Gaza conflict tests UAE-Israel ties
13 June 2024

The stance of the UAE towards Israel has cooled dramatically in the past eight months amid the conflict in Gaza, which is proving to be a major test of the partnership built between Abu Dhabi and Tel Aviv.
From boasting of warm and open trade dealings, the UAE has gone quiet on its business deals with Israeli partners, while on a political and diplomatic level the humanitarian tragedy in Gaza has increasingly drawn condemnatory statements from UAE officials.
It is a twist in developments that neither country could have foreseen, as nor indeed had Saudi Arabia, which was nearing its own normalisation agreement with Israel. It has also taken a bilateral strategic partnership that was long in the making into uncertain territory.
Long-term partnership
The 2020 Abraham Accords that normalised relations between the UAE and Israel came at the tail end of at least a decade’s worth of interaction between the two countries. The agreement emerged first and foremost as a set of shared strategic interests in opposition to regional threats in the early 2010s.
In a very tangible interaction in 2016, pilots from the UAE and Israel for the first time participated together in aerial combat training exercises hosted by the United States Air Force (USAF) in Nevada.
The UAE’s relationship with Israel also intersects with its relationship with the US, including its hope of securing access to advanced US military technology and assets, such as the F-35 Stealth Fighter Jet.
In September 2020, UAE foreign ministry spokesperson Hend Al-Otaiba stated that a request for the F-35 had been made six years previously, and that, “given that the UAE intends to be a partner to Israel, and already has a deep strategic partnership with the US, we are hopeful the request will be granted”.
While the sale of the F-35 by the US to the UAE has yet to materialise, relations between the UAE and Israel have nonetheless thrived on their own since the accords, on the basis of ongoing shared security interests and the opportunities for business, trade and investment between the two countries.
Since 2020, the value of trade between the UAE and Israel has swollen to about $3bn annually, and defence ties have only strengthened. In 2022, Israel supplied the UAE with air defence systems following long-range attacks on the UAE's oil infrastructure by the Iran-aligned Houthi movement in Yemen.
Israel-Palestine problems
It was as early as June 2023, however, that US Secretary of State Antony Blinken first warned that rising tensions in Palestine and Israel’s actions in the West Bank could imperil the process of normalisation.
With the advent of the war in Gaza, those fears of a damaging escalation in tensions have been realised.
As the conflict erupted in October, the UAE kept its distance and restricted itself to only the most limited commentary, condemning the “serious and grave escalation” by Hamas-led militants while calling for the full protection of all civilians under international humanitarian law.
By November, as the violence in Gaza ratcheted up, Abu Dhabi similarly affirmed its commitment to the accords even as individual UAE officials publicly condemned Israel’s actions and called for an end to the violence, pushing for a ceasefire, humanitarian aid and the release of hostages.
Anwar Gargash, a diplomatic adviser to the president, labelled the conflict a “profound setback” for the region, and stressed that the tragic course of events should lead to a political re-engagement on the issues of realising a two-state solution with East Jerusalem as its capital.
The close working relationship between the UAE and Israel nevertheless continued, as evidenced by Israel’s acquiescence to Abu Dhabi’s humanitarian efforts in Gaza, which have included the UAE setting up a field hospital and performing aerial aid drops in the territory.
The long grind of the conflict and the increasing inflexibility and intransigence on ceasefire negotiations by Israeli Prime Minister Benjamin Netanyahu have nevertheless steadily eroded this early good will.
While in early January, Gargash affirmed that the normalisation agreement was “a strategic decision, and strategic decisions are long-term”, by late January, senior UAE officials were ringing alarm bells.
Four months on, speaking at the Arab Media Forum in Dubai in late May, Gargash lambasted the conflict in Gaza as having taken on “brutal and inhuman dimensions”, stating that the “heinous attack in Gaza and Rafah cannot be overlooked” – a far more critical tone than his earlier conciliatory speech.
Unreliable partner
On the international stage, the disinclination of the Israeli government to listen to any of its key allies or partners has been trying for all, including the US. For Israel’s normalised partners in the Middle East, the conflict has underscored the tension between the Abraham Accords and underlying regional sentiments.
The UAE’s own founding father, Sheikh Zayed, was an ardent personal supporter of the Palestinian cause, and under his watch, the UAE was one of the first states to recognise Palestine as an independent state.
In the present, the humanitarian catastrophe in Gaza is drawing the competing influences of the UAE’s contemporary strategic interests and underlying sympathy for the Palestinian people into stark relief, and it is having a chilling effect on relations.
Public announcements in the UAE of deals with Israeli companies, which abounded before the conflict, have evaporated, and at least one very public deal has been put on hold amid the uncertainty.
Abu Dhabi National Oil Company (Adnoc) had been due to take a $2bn stake, alongside the UK’s BP, in Israeli gas producer NewMed, which holds 45% of Israel’s Leviathan offshore gas field.
In mid-May, Netanyahu suggested that the UAE could be involved in the governance of Gaza – drawing a swift rejection from UAE Foreign Minister Sheikh Abdullah Bin Zayed Al-Nahyan, who stated: “The UAE refuses to be drawn into any plan aimed at providing cover for the Israeli presence in the Gaza Strip.”
The episode was a stark demonstration of the breakdown in communication and diplomatic alignment between Abu Dhabi and Tel Aviv, and it joins a wider pattern of reports that UAE officials are already looking beyond Netanyahu and cultivating relations with his potential successors.
On 5 June, the UAE’s foreign minister again condemned the Israeli government after it allowed the divisive annual ‘Flag March’ of Israeli settlers through Jerusalem’s old city, as well as settler activism in the Al-Aqsa Mosque compound, despite the extraordinarily heightened tensions over Gaza.
For UAE-Israel ties to thrive, Abu Dhabi needs a government partner in Tel Aviv that it can work with on a productive basis to safeguard interests between the two countries while avoiding diplomatic affronts.
Unfortunately for the UAE, the current Israeli government – with the far-right ministers that Netanyahu has brought into the cabinet – has had a habit of proving itself to be the very antithesis of such a partner.
Looking ahead, it could be a long road for UAE-Israel ties to return to resembling their halcyon state of 2021-22, and it will take a government in Israel under someone other than Netanyahu to get there.
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L&T announces major contract win from Adnoc Offshore4 August 2026
Indian contractor Larsen & Toubro (L&T) has announced that it has been awarded a major contract by the offshore business of Abu Dhabi National Oil Company (Adnoc Offshore).
Mumbai-headquartered L&T described the order as “ultra-mega”, a term the company uses for contracts valued at more than INR150bn ($1.57bn).
The project will be executed through a consortium, with its subsidiary LTEH Offshore serving as the lead partner, L&T said in a statement on 4 August.
MEED understands that the contract won by L&T relates to an offshore package that forms part of a major Adnoc Offshore project to produce up to 600 million cubic feet a day (cf/d) of natural gas by developing the Umm Shaif gas cap in Abu Dhabi.
L&T won the first offshore package of the Umm Shaif gas cap and surface pressure boosting project in a consortium with Saudi Arabia/UAE-based Lamprell, MEED reported in July.
The following contractors have secured the two offshore packages and one onshore package of the Umm Shaif gas cap project, MEED previously reported:
- First offshore package – fabrication of a 30,000-tonne gas compression system: Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
- Second offshore package – fabrication of another 30,000-tonne gas compression system: McDermott (US)
- Onshore package – EPC of gas inlet and processing systems on Das Island: China Petroleum Engineering & Construction Company (CPECC)
“The project involves the development of multiple offshore facilities. As the lead consortium partner, LTEH Offshore will execute the major share of the project scope, covering engineering, procurement, construction, installation and commissioning (EPCIC) of the offshore facilities, in addition to the upgrade of existing facilities,” L&T said in its statement.
“A significant portion of the fabrication work will be undertaken at L&T’s state-of-the-art fabrication yards, leveraging the company’s integrated EPCIC capabilities and extensive track record in delivering large and complex offshore developments across the region,” the Bombay Stock Exchange-listed company added.
Umm Shaif gas cap project
Adnoc Offshore operates the Umm Shaif hydrocarbons development, which is located 150 kilometres (km) northwest of the city of Abu Dhabi. The field is located within Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, previously operated by former Adnoc Group companies Adma-Opco and Zadco.
In March and April 2018, Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) awarded a 10% stake in the Umm Shaif and Nasr offshore block to Italy’s Eni, 20% to France’s TotalEnergies and 10% to China National Petroleum Corporation (CNPC). Adnoc Group retained the majority 60% interest. The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.
Adnoc, along with its foreign partners, announced achieving a final investment decision (FID) worth $6.2bn on the Umm Shaif gas cap project on 21 July. The FID includes three EPC packages totalling $5.1bn for large-scale offshore infrastructure, “awarded to consortiums comprising major UAE and international contractors,” the state enterprise said without disclosing the contractors it had selected or the scope of work on the packages.
Adnoc added that, as part of the FID, it has also awarded a $365m contract to its subsidiary Adnoc Drilling for a 14-well drilling and integrated drilling services scope, to be delivered over 18 months using three existing rigs.
Production from the development is expected by 2030, the Abu Dhabi energy giant said.
The primary objective of the Umm Shaif gas cap and surface pressure boosting project is to increase gas production by 550 million cubic feet a day (cf/d) and raise associated condensate output by 50,000 barrels a day (b/d).
Adnoc Offshore intends to feed about 520 million cf/d of the additional produced gas into Adnoc Group’s sales gas grid.
Adnoc Offshore is understood to have issued the main EPC tender for the Umm Shaif gas cap and surface pressure boosting project in the first quarter of 2025.
Contractors submitted technical bids for the three EPC packages by the 30 October deadline last year, while commercial bids were submitted by the deadline of 2 February this year.
The following contractors are among those understood to have been bidding for the three EPC packages, according to sources:
Offshore package 1:
- Saipem (Italy) / Seatrium (Singapore)
- Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
- NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)
Offshore package 2:
- China Offshore Oil Engineering Company (COOEC)
- McDermott (US)
- Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
- NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)
Onshore package:
- Archirodon (Greece)
- China Petroleum Engineering & Construction Company (CPECC)
- Engineering for the Petroleum & Process Industries (Enppi; Egypt)
- Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
- Target Engineering Construction Company (UAE)
Australian firm Worley has performed front-end engineering and design (feed) work on the project.
Gas is produced from the Umm Shaif Khuff and Uweinat reservoirs, as well as from the Arab C and Arab D Early Production Scheme 2. The Umm Shaif Khuff reservoir is a formation that consists of dry gas volumetric reservoirs located in the Umm Shaif field.
Khuff reservoirs have been in production in Abu Dhabi since August 1989. Umm Shaif Khuff gas is currently produced from 28 active wells within the Umm Shaif field. A majority of these wells supply gas to Adnoc Group subsidiaries Adnoc LNG and Adnoc Gas Processing, with the rest supporting oil reservoirs at the Umm Shaif field through gas injection.
The Umm Shaif Super Complex (USSC) processes and transports oil, condensates and natural gas in separate pipelines to Das Island for further processing and export. The condensates collected from the USSC are transported to Das Island through an 18-inch pipeline stretching 34.4km, or are spiked into the 36-inch Adnoc main oil line.
The gas collected from the USSC is transported to Das Island through two 46-inch pipelines, which also run 34.4km.
Pressure at the Umm Shaif Khuff gas reservoirs will start to decline by the end of 2028. The flowing wellhead pressures at some of the Khuff gas wellhead towers are likely to reduce, so boosting well deliverability and increasing the flowrates is necessary.
Therefore, new Khuff surface pressure boosting facilities are required to maintain the plateau – with a goal of achieving a 90% gas recovery factor – and increase production beyond the end of the plateau by lowering pressure at the Khuff reservoirs.
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Masdar renews $300m revolving credit facility4 August 2026
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Masdar’s renewable energy portfolio reached 65GW earlier this year, placing the company about two-thirds of the way towards its 100GW target by 2030. Of that, Masdar said 45GW is operational, under construction or has reached final close, while a further 20GW comprises projects in advanced stages of development.
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Last month, Masdar reached financial close on its $6.1bn round-the-clock renewable energy project in Abu Dhabi, securing a $5.1bn financing package from a consortium of 13 local and international banks.
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Jordan awards EPC contract for Maan wind farm4 August 2026
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Chinese contractor wins Saudi power and gas contracts4 August 2026
Chinese contractor Ningxia Power Construction has announced it has won two contracts in Saudi Arabia covering power and gas infrastructure projects with a combined value of about RMB280m ($39m).
The awards cover the third phase of cable laying and connection works for Saudi Aramco’s Master Gas System (MGS-III) project and the first phase of a 380kV transmission line for the Red Sea Aluminium project, the company said in a statement.
The MGS gas booster station contract covers electrical, instrumentation and control, communications, pre-commissioning, commissioning and defect rectification works.
The project is located northwest of Al-Mendassah in Medina Province. Construction is scheduled to last 670 days and continue through to partial mechanical completion and mechanical completion.
The Red Sea Aluminium contract involves the first phase of a 380kV overhead transmission line project.
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The Red Sea Aluminium complex is a planned integrated aluminium production facility in Yanbu Industrial City being developed by Red Sea Aluminium Holdings (RSAH), a joint venture of Innovation Global Industries, Innovation New Materials and Shandong Innovation Group
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Contractors submit bids for key Aramco offshore tenders4 August 2026

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Contractors in Saudi Aramco’s Long-Term Agreement (LTA) pool of offshore service providers have submitted bids for five offshore tenders covering the engineering, procurement, construction and installation (EPCI) of structures at the Abu Safah, Berri, Manifa, Marjan, Safaniya and Zuluf offshore oil and gas fields in Saudi Arabia.
The tenders are numbers 167, 168, 169, 170 and 171 on Aramco’s Contract Release and Purchase Order (CRPO) system, according to sources.
Aramco issued the five CRPOs to its offshore LTA contractors in December, setting an initial bid submission deadline of 3 February.
The Saudi energy giant has since extended the bid submission deadline several times – to 31 March, 1 June, 1 July and then 30 July – to allow LTA contractors sufficient time to prepare proposals.
At the request of certain bidders, Aramco granted a final two-day extension, with LTA contractors submitting their proposals for the five CRPOs on 1 August, sources told MEED.
The basic scope of EPCI work on the tenders is as follows:
- CRPO 167 – eight jackets at the Marjan field development
- CRPO 168 – four production deck modules (PDMs) at the Abu Safah, Berri, Manifa and Safaniya fields
- CRPO 169 – three PDMs at the Marjan field development
- CRPO 170 – three PDMs at the Marjan field development
- CRPO 171 – three PDMs at the Zuluf field development
Offshore contract awards
Aramco spent almost $11bn on offshore EPCI contracts last year, more than double its capital expenditure on offshore projects in 2024, marking another year of robust upstream project spending in Saudi Arabia.
In July, Aramco selected contractors for five CRPOs – numbers 150, 157, 158, 159 and 160 – worth over $3bn. These involve EPCI work and infrastructure upgrades at the Abu Safah, Berri, Manifa, Marjan and Zuluf offshore fields.
The Saudi energy giant then picked contractors for four more CRPOs that are part of the large-scale project to expand infrastructure at the Zuluf offshore field development. The tenders are CRPOs 145, 146, 147 and 148, and their combined value is estimated to be almost $6bn.
In late December last year, Italian contractor Saipem announced securing contracts for CRPOs 162 and 165. The scope of work on CRPO 162 covers the EPCI of two rigid pipelines – a 30-inch pipeline stretching 23.98 kilometres (km) and a 20-inch pipeline, 10.23km-long; replacement of a flexible 10-inch pipeline that spans 5.1km; and modification work on topsides at the Berri and Abu Safah field developments. The duration of this contract is 32 months, Saipem said.
The scope of work on CRPO 165, lasting 12 months, includes subsea interventions at the Marjan field development and the EPCI of 300 metres of onshore pipeline and associated tie-ins.
In early January 2026, MEED reported that Aramco had selected US-based McDermott International for CRPO 166. The scope of work is understood to have been carved out of the $15bn Marjan offshore field development project, under which Aramco issued contracts for 20 EPCI packages in 2019. McDermott won the largest share of work on the project, securing an estimated $4.5bn of contracts across two packages.
The contract for CRPO 166 was single-sourced to McDermott without a competitive tendering process and issued as a change order, sources told MEED.
Aramco then awarded its second offshore contract of the year, CRPO 156, to Saipem. The scope of work covers the EPCI of a 48-inch trunkline, spanning roughly 65km offshore and 12km onshore, from the Safaniya offshore oil field to the onshore processing facility, plus associated works such as subsea hook-ups.
CRPO 156 comprises the third package in Aramco’s latest expansion phase at Safaniya – the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day (b/d). Discovered in 1951, the field is located in Gulf waters approximately 265km north of Aramco’s headquarters in Dhahran.
MEED also reported that Saipem was selected by Aramco for two more tenders as part of the Safaniya field development expansion phase – CRPOs 154 and 155. The combined contract value for CRPOs 154 and 155 is estimated at $600m, sources said.
In April, state-owned China Offshore Oil Engineering Company won CRPO 161, which covers the EPCI of four gas jackets at the Arabiyah, Hasbah and Karan offshore fields.
Healthy contract award pipeline
Looking ahead, in addition to CRPOs 167-171, which are currently under bidding, Aramco is evaluating bids submitted by its offshore LTA contractors in July and August last year for at least two additional tenders.
These are CRPOs 163 and 164, relating to the EPCI of infrastructure at the Abu Safah, Berri, Karan, Marjan and Safaniya fields.
Separately, the offshore LTA contractors are also bidding for a new tender – CRPO 176 – that was issued by Aramco in May, according to sources.
The scope of work on CRPO 176 covers the EPCI of seven flexible subsea pipelines with a combined length of 17km at the Berri and Marjan offshore field developments.
Aramco’s LTA pool of offshore service providers comprises the following entities:
- Saipem (Italy)
- McDermott International (US)
- Larsen & Toubro Energy Hydrocarbon (LTEH, India) / Subsea7 (UK)
- NMDC Energy (UAE)
- Lamprell (UAE/Saudi Arabia)
- China Offshore Oil Engineering Company (China)
- Dynamic Industries (US)
- Sapura Energy (Malaysia)
- TechnipFMC (France) / MMHE (Malaysia)
- Hyundai Heavy Industries (South Korea)
In April 2025, Aramco renewed its LTAs with the following contractors, whose contracts had either lapsed or were close to expiry:
- Saipem
- McDermott International
- Larsen & Toubro Energy Hydrocarbon / Subsea7
- NMDC Energy
- Lamprell
- China Offshore Oil Engineering Company
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