Meed | Iraq steps up post-war revival

Iraq steps up post-war revival

13 May 2024

Latest news from Iraq’s construction and transport sectors:

> Iraq taps international consultant for Europe road
> Iraq to award metro projects by May
> Countries sign Iraq to Europe road agreement
> AD Ports signs agreement with Iraqi ports operator
> Iraq remains tough to sell
> Iraq approves new airport and steel plant projects
> Iraq confirms consultants for metro schemes

Recent signs of infrastructure project progress in Iraq have generated a renewed sense of optimism that certain major schemes may finally move ahead under the country’s post-war building initiatives.

Contract awards in Iraq’s construction and transport projects market reached $5bn in 2023, the highest value in the sector since 2012 and well above the average of $2.9bn over the past decade. The 2023 awards value was also a much-needed rebound from the disappointing value of just $1.4bn-worth of awards in the sector in 2022.

The sector has more generally been headed on a clear upward path, with awards averaging $3.4bn a year in the past five years (2019-23) compared to $2.4bn a year in the five years prior to that (2014-18).

Benefitting from higher oil prices and a period of relatively stable governance, Baghdad has shifted its focus to reconstructing and modernising Iraq’s deteriorating infrastructure.

The positive sentiment in the sector has been particularly buoyed by the robust 2023 budget, which outlined plans for substantial investments into transport, social infrastructure and housing initiatives.

Key infrastructure priorities for the country include advancing transport plans to capitalise on the expanding Al-Faw Port, including through the delivery of a north-to-south high-speed rail system—a proposal that has been under discussion for more than two decades.

Transport

As part of its 2023 budget, Baghdad approved 16 new projects, with an estimated value of nearly $17bn, for the development and construction of roads, bridges and overpasses in the capital.

The schemes are part of the first package of the master plan revealed in December that included 150 projects intended to modernise and expand infrastructure, address congestion, and improve access and security in central Baghdad and inside the Green Zone.

One of the first contracts to be awarded was the $55m contract to build the Al Zafaraniyah Bridge project, which the Ministry of Construction & Housing awarded to Lebanese contractor Setraco in August 2023.

In a strong positive sign for market activity, Iraq floated tender notices in February 2024 for a combined $4bn-worth of contracts to develop the Baghdad and Najaf-Karbala metro projects on a design, build, operate, maintain, finance and transfer basis.

In April 2024, the country further advanced its infrastructure plans by signing a memorandum of understanding (MoU) with Turkiye, Qatar and the UAE to establish a framework for implementing a 1,200km-long Development Road project from Al-Faw Port to Turkiye.

While previous false starts on ambitious transport schemes such as these have eroded investor confidence in the country, there appears to be some hope that Iraq may have reached a tipping point leading to the most recent revival of projects.

One smaller, but still strategically important, transport scheme in the works is the $200m project to rehabilitate and expand Baghdad International airport, which is due to be awarded in 2025. In February, Baghdad also approved the construction of the $800m Diwaniyah International airport.

As the $5.8bn Al-Faw Grand Port masterplan – one of Iraq’s most significant ongoing projects – nears completion in 2025 after a decade of delays, it is also especially critical that new projects proceed to market.

Housing initiatives

Despite past efforts to boost supply, the housing shortfall in Iraq remains critical, with three million homes needed urgently and presenting a supply gap that is increasingly problematic for the government.

Between 2016 and 2020, Iraq reported 971 reconstruction projects, of which 718 were completed.

Most recently, Iraq broke ground on the estimated $2bn Al-Jawahiri residential city project in Abu Ghraib, west of Baghdad. It selected East China Engineering Science & Technology Company and China National Chemical Engineering Company, in collaboration with the local Shams Al Binaa, as the main contractors for the project.

The Jawahiri project is part of a programme to construct five cities across Iraq, including Babil, Karbala, Nineveh and Anbar, to fill the country's housing shortages.

Continuing the Iraq Housing Programme, which aims to build 3 million residential units in the form of low-rise buildings and townhouses nationwide, also remains pivotal for driving future construction activity.

Projects pipeline

Iraq has a total of around $86bn-worth of project work in planning and pre-execution across its construction and transport sectors. This is split roughly evenly between the sectors, at $43bn each.

It is hard to estimate how much of this value consists of work that will likely go ahead soon. Much of the value is still at an early stage, though $30bn-worth of construction projects and $41bn-worth of projects in the transport sector have on paper proceeded past study.

The immediate outlook for transport projects seems optimistic as the government continues to focus on economic revitalisation through expansive infrastructure initiatives.

These projects hold the potential to attract investors, stimulate local employment opportunities and generate significant revenues. The specific allocation of funds for vital metro and airport projects will also likely boost investor confidence.

There nevertheless remains a pressing need for major investments across other project sectors, including energy, utilities, construction and transport, to fully address infrastructural requirements and spur economic growth.

MEED's June 2024 market focus on Iraq also includes:

> Al Sudani struggles to maintain Iraq’s political stability
> Iraq economic revival faces headwinds
> Iraq electricity sector makes slow progress

https://image.digitalinsightresearch.in/uploads/NewsArticle/11764791/main.gif

Yasir Iqbal

Exclusive from Meed

Jedco maps next phase of Jeddah airport expansion
22 September 2026
Contractor wins $105m Medina university hospital deal
22 September 2026
Oman tenders Thumrait Industrial City infrastructure
22 September 2026
Kuwait halves drilling contractor pool
22 September 2026
Abu Dhabi expects 45% emissions cut as electricity demand rises
21 September 2026

Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

https://image.digitalinsightresearch.in/uploads/NewsArticle/19877992/main.jpg

Yasir Iqbal

Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

https://image.digitalinsightresearch.in/uploads/NewsArticle/19870032/main.jpg

Yasir Iqbal

Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

https://image.digitalinsightresearch.in/uploads/NewsArticle/19866218/main.jpg

Yasir Iqbal
Kuwait halves drilling contractor pool
22 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg

Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

Register for MEED’s 14-day trial access

Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.