meed-logo

line1 line2 line3
SIGN IN / REGISTER

Infrastructure finance forges growth path

25 February 2025

Commentary
Jennifer Aguinaldo
Energy & technology editor

Abu Dhabi-headquartered sovereign investor and holding group ADQ has completed its acquisition of a 49% stake in Australian infrastructure developer and investor Plenary Group, nearly 10 months after the acquisition was announced.

The transaction demonstrates ADQ's focus on critical infrastructure investments abroad and at home. 

The transaction is expected to strengthen Plenary’s balance sheet, “accelerating growth in key markets in Australia and New Zealand”.

The firm is expected to pursue projects such as the Hobart Stadium scheme and Brisbane 2032 Olympics infrastructure, as well as energy transmission, social and affordable housing and transport infrastructure projects.

Plenary and ADQ have also established a co-development and investment platform, Plenary Middle East, which will focus on public and social infrastructure opportunities in high-growth regions in the Middle East and Central Asia.

It is a strategic move in response to governments and state entities in the Middle East region finally warming up to public-private partnership (PPP) projects, after many false starts in the past, regardless of the state of oil and gas prices.

Another Australian infrastructure investor, Capella, is also considering expanding its operations in the Middle East region, following its acquisition by Japan’s Sojitz.

In Saudi Arabia, the National Infrastructure Fund (Infra) and US-headquartered Macquarie Asset Management signed a memorandum of understanding in February 2024 to increase institutional and foreign direct investments.

This development followed the approval of the kingdom’s National Infrastructure Fund Law. Infra is expected to play a key role in reinforcing the objectives of Vision 2030, including increasing the private sector’s contribution to GDP to 65%.

These acquisitions and partnerships set the tone for a brownfield market, notes a senior executive with an international infrastructure investor that has offices in Dubai.

Unlike developers, funds are generally motivated to exit or sell down after construction, so more brownfield opportunities will emerge, the source predicts.

Brownfield returns will be slightly lower than those for greenfield projects, so governments need to ensure that there are enough developers to participate in the brownfield market.

This now seems to be a major policy focus in some Middle East jurisdictions. 

Dan Taylor, senior adviser at Infra, says that in Saudi Arabia there is no shortage of local capital or international funds, and that the organisation is looking to be involved in "designing project structures that are favourable".

“It’s far more than a question of capital. We need to ensure these projects are marketable to attract global investors,” Taylor says.

The more the merrier

Rapid population growth, a focus on diversifying economies away from fossil fuels, and the need to create jobs and boost the private sector's contribution to the overall economy, have incentivised the region's sovereign wealth funds to create infrastructure funds or build alliances with developers.

Broadening the PPP scope beyond the power and water sectors, where the model has proved highly successful, has been a long time coming in the region, where the states have dominated infrastructure spending in terms of roads, airports, healthcare, schools, oil and gas pipelines and other minicipal services.

In the GCC states in particular, PPPs have always been perceived as the more expensive route compared to conventional procurement methods like engineering, procurement and construction (EPC).

Complicated and long-winded negotiations over project structure and financing have also put off some clients, especially in jurisdictions where rapid project implementation is the norm, and where favourable commodity prices create balance sheets that can withstand major capital spending.

However, the scale of projects being planned in line with the long-term economic visions of the leadership in many countries – along with decarbonisation targets that have 2030 and 2050 deadlines – and the limited capacity for executing those projects using the conventional procurement method, reinforce policies to boost long-term private sector participation.

For example, Saudi Arabia’s gigaprojects are using PPPs for some of their infrastructure projects, and they will be contending with 200 other infrastructure schemes – from court houses, airports and schools to water transmission projects – that are being planned by various ministries through the kingdom’s National Centre for Privatisation & PPP.

Abu Dhabi and Oman also have significant social infrastructure PPP pipelines, although their implementation rates vary considerably.

Dubai Municipality, following its successful waste-to-energy PPP project, is embarking on a $22bn project to build strategic sewerage tunnels that will match the emirate's growth projections for several generations.  

While financing such civil works-dominated construction projects may have been inconceivable for even the most comprehensive syndicates of banks a few years ago, lenders say that it is not an impossible task, and Dubai may yet succeed in orchestrating what could be one of the world's largest phased PPP undertakings.

Photo credit: Pixabay (for illustrative purposes only)

 

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
https://image.digitalinsightresearch.in/uploads/NewsArticle/13420448/main0132.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Qiddiya seeks contractors for indoor arena project

    22 June 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian gigaproject developer Qiddiya Investment Company (QIC) has invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.

    The invitation was issued on 21 May, with a submission deadline of 28 June.

    The multipurpose arena is designed to International Olympic Committee standards.

    It will be located in District 18, in the Uptown South area of Qiddiya.

    Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.

    The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.

    It will have a seating capacity of 18,000 spectators.

    The project is scheduled for completion by 2030.

    QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17375504/main.jpg
    Yasir Iqbal
  • Egypt signs gas deal with Harbour Energy

    22 June 2026

    Egypt’s Ministry of Petroleum & Mineral Resources has signed a new agreement with London-headquartered Harbour Energy.

    Under the scope of the agreement, Harbour Energy will drill two new exploration wells and carry out maintenance work for one of the existing wells within the Dsouq-1 development contract.

    Harbour Energy committed an initial $6m investment and a $1m signing bonus for the Dsouq concession. Total investment could rise to $18m if commercial discoveries are made.

    The signing was witnessed by Egypt’s Minister of Petroleum, Karim Badawi.

    He said that his ministry is continuing to implement a package of investment measures and incentives aimed at encouraging partners to increase investments and intensify exploration, development and production activities.

    The agreement was signed by Syed Saleem, a member of the executive branch of the state-owned Egyptian Natural Gas Holding Company (EGAS), and Samah Sabry, the executive director of Harbour Energy for the Middle East and North Africa region.

    Harbour Energy drilled two new wells in Egypt during the fiscal year 2025/2026, resulting in the addition of reserves estimated at 35 billion cubic feet of gas.

    The company aims to drill three new exploration wells during the fiscal year 2026/2027.

    Egypt is currently pushing to boost the production of both oil and gas in its territory.

    Earlier this month, Egypt’s Ministry of Petroleum & Mineral Resources announced that it had fully settled all outstanding arrears owed to oil and gas companies.

    Two years ago, in June 2024, the country owed approximately $6.1bn to partners in the oil and gas sector.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17374536/main4731.jpg
    Wil Crisp
  • EtihadWE tenders water storage and pipeline project

    22 June 2026

    Etihad Water & Electricity (EtihadWE) has invited bids for the construction of a 4-million-imperial-gallon reinforced cement concrete water tank in Madam, Sharjah.

    The scope also includes a DN1000 ductile iron transmission pipeline in Fujairah.

    Madam is located in eastern Sharjah, close to the Fujairah border and within EtihadWE’s Northern Emirates water network.

    MEED understands that the DN1000 transmission pipeline will serve the proposed 4-million-imperial-gallon water tank

    The bid submission deadline is 29 June. Technical proposals will be opened on the same date.

    EtihadWE said the tender is open to experienced and prequalified engineering, procurement and construction (EPC) contractors registered on its vendor list and holding a valid prequalification certificate.

    The utility previously completed a separate water transmission project involving a DN1000 pipeline from the Ghayl New Water Distribution Centre in Ras Al-Khaimah to Madam.

    The local Dhafir Technologies was the EPC contractor.

    The project attracted 16 bids for the main contract during procurement. Among the bidders were Darwish Engineering Emirates (UAE), Green Oasis General Contracting Company (UAE), Lindenberg (UAE), Tamas Projects (UAE), Tecton (UAE) and Wade Adams (UAE).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17347317/main.jpg
    Mark Dowdall
  • Aramco issues tender for gas pipeline at Ras Tanura refinery

    19 June 2026

     

    Register for MEED’s 14-day trial access 

    Contractors are preparing bids for a Saudi Aramco tender involving the replacement of a pipeline that is part of the Gas Line Abqaiq – Ras Tanura (GART) transmission network.

    The GART grid transports associated gas and natural gas liquids (NGL) from the Abqaiq oil processing complex as feedstock, northwards to the Ras Tanura refinery in Saudi Arabia’s Eastern Province.

    The aim of the project is to replace the GART-22 pipeline that connects the Juaymah export terminal on the Gulf coast in the Eastern Province to the Ras Tanura refinery, to ensure reliable fuel gas supply and meet ongoing demand.

    The basic scope of work on the project is to install a new, 24-inch pipeline system that will replace the GART-22 line and the abandoned GART-24 line. It will cover a distance of 18 kilometres between Juaymah and the Ras Tanura terminal.

    The scope also includes the installation of associated scraper trap facilities (launcher and receiver), pressure control valves, motor-operated valves and gas detection and sampling systems.

    Aramco issued the tender for the project in May and has set a deadline of 30 June for contractors to submit proposals.

    The following contractors, among others, are understood to be bidding for the project:

    • ACE Pipeline Arabia
    • Combined Group Contracting Company
    • Gas Arabian Services Company
    • Max Streicher Saudi Arabia
    • National Basics Company
    • Saad Ali Alessa Group
    • Sicim
    • Sinopec Engineering Group Saudi
    • Tecton Engineering & Construction
    Ras Tanura refinery complex

    The Ras Tanura refinery is the oldest, and one of the largest, crude oil refineries in Saudi Arabia. The complex has a refining capacity of 550,000 barrels a day (b/d).

    The facility also has a 305,000 b/d NGL processing facility, a 960,000 b/d crude stabilisation facility, combined steam and gas turbine electrical power generation plants with a summer capacity of 145MW and a winter capacity of 158MW, and a combined 150-pound and 600-pound steam capacity of 6,217 million pounds an hour.

    It has 75 crude oil and products storage tanks with a combined capacity of 5.8 million barrels.

    The Ras Tanura refinery’s major facilities include a 325,000 b/d crude distillation unit, a 225,000 b/d gas condensate distillation unit, a 50,000 b/d hydrocracker and 107,000 b/d of catalytic reforming capacity.

    The facility is Aramco’s only refinery to contain a Visbreaker processing unit, which has a 60,000 b/d capacity.

    The Visbreaker reduces the quantity of residual oil produced in the distillation of crude oil and increases the yield of more valuable middle distillates, heating oil and diesel.

    The refinery complex also produces 17,000 b/d of asphalt, more than any other refinery in Saudi Arabia.

    Ras Tanura receives crude feedstock from the Abqaiq, Safaniya and Manifa oil field developments.

    Crude is typically transferred to Ras Tanura through a pipeline and can also be supplied by ship.

    Most of Ras Tanura’s production is transferred to the Dhahran bulk plant for domestic use, while some products are exported from the nearby Ras Tanura shipping terminal.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17332850/main.JPG
    Indrajit Sen
  • Bahrain opens bids for 1.2GW Sitra IWPP

    19 June 2026

    Register for MEED’s 14-day trial access 

    Two developers have submitted bids for the 1.2GW Sitra independent water and power plant (IWPP), according to details published by Bahrain’s Tender Board.

    The offers were made by Abu Dhabi National Energy Company (Taqa) and Saudi Arabia's Acwa. The technical element of the bid was opened on 18 June.

    The Sitra IWPP is a combined-cycle gas turbine plant and is expected to have a generation capacity of about 1,200MW of electricity. The project’s seawater reverse osmosis desalination facility will have a production capacity of 30 million imperial gallons a day. 

    The build, own and operate project is being procured by Bahrain’s Electricity & Water Authority (EWA) under a public-private partnership framework for 20-25 years.

    According to a source, "evaluation will be done on technical bids and put up to a tender board for approval".

    Financials will be opened only after the technical element has been approved.

    Other major IWPP projects in the region have also recorded relatively low bidder particpation in recent weeks, reflecting the level of investment required for such projects.

    Earlier this month, MEED reported that just two bids had been received for the first phase of Kuwait’s Al-Khairan IWPP project.

    Three consortiums and two individual companies had previously prequalified to participate in the tender.

    In 2024, Bahrian's EWA received statements of qualifications from nine firms interested in bidding for the Sitra IWPP. Seven international companies and consortiums were then prequalified to bid last year.

    Sitra grid works

    Meanwhile, firms are still awaiting awards for two separate contracts related to the establishment of new Sitra 400kV grid substations.

    The first contract involves transformer and reactor works for the establishment of the substations.

    Switzerland-headquartered Hitachi Energy submitted the lowest bid of BD17.8m ($47.1m). Germany’s Siemens Energy submitted an offer of BD23.9m ($63.2m).

    The second contract involves 400kV and 220kV feeder cable works for the same Sitra 400kV grid substations. Three South Korean companies previously bid for the contract.

    Bids for both contracts were opened in March.

    In September, Siemens Energy won a contract worth BD48.1m ($127m) to build a 400kV transmission substation in Sitra to provide the transmission link for the planned Sitra IWPP.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17329853/main.jpg
    Mark Dowdall