meed-logo

line1 line2 line3
SIGN IN / REGISTER

GCC real estate faces a more nuanced reality

3 July 2025

 

The GCC real estate market in 2025-26 is characterised by dynamic growth, largely propelled by ambitious government-led diversification strategies and large-scale masterplanned projects. 

Robust sales and significant development pipelines have been interpreted as indomitable market fundamentals across the region, particularly in Saudi Arabia and the UAE. 

This year, a more balanced perspective has emerged that reveals new challenges as markets cope with external threats including a weakening global economy and regional geopolitical tensions, combined with domestic challenges such as oversupply and affordability. 

Concerns about potential oversupply in certain residential and retail segments, especially in Dubai and Riyadh, are notable, with ratings agencies such as Fitch forecasting price corrections. 

With so many real estate projects planned in the GCC region, the construction sector is poised for continued expansion, yet concerns are growing over delivery as capacity is constrained and contractors are becoming increasingly risk averse as their orderbooks fill.   

Balancing population growth with project pipelines and the delivery of national visions will be critical in shaping the market’s performance in the future. 

Investors and developers will need to navigate these complexities if they are to continue enjoying the success they have achieved in the past four years.

Bahrain

Bahrain’s real estate sector performed steadily in 2024, led by the residential market, which benefitted from demographic growth, improved affordability and supportive government initiatives.

Updated immigration policies such as the introduction of a Golden Visa programme have encouraged more expatriates to purchase properties, which has been stimulating demand. 

The price of high-end apartments increased modestly year-on-year, with an increase of 1.4% in 2024, while villa prices remained stable, indicating strengthening demand for premium properties with modern amenities, according to real estate services company Savills. 

There was an even greater increase in rental values, which rose by 23% across Bahrain in 2024, with the Capital Governorate accounting for 48% of rental transactions, Savills says. 

The country’s commercial office market faced challenges in 2024, however, with limited demand and relatively flat rental growth, despite new developments such as SayaCorp Tower entering the market, Savills reports. 

Conversely, Bahrain’s retail sector showed signs of recovery last year, driven by luxury brands opening new stores in Marassi Galleria, increasing foot traffic and demand.

For industrial space, larger warehouses saw a slight increase in rental rates, with a 2.1% year-on-year growth, while rates for smaller units remained stable, Savills says. This sector remains integral to Bahrain’s economic diversification strategy, with further infrastructure investments expected to support demand.

Kuwait 

Kuwait’s residential prices have softened over the past year. Overall residential sales in the first quarter of 2025 declined by 24% quarter-on-quarter, marking the weakest growth since Q2 2024, but only dipped by 2% year-on-year despite an 11.7% rise in transactions, potentially indicating a shift towards smaller or lower-value units in outer areas, according to National Bank of Kuwait (NBK). 

The residential price index remained negative, falling by 1.7% year-on-year in its eighth consecutive quarterly decline, although at a slower pace, suggesting abatement of downward pressure, NBK says.

The slowdown in residential sales in Q1 2025 indicates potential market sensitivity to seasonal factors and a normalisation from strong previous levels. 

The fiscal deficit for 2025 is expected to be -4.2% of GDP, up from -3.1% in 2024 on the back of declining oil revenue due to lower prices. 

Fiscal pressures could impact government spending on projects if oil prices remain low or decline even further.

Oman

Oman’s real estate sector is experiencing steady growth, supported by the country’s broader economic expansion. 

The residential market has registered a 3.6% increase in supply, adding about 38,400 new units in 2024. 

Despite the increase, occupancy rates remained stable at 85.2%, with villas and houses experiencing higher demand. The growth in residential supply is essential to meet the projected housing demand gap by 2035, which underscores the need for proactive planning to avoid potential shortfalls.

Oman’s tourism sector has also contributed positively to the real estate market, with guest arrivals at three- to five-star hotels up 3.6%, leading to a 6.1% rise in revenue. Hotel occupancy rates improved to 53.5%, indicating a gradual recovery in demand.

Looking ahead, Oman’s real estate sector is expected to benefit from government initiatives under Vision 2040, which aims to attract investment and foster economic diversification. Anticipated population and workforce growth will drive demand for housing and commercial properties. 

Challenges such as market dynamics and potential delays in project completions will require careful management. Overall, the outlook for Oman’s real estate sector remains stable, with opportunities for strong growth in both residential and tourism-
related developments.

Qatar

Qatar’s real estate market has continued to adapt to evolving demand patterns and macroeconomic conditions, according to real estate consultancy Knight Frank. While some sectors showed resilience, overall trends point to a period of moderation across the residential, commercial and retail segments.

In the residential sales market, average villa and apartment prices declined by 5% year-on-year. Despite the fall, demand for homes in locations such as Pearl Island and West Bay Lagoon remains stable. Abu Hamour recorded the highest average villa sale price at QR8,587 ($2,359) a square metre (sq m), while the Waterfront led the apartment segment at QR14,300/sq m. 

Mortgage activity rose sharply, with a 168% year-on-year increase in Q4 2024, partly attributed to declining interest rates.

Rental rates in the villa segment dropped by 2.6% in 2024, averaging QR15,875 a month, although premium areas such as West Bay Lagoon continued to command higher rents. The apartment rental market remained relatively stable, with luxury developments such as Pearl Island seeing sustained demand and rents for three-bed properties averaging QR15,721 a month.

In the office market, Grade A rents dipped by 2.3%, settling at QR90/sq m. Prime areas like West Bay and Marina District remain in demand, although vacancy rates in secondary locations are contributing to downward rental pressure.

Retail rents declined by 1.5% amid increasing supply and shifting consumer behaviour. Lifestyle and experiential retail developments outperformed, while secondary malls faced growing competition. 

E-commerce also continued to gain ground, with online sales surging 32% year-on-year in December 2024.

The outlook for Qatar’s real estate market will depend on the pace of economic diversification … and broader regional stability

Qatar’s hospitality sector saw marked improvements, supported by a 25% rise in tourist arrivals in 2024. Key performance indicators, including occupancy rates and revenue per available room, recorded double-digit growth, reflecting the country’s appeal as a leisure and business destination.

The outlook for Qatar’s real estate market will depend on the pace of economic diversification, infrastructure investment and broader regional stability. While high-end residential and hospitality sectors appear well positioned, other segments may find the outlook more challenging.

Saudi Arabia

Saudi Arabia’s real estate market has displayed a mixed performance across all sectors, with momentum in residential and tourism-led hospitality markets counterbalanced by slower activity in the office and retail segments, according to real estate agency CBRE’s latest market review.

In Riyadh, residential sales remained resilient, underpinned by population growth, ongoing reforms and increased demand from Saudi nationals and expatriates. Despite high mortgage rates, key developments such as Diriyah and King Salman Park continue to attract investor attention. 

Demand in Jeddah is more subdued, with price growth stabilising after recent surges. Supply constraints and the government’s focus on increasing home ownership to 70% by 2030 remain influential drivers.

The hospitality sector showed significant growth, particularly in the religious and leisure tourism segments. Strong visitor numbers to Mecca and Madina supported high hotel occupancy rates, while developments in Al-Ula and the Red Sea contributed to the expansion of the kingdom’s tourism offering. 

Saudi Arabia recorded a surge in international tourist arrivals, reflecting its broader push to diversify the economy through the Vision 2030 strategy. Major global hotel brands continued to announce new projects, signalling long-term confidence in the sector’s prospects.

The office market remained relatively stable, although demand patterns are evolving. In Riyadh, Grade A office spaces remained in demand amid limited supply, while older or lower-grade buildings experienced elevated vacancy levels. 

In Jeddah and Dammam, activity was more modest, with tenants preferring flexible leasing arrangements. CBRE notes that public sector activity and government-backed gigaprojects continue to play a significant role in driving office demand.

Retail sector performance varied, with experiential and lifestyle-focused retail formats gaining traction, while traditional malls faced ongoing pressure from e-commerce growth and shifting consumer behaviours. Developments in Riyadh and Jeddah reflect a broader industry shift towards mixed-use destinations with entertainment and leisure at the core.

Looking ahead, Saudi Arabia’s real estate outlook remains cautiously optimistic. Continued progress on gigaprojects such as Neom, Qiddiya and the Red Sea developments are expected to support long-term demand across several asset classes. 

However, affordability challenges, financing constraints and evolving global economic conditions could temper short-term momentum.

 UAE

After four strong years, Dubai’s residential market has shown signs of plateauing in 2025. 

The market recorded more than 42,000 sales transactions in the first quarter of this year, reflecting a 10% quarterly decline due to fewer new project launches and seasonal factors, according to property consultant Cavendish Maxwell. 

At the same time, year-on-year performance remained strong, with transaction volumes rising by 23.1% and total sales value reaching AED114.4bn ($31bn), a 29.6% increase. 

Residential rents increased by 1% quarter-on-quarter and 14.4% year-on-year in Q1 2025, marking the slowest quarterly rise in two years. Gross rental yields averaged 7.3% for apartments and 5% for villas and townhouses in March 2025.

In May, Fitch Ratings forecast a residential price correction in Dubai, starting in H2 2025 into 2026, driven by a record increase in new supply. This is a direct cause-and-effect relationship, where past sales, leading to new projects, are now translating into future supply, which will likely dampen price growth.

Fitch Ratings forecasts a residential price correction in Dubai starting in H2 2025 into 2026, driven by a record increase in new supply

Residential prices surged approximately 60% between 2022 and Q1 2025. Simultaneously, a record number of new property projects were initiated in 2023-24, with a peak delivery of 120,000 units expected
in 2026. 

Fitch says that this average 16% increase in supply in 2025-27 will exceed the forecast population growth of about 5%. This imbalance is the direct cause of the predicted 15% fall in residential property prices.

Rental yields are already showing pressure. While a correction is anticipated, Fitch also notes that UAE banks and developers are well-equipped to handle the downturn due to improved leverage and capital buffers. This suggests that the market is maturing, and stakeholders have learnt from previous cycles, potentially leading to a moderate correction rather than a significant crash.

https://image.digitalinsightresearch.in/uploads/NewsArticle/14187809/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Aramco offshore contract awards set to rebound

    23 July 2025

    Commentary
    Indrajit Sen
    Oil & gas editor

    Anxiety had been growing in Saudi Arabia’s offshore oil and gas market, with awards of engineering, procurement, construction and installation (EPCI) contracts drying up this year.

    Saudi Aramco, which spent a record $5bn in 2024 on offshore EPCI contracts, had been expected to surpass that level of capital expenditure (capex) this year. Yet, in the first half of 2025, the company did not award a single Contract Release and Purchase Order (CRPO), fuelling concern among offshore contractors, suppliers and other service providers.

    However, in July, Aramco dispelled all speculation that this might be a dry year by selecting contractors for five CRPOs – numbers 150, 157, 158, 159 and 160, worth more than $3bn. These tenders involve the EPCI of key structures and modifications and upgrades to infrastructure at the Abu Safah, Berri, Manifa, Marjan and Zuluf offshore oil and gas fields.

    Furthermore, frontrunners have emerged for four more CRPOs that are part of a 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.

    Although official contracts for these CRPOs have yet to be issued, Aramco is expected to formally award the jobs to the contractors it has selected from its Long-Term Agreement pool within the third quarter.

    When these contract awards take place, Aramco will have almost doubled its capex on offshore projects this year compared to 2024, marking yet another year of robust upstream project spending.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14320894/main.png
    Indrajit Sen
  • Adnoc seeks prices for Taziz’s Project Salt

    23 July 2025

    Abu Dhabi National Oil Company (Adnoc) has asked for commercial bids from contractors for a project to build a cluster of three chemicals-producing plants in the Taziz Industrial Chemicals Zone in Ruwais, Abu Dhabi.

    The three chemicals plants will produce ethylene dichloride (EDC), chlor alkali and polyvinyl chloride (PVC) and are part of a scheme known as Project Salt.

    The project is among the main investments in the first phase of development for the upcoming petrochemicals derivatives complex by Taziz – a 60:40 joint venture of Adnoc and Abu Dhabi’s industrial holding company ADQ.

    Adnoc has requested contractors bidding for Project Salt to submit commercial bids by 6 August, according to sources.

    MEED recently reported that contractors had submitted technical bids for engineering, procurement and construction (EPC) works on Project Salt by the deadline of 15 July.

    The following contractors, among others, are understood to be bidding for Project Salt, sources told MEED:

    • China National Chemical Engineering Company / China Chengda Engineering Company / China Tianchen Engineering Corporation 
    • Larsen & Toubro Energy Hydrocarbon (India)
    • Samsung E&A (South Korea)

    Adnoc had initially set deadlines of 15 June and 23 July for contractors to submit technical and commercial bids for the project, respectively.

    Taziz first announced the EDC, chlor alkali and PVC plants in December 2021. India’s Reliance Industries was named as the main investor in the chemicals plants at the time.

    Reliance is understood to have pulled out of Project Salt and has been replaced by France-based Kem One, MEED previously reported.

    MEED reported in June last year on the award of front-end engineering and design (feed) contracts for the three chemicals production plants.

    Germany-headquartered Thyssenkrupp Uhde won feed contracts for the EDC and chlor alkali plants. France-based Technip Energies won the feed contract for the PVC facility.

    The planned EDC plant will utilise chlorine from the associated chlor alkali plant as its main feedstock and will have a production capacity of up to 1.2 million tonnes a year (t/y).

    Part of the EDC output will, in turn, be used as feedstock by the PVC plant, which is planned to have a production capacity of 350,000 t/y.

    Surplus quantities of EDC and caustic soda from the chlor alkali plant are intended to be exported.

    Taziz Industrial Chemicals Zone

    Since 2021, Taziz has attracted investments from several foreign investors for its planned chemicals projects in the under-construction Taziz Industrial Chemicals Zone in Ruwais.

    Taziz has planned seven petrochemicals derivatives projects as part of the first phase of its industrial chemicals zone.

    UK-headquartered Wood Group has performed the feed works on the seven projects, which are:

    Anchor product

    End use

    Chlor alkali

    Water treatment, metallurgy and textiles

    Ethylene dichloride

    Housing, infrastructure and consumer goods

    Maleic anhydride

    Piping, construction and heavy transport

    Methanol

    Energy, consumer goods and pharmaceuticals

    Blue ammonia

    Agriculture, apparel and energy

    Isopropyl alcohol

    Healthcare and cosmetics

    Elastomers

    Automobiles, adhesives, food production and storage

    Chemicals production is a priority sector for Operation 300bn, the UAE’s industrial growth strategy.

    The strategy is being overseen by the Industry & Advanced Technology Ministry, which aims to raise the UAE industrial sector’s contribution to the national GDP to AED300bn ($81.7bn) by 2031.

    In December 2021, Taziz secured agreements from eight UAE-based entities for investments in its planned chemicals projects in Ruwais. The agreements marked the first domestic public-private partnership in Abu Dhabi’s downstream oil, gas and petrochemicals sector.

    ALSO READ: Local firms invest in Taziz industrial complex

    In addition to the three chemicals plants planned under Project Salt, a joint venture of UAE-based Fertiglobe, South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company has invested in a “world-scale” blue ammonia production facility in the Ruwais petrochemicals derivatives complex.

    The Fertiglobe/GS Energy/Mistui joint venture awarded Italian contractor Tecnimont the EPC contract for the project in May 2024. Construction on the facility started in June last year.

    Separately, in February, Taziz awarded South Korean contractor Samsung E&A the main EPC contract to build the UAE’s first methanol plant in the Taziz Industrial Chemicals Zone. The value of the EPC contract won by Samsung E&A is $1.7bn, and the duration of works is 44 months.

    The nameplate production capacity of the planned methanol complex is 5,000 metric tonnes a day, or 1.8 million metric t/y. Switzerland-based energy and chemicals company Proman is a joint investor in the methanol project.

    Regarding infrastructure to support the various projects, Taziz awarded three EPC contracts totalling $2bn in November.

    Abu Dhabi government-owned NMDC Group was awarded the EPC contract to build a chemicals port. Once complete, the port will facilitate the export of chemicals and fuels.

    Singapore-based Rotary Engineering won the EPC contract for a chemicals terminal known as Project Landing. The contract includes developing storage facilities, tank-to-jetty pipelines, jetty-to-tank pipelines, inter-site pipelines and liquid product storage. Taziz is building the chemicals-handling terminal in partnership with Netherlands-based midstream energy company Advario.

    Abu Dhabi-based Al-Geemi Contracting was awarded the EPC contract to develop essential infrastructure for the 17-square-kilometre Taziz chemicals production site, including internal roads, security fencing and buildings.

    Contracts have also been awarded for developing a centralised utilities facility for the Taziz Industrial Chemicals Zone, which will include power transmission, steam, cooling water and water units.

    Adnoc signed an agreement with Abu Dhabi National Energy Company (Taqa) in June 2021 to develop a cogeneration power facility in Ruwais. In December, the partners awarded a $1bn contract to Kuwait-based Alghanim International for the project, and the contractor started construction of the facility in February this year.

    Alghanim International, in turn, awarded a $67m sub-contract to Riyadh-based water utility developer Water & Environment Technologies Company (Wetico) for the comprehensive water facilities package of the cogeneration power facility, which includes the construction of a seawater desalination plant, demineralisation plant, condensate polishing unit and effluent treatment plant.

    ALSO READ: Fertiglobe expects Rabdan final investment decision in 2026
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14319861/main0510.jpg
    Indrajit Sen
  • Qatar awards $95m infrastructure contracts

    23 July 2025

     

    Qatar’s Public Works Authority (Ashghal) has awarded two contracts, worth about QR350m ($95m), for the construction of roads in Qatar.

    The first contract, worth QR235m ($65m), was awarded to the local firm Al-Mohannadi for Roads & Trading & Contracting. The scope of work involves the construction of link roads from Mazrooah to Attoriya and Bu-Thaila in Zones 71 and 72.

    In April, Ashghal selected US-based engineering firm KEO International Consultants for a QR41m ($11m) contract to provide supervision consultancy services for the project.

    The other contract, valued at QR108m ($30m), was awarded to another local firm, Attikat, for the construction of access roads to Al-Karaana camel race track.

    The announcement follows Ashghal’s awarding of two contracts worth QR3.3bn ($931m) for the completion and operations and maintenance of schemes in Qatar North and Qatar South earlier this month.

    The first contract, worth over QR1.6bn ($446m), for the Qatar North scheme was awarded to the joint venture of local firms Al-Mohannadi for Roads & Trading & Contracting and Aktor Qatar.

    The QR1.7bn ($480m) contract for the Qatar South scheme was awarded to a joint venture of Beijing-headquartered China Harbour Engineering Company and local firm Alcat Contracting.

    In May, Ashghal announced its five-year project plan valued at about QR81bn ($22bn). The plan covers a range of infrastructure projects to be implemented between 2025 and 2029.

    The plan’s most important project is the Strategic Outfalls project, which will be launched this year. The project will be developed in two phases and aims to reuse stormwater for irrigation and cooling in the northern and southern areas of Doha.

    According to local media reports, the project’s tunnelling work will begin this year, followed by sub-tunnelling in early 2026.

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects worth more than $5bn in the bidding phase and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities to contractors in the near term.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14319912/main.gif
    Yasir Iqbal
  • DP World to revamp Dubai’s Mina Al-Hamriya port

    23 July 2025

    UAE-based port operator DP World will undertake a major overhaul of the Mina Al-Hamriya port, located in the Deira area of Dubai.

    In a statement carried by the official Emirates News Agency (Wam), DP World said that the expansion will involve the construction of a 700-metre quay with a 12-metre draft, primarily designed to accommodate larger vessels and expand the port’s cargo handling capability.

    After the completion of the expansion, the port will have nearly 6.4 million square feet (sq ft) of storage space, almost double the existing 3.4 million sq ft.

    The latest expansion phase follows upgrade works that added 1,150 metres of quay wall in 2024.

    The port registered an 11% increase in vessel calls after last year’s expansion, rising from 2,430 in the first half of 2024 to 2,700 in the first half of 2025.

    The Wam report added that the Mina Al-Hamriya port recorded trade worth over AED9bn ($2.5bn) in the first half of this year.

    DP World has outlined future infrastructure plans to meet surging regional demand for its ports.

    Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said: “Mina Al-Hamriya has been a vital part of Dubai’s trade sector for many decades, and we are committed to investing in the port’s growth while preserving its rich maritime heritage.

    “This new expansion project will ensure Mina Al-Hamriya continues to support our national economic vision while strengthening trade and food security across the region,” he added.

    UK-headquartered analytics firm GlobalData expects the UAE’s construction industry to expand by 4.2% in real terms in 2025.

    This will be supported by investments in the construction of major projects in the transportation, energy and housing sectors.

    The growth in the construction industry will also be supported by the government’s investments under its 2025 federal budget, which the UAE’s government approved in October 2024.

    The budget has planned an overall expenditure of AED71.5bn ($19.5bn), which marks an increase of 11.6% compared to an expenditure of AED64.1bn ($17.5bn) in the previous year.

    The infrastructure construction sector is expected to grow by 4.6% in 2025, followed by an annual average growth rate of 4.7% from 2026 to 2029, driven by the government’s focus on improving regional connectivity through the development of transport infrastructure.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14318755/main.JPG
    Yasir Iqbal
  • Kuwait engages firms for new Dorra gas processing plant

    23 July 2025

     

    Register for MEED’s 14-day trial access 

    With inputs from Indrajit Sen

    Kuwait Gulf Oil Company (KGOC), a subsidiary of state energy conglomerate Kuwait Petroleum Corporation (KPC), has set in motion a project to develop an onshore gas processing plant that will receive gas feedstock from the Dorra offshore gas field located in the Saudi-Kuwait Neutral Zone.

    KGOC has started an early engagement process with contractors for the main engineering, procurement and construction (EPC) tendering exercise for the Dorra onshore gas processing facility, which is to be located in Kuwait, according to sources.

    France-based Technip Energies is performing front-end engineering and design (feed) on the project, and is expected to complete the work by the end of the year, sources told MEED.

    Based on the progress of the feed work, KGOC is expected to issue the main EPC tender for the Dorra onshore gas processing facility in September, as per sources.

    The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being developed in a separate project by Al-Khafji Joint Operations (KJO) – a joint venture of KGOC and Saudi Aramco subsidiary Aramco Gulf Operations Company (AGOC).

    ALSO READ: Arabian Drilling wins contract extension from KJO

    The planned KGOC facility will have the capacity to process up to 632 million cubic feet a day (cf/d) of gas and 88.9 million barrels a day of condensates from the Dorra field.

    The KGOC onshore gas processing facility will be located in the vicinity of the Al-Zour refinery, owned by KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).

    A 700,000 square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility and discussions about survey work are ongoing. The site will potentially need to be shored, backfilled and dewatered.

    Shoring involves installing supporting infrastructure that prevents oil from collapsing or shifting. Backfilling involves filling any holes or voids on the site to provide stability to the area, and dewatering is the process of removing excess water from the site.

    The planned onshore gas processing plant will also supply surplus gas to KPC’s upstream business Kuwait Oil Company (KOC) for possible injection into its oil fields.

    Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the gas processing plant’s acid gas removal unit and sulphur recovery unit, respectively.

    Dorra offshore gas field

    The Dorra gas field, located in Gulf waters of the Saudi-Kuwait Neutral Zone, is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

    MEED reported in September 2023 that Aramco and KPC had selected Technip Energies to carry out pre-feed and feed work on the Dorra offshore field development project.

    The original feed work for a project to develop the field was performed more than a decade ago. However, due to changes in technology, the engineering design needed to be updated before the project could reach a final investment decision.

    KJO is understood to have issued the tenders for the Dorra offshore field development project in August last year. It has divided the scope of work on the Dorra gas field development project, which is estimated to be valued at up to $10bn, into four EPC packages – three offshore and one onshore.

    The EPC scope of work on the Dorra gas field development project packages and their bid submission deadlines are as follows:

    • Package 1: Seven offshore jackets and laying of intra-field lines – bids submitted on 2 June
    • Package 2A: Seven production deck modules and associated corrosion-resistant, alloy-lined pipes connecting to the gas compression plant – 31 July
    • Package 2B: Compression and auxiliary platforms, an accommodation platform, associated trunklines and cables connecting to the shoreline – 31 July
    • Package 3: Onshore gas processing plant – 31 July

    The following contractors are understood to be among those bidding for the three offshore packages:

    • Lamprell (Saudi Arabia/UAE)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • NMDC Energy (UAE)
    • Saipem (Italy)

    Kuwait and Saudi Arabia have been collaborating to develop the offshore field since its discovery in 1965. The two sides expect to produce about 1 billion cubic feet a day of gas from the asset and have agreed to split the gas output equally.

    A geopolitical tussle over ownership of the asset has hampered progress.

    Iran, which calls the field Arash, claims that it partially extends into its territory and that Tehran should be a stakeholder in any development project. 

    Kuwait and Saudi Arabia maintain that the Dorra field lies entirely in the waters of their shared territory, known as the Neutral Zone or Divided Zone, and that Iran has no legal basis for its claim. 

    In February 2024, Kuwait and Saudi Arabia reiterated their claim over the Dorra field in a joint statement issued during an official meeting between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud in Riyadh.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14286249/main0643.jpg
    Wil Crisp