Gaza conflict puts region on edge again
26 December 2023

For much of 2023, the defining narrative for the Middle East was one of reconciliation. From Iran and Saudi Arabia agreeing to rekindle diplomatic relations under a China-brokered deal in March, and Syria’s President Bashar al-Assad being welcomed to an Arab League summit in Riyadh in May, leaders favoured diplomacy over division.
Not all wounds healed, but even in Yemen an unofficial truce between Houthi rebels and Saudi-backed forces largely held throughout the year.
The Hamas assault on Israel on 7 October and Israel’s response dramatically altered the picture, although whether it will lead to lasting regional change remains to be seen.
Prior to the fighting, few minds in the region were focused on the Palestinian issue, with far more attention being paid to developing commercial and security ties. Saudi Arabia was widely thought to be edging closer to normalisation with Israel, with Israeli ministers starting to visit the kingdom regularly.
Israel’s Communications Minister Shlomo Karhi was in Riyadh on 1 October for a conference. Tourism Minister Haim Katz visited for a World Tourism Organisation event a week earlier.
Such trips are now off the agenda, with Riyadh focused on leading the Islamic world in condemning Israel. On 11 November, it hosted a joint summit of the Arab League and the Organisation of Islamic Cooperation. Among the attendees was Iran’s President Ebrahim Raisi – the first visit by an Iranian president to Saudi Arabia since 2012. Raisi used the occasion to invite Crown Prince Mohammed bin Salman al-Saud to visit Tehran, a sign that the pre-war trend for reconciliatory diplomacy has not entirely disappeared.
The Gaza conflict has been particularly difficult to navigate for Abraham Accord signatories Bahrain, Morocco and the UAE. Bahrain suspended economic ties with Israel, but there has been no sign from any of the three of wanting to break off relations altogether.
“How far the war goes will determine how the relationship [with Israel] develops,” said one analyst.
Some other diplomatic gains are also being made against the backdrop of the war. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani travelled to Manama on 17 November as part of an energetic diplomatic push to bring the Israeli/Palestinian war to an end.
Sheikh Mohammed held talks with Prime Minister and Crown Prince Salman bin Hamad al-Khalifa, and they agreed to revive long-abandoned plans to build a ‘friendship bridge’ between the countries.
Navigating the multi-polar world will remain a key challenge for Gulf powers in the year ahead
Another trend evident in recent years has also continued – namely the efforts by some Gulf powers to dilute their ties with Western allies and build stronger links with China, Russia and others.
A clear sign of this came in August when the UAE and Saudi Arabia were invited to join the Brics grouping of major non-Western economies. They are set to formally join in January.
But in an indication of their desire to maintain links with all sides, Saudi Arabia and the UAE then signed up to the India-Middle East-Europe Economic Corridor (Imec) initiative at the G20 summit in New Delhi, India, in mid-September.
Navigating the increasingly multi-polar world will remain a key challenge for Gulf powers in the year ahead.
Imminent peril
In other parts of the region, the situation holds more immediate peril. In Egypt, the economy is in a parlous state, with President Abdul Fattah al-Sisi relying on Gulf allies to prop up an economy facing over $29bn of debt repayments in 2024.
Neighbouring Libya remains divided between rival administrations with their own regional allies. Turkiye and Qatar have supported the Tripoli-based government of Prime Minister Abdulhamid al-Dbeibah, while Egypt, Saudi Arabia and the UAE back General Khalifa Haftar and his Libyan National Army in the east.
In Sudan, the UAE-backed Rapid Support Forces (RSF) have been fighting President General Abdel-Fattah Burhan’s Sudanese Armed Forces in a vicious civil war since April. Peace talks in Riyadh in late September failed to deliver a ceasefire, and the UAE has been implicated in the delivery of weapons to the RSF.
Tunisia is quieter, but the economy is in a delicate state and the lurch towards authoritarian dictatorship under President Kais Saied is making observers nervous.
Tensions between Algeria and Morocco are also problematic. The two countries have long been at odds over Western Sahara, but relations have become more strained in recent years, with Algiers severing diplomatic ties in 2021. Algerian coast guards killed two Moroccans in August 2023 when they strayed into Algerian waters on their jet skis – an incident that could have readily escalated.
In Iraq, political disagreements came to the fore in November when the Supreme Court removed parliamentary speaker Mohammed al-Halbousi – the country’s most powerful Sunni politician – from office. Iran-backed Iraqi militias have also been flexing their muscle since the Gaza war, launching dozens of attacks on US forces in the country.
Other Iraqi court rulings have also caused disquiet, particularly a September decision by the Constitutional Court to annul a bilateral treaty on sharing the Khor Abdullah waterway with Kuwait.
Iran meanwhile weathered the protests that erupted in the wake of Marsa Amini’s death in September 2022. Tehran’s emerging challenge is in managing the response of its regional allies to the Gaza conflict. The actions of its other allies
in the region – including the Houthis in Yemen and Hezbollah in Lebanon – could set the tone for the whole region in the year ahead.
Image: Smoke rises after Israeli air strikes on the city of Rafah in the southern Gaza Strip on 10 October 2023
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Events put Saudi Arabia on the world stage29 July 2026
Commentary
Colin Foreman
EditorThe Expo 2030 and the 2034 World Cup will not transform Saudi Arabia’s economy on their own, but the momentum they generate and the international profile they bring underline their importance.
Over the past decade, Saudi Arabia has taken great strides in changing the international perception of the kingdom. Futuristic projects and investment in football and other sports, combined with social reforms such as opening cinemas and allowing women to drive, have helped foster a new image for the country.
This year, those efforts have been dented as the rest of the world once again sees a region blighted by conflict. Saudi Arabia will need to correct the course of public perception once the conflict draws to a close, and Expo 2030 Riyadh and the 2034 Fifa World Cup are well timed to help the kingdom maintain its modernisation drive.
Both are truly global events that will attract millions of visitors. More than 40 million visits are anticipated at the Expo, and the World Cup final in Qatar in 2022 was watched by some 1.5 billion people.
Both are truly global events that will attract millions of visitors
Locally, the impact has already begun. Flying into Riyadh’s King Khalid International airport from the south, one can clearly see earthworks and infrastructure progressing at the Expo site. To the east of the city, construction work on King Fahd Sports City Stadium is well advanced.
Expo Riyadh 2030 Company expects the construction phase and legacy development to contribute around $64bn to Saudi GDP and generate some 171,000 jobs. Fifteen stadiums are planned across five cities.
Construction activity is ramping up. Tendering is starting for the first buildings at the Expo site, including the KSA Pavilion. Meanwhile, work is beginning on more stadiums and other related infrastructure projects that will support the World Cup.
In the build-up to Expo 2030 and World Cup 2034, construction will be the main event.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17794600/main.gif -
Read the August 2026 MEED Business Review29 July 2026
Download / Subscribe / 14-day trial access Saudi Arabia’s biggest event and infrastructure programmes are moving into a new phase of delivery.
Construction activity at the Expo 2030 Riyadh site is accelerating, with some of the largest packages set to be awarded before the end of this year. Infrastructure works are gathering pace and preparations are intensifying for an event that is expected to reshape the capital long after its six-month run comes to an end.At the same time, the lessons emerging from this summer’s expanded Fifa World Cup provide an early guide to the opportunities – and challenges – Saudi Arabia will face as it prepares to host football’s biggest tournament in 2034.
August’s Market Focus turns to the Maghreb, where four economies are following increasingly divergent paths. While Morocco is benefiting from World Cup-driven investment and a booming tourism sector, Algeria is deploying record public spending, Tunisia is pressing ahead with strategic power investments despite fiscal constraints, and Libya is seeing sustained interest from oil and gas investors undeterred by ongoing political disputes. The report examines what is driving this divergence and where the region’s strongest opportunities now lie.
This edition also includes MEED’s annual ranking of the Top 50 GCC banks, exploring how regional lenders have demonstrated remarkable resilience through recent geopolitical turbulence, supported by strong funding, capital buffers and government backing.
In the latest issue, we speak to renewable energy consultancy SgurrEnergy about why developers are increasingly moving beyond standalone solar towards hybrid renewable energy projects that combine battery storage and other technologies to deliver round-the-clock power.
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We hope our valued subscribers enjoy the August 2026 issue of MEED Business Review.

Must-read sections in the August 2026 issue of MEED Business Review include:
> AGENDA: Expo 2030 Riyadh construction gathers pace
> FOOTBALL: What the 2026 World Cup means for Saudi Arabia 2034INDUSTRY REPORT:
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> GCC banks prove resilient amid turmoil> AWARDS: Mena Banking Excellence Awards reveals retail, digital and SME winners
> LEADERSHIP: Private capital and the GCC infrastructure inflection
> PORTS: Geopolitical risk shapes $513bn of global ports projects
> INTERVIEW: Developers look beyond standalone solar
> MAGHREB MARKET FOCUS:
> COMMENT: Maghreb fortunes diverge
> GOV'T & ECONOMY: Elections fail to change the Maghreb's political realities
> PAYMENTS: Morocco’s payments shift remains cash-led
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> OIL & GAS: Libya’s oil and gas project market has grown by 48%
> OIL & GAS: Value of Algerian extractive projects more than doubles
> POWER & WATER: Tunisia drives Maghreb power investment with $1.4bn electricity link
> CONSTRUCTION: Morocco is bright spot in Maghreb construction
> CONSTRUCTION: Algeria’s record budget sets stage for construction comeback
> TOURISM: Morocco tourism hits record highs
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> I Squared deal is latest sign of PIF's new playbook
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> Gulf IWPPs risk becoming a two-horse race> GULF PROJECTS INDEX: Gulf index maintains growth run
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> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
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Bahrain tenders Tashan sewer scheme29 July 2026
Bahrain’s Ministry of Works (MoW) has issued a tender for the construction of a sewer network in Tashan, on the outskirts of Manama.
Contractors have until 20 September to submit bids.
The scheme covers blocks 405, 419 and 421, administrative areas covering Tashan and surrounding communities. It will expand the local wastewater collection network and provide connections for existing and planned properties.
The scope includes about 2 kilometres of 150mm-diameter lateral sewers and 4.8km of main sewer lines ranging from 200mm to 400mm in diameter.
The contract also covers house connections and future connections for planned properties.
A pressure station with a capacity of 75 litres a second will be built as part of the scheme. It will be supported by about 834 metres of 250mm-diameter rising main and a discharge chamber.
Other works include the construction of manholes and associated infrastructure, as well as the decommissioning of an existing lift station.
The project is part of Bahrain’s wider programme to develop and expand its sewerage networks and treatment infrastructure.
In June, MoW issued a tender for another sewer network project in A’ali, southwest of Manama, covering Block 730 and part of Block 740.
The scheme will connect 232 plots to the public sewer network. It includes 5.2km of sewer mains with diameters ranging from 200mm to 300mm and about 3.4km of 150mm-diameter lateral sewer lines.
The scope also includes house connections, new manholes and connections to the existing sewer network.
The bid submission deadline for the A’ali project is 5 August.
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Chinese firm signs $3.3bn Kuwait wastewater deal29 July 2026
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China State Construction Engineering Corporation (CSCEC) has confirmed it has signed a contract to build Kuwait’s largest wastewater treatment plant.
The North Kabd wastewater treatment plant and related works contract was signed on 26 July between senior officials from CSCEC and Kuwait’s Ministry of Public Works (MPW).
The plant has a planned capacity of up to 1 million cubic metres a day (cm/d).
In January, MEED reported that the Chinese firm had been appointed as the main contractor for the project pending the contract’s official signing.
According to official government records at the time, the Central Agency for Public Tenders (Capt) had authorised MPW to proceed with a direct contract valued at KD999.85m ($3.3bn).
The contract covers the design, construction, operation and maintenance of the facility over a 10-year period.
Earlier, in September 2025, MEED reported that a Chinese firm was expected to sign the contract as part of a series of Kuwait-China agreements covering infrastructure and energy.
This included a $4bn agreement signed in December with China Communications Construction Company for the Mubarak Al-Kabeer Port project.
The MPW invited bids for the expansion of the Kabd facility in 2022.
Plans for the North Kabd sewage treatment plant (STP) were first announced in 2013, according to regional project tracker MEED Projects.
The initial plan included two STP units with a total combined capacity of close to 500,000 cm/d, in addition to an upgrade to an existing plant.
Kuwait has been investing significantly in wastewater infrastructure to address challenges in reusing treated sewage.
In February, Saudi Arabia’s Acwa and local financial institution Gulf Investment Corporation signed a contract with Kuwait’s Ministry of Electricity & Water, confirming the long-term offtake arrangements for the Al-Zour North independent water and power plant (IWPP) phases two and three.
The integrated facility will have a net power generation capacity of at least 2,700MW and a net desalinated water capacity of at least 545,520 cm/d, making it the largest IWPP ever undertaken in the country.
The Kuwait Authority for Partnership Projects and the Ministry of Electricity & Water are also tendering phase one of the Al-Khiran IWPP.
The estimated $200m project includes an 1,800MW power plant and a desalination facility with a capacity of 568,000 cm/d.
Bids were submitted for the project in June.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17794972/main.jpg -
Abu Dhabi tenders urban development consultancy deal29 July 2026

Abu Dhabi’s Department of Municipalities and Transport (DMT) has issued a tender inviting consultants to bid for an integrated consultancy services contract for upcoming works in the capital.
The scope includes the provision of integrated consultancy services across two streams – project management consultancy and secondment – covering stormwater, parks, roads and bridges programmes in Zayed City and Mohammed Bin Zayed City.
The contract duration is two years. Consultants have until 3 August to submit their proposals.
The project is one of a series of major infrastructure schemes being overseen by DMT in Abu Dhabi.
Earlier this month, DMT announced the E20 highway expansion project.
The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.
Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.
The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.
Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.
The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.
Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17797254/main.jpg