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• 
  Adnoc creates new company to operate Ghasha concession

  5 December 2025

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  The board of directors of Abu Dhabi National Oil Company (Adnoc Group) has approved the establishment of a new company to operate the Ghasha offshore sour gas concession in Abu Dhabi waters.

  The decision to create the new entity, to be called Adnoc Ghasha, was taken during a recent meeting of Adnoc Group’s board in Abu Dhabi, which was chaired by Sheikh Mohamed Bin Zayed Al-Nahyan, UAE President and Ruler of Abu Dhabi.

  Adnoc Group owns and operates the Ghasha concession, holding the majority 55% stake. The other stakeholders in the asset are Italian energy major Eni with a 25% stake, Thailand’s PTTEP Holding, which holds a 10% interest, and Russia’s Lukoil, owning the remaining 10% stake.

  The Ghasha concession consists of the Hail and Ghasha fields, along with the Hair Dalma, Satah al-Razboot (Sarb), Bu Haseer, Nasr, Shuwaihat and Mubarraz fields.

  Adnoc expects total gas production from the concession to ramp up to more than 1.8 billion cubic feet a day (cf/d) before the end of the decade, along with 150,000 barrels a day of oil and condensates. This target will mainly be achieved through the Hail and Ghasha sour gas development project.

  In October 2023, Adnoc and its partners awarded $16.94bn of engineering, procurement and construction (EPC) contracts for its Hail and Ghasha project – the biggest capital expenditure made by the Abu Dhabi energy company on a single project in its history.

  Adnoc awarded the onshore EPC package to Italian contractor Tecnimont, while the offshore EPC package was awarded to a consortium of Abu Dhabi’s NMDC Energy and Italian contractor Saipem.

  The $8.2bn contract relates to EPC work on offshore facilities, including facilities on artificial islands and subsea pipelines.

  The Hail and Ghasha development will also feature a plant that will capture and purify carbon dioxide (CO₂) emissions for sequestration (CCS), in line with Adnoc’s committed investment for a carbon capture capacity of almost 4 million tonnes a year (t/y). The CO₂ recovery plant will have a total capacity to capture and store 1.5 million t/y of emissions from the Hail and Ghasha scheme.

  Prior to reaching the final investment decision on the Hail and Ghasha project in 2023, the Ghasha concession partners, led by Adnoc, awarded two EPC contracts worth $1.46bn in November 2021 to execute offshore and onshore EPC works on the Dalma gas development project. The project will enable the Dalma field to produce about 340 million cf/d of natural gas.

  

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  Indrajit Sen
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  BP and Iraq discuss $25bn Kirkuk oil field development

  5 December 2025

  Representatives from Iraq’s Oil Ministry and UK-headquartered BP have met in Iraq to discuss planned upstream developments in the country’s Kirkuk region.

  In March, BP received final government ratification for its contract to invest in the redevelopment of several giant oil fields in Kirkuk, a deal expected to be worth about $25bn.

  At the latest meeting, officials reviewed plans for the project, which aims to develop four of the most important oil fields in Kirkuk governorate:

  • Kirkuk
  • Bai Hassan
  • Jambur
  • Khabbaz

  During the meeting, it was confirmed that BP aims to raise oil production to 450,000 barrels a day (b/d) and produce 500 million cubic feet a day (cf/d) of gas.

  Relevant state-owned companies that operate in Iraq’s oil and gas sector took part in the discussions, with the aim of ensuring that work is carried out in line with existing timetables, according to a statement from the Oil Ministry.

  Production from the Kirkuk oil fields is currently between 285,000 b/d and 330,000 b/d.

  Most of this production is consumed domestically, with some volumes exported to Jordan.

  The broader $25bn project is also expected to include the construction of solar power plants.

  Kirkuk oil production

  Kirkuk’s oil output has seen sharp declines. Between 2005 and 2010, production ranged from 600,000 b/d to 725,000 b/d, with around 500,000 b/d exported to Turkiye’s Ceyhan port.

  By 2014, production had fallen to 400,000-500,000 b/d, dropping further to 250,000-325,000 b/d in the following years due to reduced well productivity.

  In December last year, BP agreed to the technical terms for developing the Kirkuk oil fields.

  This was followed by an agreement on all contractual terms, which was announced on 25 February 2025.

  The contract was then signed on 10 March 2025.

  BP, which was part of the consortium that discovered oil in Kirkuk in the 1920s, previously signed a letter of intent in 2013 to study the development of the Kirkuk fields.

  However, the plan was suspended in 2014 after Islamic State militants took control of parts of northern and western Iraq.

  

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  Wil Crisp
• 
  SAR tenders $1bn phosphate rail track doubling package

  4 December 2025

  

   

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  Saudi Arabian Railways (SAR) has tendered a SR4bn-plus ($1bn) contract to add another track to its existing phosphate railway network, connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.

  The project will span about 100 kilometres from the AZ1/Nariyah Yard to Ras Al-Khair.

  The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

  The scope also covers support for signalling and telecommunication systems.

  The tender notice was issued in late November, with a bid submission deadline of 20 January.

  Switzerland-based engineering firm ARX is the project consultant.

  MEED understands that this is the first of four packages that SAR is expected to tender imminently for the phosphate railway line.

  The other packages expected to be tendered shortly include the second section of track doubling, the depot and the systems package.

  In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

  Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

  Adding a second track and the freight yards will considerably increase cargo-carrying capacity on the network and facilitate the development of increased industrial production. Project implementation is expected to take four years.

  State-owned SAR is also considering increasing the localisation of railway-focused materials and equipment, including the construction of a cement sleeper manufacturing facility.

  

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  Yasir Iqbal
• 
  Omniyat appoints The Alba residences contractor

  4 December 2025

  Dubai-based private real estate developer Omniyat has appointed UK-headquartered firm Innovo Build as the main contractor for its The Alba Residences Dorchester Collection project.

  The project features three towers offering 209 residential apartments on the Palm Jumeirah in Dubai.

  The main construction works have started, and the project is slated for completion by 2028.

  Innovo Build has also built Omniyat’s other signature projects on the Palm Jumeirah, including Ava, Orla and the Orla Infinity Dorchester Collection.

  The enabling works have been completed. The local firm International Foundations Group undertook the foundation works.

  Dubai-based Engineering Design Consultancy Group is the project's lead consultant.

  Founded in 2005 by Mahdi Amjad, Omniyat is one of the top-end property developers in the Dubai real estate market.

  Over the years, the firm has delivered landmark projects in Dubai such as The Opus by Omniyat, One at Palm Jumeirah and The Lana, Dorchester Collection, Dubai on Marasi Bay.

  These projects have done more than create new icons; they have helped attract and anchor global capital in the UAE. Ultra-high-net-worth individuals and institutional investors alike are increasingly looking for assets in the region that combine scarcity with long-term value creation.

  Omniyat’s portfolio is built around that proposition. According to market data, the company captured more than one-third of transactions in Dubai’s $10m-plus residential segment in 2024, underscoring its leadership at the very top of the market.

  In 2024-25, the group raised approximately $900m through two sukuk issuances, sharia-compliant investment certificates widely used across the region that provide asset-backed returns instead of conventional interest: a $500m green sukuk followed by a $400m issuance later in the year.

  The second transaction was more than twice oversubscribed, with improved pricing compared to the debut deal.

  Omniyat is also deploying capital in the commercial segment. It has projects such as Lumena and Enara in the pipeline, reflecting rising demand for ultra-luxury workplaces that offer the same level of experience and amenities as high-end residential and hospitality schemes.

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  Yasir Iqbal
• 
  Saudi Arabia accelerates its rail revolution

  4 December 2025

  Saudi Arabia stands at a pivotal moment. Its population – around 35 million and rising – is overwhelmingly young and increasingly urban. Major cities like Riyadh – approaching 8 million residents – and Jeddah are experiencing rapid growth in population and activity, increasing demand for efficient mobility solutions. After decades of car-focused development, there now exists an opportunity to introduce new modern multimodal transport solutions in line with the objectives of Vision 2030. 

  Rail offers an answer to urban and economic pressures. Each train can remove hundreds of cars from the roads, cutting congestion and commuting times. Rail also aligns with Saudi Arabia’s environmental commitments. 

  Efficient mobility is key to Riyadh’s ambition to rank among the world’s top city economies. A reliable metro bolsters productivity as workers spend less time in traffic, boosts retail and tourism, with easier access to malls and attractions, and increases real estate values around stations. It also expands access to opportunity by providing safe and convenient transportation for women and youth entering the workforce. Similarly, intercity rail links can unite labour markets and connect people to jobs and services across the region. 

  Rail development is also central to Saudi Arabia’s strategy to become a global logistics and tourism hub. Launched in 2021 as part of Vision 2030, the National Transport and Logistics Strategy (NTLS) explicitly prioritises expanding the rail network to connect key cities, ports and economic zones. The kingdom aims to roughly double its rail network, adding more than 5,000 kilometres of new tracks. Saudi Arabia can unlock economic potential in underdeveloped regions, facilitate domestic tourism (e.g. convenient travel to cultural and religious sites) and streamline freight movement. 

  An integrated rail system also enhances resilience by providing alternative transport modes to complement roads and aviation, making the overall economy more robust against shocks such as oil price fluctuations or air travel disruptions.

  The time is ripe for rail – it addresses urgent urban challenges and propels the kingdom towards its Vision 2030 objectives of sustainability, connectivity and diversified growth

  Current and planned projects

  Public transportation in Saudi cities is targeted to rise from 1% to 15% by 2030. Major investments are already under way or planned across both passenger and freight rail:

  Riyadh Metro: A flagship $22.5bn project, the new six-line Riyadh Metro network (176km, 85 stations) is set to carry more than a million passengers daily and reduce traffic volumes by an estimated 30%.

  Haramain High-Speed Railway: Completed in 2018, this 450km electric high-speed line connects the holy cities of Mecca and Medina via Jeddah at speeds up to 300km/h. The Haramain line, with a capacity of 60 million passengers a year, has already transported more than 20 million travelers – dramatically cutting travel times for pilgrims and residents while offering a comfortable, climate-friendly alternative to highway driving. 

  Saudi Landbridge Project: The Landbridge is a planned 1,300km railway linking the Red Sea coast to the Arabian Gulf. This new line will connect Jeddah’s port with Riyadh and onward to Dammam on the Gulf, including a spur to the industrial city of Jubail. By creating the first direct east-west rail corridor across Saudi Arabia, the Landbridge will revolutionise freight logistics. Transport times for containers and goods will shrink from days by truck or ship to mere hours by rail, slashing logistics costs. The Landbridge will also carry passengers, enabling fast travel between major cities. 

  GCC Regional Rail Connectivity: This 2,100+km network – slated for completion around 2030 – will tie together all six GCC states. Key corridors for Saudi Arabia include a line north to Kuwait City-Riyadh, and another south linking Riyadh with Doha, Qatar (via the Saudi-Qatar border at Salwa). There is also a planned connection from Dammam eastward via a new causeway to Bahrain. Saudi Arabia, by virtue of its geography, will host the largest share of the GCC rail route, effectively becoming the backbone of Gulf connectivity. 

  Q-Express to Qiddiya: Qiddiya, an upcoming entertainment city west of Riyadh and one of the Vision 2030 gigaprojects, will be connected to Riyadh’s King Khalid International airport by a high-speed rail line. Planners envision using cutting-edge technology such as magnetic-levitation (maglev) trains to whisk visitors from the airport to Qiddiya in record time. This roughly 40km connection, being structured as a public-private partnership (PPP), will enhance Qiddiya’s accessibility for international tourists and Riyadh residents, while showcasing futuristic transit tech. The Q-Express is part of a broader strategy to integrate new economic cities, such as Qiddiya, Neom and others, into the national transport grid from the outset, ensuring these developments are well-connected and sustainable.

  Financing Rail Projects in Saudi Arabia

  Given the Vision 2030 emphasis on private sector participation, Saudi Arabia has a diverse range of financing tools for its rail programme:

  PPPs: In a PPP, private consortiums can design, build, finance and often operate infrastructure, sharing risks and rewards with the public sector. Saudi authorities see PPPs as a way to deliver projects efficiently while conserving public capital for other priorities. The Riyadh Metro, while government-funded during construction, will involve private operators for its operations and maintenance contracts. More directly, the upcoming Qiddiya rail link is planned as a PPP concession, with international firms invited to invest and bring innovative technology. The long-delayed Landbridge project, after earlier attempts, is now also expected to be executed via a PPP/BOT (build-operate-transfer) structure, overseen by Saudi Railway Company (SAR) and the Public Investment Fund (PIF). 

  Islamic Finance: Saudi Arabia’s leadership in Islamic finance makes sharia-compliant funding mechanisms a natural fit for its rail investments. Project sponsors and government-related entities have the option to issue sukuk (Islamic bonds) or use Islamic project finance structures to fund rail construction. These instruments attract capital from local and regional banks and funds that prefer sharia-compliant assets. For example, the PIF has raised billions through sukuk to support infrastructure development. Rail projects – which generate steady long-term cash flows and tangible assets – are well-suited to Islamic finance principles like asset-backing and profit-sharing. This approach also resonates with the cultural and religious context, making public support for these projects even stronger.

  Sustainable Finance: Saudi Arabia is turning to sustainable finance to fund rail and transit as sustainability becomes a global investment theme. Green bonds and loans fund environmental projects and rail qualifies by cutting emissions. Through their green bond frameworks, the government and PIF have issued multibillion-dollars bonds that include clean transport. By identifying projects aiming to improve environmental outcomes, Saudi Arabia can tap into the growing pool of internal ESG-focused investors who are eager to finance low-carbon infrastructure.  This can potentially lower borrowing costs and enhance the kingdom’s image as a sustainable development champion.  Additionally, global development banks and export credit agencies have shown interest in supporting Gulf rail projects on climate grounds. For instance, a significant portion of the Riyadh Metro’s rolling stock and systems was financed via export credits, and future rail lines could attract sustainable development loans.

  Transforming transport

  The time is ripe for rail – it addresses urgent urban challenges and propels the kingdom toward its Vision 2030 objectives of sustainability, connectivity and diversified growth. As of October 2025, Saudi Arabia’s rail sector has a clear baseline: strong urban demand and Vision 2030 policy direction; a proven Haramain high-speed corridor; the six-line Riyadh Metro; and a pipeline centered on the Landbridge, GCC links and connectors such as the Q-Express. The kingdom has set targets to raise public transport’s share from 1% to 15% by 2030 and plans to add more than 8,000km of track under the NTLS. Financing pathways are established with early application on major assets. Together, these facts define the current state and provide a benchmark against which delivery, ridership, emissions and broader economic outcomes can be measured as projects move from plan to operation.

  

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