meed-logo

line1 line2 line3
SIGN IN / REGISTER

GCC enters pivotal year for IPPs

26 September 2025

 

> This package also includes: MEED's 2025 power developer ranking

Almost 24.4GW of independent power generation capacity is now under tender across the GCC, spread across 29 projects that are in either the bidding or bid evaluation stages.

This highlights how the next 12 months will be decisive for contract awards. Of the total, 20 projects with 17.5GW of capacity are still in the main bid stage, while nine schemes with a combined 6.8GW are being evaluated. 

The projects under evaluation are the clearest signal of near-term awards. In Abu Dhabi, bids are being assessed for the 1.5GW Al-Zarraf and Al-Khazna solar independent power projects (IPPs). 

The Al-Zarraf solar photovoltaic (PV) scheme, Emirates Water & Electricity Company’s (Ewec) fifth utility-scale solar project, is part of the authority’s plan to build an average of 1.4GW of new solar PV capacity annually between 2027 and 2037.

Several developers are also competing for the Al-Khazna contract, with France’s Engie understood to be the frontrunner, having submitted the lowest bid last year.

Near-term awards

In Saudi Arabia, evaluation is under way for the 1.5GW Dawadmi wind IPP and the 1.4GW Najran solar PV IPP – both part of round six of the kingdom’s National Renewable Energy Programme (NREP).

Oman has four smaller IPPs, including a 280MW solar plant and two mid-scale wind projects. If evaluation cycles follow the typical two- to six-month pattern, these projects could be awarded in late 2025 or early 2026.

In the UAE capital, Abu Dhabi National Energy Company (Taqa) and Abu Dhabi Future Energy Company (Masdar) are likely to play key roles in future solar projects. Partners such as Japan’s Marubeni and Mitsui, China’s Jinko Power and France’s EDF have all worked with Taqa and Masdar in recent years, but their position in the GCC developer ranking ultimately depends on how much equity they secure.

In Saudi Arabia, the government has set a target of tendering about 20GW of renewables capacity each year, with the Public Investment Fund (PIF) leading about 70% of these schemes through the NREP. As its preferred partner, Acwa Power will likely continue to strengthen its already commanding lead in the regional developer ranking.

Other developers are also positioning themselves as credible contenders. Marubeni has built a track record in Saudi wind projects, securing the 600MW Al-Ghat and 500MW Waad Al-Shama IPPs with Ajlan & Bros in 2024 and winning the 700MW Yanbu wind IPP in July.

South Korea’s Kepco has also been a standout winner in the past year, securing stakes in four regional IPPs. Notably, it took 30% equity in both Saudi Power Procurement Company’s (SPPC) 1,800MW gas-fired power plants Nairiyah-1 and Rumah-1 in consortiums led jointly by Acwa Power and Saudi Electricity Company. It also teamed up with Masdar to take a part ownership of the 200MW Al-Sadawi 1 solar IPP.

The main bid stage still accounts for most of the pipeline, however. Saudi Arabia leads, with 14 projects totalling 12.6GW, all under the PIF and SPPC framework. These range in size from 1.5GW to 3GW and reflect the scale of Riyadh’s renewables push.  

The UAE has two projects at bid stage, led by the 3.3GW Al-Nouf 1 combined-cycle gas turbine (CCGT) scheme, which is the single largest in the pipeline. This project is being tendered as an IPP, with Ewec as the offtaker under a long-term power-purchase agreement. Kepco, Saudi Arabia’s Aljomaih and Japan’s Sumitomo have been prequalified to bid for the project, along with state-owned Etihad Water & Electricity (Etihad WE).

Revealing trends

Saudi Arabia is clearly dominant in terms of volume, while the UAE’s near-term focus is on fewer but larger projects. In total, solar makes up the largest share, with about 16.8GW in the pipeline. Developers with strong solar portfolios, such as Jinko Power, EDF, Engie and TotalEnergies, stand to gain the most as the push for solar continues apace, but the Al-Nouf 1 CCGT project in Abu Dhabi shows that conventional power is still relevant. A win here could lift the standing of Japanese or Korean entities that are seeking balance between renewables and thermal generation.

Battery storage is also emerging later in the cycle. Abu Dhabi’s 400MW battery project is the region’s first standalone large-scale battery energy storage project to be tendered under an IPP model. In Saudi Arabia, SPPC is expected to follow with its own programme, which could reach gigawatt scale. These projects may wish to bring in developers with experience in storage technology, showing how the IPP model is being extended beyond generation.

Overall, the GCC’s IPP and independent water and power project market is set for another busy round of awards. The composition of the pipeline ensures that solar developers will continue to expand their portfolios, while conventional players could still win large capacities through Abu Dhabi’s CCGT programme. 

Acwa Power’s partnership with the PIF means its position at the top of the ranking will only strengthen as more Saudi projects are awarded. For others, progress depends on equity access through partnerships.

While these projects will matter in proportion to how much equity they open to partners, this year’s movers have shown that smart bidding and strong partnerships can still shift the balance.

 MEED's 2025 power developer ranking

https://image.digitalinsightresearch.in/uploads/NewsArticle/14749135/main.gif
Mark Dowdall

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aramco defers bid submissions for Safaniya onshore project

    5 February 2026

     

    Saudi Aramco has postponed the bid submission deadline for a project to construct onshore surface facilities to boost productivity at the Safaniya offshore oil field development in Saudi Arabia.

    The Safaniya field is 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 the Gulf waters, approximately 265 kilometres north of Aramco’s headquarters in Dhahran.

    Aramco has pushed back the bid submission deadline for the Safaniya onshore surface facilities project until 17 March, according to sources. The earlier bid submission date was 31 January.

    Aramco issued the main tender for engineering, procurement and construction (EPC) works on the Safaniya onshore surface facilities project on 9 July last year. Contractors were initially given deadlines of 24 October and 7 November to submit technical and commercial bids for the project, MEED previously reported.

    Prior to that, Aramco is understood to have issued the solicitation of interest document for the Safaniya field onshore surface facilities project in May, with contractors submitting responses by 28 May.

    The EPC scope of work has been divided into two packages:

    • Package 1 – Water treatment and injection plant:
      • Building new water injection units
      • Expansion of gas-oil separation plant one
      • Building storage tanks, transfer pumps and substation
      • A central processing facility at the Zuluf field development, including water transfer pumps, chemical injection skids and other components
         
    • Package 2 – Produced water utilities:
      • Fire water system
      • Potable water units
      • Utilities
      • Nitrogen generation system
      • Site buildings
      • Electrical infrastructure
      • Security systems
      • Telecommunications networks

    In addition to pursuing the onshore facilities project to boost Safaniya’s productivity, MEED also previously reported about Aramco issuing three key offshore tenders last year for the field’s next expansion phase.

    Contractors in Aramco’s Long-Term Agreement pool of offshore service providers submitted bids for the three tenders – Contracts Release and Purchase Order (CRPO) numbers 154, 155 and 156 – by 31 August. Aramco is evaluating bids for the three tenders and is expected to award contracts within the first quarter.

    ALSO READ: Aramco to finalise long-term agreements with engineering firms
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15582695/main5945.jpeg
    Indrajit Sen
  • Etihad Rail awards multibillion-dollar high-speed rail contracts

    5 February 2026

     

    Register for MEED’s 14-day trial access 

    The UAE’s Etihad Rail has awarded multibillion-dollar design-and-build contracts for the civil works and station packages of the high-speed railway (HSR) line connecting Abu Dhabi and Dubai.

    The contract for the construction of the Abu Dhabi side of the railway was awarded to a consortium comprising Abu Dhabi's National Projects Construction (NPC), Trojan Tunnelling, Turkiye's Kalyon and Beijing-headquartered China State Construction Engineering Corporation.

    The other deal, comprising the construction of the Dubai side of the railway, was awarded to a consortium of India's Larsen & Toubro, Beijing-based China Harbour Engineering Company and local firm Wade Adams.

    MEED understands that the whole scheme is worth $8bn-plus.

    US-based Jacobs is the designer for the NPC group.

    French engineering firm Egis and Singapore’s Surbana Jurong are the designers for the L&T-led consortium.

    Last month, MEED exclusively reported that Etihad Rail was preparing to award the contracts for the HSR.

    The design speed of trains running on the UAE’s HSR network will be 350 kilometres an hour (km/h), and the operating speed will be 320km/h.

    The proposed HSR programme will be constructed in four phases, gradually adding further connectivity to other areas within the UAE.

    The first phase involves constructing a railway line connecting Abu Dhabi and Dubai, which is expected to be operational by 2030.

    The second phase will develop an inner‑city railway network with 10 stations within the city of Abu Dhabi.

    The third phase of the railway network involves constructing a connection between Abu Dhabi and Al-Ain.

    The fourth phase involves developing an inter-emirate connection between Dubai and Sharjah.

    The 150km first phase of the HSR will stretch from the Al-Zahiyah area of Abu Dhabi to Al-Jaddaf in Dubai.

    The project’s civil works have been split into two packages – Abu Dhabi and Dubai – comprising four sections. The scope of these sections includes:

    • Phase 1A: Al-Zahiyah to Yas Island (23.5km) 
    • Phase 1B: Yas Island to the border of Abu Dhabi/Dubai (64.2km)
    • Phase 1C: Abu Dhabi/Dubai border to Al-Jaddaf (52.1km)
    • Phase 1D: Abu Dhabi airport delta junction and connection with Abu Dhabi airport station (9.2km)

    The rail line will have five stations: Al-Zahiyah (ADT), Saadiyat Island (ADS), Yas Island (YAS), Abu Dhabi International airport (AUH) and Al-Jaddaf (DJD).

    The ADT, AUH and DJD stations will be underground, while ADS will be elevated and YAS will be at grade.

    The overall construction package also includes provisions for rolling stock, railway systems and two maintenance depots.

    The high-speed project will slash journey times between the UAE’s two largest cities and economic centres. The journey time between the YAS and DJD stations will be 30 minutes.

    Spanish engineering firms Sener and Ineco are the project’s engineering consultants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15578874/main.jpg
    Yasir Iqbal
  • Aldar announces $18bn UAE contract awards in 2025

    4 February 2026

    Abu Dhabi-based real estate developer Aldar Properties has announced the award of construction contracts totalling over AED66bn ($18bn) in 2025.

    These awards span a diverse portfolio of residential, commercial, infrastructure and logistics projects across the UAE. 

    The newly awarded contracts cover large-scale residential communities, strategic infrastructure, and Grade A commercial and logistics assets across key growth locations nationwide.

    Collectively, the projects will deliver thousands of new homes, modern commercial and logistics facilities, and critical infrastructure that respond to evolving market demand and advance sustainable urban development.

    In Abu Dhabi, contracts were awarded across a range of projects for Aldar and the local government. On Saadiyat Island, local contractor Fibrex Construction was appointed for Mamsha Gardens and Nobu Residences, while Dubai-based Dutco Construction Company was awarded the main contract for The Arthouse.

    On Fahid Island, Indian firm Shapoorji Pallonji was awarded the main contract for Fahid Beach Residences.

    Beijing-headquartered China State Construction Engineering Corporation and Abu Dhabi’s Western Bainoona Group, Nael & Bin Harmal Hydroexpert, Yas Projects, Said Bin Darwish and Noor Al-Sahara General Contracting were also awarded contracts across a number of national housing and infrastructure projects during 2025.

    In Dubai, Aldar continued to deliver across major residential and logistics developments. Sharjah-based Ginco General Contracting was contracted to develop villas and townhouses at Athlon.

    Turkish firm Nurol was awarded the main works package for Verdes by Haven.

    Kuwait’s Mohammed Abdulmohsin Al-Kharafi & Sons was awarded the villas package for The Wilds, and local firm Al-Nasr Contracting Company was awarded the infrastructure works.

    In the industrial and logistics segment, Dubai-based Group Amana was awarded the development of Aldar Logistics Centres at National Industries Park.

    In Ras Al-Khaimah, Shapoorji Pallonji was awarded contracts for the Al-Marjan Beachfront development.

    Aldar said in a statement: “In line with the UAE’s National In-Country Value (ICV) programme, almost 45% of the total value of projects awarded in 2025 is expected to be recirculated into the local economy, supporting economic diversification, industrial development and job creation across the UAE.

    “Aldar continues to embed ICV principles across its procurement processes by prioritising UAE-based contractors and suppliers and supporting the growth of domestic capabilities across the construction value chain,” the statement added.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15568462/main.jpg
    Yasir Iqbal
  • Kuwait signs 25-year offtake for Al-Zour North IWPP

    4 February 2026

    Kuwait has signed a 25-year energy conversion and water purchase agreement for the Al-Zour North independent water and power plant (IWPP) phases two and three.

    The deal was signed by Saudi Arabia’s Acwa and local financial institution Gulf Investment Corporation (GIC) with Kuwait’s Ministry of Electricity & Water, confirming the long-term offtake arrangements for the project.

    The signing marks a key step towards financial close on the estimated $4bn project. Once completed, the facility will add 2,700MW of power and 120 million imperial gallons a day of desalinated water to Kuwait’s supply network.

    Kuwait recently established a new public shareholding company to manage the next stages of the project.

    The Gulf Alliance for Power & Water Company will be responsible for the construction, implementation, management, operation and maintenance of Al-Zour North IWPP phases two and three.

    In August, Acwa, formerly Acwa Power, and GIC signed a contract to develop the project, which will be the country’s largest IWPP. The consortium will hold 40% of the project company through Al-Zour Kuwaiti Second & Third Holding Company.

    The Public-Private Partnership Authority will hold 10% on behalf of government entities, while 50% will be offered to Kuwaiti citizens through a public subscription process.

    The project is owned by the Kuwait Authority for Partnership Projects and the Ministry of Electricity, Water & Renewable Energy.

    The scheme will be developed under a build-operate-transfer model. The newly signed offtake agreement secures revenue for a 25-year period.

    China’s Sepco3 is the engineering, procurement and construction contractor for the project.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15565047/main1611.jpg
    Mark Dowdall
  • Qatar’s Ashghal outlines Q1 2026 project plans

    4 February 2026

    Qatar’s Public Works Authority (Ashghal) has outlined plans to undertake 67 projects as part of its development strategy for 2026. 

    The majority of the upcoming projects cover sectors such as buildings, highways, roads, water and drainage.

    The projects to be undertaken in the first quarter of this year include:

    1. Access road to the Qatari Emiri Air Defence command building
    2. Call-off agreement for road and infrastructure works
    3. Carrying out all recommended work to ensure the necessary approvals from the Civil Defence Authority are obtained
    4. Remaining works of C/2020/60 RIW for junctions & RA in various areas of Greater Doha: phase 9
    5. Remaining works of C/2020/124 R & I in Mebaireek (Zone 81): packages 1&2
    6. Strategic FTS for Karwa City, Asian City, IA 2 Diversions and SA
    7. Modifications and additions to existing schools: packages 2-8
    8. Construction of Mekeines – Umm Bab Link Road
    9. Construction of Msheireb offices
    10. Construction of parking lots for areas 2 and 3 and modification of road infrastructure, the bus station and Gate 6
    11. Remaining works of C/2018/114 Umm Al-Dome improvement
    12. Remaining works of C/2019/90 access roads for Umm Ghuwailina 
    13. Remaining works of C2017/86, roads surrounding Al-Bayt Stadium 
    14. Remaining works of C2018/7 & C2017/118, Al-Kheesa foul sewer: packages 1&2
    15. Consultancy services for MM building damages investigation and repairs recommendations
    16. Consultancy services for modernisation of tunnels on Lusail Expressway & Sabah Al-Ahmad corridor
    17. Consultancy services for survey works, GIS, CAD and BIM on a call-off basis
    18. Consultancy supervision services for construction of Mekeines – Umm Bab Link Road
    19. Demolition and construction of two schools (Simaisma Junior School, Simaisma High School): package 3
    20. Demolition of decommissioned facilities: phase 6
    21. Design and build for water treatment plant (including treated sewage effluent plant for UDST)
    22. Design and construction of pedestrian crossings: phase 4
    23. Design of external administrative buildings for the protection and nature reserves sector, and the Turtle Protection Centre
    24. Design and build of a truck stop outside the wall of the medical quarry in Al-Ruwais
    25. Design, supply and install the new sparkling lights for the Arch 5/6
    26. Execution of Central Doha and Corniche Package: two remaining works
    27. Foul sewer GAP tunnel 1.6 kilometres long, diameter 600-800 mm at Doha North
    28. Framework contract for the road link works in several locations across Qatar 
    29. Industrial area STW asset improvement works: phase 2 AM24-0032
    30. Modernisation of tunnels on Lusail Expressway & Sabah Al-Ahmad corridor
    31. New consultancy supervision services
    32. On-call contract for geotechnical, environmental & structural tests and evaluation services
    33. Operational insurance – property all risk and third-party liability
    34. Package 1: design and build of strategic SGW drainage Western Tunnels – Southern area – C878/S1
    35. Paving and house connection for existing plot at Nuaija Zone 44
    36. Pilot deep wells construction
    37. PPP pre-contract framework – future work orders
    38. Pre-contract PCS for centralised sewage solids treatment and management facility
    39. Pre-contract PCS for Strategic Qatar Integrated Drainage Master Plan Update 2026 C767/3
    40. PSA for Strategic FTS for Karwa City, Asian City, IA 2 Diversions and SA
    41. PSA roads and infrastructure in Wadi Al-Banat (Zone-70)
    42. PSA roads and infrastructure in Al-Kheesa North and East (Rawdat Al-Hamama District): package 3
    43. R&I in southwest of Al-Wukair (DW086 – DW092)
    44. Refurbishment, reinstatement and repair works for strategic location in Qatar: phase 9 (QN) AM22-1011
    45. Roads and infrastructure in Al-Kheesa
    46. Roads and infrastructure in Al-Kheesa North and East (Rawdat Al-Hamama District): package 3
    47. Roads and infrastructure in Rawdat Abal Heeran: package 4
    48. Roads and infrastructure in Sailiya Al-Attiyah: package 1
    49. Roads and infrastructure in Sailiya Al-Attiyah: package 2
    50. Roads and infrastructure north of Smeisma: package 4
    51. Secondment contract for professional staff for the Highway Projects Department
    52. Secondment contract for professional staff for Roads Project department: phase 2
    53. STW rehabilitation and maintenance: Qatar West phase 2 AM25-0020
    54. Supervision for community college projects
    55. Supervision for design and construction of pedestrian crossings: phase 4
    56. Supervision for roads and infrastructure for Qatar Armed Forces
    57. Supervision for roads and infrastructure for Qatar Armed Forces – A
    58. Supervision for the design and build of a new communications room and technical store for Al-Shahaniya radio station
    59. Supervision for foul sewer GAP tunnel – 1.6km long, diameter 600-800 mm – at Doha North
    60. Supervision of deep injection wells enabling works – pilot at Al-Thumama
    61. Supervision of the Ministry of Education and Higher Education warehouses project
    62. Supply of equipment and spares for DNOM AM21-192
    63. Supply of pumps for DNO&M workshop section AM25-0075
    64. Surrounding roads around North Camp
    65. Surrounding roads around Doha Air Base
    66. TSE rehabilitation and maintenance: Qatar West phase 2 – AM25-0031
    67. TSE renewal programme and assets improvements: Qatar South phase 2 – AM22-132
    Qatar market overview

    Qatar’s next construction cycle is starting to take shape. In recent months, the country has made progress on several high-profile, large-scale infrastructure schemes that are set to inject fresh momentum into Qatar’s construction pipeline and, crucially, translate into years of contract flow for local contractors, suppliers and service firms.

    The largest of these schemes includes the proposed high-speed rail line connecting Riyadh and Doha, the revived Friendship Bridge to Bahrain and a planned road corridor linking Qatar with the UAE.

    For the construction industry, these moves signal that the state is ready to shift from post-World Cup consolidation to a new, longer-term buildout anchored in regional connectivity.

    That longer-term view is especially important after a flat 2025, when contract awards slipped to just over $2bn — the weakest annual total in the past five years — and many in the industry felt a widening gap between plans and procurement.

    The mood has now shifted. With about $64bn-worth of projects in the pipeline, Qatar is not short of project opportunities.

    The next phase has the potential to sustain contractors and the wider supply chain in the near term, while bringing a more predictable rhythm back to the market as these programmes are broken into packages and move to tender.

    MEED’s February 2026 report on Qatar includes:

    > COMMENT: Qatar’s strategy falls into place
    > GVT & ECONOMY: Qatar enters 2026 with heady expectations
    > BANKING: Qatar banks search for growth
    > OIL & GAS: QatarEnergy achieves strategic oil and gas goals in 2025
    > POWER & WATER: Dukhan solar award drives Qatar's utility sector
    > CONSTRUCTION: Infrastructure investments underpin Qatar construction

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15565036/main.jpeg
    Yasir Iqbal