meed-logo

line1 line2 line3
SIGN IN / REGISTER

GCC strives to reach real estate potential

27 June 2024

 

The real estate sector across the six states that make up the GCC has not yet achieved its full potential when it comes to attracting foreign investment.

This is best illustrated by the region’s largest economy, Saudi Arabia. The kingdom’s Vision 2030 economic diversification strategy includes ambitious targets to increase homeownership among citizens and attract international investors with its recently introduced Premium Residency Visa. The new visa is designed to open up the market to global investors, and while some gains are starting to be made, the market is still at the start of this journey.

Throughout the GCC, real estate markets have demonstrated a degree of resilience and stability following the Covid-19 pandemic, but challenges remain.

Rising borrowing costs and slow-paced reforms have affected the residential sector in the region, although the impact has not been universal. In Kuwait and Saudi Arabia, real estate sales have declined significantly, whereas in Dubai, sales continue apace.

For commercial real estate, the demand for high-quality, sustainable office spaces is a common trend. Businesses are increasingly favouring high-quality Grade A properties, leading to higher rental rates compared to mid- and low-end offices.

The retail sector has benefited from increased consumer activity, particularly during festive seasons. Malls and mixed-use developments have maintained stable rental rates, although some areas, like strip retail rentals, have seen slight declines. This reflects a broader trend of consumer preferences shifting towards more integrated and experiential shopping environments with a keen focus on entertainment.

Meanwhile, the industrial sector has shown robust demand, driven by manufacturing and logistics. High occupancy rates for large and medium-sized warehouses underline the sector’s resilience.

Bahrain 

Bahrain’s property market is performing steadily, driven by strategic homebuyers focusing on mid-range properties, as well as a growing demand for luxury waterfront homes. 

The market’s attractiveness has been enhanced by masterplanned developments such as Bahrain Bay and Diyar Al-Muharraq, which have achieved a critical mass that means they are now perceived as thriving communities rather than ongoing construction projects.

While project completions are important for confidence, in its Q1 2024 market report, property consultant Savills warns that key project completions such as Onyx Residences, Al-Nasseem Phase 2 Villas and Wadi Al-Riffa could lead to a short-term dip in capital values due to oversupply. 

Any possible fall could reverse recent gains. According to Savills, high-end apartment units registered modest 0.3% quarterly growth, averaging BD832 ($2,207.6) a square metre (sq m), while high-end villas have experienced a 4.5% year-on-year decline, averaging BD583/sq m.

Savills reports that the office sector has remained stable, with businesses favouring high-quality Grade A properties, leading to higher rental rates compared to mid- and low-end offices. Demand for Leed-certified spaces and co-working environments is increasing, reflecting environmental, social and governance (ESG) commitments. Grade A properties face mild value corrections due to new developments. 

Retail benefited from festive mall footfalls, keeping rental rates stable for malls and mixed-use developments, while strip retail rentals dropped slightly.

Kuwait

The Kuwait real estate sector continued its dismal performance in 2023 due to rising borrowing costs and the slow pace of ongoing reforms. The volume of transactions saw a significant downturn, according to a report by Marmore, a fully owned research subsidiary of Kuwait Financial Centre, Markaz.

Real estate sales dropped to KD2.1bn ($6.7bn) in the first nine months of 2023, reflecting a 26% year-on-year decline from KD2.8bn ($9.1bn). This downturn has affected all segments of the market.

In the residential sector, sales fell by 26% in Q3 2023, totalling KD1.1bn ($3.6bn), down from KD1.4bn ($4.7bn) in the same period of the previous year. The number of transactions also declined by 34% year-on-year. High house prices and borrowing costs have kept demand muted.

The residential rental segment also decreased by 20% year-on-year, reaching KD666m ($2.2bn) in Q3 2023, down from KD831m ($2.7bn) in Q3 2022. 

The commercial sector experienced a 37% year-on-year drop in sales, to KD321m ($1bn) in 2023, compared to KD511m ($1.6bn) in 2022. The number of transactions in this sector declined by 35% year-on-year. 

In July last year, Kuwait’s National Assembly approved the Housing Development Law and amendments to the Housing and Real Estate Affairs Law that enables private sector involvement – including foreign investment – in developing cities and residential areas, and aims to prevent land monopolies. These measures could positively influence the country’s real estate market this year.

Oman

After a couple of tough years during and immediately following the Covid-19 pandemic, Oman is again capitalising on its real estate potential, with new projects attracting interest from residents and investors.

The sultanate’s real estate market in 2024 is buoyed by a combination of increasing expatriate populations, attractive pricing and favourable government policies. 

A recent report by property consultancy Cavendish Maxwell highlights the contribution of the government’s strategic reforms and investments in infrastructure as critical drivers for the growth of the real estate sector in the country. These have included the easing of foreign ownership restrictions, the introduction of new real estate laws and enhanced regulatory frameworks that have created a more transparent and attractive market for investors.

Longer term, Muscat has set targets for the economy that will support the real estate sector. Under Oman’s Vision 2040 plan, the government aims to attract 11 million visitors annually by 2040, which will boost the tourism industry. Investments in economic zones, renewable energy, manufacturing and tourism projects will contribute to the growth of the construction industry, including the real estate sector.

Oman is developing new projects in response to the long-term opportunities that this growth will create. These include the Sultan Haitham City project to the west of Muscat and a masterplanned mountain development on Jebel Akhdar, launched earlier this year.

Qatar

Following a period of fluctuation around the 2022 Fifa World Cup, Qatar’s real estate market is showing signs of stability, according to Cushman & Wakefield. The number of real estate sales transactions surged by 17.3% in January and February this year compared to the same period in 2023, with an overall value increase of 4.1%.

The declining trend in residential sales transactions seen in 2023, when a drop of 16.2% was recorded compared to 2022, has been reversed in the first two months of this year. Residential sales transactions have increased by 30% compared to the same period last year, reflecting a significant 46% rise in transaction value.

In the rental segment, the early months of 2024 have highlighted a growing disparity between newly constructed residential projects and those built over a decade ago. Tenants are increasingly drawn to modern, well-managed serviced appartments.

Office leasing activity declined in the first quarter of 2024, following a good run at the end of 2023. Over the past six months, more than 70,000 sq m of Grade A office space has been reserved, leading to a decrease in availability in areas including Lusail and Msheireb.

In the first quarter of 2024, hotel room supply in Qatar reached 38,000, which marks a 45% increase in supply over the past five years.

Despite initial concerns of oversupply, Qatar’s hotel industry has experienced a significant boost due to a rise in tourist arrivals since January. Hotel occupancy rates also soared to 84% in January and 85% in February, reaching their highest levels since 2015.

Saudi Arabia

Saudi Arabia’s real estate sector is moving into a new phase as it aims to build on its recent successes and targets foreign investment more proactively.

Real estate forms a key part of the kingdom’s Vision 2030, which aims to increase homeownership by Saudi nationals to 70% by 2030, from 63.7% in 2023. 

The residential real estate market in Saudi Arabia is experiencing robust demand, especially in the major cities of Riyadh, Jeddah and Dammam. In Q1 2024, Riyadh recorded a 77% year-on-year increase in sales transactions, while Jeddah saw a 92.9% rise. This surge in activity underscores the strong appetite for residential properties in these urban centres.

Despite this growth, the market faces challenges such as affordability and a shortage of appropriately priced homes. 

Historically, foreign ownership restrictions have limited international investment in Saudi real estate. However, the new visa scheme signifies a pivotal shift, encouraging a diverse pool of global talents and investors to contribute to the local economy. This move is expected to drive up property values in premium segments and spur the development of luxury real estate projects.

“The real estate market in Saudi Arabia has long anticipated a change in the foreign ownership rules. A significant milestone was reached at the start of the year when a raft of new Premium Residency Visa options were unveiled, including a real estate ownership-linked visa, which is likely to pave the way for international buyers and investors,” says real estate consultancy Knight Frank in its recent Destination Saudi Report.

This move is expected to create supplemental demand from foreign investors that have been waiting for changes in the kingdom’s ownership laws.

Saudi Arabia’s new Premium Residency Visas include a real estate ownership-linked option that is designed to attract foreign investment by allowing non-Saudis to own property worth at least SR4m ($1.1m). 

This policy shift marks a strategic opening up of the market to international investors and affluent expatriates and could potentially boost high-value transactions and increase the demand for luxury residential properties in the kingdom.

One of the early focus areas for new investment inflows could be the holy cities of Mecca and Medina. 

The demand for real estate in Saudi Arabia is also being driven by high-net-worth individuals (HNWI), particularly those from Muslim-majority countries. Surveys indicate that 82% of international HNWI buyers are keen to own real estate in the kingdom, with significant interest in the two holy cities.

These buyers view Saudi Arabia as a good investment opportunity, with cultural and religious reasons also playing a crucial role in their decision-making, Knight Frank says in its Destination Saudi report.

UAE

The UAE’s real estate market started 2024 on a robust note, showing increased activity levels across all sectors during the first quarter, according to the latest report by property consultant CBRE.

The report shows that the total transaction volumes in Dubai’s residential market reached 35,310 in Q1 2024. This is the highest total ever recorded in the first quarter of the year, marking an increase of 20.5% from the previous year. 

Off-plan transactions in Dubai also increased by 23.9%, whereas secondary market transactions rose by 15.2% during the same period.

The CBRE report also outlined that in the first quarter of 2024, Dubai’s residential market witnessed an increase in average prices of 20.7% by March 2024 compared to the previous year.

In Abu Dhabi, average apartment prices rose by 4.3% and villa prices saw an increase of 2.3% during the same period. 

In the commercial sector, the total number of rental registrations in the office sector increased to 46,850, a hike of 35.8% compared to the previous year, according to data from Dubai Land Department.

In Abu Dhabi, an increased activity level in the commercial space sector has taken the occupancy rate to 94% in the first quarter of 2024, up from the 92.5% registered in the same period last year. The increased occupancy levels have led to a growth in rentals, where Prime, Grade A and Grade B rents posted average growth rates of 6.6%, 3.4% and 9.7%, respectively.

The hospitality sector also noted improvement. The number of international visitors to Dubai totalled 5.2 million in the period from January to March 2024, up by 10.2% from a year earlier. The total number of hotel guests in Abu Dhabi stood at 1.3 million, a growth of 22% compared to Q1 2023.

In the retail sector, leasing activity lagged in Abu Dhabi as 7,779 rental contracts were registered in the first quarter of 2024, marking a decline of 8.1% compared to Q1 2023. Dubai witnessed a marginal increase of 0.2% in retail registrations compared to same period last year, recording a total of 23,139.

Finally, the UAE’s industrial and logistics sector also recorded positive leasing activity, with the total number of rental registrations in Abu Dhabi and Dubai increasing by 4.7% and 3.2%, respectively, compared to the same period last year.

Additional reporting by Yasir Iqbal

https://image.digitalinsightresearch.in/uploads/NewsArticle/11985437/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Liquidity constraints force corporate banking shift

    5 February 2025

    Corporate lenders face a liquidity crunch as businesses struggle to maintain cash flow amid rising costs and tighter credit conditions. Credit constraints have worsened, with 5% of middle-market borrowers now heavily leveraged and unable to refinance, according to credit rating firm KBRA. At the same time, rising fraud and outdated payment infrastructures are compounding the liquidity challenge.

    Payment fraud losses are expected to reach $26.4bn by 2028, according to GlobalData, making cash flow forecasting even more unpredictable. Increasing cyber threats, unauthorised fund transfers and fraudulent transactions directly impact liquidity buffers, forcing businesses to enhance treasury functions.

    Slow settlement cycles and outdated infrastructure continue to choke liquidity, restricting businesses’ ability to manage cash flow. To stay competitive, lenders must rethink their support for corporate clients by ensuring faster access to funds, smarter risk controls and seamless financial integration.

    The pressure to deliver faster, more secure and smarter financial solutions is increasing. Innovations such as real-time payments (RTPs), artificial intelligence (AI)-driven risk models and embedded finance address these needs by enhancing liquidity management, improving credit allocation and streamlining cross-border transactions. Lenders that fail to adapt risk losing corporate clients to more agile competitors.

    ENTRIES CLOSING SOON: MENA Banking Excellence Awards 2025: Corporate & Investment

    AI reshapes liquidity strategy

    AI is transforming liquidity management, shifting from a compliance and fraud detection tool to a key driver of treasury optimisation. Lenders are using AI-powered forecasting to improve treasury operations, helping businesses anticipate cash flow needs, automate funding decisions and optimise capital allocation.

    HSBC’s AI-driven treasury solutions have improved forecasting accuracy by 92%, reducing liquidity risk for businesses operating across multiple markets. JP Morgan has also adopted AI-driven liquidity forecasting, enabling clients to optimise cash reserves and enhance working capital efficiency.

    AI optimises liquidity management while strengthening security, helping lenders counter fraud and financial crime in an increasingly digital landscape. Lenders are leveraging AI’s predictive power to detect anomalies and security threats before they escalate.

    Fraud detection remains a key priority as financial crime becomes more sophisticated. Many lenders are deploying AI to enhance fraud detection and risk mitigation. For instance, Mastercard and Stripe use AI-driven risk models, analysing over 1,000 transaction data points per second to detect fraud in real time.

    Integrating AI into treasury services not only enhances operational efficiency but also positions lenders as strategic partners, offering data-driven insights that strengthen corporate client relationships.

    Real-time payments drive liquidity optimisation

    RTPs are now central to working capital strategies, not just a speed upgrade. Corporate clients increasingly expect instant settlements and real-time liquidity visibility as standard banking features.

    The global RTP market is projected to surpass $700tn by 2028, according to GlobalData, as demand grows for seamless cross-border transactions, reduced credit dependency and faster cash conversion cycles. This shift is critical for treasury and finance teams, which require greater control over cash positions to navigate fluctuating market conditions.

    Payment infrastructure providers such as Swift GPI and Visa B2B Connect have already streamlined high-value international transactions, reducing settlement times from days to minutes. These advancements are reshaping corporate banking priorities, with lenders expected to embed real-time payment capabilities within their broader treasury services.

    ENTRIES CLOSING SOON: MENA Banking Excellence Awards 2025: Corporate & Investment

    Embed finance or lose relevance

    Corporate banking is shifting away from traditional, bank-led services as embedded finance transforms how businesses access payments, liquidity and credit directly within their operational platforms. By integrating financial products within enterprise platforms and enterprise resource planning (ERP) software, companies reduce dependence on external bank portals.

    GlobalData forecasts that corporate embedded finance will exceed $7tn by 2030, driven by demand for frictionless cash flow management, instant access to financing and automated treasury functions. Businesses are embedding banking services within their digital ecosystems, integrating payments, lending and cash management into their core platforms.

    Major banks are already adapting. Goldman Sachs and Citi have developed embedded lending and treasury tools that integrate directly into ERP systems, enabling businesses to initiate payments, access credit and manage liquidity without switching platforms.

    Banks that fail to embed financial solutions risk losing visibility over corporate transactions. Institutions that successfully integrate embedded finance into their offerings will strengthen corporate relationships and secure long-term revenue streams. Conversely, delaying digital integration may result in businesses managing financial operations independently within their own platforms, reducing banks’ role in liquidity management.

    How lenders must adapt to the liquidity shift

    The future of corporate banking is being shaped by AI-driven treasury solutions, real-time payments and embedded finance—all of which are rapidly transitioning from competitive advantages to industry standards.

    For banking leaders, this shift demands immediate action.

    Corporate clients are no longer just looking for lenders – they need strategic partners who can provide seamless liquidity management, intelligent forecasting and embedded financial solutions.

    Banks that embrace these innovations will strengthen corporate relationships, drive new revenue models and maintain relevance in a shifting financial landscape. Those that hesitate risk being replaced by more agile, tech-driven competitors offering faster, smarter and more integrated financial services.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13365421/main0951.jpg
    Sarah Rizvi
  • Read the February 2025 MEED Business Review

    5 February 2025

    Download / Subscribe / 14-day trial access

    Donald Trump’s return to the US presidency on 20 January 2025 is anticipated to have profound impacts on the Middle East. In the February issue of MEED Business Review, we provide an in-depth look at the major geopolitical challenges that the region presents, particularly in terms of US relations with Iran, and the interrelationship between the US, Israel and other regional actors. 

    What's more, we examine how the Trump 2.0 administration's focus on areas such as artificial intelligence (AI) regulation, data sovereignty and cryptocurrency – not to mention the ever-escalating US-China tech war – offers an opportunity for Middle East players to assert themselves in the global tech economy. Trump’s America First policies could slow the region’s AI ambitions, however, and to stay competitive, GCC states must step up investments in education, infrastructure and innovation.

    Indeed, for the UAE, investing in and developing AI infrastructure and applications is now a priority. Abu Dhabi recently launched a $6bn project that combines 5,200MW of solar and 19 gigawatt-hours of battery energy storage capacity to deliver 1,000MW of round-the-clock renewable power capacity, which will help to support the government's AI ambitions. 

    Our latest issue also includes a comprehensive report on the GCC's water and wastewater sector, where Riyadh-headquartered utility developer and investor Acwa Power has improved its lead as the pace of independent water project contract awards slows.

    This month’s exclusive 15-page market report focuses on Qatar. Doha has played an instrumental role in negotiations between Israel and Hamas in recent months, placing it front and centre of regional mediation, while efforts to ensure post-World Cup economic progress led to a strong project awards performance for the country in 2024.

    In this issue, the team also examines how the long-awaited ceasefire in Gaza has brought relief to the fraught situation in Palestine; finds that the appointment of jurist Nawaf Salam as prime minister holds the prospect of political and economic rehabilitation for Lebanon; and looks at how the development of Wynn's integrated resort in Ras Al-Khaimah is supporting an ongoing boom in the emirate's real estate sector.

    The February issue is packed with exclusive insight, too. Omran’s CEO Hashil Al-Mahrouqi explains how the agency's tourism development and hospitality projects will support Oman's Vision 2040; we round up the record signings that made 2024 the best year yet for contract awards in the region; and the latest edition of MEED's Economic Activity Index reveals that the UAE is maintaining its edge as 2025 gets under way.

    We hope our valued subscribers enjoy the February 2025 issue of MEED Business Review. 

     

    Must-read sections in the February 2025 issue of MEED Business Review include:

    > AGENDA: 
    > Trump 2.0 targets technology
    > Trump’s new trial in the Middle East
    > Unlocking AI’s carbon conundrum

    > CURRENT AFFAIRS:
    > Gaza ceasefire goes into effect
    > New Lebanese PM raises political hopes

    INDUSTRY REPORT:
    Water and wastewater
    > Acwa Power improves lead as IWP contract awards slow
    > Water projects require innovation

    > INTERVIEW: Omran’s tourism strategies help deliver Oman 2040 

    > PROJECT RECORDS: 2024 breaks all project records

    > REAL ESTATE: Ras Al-Khaimah's robust real estate boom continues

    > ACTIVITY INDEX: UAE maintains regional economic edge

    > QATAR MARKET REPORT: 
    > COMMENT: Doha works to reclaim spotlight
    > GOVERNMENT & ECONOMY: Qatar economy rebounds alongside diplomatic activity
    > BANKING: Qatar banks look to calmer waters in 2025
    > UPSTREAM: QatarEnergy strives to raise gas and oil production capacity
    > DOWNSTREAM: Qatar chemicals projects take a step forward
    > POWER & WATER: Facility E award jumpstarts Qatar’s utility projects
    > CONSTRUCTION: Qatar construction shows signs of recovery

    > MEED COMMENTS: 
    > Damac founder Sajwani puts America first with Trump’s second presidency
    > Dubai’s largest-ever contract award is vital for its future
    > AI underpins 5GW Abu Dhabi solar project
    > Saudi-Turkiye relationship could bolster projects market

    > GULF PROJECTS INDEX: Gulf projects market enters 2025 in state of growth

    > DECEMBER 2024 CONTRACTS: Monthly haul cements record-breaking total for 2024

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: Between the extremes as spring approaches

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13356922/main.gif
    MEED Editorial
  • OCP green ammonia plant approaches construction

    5 February 2025

    Moroccan phosphate specialist OCP is in advanced stages of studying a project to produce 1 million tonnes of green ammonia annually by 2027.

    The planned facility, which will cater to export markets, will include a 200,000 tonnes-a-year (t/y) green hydrogen production plant and 4,000MW of renewable energy plants.

    It will also include an electrolyser plant with a capacity of 2,000MW.

    The project will be executed in two phases across two locations, according to Samir Rachidi, director-general at Iresen, who presented at the ongoing Mena World Hydrogen summit in Dubai.

    "OCP is conducting advanced studies, and currently testing 10-megawatt electrolysers," Rachidi said.

    At least seven other green hydrogen or ammonia projects are under study or pre-front-end engineering design stage in the North African state.

    In April 2023, a team led by China Energy International Construction Group signed a memorandum of cooperation to develop a green hydrogen project in a coastal area in southern Morocco.

    A year earlier, Serbia-headquartered renewables developer and investor CWP Global appointed US firm Bechtel to support developing large-scale green hydrogen and ammonia facilities in Morocco and Mauritania.

    The Amun green hydrogen project, which CWP Global plans to develop in Morocco, is understood to require 15GW of renewable energy, and has an estimated budget of between $18bn and $20bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13365699/main.gif
    Jennifer Aguinaldo
  • Oman eyes first green hydrogen offtake this year

    5 February 2025

    One of the consortiums that won Oman's green hydrogen land block auctions is expected to reach an offtake agreement sometime this year.

    "We are expecting to announce an offtake agreement hopefully sometime this year," said Rumaitha Al-Busaidi, business development manager at Hydrogen Oman (Hydrom), the main orchestrator of Oman's green hydrogen programme.

    Hydrom has signed land concession agreements with teams led by Denmark's Copenhagen Infrastructure Partners, South Korea's Posco and France's Engie, Japan's Marubeni, France's EDF, and a team comprising London-based Actis and Australia's Fortescue in the first two rounds of its land auctions.

    Oman has also signed what it refers to as legacy projects with other teams led by Belgium's Deme, BP and Shell.

    A long-term offtake agreement for the products produced by these facilities is the main requirement for the projects to reach financial investment decision (FID), which the majority of the consortiums aim to achieve by 2027, except for the Deme-led Hyport Duqm, which aims to reach FID in 2026.

    Al-Busaidi also said they expect to launch the third round of Oman's green hydrogen land auctions before the end of the first quarter of 2025. 

    They are fine-tuning the next auction process and considering several options including one similar to the first two auctions, where land parcels were auctioned for the production of green hydrogen and derivatives including ammonia, methanol and sustainable aviation fuels, among others.

    The other option being considered is auctioning land parcels for downstream industries that offtake green hydrogen and its derivatives including green steel, fertilisers and other sectors.

    A final option is a so-called double-sided auction to facilitate contracts between domestic green hydrogen producers and downstream offtakers.

    In December, MEED reported that Oman was making good progress compared to other states in the Middle East and North Africa (Mena) region that are looking to establish green hydrogen hubs to help decarbonise key industries in fossil fuel-scarce jurisdictions globally.

    "We are doing very well," Abdulaziz Al-Shidhani, managing director of Hydrogen Oman (Hydrom), told MEED, noting that Oman has signed legally binding, 47-year project development agreements with eight consortiums under the Hydrom public auction and its legacy programme. 

    Each consortium is understood to have aligned with the sultanate's goal of having a green hydrogen production capacity of 1.4 million tonnes a year (t/y) by 2030 by committing to deliver a capacity of 150,000 t/y by the end of the decade.

    Alternative derivatives

    Hydrom is exploring liquid hydrogen collaboration with another European-based entity, the Port of Amsterdam, to deliver liquid hydrogen to the Netherlands and other perceived demand centres in Europe, as well as to markets in Asia – primarily Japan, South Korea and Singapore.

    While most of the project development agreements signed by Hydrom and the developer consortiums expect ammonia to be the primary derivative, Al-Shidhani says liquid hydrogen has recently been emerging as a viable alternative, with potential uses for the product including applications in the mobility sector and as a maritime fuel.

    "Developers and end-users are exploring all technologies and assessing the feasibility of other alternative derivatives," he says. He adds that cracking ammonia back to hydrogen, as originally envisaged by most projects, involves high costs.

    Creating local demand

    While the assumed markets for the output of the planned multibillion-dollar projects in Dhofra and Duqm are overseas, Oman's long-term objective includes attracting foreign direct investments in the entire green hydrogen supply chain, including solar and wind turbine production and manufacturing.

    "We will enable the platform to foster a sustainable supply chain and it will be up to the private sector to determine suitable strategies, which we are assuming will be export-focused in the early phases of the projects," Al-Shidhani says.

    MEED understands that the 2030 green hydrogen production target will require up to $50bn of investment, including 18GW of electrolyser capacity and 35GW of renewable energy capacity.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13365445/main.gif
  • Egypt approves Russian nuclear financing amendment

    4 February 2025

    The Egyptian House of Representatives has approved a report, previously ratified by the North African nation's Energy & Environment Committee, that amends the government financing agreement between Egypt and Russia over the El-Dabaa nuclear power plant in Matrouh.

    The agreement secures a government export loan from Moscow to support the construction of Egypt’s first nuclear power plant.

    According to a local media report, the decree was reviewed by a joint committee that included members of the Energy & Environment Committee, as well as representatives from the Planning & Budget, Economic Affairs and Foreign Relations Committees.

    The amendments to the financing agreement aim to "align the loan's terms with the project's implementation schedule".

    The report did not disclose the nature of the financing amendment that has been approved.

    Financing details

    Egypt and Russia signed the initial inter-governmental agreement for the North African state’s first nuclear facility in November 2015.

    MEED understands that the existing agreement entails an 85:15 project financing split between Russia and Egypt.

    The project is expected to cost between $25bn and $30bn.

    According to industry sources, the funds Russia is providing are payable over 22 years in 43 semi-annual installments, with the first installment due on 15 October 2029.

    MEED understands Egypt can repay the loan in US dollars or Egyptian pounds, whichever suits the Russian party better, and that "a very affordable" 3% annual interest rate applies.  

    The power plant will be equipped with four Russian-designed, 1,200MW VVER reactor units.

    When complete, the El-Dabaa nuclear power plant is expected to generate more than 10% of electricity production in Egypt.

    The plant’s first reactor is scheduled to be operational in 2026.

    Russia’s State Atomic Energy Corporation (Rosatom), the project’s main contractor, announced that it started the production of electrical components in Saint Petersburg for a reactor vessel for the plant in June 2022.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13360633/main.jpg
    Jennifer Aguinaldo