Dubai invites metro extension interest
23 October 2023
Dubai’s Roads & Transport Authority (RTA) has invited contractors to express their interest by 24 November in bidding for the contract to expand the 90-kilometre Dubai Metro scheme.
The planned Blue Line will extend the existing Red and Green lines of the metro.
The Green Line extension will commence from its current terminus at Creek Station in the Jadaf area. It will cross over to the Dubai Creek Harbour development and continue through Ras al-Khor, International City, Dubai Silicon Oasis and Academic City before concluding near the Desert Rose project. The line will have 11 stations.
The Red Line extension will connect its existing terminus in Rashidiya to Mirdif City Centre and continue through Mirdif and Warqaa before joining the Green Line extension in International City.
The project was put on hold during the Covid-19 pandemic and was reactivated in early 2022, when UK-based Atkins and Grimshaw, US-based Parsons and France’s Egis restarted design work.
MEED previously reported that Dubai's RTA is expected to issue tender documents for the expansion of Dubai Metro in the fourth quarter of the year.
In October 2022, MEED reported that groups interested in bidding for the project had started to form. They included France’s Alstom with Spain’s FCC and Beijing-based China State Construction Engineering Corporation; Germany’s Siemens with India’s Larsen & Toubro, the local Alec and Belgium’s Besix; and China Railway Construction Corporation (CRCC) with China Civil Engineering Construction Company (CCECC).
Two billion commuters
Since its public launch on 9 September 2009, the number of riders that have used the Dubai Metro network has exceeded 2 billion, according to the RTA.
The Red Line has transported 1.342 billion commuters, while the Green Line has served 673.531 million passengers.
In 2022, the average daily number of riders on Dubai Metro exceeded 616,000.
The metro extension is part of Dubai’s plans to improve residents' quality of life by cutting journey times as outlined in its newly approved 20-minute city policy.
The last metro project to be completed in Dubai was Route 2020, which connected the Red Line to the Expo 2022 Dubai site. The AED10.6bn ($2.9bn) contract to design and build the line was awarded to a consortium of Alstom, Spain’s Acciona and Turkiye’s Gulermak.
Dubai Metro has also significantly impacted the real estate market, particularly properties within a 15-minute walking distance from metro stations. According to a recent report by CBRE, these properties tend to outperform the broader real estate market in terms of both property value and rental performance.
Further extensions are expected to create new opportunities for businesses and residents alike.
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Miral to develop Disney theme park on Yas Island
7 May 2025
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The Walt Disney Company and Abu Dhabi’s Miral have signed an agreement to build a Disney theme park resort on Yas Island.
US-based Disney said it will be its seventh theme park resort. The others are in California and Florida in the US; Paris in France; Hong Kong and Shanghai in China; and Tokyo in Japan.
In a statement, Disney highlighted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to the largest global airline hub in the world, with 120 million passengers travelling through Abu Dhabi and Dubai each year.
The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, and dining and retail experiences.
Miral will develop and build the resort. Disney’s in-house design and engineering unit, Walt Disney Imagineering, will lead creative design and operational oversight to provide a world-class experience. Miral will operate the resort.
Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island and has worked with several local and international contracting companies. It is working on an expansion to the Waterpark on Yas Island. The local Alec is the contractor.
In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.
In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.
Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam of the Netherlands was the contractor for the Arena and Germany’s Ed Zueblin was the contractor for Clymb.
Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park.
READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF
Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking
Distributed to senior decision-makers in the region and around the world, the May 2025 edition of MEED Business Review includes:
> AGENDA 1: GCC shelters from the trade wars> AGENDA 2: Gulf markets slide as US tariff shockwaves hit> GCC CONTRACTORS: Contractors take on more work in 2025> INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector> INTERVIEW: Roshn outlines its procurement strategy> LEADERSHIP: Rethinking investments for a lower-carbon future> GULF PROJECTS INDEX: Gulf projects index inches upwards> CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025> ECONOMIC DATA: Data drives regional projects> OPINION: Trump’s new world orderTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13833548/main.jpg -
Scatec starts work on $590m solar and battery project
7 May 2025
Norwegian renewable energy firm Scatec has commenced construction on the first phase of its 1.1GW Obelisk solar and 100MW/200MWh battery energy storage project in Egypt.
The firm signed a 25-year power-purchase agreement with Egyptian Electricity Transmission Company (EETC) in September last year. The agreement is US dollar-denominated and sovereign guarantee-backed.
The project will be constructed in two phases, according to Scatec.
The first phase comprises a 561MW solar and 100MW/200MWh battery storage project, which is targeted to reach commercial operation in the first half of 2026.
The second phase comprises a 564MW solar project, which is expected to reach commercial operation in the second half of the same year.
The Oslo-headquartered firm has signed equity bridge loans (EBLs) of $120m for the project, postponing the project equity injections to the end of the construction period.
The Arab Energy Fund will provide a $90m EBL with maturity in the second quarter of 2028, while the European Bank for Reconstruction & Development (EBRD) will provide a further $30m EBL maturing in the first quarter of 2027.
Scatec has further signed a mandate letter with a consortium of development finance institutions for the long-term non-recourse project debt at “attractive terms”, with financial close expected in the next few months.
The company is also in advanced discussions with potential equity partners, expected to conclude in the same timeframe, it added.
Total capex for the project is approximately $590m to be partly financed by a targeted 80% non-recourse long-term project debt.
Scatec will deliver engineering, procurement and construction, asset management, and operations and maintenance services for the project.
The firm said its EPC scope is approximately 70% of total capex, “reduced from previous communication due to optimisation of the EPC structure but with unchanged gross profit to Scatec”.
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Award nears for Oman’s Ibri 3 solar IPP
7 May 2025
Oman’s Nama Power & Water Procurement Company (Nama PWP) is understood to have completed the bid evaluation process for the contract to develop and operate the sultanate’s next solar independent power producer (IPP) project, Ibri 3.
The 500MW IPP scheme is Oman’s fourth utility-scale solar power plant project.
MEED reported in February that the following companies submitted bids for the Ibri 3 IPP contract:
- Abu Dhabi Future Energy Company (Masdar, UAE) / Korea Midland Power (Komipo, South Korea) / Al-Khadra Partners (local)
- Acwa Power (Saudi Arabia) / TotalEnergies Renewables (France)
- EDF Renewables (France) / Korean Western Power (Kowepo, South Korea)
- Sembcorp Utilities (Singapore)
Sources close to the project tell MEED that Oman’s offtaker has concluded the bid evaluation process and could announce the frontrunner for the package soon.
Unlike in other GCC states, Oman has never publicly announced tariffs it has received from bidders for its renewable energy IPPs and independent water projects (IWPs).
Nama PWP received prequalification applications for the Ibri 3 solar photovoltaic (PV) IPP contract in March last year.
KPMG Lower Gulf, a subsidiary of the Netherlands-based consultancy company, has been selected to provide Nama PWP with financial advisory services for the Ibri 3 solar IPP project.
Previous projects
The country’s first 500MW solar IPP scheme, Ibri 2, came onstream in September 2021 and was officially inaugurated in January 2022.
The Manah 1 and Manah 2 solar IPP projects, each with a capacity of 500MW, were recently inaugurated.
A team comprising France’s EDF and South Korea’s Korea Western Power Company (Kowepo) won the contract to develop the Manah 1 solar PV IPP project.
A team of Singapore’s Sembcorp Industries and China-headquartered Jinko Power Technology was awarded the second 500MW solar PV IPP contract.
In September last year, Nama PWP tendered the contracts to develop two wind IPPs.
The Jalan Bani Bu Ali wind IPP will cater to Oman’s Main Interconnection System (MIS), while the Dhofar 2 wind IPP will cater to the smaller Dhofar Power System (DPS).
Three other wind IPPs are expected to be tendered separately. They are:
- Duqm wind IPP: Located in Ras Madrakah in Duqm, the project will have a capacity of 234MW-270MW, with commercial operations expected in Q4 2027
- Mahoot wind 1 IPP: Located in Mahoot in the Al-Wusta Governate, the wind farm will have a capacity of 342MW-400MW, with a commercial operation target of Q4 2027
- Sadah wind IPP: Located in Sadah in the Dhofar Governorate, it will have a capacity of 81MW-99MW and is due for commercial operation in Q4 2027
READ THE MAY 2025 MEED BUSINESS REVIEW – clck here to view PDF
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Egyptian firm to develop real estate project in Iraq
7 May 2025
Egyptian real estate developer Talaat Moustafa Group Holding (TMG) is negotiating with Iraq’s National Investment Commission (NIC) to develop a mixed-use real estate project in Iraq.
In an official statement, TMG said that the project will cover an area of about 14 million square metres (sq m) and be located in the southwest of Baghdad.
The project is expected to contain about 45,000 residential units.
“Subject to the successful conclusion of negotiations, TMG expects to receive the land from Iraqi authorities by the end of this year,” the statement added.
The developer said the expansion will be handled through TMG’s Saudi Arabian arm, TMG Saudi.
TMG Saudi is currently developing the Banan residential project in Riyadh in collaboration with Saudi Arabia’s National Housing Company.
The project contains about 27,750 residential units, spanning an area of about 10 million sq m.
TMG has enjoyed a strong financial performance recently. In its 2024 financial reports, the group logged consolidated net profits after tax worth £E10.7bn ($211m), marking an annual increase of over 223% from the £E3.3bn reported in 2023.
The group also announced that last year its real estate revenues rose to £E24.5bn from £E21.57bn in 2023, while its earnings per share increased to £E4.68 from £E1.46.
GlobalData estimates that the Iraqi construction industry will register an annual average growth rate of 4.9% during 2025-28, supported by investments in energy, water infrastructure and housing projects, coupled with the government’s plan to increase renewable energy production to 12GW by 2030.
In its 2024 fiscal budget, the government allocated $162bn to capital expenditures, an increase of 6% compared to the previous fiscal year budget. Of the total, $30.8bn was allocated to the energy sector, $25.6bn to security and defence, and $13.3bn to the education sector.
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Riyadh confirms capital expenditure cuts
7 May 2025
Saudi Arabia has reported a 19% drop in government capital expenditure (capex) during the first quarter of this year compared to the same period last year. Capex spending in Q1 2025 was SR27.8bn ($7.4bn), down from SR34.5bn in Q1 2024.
The Ministry of Finance reported the drop in expenditure in its Quarterly Budget Performance Report for Q1 2025.
The government’s reduction in capex occurred at the same time as a drop in contract awards. According to regional projects tracker MEED Projects, there was a significant reduction in contract awards during Q1 2025.
There were $16.9bn of contract awards in the kingdom during Q1 2025, which includes private and public sector clients – including the Public Investment Fund (PIF) and its subsidiary development companies, as well as public-private partnership (PPP) projects.
The number of contract awards has also declined. According to MEED Projects, there were 108 contract awards during Q1 2025, which is down from 191 during Q1 2024 and 186 in Q4 2024.
Big deals
The largest project deal during Q1 2025 was the $2.2bn PPP deal awarded by Saudi Water Partnership Company (SWPC) to develop and operate the kingdom’s second independent water transmission pipeline (IWTP). The project involves building a 587-kilometre pipeline that can transmit 650,000 cubic metres a day of water between Jubail in the Eastern Province and Buraydah in the Qassim region. A developer team comprising local companies Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company was selected for the project.
Only two other contract awards were valued at over $1bn. Saudi Aramco awarded Larsen & Toubro Energy Hydrocarbon, a subsidiary of India’s Larsen & Toubro Group, a $1.5bn contract to build a large-scale carbon capture and storage hub in Jubail Industrial City.
Gigaproject developer Diriyah Company awarded the other $1bn-plus deal. It awarded a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting a $1.3bn contract to build the Royal Diriyah Opera House.
The total value of contract awards in Q1 2025 was down by almost half compared to the $33.5bn of contract awards made during Q1 2024. On a quarterly basis, the drop is more than 60% compared to the $42.7bn of contract awards made during Q4 2024.
Budget deficit
For the broader economy, Saudi Arabia ran a deficit of SR58.7bn during Q1 2025, which was fully financed through borrowing, as there were no withdrawals from government reserves.
Public debt increased in both domestic and external components. Domestic debt closed at SR797bn, and external debt closed at SR531.7bn, indicating active debt management strategies to finance the deficit.
Most recently, the National Debt Management Centre announced the closure of its April 2025 issuance under the government’s Saudi riyal-denominated sukuk programme, with a total allocation amounting to SR3.710bn.
The sukuk issuance was structured into four distinct tranches to cater to varying investor needs. The first tranche, valued at SR1.315bn, is set to mature in 2029. The second tranche, amounting to SR80m, will mature in 2032. The third tranche, with a size of SR765m, is scheduled for maturity in 2036, while the fourth tranche, the largest at SR1.55bn, will mature in 2039.
In Q1 2025, total revenues reached SR263.6bn, with oil revenues accounting for SR149.8bn. This signifies a notable 18% decrease in oil revenues compared to the same period in 2024.
Also, oil income in the first quarter of this year accounted for 56% of total government revenues, down from 62% in the same period last year.
The slide in oil revenues is mainly due to lower crude oil prices, with the first quarter average for global benchmark Brent declining by 15% to around $75 a barrel compared to the same period in 2024.
Oil production
Oil production cuts by the Opec+ alliance also led to a fall in oil revenues for Saudi Arabia. The kingdom’s crude output declined by 1% in the first quarter to 8.95 million barrels a day (b/d), according to Opec data.
Saudi Arabia and Russia-led Opec+, however, began unwinding 2.2 million b/d of oil production cuts from April, with the coalition recently announcing a further output hike of 411,000 b/d in June. This move could result in an increased oil market share for Saudi Arabia, bringing in more oil revenues for the kingdom in the second quarter.
Non-oil revenues increased by 2%, reaching SR113.8bn, indicating some success in diversification efforts. Taxes on goods and services and other revenues contributed to this rise.
Total expenditures stood at SR322.3bn, which was a 5% increase on Q1 2024. Although capex decreased, other areas of spending increased.
Social spending
Notably, social benefits saw a significant 28% increase, reflecting the government’s commitment to social welfare programmes. Compensation of employees and use of goods and services also experienced increases.
For sectors, health and social development saw a 19% increase in actual expenditure compared to Q1 2024. This indicates a strong focus on these areas. Public administration also experienced a notable 14% increase.
Sectors such as municipal services and economic resources recorded slight decreases in spending.
The Finance Ministry report also provides insights into the government’s reserves and current account balances, with closing balances of SR393bn and SR91bn, respectively.
MEED’s April 2025 report on Saudi Arabia includes:
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads uphttps://image.digitalinsightresearch.in/uploads/NewsArticle/13822355/main.gif