Meed | Engie stages GCC renewables comeback

Engie stages GCC renewables comeback

6 September 2023

France-headquartered utility developer and investor Engie has been largely absent in the GCC region’s renewable energy sector. It has not bid for any solar independent power producer (IPP) contracts in the region since 2016, despite being prequalified to bid for successive tenders in Saudi Arabia over the past few years.

This is set to change as the market establishes a degree of normalisation and veers away from the race to the bottom in pricing, particularly for solar photovoltaic (PV) IPP contracts.

“We have capital to deploy globally, and yes, we have been selective in terms of which projects to bid for,” says Francois-Xavier Boul, Engie’s managing director for renewables in the Middle East and North Africa (Mena) and head of business development for Africa, Middle East and Asia (Amea).

The company’s prudent fiscal approach has precluded it from competing in previous renewable energy tenders in the GCC, where the likelihood of success in terms of internal rate of return does not match its targets, according to the executive.

However, Engie’s future approach is changing to match what it perceives to be an improving GCC market, with a certain level of repricing taking place.

For instance, the French utility developer is leading a consortium that aims to bid for the three planned wind IPP projects under the fourth round of Saudi Arabia’s National Renewable Energy Programme (NREP).

“We are actively pursuing those contracts,” Boul tells MEED, adding that his company, which is undergoing a major expansion in terms of employee headcount and presence in the Mena region, has the technical edge to compete for those contracts.

“We will keep an eye on every renewable project, particularly wind IPPs in Saudi Arabia, the UAE and Oman,” says Boul.

He stresses that a degree of price competitiveness and reasonable assumptions from competing developers is good for Engie as well as the offtakers.

“A normalised market offers a more level playing field [for developers]. It is more sustainable, unlike what we’ve seen in the past where there was a lot of competition, very few transactions and a high likelihood of projects incurring some losses.”

We will keep an eye on every renewable project, particularly wind IPPs in Saudi Arabia, the UAE and Oman
Francois-Xavier Boul, Engie

Egypt calling

A major wind IPP project in Egypt marks Engie’s return to the Mena region’s renewables scene.

It has teamed up with local firm Orascom Construction and Japan’s Toyota Tsusho Corporation to build a 3,000MW wind farm in West Sohag.

Unlike projects in the GCC that enjoy more than enough liquidity, the Egyptian project will face the all-important question of “How do you make the project bankable?” notes Boul.

The executive acknowledges that this project will require support from export credit agencies and entities such as the European Bank for Reconstruction & Development (EBRD) and Japan International Cooperation Agency (Jica) to take off.

Egypt’s currency status will require “a lot of financial discipline and rigorous sovereign oversight”, Boul says, adding that the project will require a “first-class finance structure”.

Nevertheless, the consortium is expected to kick off the technical feasibility study for the project soon. It will also start a survey campaign following the allocation of land for the project in late August.

The consortium has previously won two contracts to develop wind IPP projects in Egypt. The 262MW Ras Ghareb wind farm is operational, while another 500MW wind project in the Gulf of Suez reached financial close in April.

Engie’s Amea office is also keeping an eye on projects in Morocco and South Africa, as well as in India, Malaysia, the Philippines and Australia.

Boul says Engie has a fluid decision-making process in terms of capital allocation and evaluates each project against its target returns, which are usually contingent on the project’s risk profile.

“As a global utility provider, we can be selective,” says Boul. “The number of utility projects globally has been rising, but the rate of returns has not always matched the mitigating requirements [for these projects]. Ideally, we are looking for a balance, a win-win situation with offtakers … in an ecosystem that encourages repeat business.”

Cloudy forecast

A more palatable, normalising GCC renewable market does not mean there will be no further challenges, says Boul.

For example, easing solar PV supply chain constraints may mean decreased costs and oversupply, leading to further commoditisation in the market.

“There are remaining variables and it all comes down to the amount of risk developers and contractors are willing to take. As a prudent utility player, we are careful about mitigating and controlling risks.

“Rightly or wrongly, we have not invested in projects we deem too risky and have not incurred losses.”

Photo: ENGIE Green wind farm at Mont de la Grévière (Ardennes)

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Jennifer Aguinaldo

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The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

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T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

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Contractor wins $105m Medina university hospital deal

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Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

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

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

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

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Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

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Kuwait halves drilling contractor pool
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State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
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- Kuwait Drilling Company (Kuwait)
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- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

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It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.