Ewec rules out solar in desalination projects
29 March 2023
Abu Dhabi-based Emirates Water & Electricity Company (Ewec) has ruled out integrating a captive solar photovoltaic (PV) plant in upcoming seawater reverse osmosis (SWRO) independent power projects (IPPs) in the emirate.
Its executive director for strategy and planning, Bruce Smith, recently confirmed this to MEED, citing better cost efficiencies when procuring solar PV IPPs separately.
The world’s largest RO-based desalination plant in Taweelah is nearing completion. The 200 million-imperial-gallon-a-day SWRO plant includes a 40MW captive solar PV plant. Half of the plant’s capacity began commercial operation in June last year.
Ewec’s next two independent water projects (IWPs), Mirfa 2 and Shuweihat 4, do not prescribe captive solar PV.
1GW a year
Abu Dhabi aims to install a total of 16GW of solar PV capacity by 2036, translating to an average of 1GW to 1.5GW of new capacity to be procured annually.
Over the intervening period ending in 2030, Ewec envisages having an additional 5GW of solar capacity to reach a total solar installed capacity of 7.3GW by 2030.
The planned capacity aligns with the state utility’s carbon dioxide emissions reduction plan during this period, which includes potentially expanding its nuclear power capacity and deploying carbon capture technologies for its existing thermal power generation assets.
Smith said Ewec expects its first battery energy storage system to come online in the late 2020s to enable optimum use of renewable energy captured during daytime at times when the solar PV fleets do not produce energy.
Ewec aims to reduce its total carbon dioxide emissions from 43 million tonnes a year (t/y) in 2019 to 22 million t/y by 2035.
Ewec expects to achieve a substantial emissions reduction despite a projected 30 per cent increase in peak demand between 2022 and 2029 and 50 per cent between 2022 and 2050.
Ewec recently announced the company’s latest Statement of Future Capacity Requirements Summary Report covering 2023 to 2029.
The annual document outlines the required additional power and water production capacity in the emirate over a seven-year window based on expected macroeconomic developments and the retirement of existing fleets.
New capacity
The bidding process is under way for the 1.5GW Al-Ajban solar PV project, with Ewec expecting to receive proposals by June.
It recently awarded the contract to develop the 120MIGD Mirfa 2 IWP to France’s Engie. The contract to develop the 70MIGD Shuweihat 4 IWP is expected to be awarded to South Korean/Spanish company GS Inima imminently.
Ewec has recently sought transaction advisers for its first battery energy storage system (bess) project, which consists of two 150MW facilities.
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Riyadh tenders Al-Zulfi passenger railway station
22 October 2025
Saudi Arabia Railways (SAR) has tendered a design-and-build contract for the construction of a passenger railway station in the Zulfi governorate, located 260 kilometres northwest of Riyadh.
The station in Al-Zulfi will serve SAR’s North Railway line.
According to the tender notice published on SAR’s website, the scope includes the construction of the station building, firefighting facilities, track works, signalling and telecommunication systems, utilities, access roads, parking, landscaping and other associated works.
SAR has set 4 December as the deadline for firms to submit their bids.
The passenger section of the North Railway – formerly known as the North-South Railway – extends over 1,250 kilometres.
The line originates in Riyadh and runs northwest to Al-Haditha, near the Jordanian border, passing through Majmaah, Qassim, Hail, Jouf and Qurayyat.
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Procurement begins for $372m Rixos Alkhobar resort
22 October 2025
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Saudi Arabia’s Tourism Development Fund and US-based investment firm FTG International Group have invited companies to prequalify for a contract to develop a mixed-use resort at Half Moon Beach in Alkhobar, in the kingdom’s Eastern Region.
“The prequalification process is ongoing and the project is likely to be tendered in a few weeks,” sources close to the project told MEED.
The estimated SR1.4bn ($372m) project will cover an area of approximately 262,000 square metres.
It will comprise 400 hotel units and 41 residential villas.
The resort will operate under the Rixos brand and be fully managed by French hospitality firm Accor.
UK-based analytics firm GlobalData expects Saudi Arabia’s construction industry to grow by 4% in real terms in 2025, driven by investments in housing, energy and transport infrastructure.
The commercial construction sector is projected to grow by 3.7% in real terms in 2025 and maintain an average annual growth rate of 3.7% from 2026 to 2029. This is supported by Saudi Arabia’s Vision 2030, which aims to attract 150 million tourists annually and add 320,000 hotel rooms by 2030.
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Saudi Arabia plans Mecca transit-oriented development
22 October 2025
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Saudi Railway Company (SAR) has signed an agreement with local investment firm Riyad Capital to establish a real estate fund to develop a mixed-use, transit-oriented project in Mecca.
The project will span more than 90,000 square metres in the Al-Rusifah district, near the Haramain high-speed railway station in Mecca.
The development is estimated to cost more than SR6bn ($1.6bn).
Riyad Capital operates through four business lines: asset and wealth management, brokerage, corporate investment banking and securities services.
In an official statement, the company said its real-estate portfolio spans three continents and is valued at more than $6bn.
UK-based analytics firm GlobalData expects Saudi Arabia's construction industry to grow by 4% in real terms in 2025, supported by investments in the housing, energy and transport infrastructure sectors.
The commercial sector is estimated to grow by 3.7% in real terms in 2025 and to register an average annual growth of 3.7% from 2026 to 2029, supported by the government’s Vision 2030 plan. Under that plan, the government aims to attract 150 million tourists annually and add 320,000 hotel rooms by 2030.
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Petrojet consortium wins $1.1bn oil contract in Algeria
22 October 2025
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A consortium of Egypt’s Petrojet and Italy’s Arkad has been awarded a $1.087bn contract for the second phase of the Hassi Bir Rekaiz oil field development project in Algeria.
The consortium is led by Petrojet and the client is Groupement HBR, a joint venture of Algeria’s national oil and gas company Sonatrach and Thailand’s PTTEP.
The scope of work includes the construction of a central processing facility with a capacity of 31,500 barrels a day (b/d), along with associated facilities and pipeline networks extending over 217 kilometres.
It also includes the construction of a power distribution station and storage tanks.
In a statement, Petrojet said: “This award represents a significant step forward in strengthening Petrojet’s presence in the Algerian market and reaffirms its position as a leading regional [engineering, procurement and construction] EPC contractor delivering integrated, world-class energy projects.”
Groupement HBR, which operates the Hassi Bir Rekaiz oil and gas concession, tendered the design contract for the second phase of the field development project in August 2023.
HBR started production from phase one of the project in June 2022.
China Petroleum Engineering & Construction Corporation executed EPC work on the first phase of the field development project. The contract was signed in 2020, with a value of $116m.
The production target for phase one was 13,000 b/d of oil.
The project site, in the eastern part of Algeria, contains blocks 443a, 424a, 414ext and 415ext.
PTTEP and its partners found oil and gas in 10 out of 11 exploration wells drilled in the 1,916-square-kilometre area between 2013 and 2016.
Algeria oil and gas sector
Project activity in Algeria’s energy, industrial and manufacturing sectors is steadily building as the country focuses on a vertically integrated strategy that leverages the exploitation of its natural resources.
In July, Sonatrach and Italian energy company Eni signed a production-sharing hydrocarbons contract estimated to be worth $1.35bn.
The contract covers the exploration and exploitation of the Zemoul El-Kebir concession area, located in the Berkine Basin, approximately 300km east of Hassi Messaoud.
The deal with Eni is the latest of several high-profile agreements that Sonatrach has announced with international oil and gas companies.
In June, Algeria awarded five out of the six oil and gas exploration licences it offered during its 2024 bidding round, a move viewed as a success by stakeholders in the country’s energy sector.
The companies that were awarded blocks included France’s TotalEnergies, state-owned QatarEnergy, Eni and PTTEP.
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Contractors prepare Riyadh Expo infrastructure bids
21 October 2025
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Sixteen firms have been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.
Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, floated the tender for the project’s initial infrastructure works in September, as MEED reported.
The firms invited to bid include:
- Shibh Al-Jazira Contracting (local)
- Hassan Allam Construction (Egypt)
- El-Seif Engineering Contracting (local)
- Al-Ayuni Investment & Contracting (local)
- Kolin Construction (Turkiye)
- Al-Yamama Trading & Contracting Company (local)
- Saudi Pan Kingdom (local)
- Unimac (local)
- Mapa Insaat (Turkiye)
- Yuksel Insaat (Turkiye)
- IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
- Mota-Engil / Albawani (Portugal/local)
- Almabani / FCC Construction (local/Spain)
The overall infrastructure works – covering the construction of main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:
- Lot 1 covers the main utilities corridor
- Lot 2 includes the northern cluster of the nature corridor
- Lot 3 comprises the southern cluster of the nature corridor
ERC issued the tender for infrastructure package Lot 1 on 21 September and has set deadlines of 26 October and 9 November for submission of technical and commercial bids, respectively.
ERC is expected to award the contract for the Riyadh Expo infrastructure package in December.
MEED previously reported that ERC was expected to issue the tender for some of the infrastructure packages in September.
In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.
The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.
Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.
The expo is forecast to attract more than 40 million visitors.
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.
In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”
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> AGENDA 1: A new dawn for PPPs> AGENDA 2: GCC pushes PPPs to deliver $70bn pipeline> POWER DEVELOPER RANKING: Acwa Power consolidates power sector dominance> IPPs: GCC enters pivotal year for IPPs> ACQUISITION: Wood takeover could boost Sidara profits> INTERVIEW: SLB strives to boost regional standing> SAUDI MARKET FOCUS: Riyadh strives for sustainable growthTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14912102/main.jpg