the stormwater network. It includes 18 kilometres (km) of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

    The TF-25-C1 project involves the construction of a 9.2km stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman. The trunk line will include gravity drainage pipelines with diameters of up to 2,800mm. It will also serve main roads along its alignment, including sections of Dubai–Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.

    The projects are intended to strengthen flood resilience and improve the reliability of Dubai’s drainage infrastructure.

    Latest awards

    Dubai has continued to accelerate investment in stormwater infrastructure under the Tasreef programme in recent months.

    In July, MEED exclusively reported that Dubai Municipality had awarded the estimated $100m engineering, procurement and construction contract for the TF-15-C1 package of its Tasreef rainwater drainage network programme to local firm DeTech Contracting.

    The municipality has also recently awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting, respectively.

    The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033 and serve the emirate for the next century.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18585485/main.jpg
    Mark Dowdall
  • Construction completed on $8.5bn Neom hydrogen project

    14 August 2026

    Construction work on the $8.5bn Neom Green Hydrogen project at Oxagon in Saudi Arabia has been completed, with the facility entering the commissioning stage ahead of commercial operations targeted for 2027.

    The project is being developed by Neom Green Hydrogen Company (NGHC), a joint venture of Saudi-listed Acwa, US-headquartered industrial gases group Air Products and Neom.

    Acwa's chief financial officer, Abdulhameed Al-Muhaidib, said during the company’s recent H1 2026 earnings call that construction has been completed and commissioning activities are now under way.

    "It’s really more now into commissioning and the target to go into commercial operation next year," he told investors.

    The project is designed to produce up to 600 tonnes a day of green hydrogen, which will be converted into green ammonia for export. It is supported by about 4GW of solar and wind power generation capacity, with the renewable power that is generated being used to produce hydrogen through electrolysis.

    As previously reported by MEED, Air Products is also the exclusive offtaker for green ammonia produced at the facility under a 30-year agreement.

    NGHC said in March that its renewable power generation assets, including the wind and solar farms, and transmission grid, had reached approximately 95% completion.

    India’s Larsen & Toubro (L&T) is the engineering, procurement and construction (EPC) contractor for the project’s renewable energy and transmission and distribution package.

    L&T’s EPC scope includes a 2,200MW solar plant, a 1,370MW wind farm, a 400MW battery energy storage system and a transmission network extending 190 kilometres.

    The project reached financial close in 2023. Once operational, the facility is expected to produce up to 1.2 million tonnes a year of green ammonia for export.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18567177/main.jpg
    Mark Dowdall
  • Lamprell announces Abu Dhabi offshore project contract

    14 August 2026

     

    Saudi Arabia/UAE-based Lamprell has announced it has won an engineering, procurement, construction and installation (EPCI) contract for a project in Abu Dhabi, for which it will “support the delivery of subsea pipeline infrastructure that will help strengthen offshore energy production and processing capabilities”.

    The project includes the engineering, procurement and fabrication of approximately 50 kilometres (km) of subsea pipeline systems, along with associated flowlines, subsea connections and testing, Lamprell said in a statement.

    With the engineering, procurement and construction (EPC) activities having been completed, preparations are under way for the offshore installation phase, Lamprell added, without revealing further details about the project, its client or value of the contract.

    “Working alongside our sister company Algihaz Marine Contractors, the project demonstrates the value of combining complementary engineering, fabrication and offshore installation capabilities to deliver complex subsea infrastructure safely, efficiently and to a high standard,” the company said in a .

    MEED understands the contract award relates to the first package of the Umm Shaif Gas Cap development project in Abu Dhabi, for which Abu Dhabi National Oil Company (Adnoc Group) and its foreign partners announced achieving a $6.2bn final investment decision (FID) in July.

    MEED previously reported that Adnoc had awarded the EPCI contract for the package related to EPCI and fabrication of a 30,000-tonne gas compression system and associated subsea pipelines, flowlines and other structures, to a consortium of India’s Larsen & Toubro Energy Hydrocarbon (L&TEH) and Lamprell.

    Larsen & Toubro (L&T) confirmed its contract award from Adnoc Group subsidiary Adnoc Offshore earlier in August, describing the order as “ultra-mega”, a term the company uses for contracts valued at more than Rs150bn ($1.57bn).

    Mumbai-headquartered L&T added that the contract will be executed through a consortium, with its subsidiary L&TEH Offshore serving as the lead partner, without mentioning Lamprell.

    The Umm Shaif Gas Cap reserve is located within the offshore Umm Shaif and Nasr hydrocarbons concession, which is operated by Adnoc as the majority stakeholder. The other stakeholders in the concession are Italy’s Eni, France’s TotalEnergies and China National Petroleum Corporation (CNPC).

    Through this project, Adnoc and its concession partners intend to produce up to 600 million cubic feet a day (cf/d) of natural gas by unlocking the Umm Shaif Gas Cap in Abu Dhabi’s Gulf waters.

    Adnoc, in its 21 July statement, said the FID includes three EPC packages totalling $5.1bn for large-scale offshore infrastructure, awarded to consortiums comprising UAE and international contractors. The company did not disclose the contractors or the scope of work.

    MEED reported in May that the following contractors had emerged as frontrunners for the two offshore packages and one onshore package of the Umm Shaif Gas Cap and surface pressure boosting project:

    • First offshore package – fabrication of a 30,000-tonne gas compression system: L&TEH (India) / Lamprell (Saudi Arabia/UAE)
    • Second offshore package – fabrication of another 30,000-tonne gas compression system: McDermott (US)
    • Onshore package – EPC of gas inlet and processing systems on Das Island: China Petroleum Engineering & Construction Company

    Adnoc added that, as part of the FID, it has also awarded a $365m contract to its subsidiary Adnoc Drilling for a 14-well drilling and integrated drilling services scope, to be delivered over 18 months using three existing rigs.

    Umm Shaif Gas Cap project

    Adnoc Offshore, the offshore oil and gas business of Adnoc Group, is the operator of the Umm Shaif Gas Cap and surface pressure boosting project.

    The primary objective is to increase gas production by 550 million cf/d and raise associated condensate output by 50,000 barrels a day (b/d).

    Adnoc Offshore intends to feed about 520 million cf/d of the additional produced gas into Adnoc Group’s sales gas grid.

    Adnoc Offshore is understood to have issued the main EPC tender for the Umm Shaif Gas Cap and surface pressure boosting project in the first quarter of 2025.

    Contractors submitted technical bids for the three EPC packages by 30 October last year, while commercial bids were submitted by the 2 February deadline.

    The following contractors are among those understood to be bidding for the three EPC packages, according to sources:

    Offshore package 1:

    • Saipem (Italy) / Seatrium (Singapore)
    • L&TEH (India) / Lamprell (Saudi Arabia/UAE)
    • NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)

    Offshore package 2:

    • China Offshore Oil Engineering Company (China)
    • McDermott (US)
    • L&TEH (India) / Lamprell (Saudi Arabia/UAE)
    • NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)

    Onshore package:

    • Archirodon (Greece)
    • China Petroleum Engineering & Construction Company (China)
    • Engineering for the Petroleum & Process Industries (Egypt)
    • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
    • Target Engineering Construction Company (UAE)

    Australian firm Worley has performed front-end engineering and design (feed) work on the project.

    Umm Shaif gas production

    Adnoc Offshore operates the Umm Shaif hydrocarbons development, which is located 150km northwest of the city of Abu Dhabi. The field is located in Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, previously operated by former Adnoc Group companies Adma-Opco and Zadco.

    In March and April 2018, Abu Dhabi’s Supreme Council for Financial and Economic Affairs awarded a 10% stake in the Umm Shaif and Nasr offshore block to Eni, 20% to TotalEnergies and 10% to CNPC. Adnoc Group retained the majority 60% interest. The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.

    Gas is produced from the Umm Shaif Khuff and Uweinat reservoirs, as well as from the Arab C and Arab D Early Production Scheme 2. The Umm Shaif Khuff reservoir is a formation that consists of dry gas volumetric reservoirs located in the Umm Shaif field.

    Khuff reservoirs have been in production in Abu Dhabi since August 1989. Umm Shaif Khuff gas is currently produced from 28 active wells within the Umm Shaif field. A majority of these wells supply gas to Adnoc Group subsidiaries Adnoc LNG and Adnoc Gas Processing, with the rest supporting oil reservoirs at the Umm Shaif field through gas injection.

    The Umm Shaif Super Complex (USSC) processes and transports oil, condensates and natural gas in separate pipelines to Das Island for further processing and export. The condensates collected from the USSC are transported to Das Island through an 18-inch pipeline stretching 34.4km, or are spiked into the 36-inch Adnoc main oil line.

    The gas collected from the USSC is transported to Das Island through two 46-inch pipelines, which also run 34.4km.

    Pressure at the Umm Shaif Khuff gas reservoirs will start to decline by the end of 2028. The flowing wellhead pressures at some of the Khuff gas wellhead towers are likely to reduce, so boosting well deliverability and increasing the flowrates is necessary.

    Therefore, new Khuff surface pressure boosting facilities are required to maintain the plateau – with a goal of achieving a 90% gas recovery factor – and increase production beyond the end of the plateau by lowering pressure at the Khuff reservoirs.

    Project tendering exercise

    Adnoc Offshore has been working to advance the Umm Shaif Gas Cap project since at least 2019 and has experimented with several project execution models.

    According to the original schedule, the project was due to be commissioned in 2023, but progress slowed down, primarily due to the Covid-19 pandemic.

    Adnoc Offshore launched a feed-to-EPCI competition for the project in May 2019 and selected the following three entities based on their feed submissions:

    • McDermott (US)
    • National Petroleum Construction Company (UAE; now NMDC Energy) / TechnipFMC (France)
    • Saipem (Italy) / Petrofac (UK)

    Technical bids for the EPCI works on the estimated $1.5bn project were submitted in January 2020 and commercial bids were submitted by August of that year.

    The Saipem/Petrofac consortium emerged as the lowest bidder for the project in September 2020, MEED reported.

    Petrofac is understood to have ultimately withdrawn from the consortium and was replaced by state-owned China Petroleum Engineering & Construction Company (CPECC).

    In 2022, the Saipem/CPECC consortium was understood to be the sole remaining bidder for the Umm Shaif Gas Cap project. Adnoc Offshore engaged the consortium for a revised feed exercise and subsequently received commercial offers on a single-source basis.

    In 2023, Adnoc Offshore cancelled the tendering process for the project and later decided to proceed with a conventional EPC-based project execution model.

    The operator then appointed Worley to undertake feed works on the renewed Umm Shaif Gas Cap project in 2024. Worley has a legacy of involvement in the Umm Shaif hydrocarbons development.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18556614/main1931.jpg
    Indrajit Sen
  • Hitachi Energy signs Erbil substations deal

    14 August 2026

    Switzerland-headquartered Hitachi Energy has annnounced it has signed an agreement to supply high-voltage equipment for three 132/33kV substations being developed in Erbil in northern Iraq.

    The substations are being built by Iraqi electrical contractor Hero Company under a ID100bn ($76.3m) contract signed with the Kurdistan Region's Electricity Ministry in May. 

    In a statement, Hitachi said it will act as the main technology provider for the project, which has a combined capacity of 753 megavolt-amperes.

    According to local media reports, the substations will be located in Shamamak, Hasarok and Timar. The ministry said the projects are to be completed within two years.

    Hitachi Energy says it has supplied more than 120 mobile substations and delivered more than 30 transmission substations in Iraq over the past 15 years. It also says it has upgraded assets including Iraq's National Control Centre.

    Iraq’s power and water sector is currently undergoing one of its largest expansion programmes in decades amid chronic electricity and water shortages.

    In 2025, it recorded its largest year of investment on record, with more than $17bn in combined contract awards.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18548939/main3553.jpg
    Mark Dowdall
  • Contracts signed for Algerian phosphate project

    14 August 2026

    Algeria’s national oil and gas company Sonatrach and the Algerian Chinese Fertilisers Company (ACFC) has signed two engineering, procurement and construction (EPC) contracts for the country’s planned phosphate integrated project in Tebessa Province.

    ACFC was created in March 2022 by Algerian companies Asmidal and Manadjim El-Djazair (Manal), which own 56% of the company, and Chinese groups Wuhuan and Tianan, which own the remaining 44% stake.

    Manal and Asmidal are both subsidiaries of Sonatrach.

    The new contracts are part of the Bled El-Hadba phosphate development project, which is expected to be worth $7bn.

    The contracts were signed by Italy’s Saipem and China Harbour Engineering Company (CHEC) as part of the first phase of the integrated phosphate project.

    Saipem’s contract is worth approximately €500m ($577m), according to a statement released by the Italian company.

    Saipem was previously awarded a front-end engineering and design (feed) contract for the same project in June 2025.

    The signing ceremony for the latest two EPC contracts took place at the headquarters of Sonatrach's general directorate, in the presence of members of the government, Sonatrach CEO Nour Eddine Daoudi, the ambassadors of Italy and China in Algeria, as well as officials from Saipem and CHEC.

    The first phase of the project involves the construction of industrial and port infrastructure, including a phosphate extraction and enrichment complex in Bled El-Hadba with an extraction capacity of 5.5 million tons a year (t/y) and an overall production capacity of concentrated phosphate estimated at 3.2 million t/y.

    Phase one also includes the construction of an integrated industrial complex in Oued Kebrit with the capacity to produce 2.4 million t/y of phosphate fertiliser and 570,000 t/y of nitrogen fertiliser.

    The facility in Oued Kebrit will also produce quantities of other intermediate products.

    Port infrastructure will be constructed in Annaba with the aim of enabling the establishment of an integrated industrial and logistics ecosystem.

    During the signing ceremony, Minister of State and Hydrocarbons Minister Mohamed Arkab said that the project benefits from special attention from Algerian President Abdelmadjid Tebboune, within the framework of his vision to exploit natural resources, strengthen national industrialisation, create added value, diversify the national economy and promote the country’s non-hydrocarbons exports.

    He said that the project will be carried out according to an “accelerated EPC fast-track method”, in order to reduce completion times and bring production online faster.

    This is expected to allow the first quantities of enriched phosphate to be produced in the first quarter of 2027 and fertiliser production is expected to start during the fourth quarter of the same year.

    When the project is fully operational, it is expected to produce approximately 6 million t/y of enriched phosphate and 4 million t/y of different types of phosphate and nitrogen fertilisers.

    It will also produce industrial materials such as sulfuric acid, phosphoric acid and ammonia, according to Arkab.

    He said that Algeria's ambition is not limited to the production of phosphate and fertilisers and also includes the establishment of an integrated industrial chain capable of creating added value, developing skills, supporting the national economy and opening new horizons for Algerian products on international markets.

    Daoudi, the chairman and chief executive of Sonatrach, said that the signing of the two contracts marked the effective transition to the implementation phase of this project, which "undoubtedly constitutes a key milestone in the industrial development process in Algeria".

    The scope of the EPC contract signed by Saipem covers the construction of project facilities at the Bled El-Hadba site and the Oued Kebrit site.

    Saipem’s chief executive Alessandro Puliti said that his company will try to deliver the project on time and will work with three local companies on the project.

    The three companies are pipeline specialist Cosider Canalisations; Algerian Industrial Projects Realisation Company, which is a subsidiary of Sonatrach; and state-owned National Civil Engineering & Building Company.

    The scope of the EPC contract signed by CHEC is focused on developing the Annaba port infrastructure project.

    Speaking at the signing ceremony, CHEC's deputy general manager Chen Zhong said his company is committed to completing the first and second phases of the Annaba port project within the allotted timeframe.

    The wider integrated phosphates project has four main focus areas.

    These are:

    • The Bled El-Hadba phosphate mine
    • Phosphate enrichment units
    • The Oued Kebrit chemicals processing complex
    • Logistics facilities, including the extension of the port of Annaba and a railway network dedicated to the transport of raw materials and finished products

    In its statement, Saipem described the document that it signed with Sonatrach as a limited notice to proceed (LNTP) for the execution of phase one of the integrated phosphate project in Algeria.

    It said: “The full EPC contract will be based on a contractual framework which will allow both parties to share risks and rewards during the execution, including the LNTP period which will enable Saipem to start the preliminary activities that are preparatory and critical for achieving the first project milestones.

    “These include but are not limited to feed completion and detailed engineering, procurement of long lead items, as well as preliminary project mobilisation and organisation activities, pending the negotiation and finalisation of the EPC contract.”

    Saipem has been present in Algeria since 1968 and has developed infrastructure for hydrocarbons treatment and transportation, power generation plants and oil well drilling.

    The Bled El-Hadba phosphate mine has over 1.2 billion tonnes of estimated total reserves, including 800 million tonnes of estimated exploitable reserves, making it one of the biggest mines of its kind in the world.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18499932/main.jpg
    Wil Crisp