meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai inflation slows to 5.3% in July

    24 August 2026

    Dubai’s annual inflation rate slowed to 5.3% in July, down from 5.7% in June, as a decline in transport costs eased pressure on consumer prices, according to Emirates NBD.

    The bank said the slowdown supported its view that price growth peaked at mid-year, and it expects inflation to continue easing through the rest of 2026. Monthly price growth slowed to 0.1% in July, from 0.4% in June, the weakest pace since February.

    Transport was the clearest sign of the moderation. Annual price growth in the category slowed to 11.9% in July, from 18.1% in June, as transport costs fell 3.7% over the month. Fuel and lubricant inflation eased to 24.1% year on year, from 48.3%, tracking a decline in local petrol prices.

    Petrol remains the main swing factor in the emirate’s inflation. Transport contributed 1.1 percentage points to headline inflation in July, down from 1.7 percentage points in June. Emirates NBD said the relief may prove temporary, with Super 98 petrol prices climbing 5.9% in August to leave them 33.8% higher than a year earlier. The bank expects headline inflation to edge higher in the August figures before easing again later in the year.

    The UAE deregulated petrol and diesel prices in 2015 and reviews them monthly against global prices, meaning changes in global fuel costs pass through to consumers quickly. Transport, which includes fuel, accounts for 9% of Dubai’s consumer price index basket.

    Housing remained the largest contributor to inflation even as its impulse faded. Housing and utilities, which account for about two-fifths of the basket, added 2.8 percentage points to headline inflation. Annual price growth in the category slowed to 7.0%, from 7.4% in January.

    Food inflation edged up to 7.8% year on year, from 7.6% in June, which the bank attributed to lingering supply-chain disruption from the regional conflict. Inflation in restaurants and hotels accelerated to 4.5% year on year, from 1.7% in June.

    Emirates NBD forecasts inflation of 2.9% by year-end but said risks to that projection were tilted to the upside, given lingering pressures in food and housing.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18961735/main1839.jpg
    Colin Foreman
  • Libya oil project on track for 2027 completion

    24 August 2026

     

    The project to develop a workers’ camp at Libya’s Erawin oil field is on track for completion next year, according to industry sources.

    The project, estimated to be worth about $50m, is being executed by the Libyan oil services company Al-Saraya Al-Hamara, headquartered in the city of Sebha.

    The Libyan company was awarded the contract in February 2025.

    The scope of the project includes:

    • Construction of an accommodation camp
    • Construction of the camp maintenance warehouse
    • Construction of the camp office
    • Construction of a fire brigade shelter
    • Construction of a kitchen and mess hall
    • Construction of a mosque
    • Construction of a laundry room
    • Construction of a clinic
    • Construction of parking facilities
    • Installation of a fire and gas system
    • Installation of a power generator
    • Construction of associated facilities

    The client on the project is Zallaf Libya Oil & Gas Exploration & Production Company.

    Zallaf Libya Oil & Gas Exploration & Production Company was established in Libya in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation.

    The Erawin field development project is located about 800 kilometres south of Tripoli and 100km southwest of the El-Sharara field.

    Libya shipped its first cargo of crude from the Erawin oil field in November 2023.

    The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.

    Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the early production facility project in 2019.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18953632/main.jpg
    Wil Crisp
  • Tunisia extends bid deadline for gas pipeline project

    24 August 2026

    State-owned Tunisian Company of Electricity & Gas (Steg) has extended the bid deadline for a project to develop gas pipelines in the North African country.

    Earlier this year, the project was tendered with a bid deadline of 15 July. The new deadline is 30 September 2026.

    The scope of the project includes conducting studies, procuring equipment and materials, and performing construction work.

    Steg has received financing from the Islamic Development Bank to fund the project.

    The tender has been split into two packages.

    The first pipeline runs from the Tunisian town of Mourouj, in the suburbs of Tunis, to the town of Zriba.

    Along this route, the pipeline will be split into two sections.

    The first extends from Mourouj to the town of Fouchana, which lies to the south of the capital.

    Under existing plans, the pipeline will have a diameter of 20 inches and extend for 3.8 kilometres.

    The second section will extend for 43km to Zriba and have a diameter of 24 inches.

    The contract for package one has a 450-day completion period.

    The project’s second package focuses on a gas pipeline extending from Zriba to the town of M’saken.

    This pipeline will extend for 78km and have a diameter of 24 inches.

    The contract for this package also specifies a 450-day completion period.

    The procedure for the tender of both packages is an international call for tenders under the Islamic Development Bank guidelines for design, supply and installation.

    The Middle East and North Africa (Mena) region is currently seeing a surge in oil and gas pipeline projects as countries attempt to diversify routes through which hydrocarbons can be transported.

    The increased concerns about overreliance on a small number of transportation routes are a result of the regional conflict that started when the US and Israel attacked Iran on 28 February.

    The conflict severely disrupted oil and gas flows through the Strait of Hormuz, highlighting the importance of having a diverse range of import and export routes.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18953537/main.jpg
    Wil Crisp
  • Contractors confirm $683m Oman power plant contract

    21 August 2026

    Register for MEED’s 14-day trial access 

    China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility have confirmed their involvement as contractors on the 1,700MW Misfah combined-cycle gas turbine (CCGT) project in Oman.

    In a statement, Sepco 3 said it signed the contract on 20 August. On 21 August, Doosan disclosed a KRW930bn ($683m) contract with Jabel Power, the project company for the Misfah plant. The contract runs from 20 August 2026 to 1 April 2029.

    The same consortium signed the engineering, procurement and construction (EPC) contract for the 890MW Duqm CCGT power plant in June. At the time, Doosan disclosed a contract worth about $350m.

    In May, MEED exclusively reported that the group had been appointed as the main contractor for the two power plants, subject to the official signing.

    State offtaker Nama Power & Water Procurement (Nama PWP) had previously signed power-purchase agreements (PPAs) for the development and operation of the plants.

    The developer’s contract was awarded to a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.

    As MEED understands, construction works have already commenced on the power plant projects. A China-based procurement listing in June shows that civil works procurement was under way for the Misfah independent power producer (IPP).

    The civil package F tender covered piling, reinforcement cages, concrete works and pile testing, with work scheduled to start in July and finish by November

    As reported in July, Germany’s Siemens Energy will supply power generation technology and long-term service agreements for the Misfah and Duqm IPP projects.

    This includes the supply of six F-class gas turbines, six generators and 20-year long-term service agreements for the equipment.

    The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate. The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate.

    According to Nama PWP, the total investment for the two projects is estimated at approximately RO1bn ($2.6bn).

    Synergy Consulting is the financial adviser and lead adviser to Nama PWP for these projects.

    In November, Oman’s OQ Gas Networks received final investment approval to proceed with gas supply connections for the facilities.

    The Misfah IPP will receive 8.5 million cubic metres a day (cm/d) of natural gas. The Duqm IPP will be supplied with 4.5 million cm/d of natural gas.

    In March 2025, the same Sepco 3 and Doosan Enerbility consortium signed an EPC contract with Saudi Electricity Company to expand Riyadh Power Plant 12 (PP12). Located about 150 kilometres northwest of Riyadh, the 1,863MW power plant is expected to be completed in 2028.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18911106/main.jpg
    Mark Dowdall
  • Adnoc plans new offshore-to-onshore oil transport pipeline

    20 August 2026

     

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company is moving ahead with an ambitious plan to build an oil pipeline network that will transport oil from its main offshore oil processing islands in the Gulf to its onshore crude export terminal in Jebel Dhanna, Abu Dhabi.

    The planned pipeline network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport those volumes across 300 kilometres inland to the Jebel Dhanna terminal.

    According to sources, the proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Abu Dhabi’s Jebel Dhanna to the emirate of Fujairah, and is expected to be commissioned in 2027.

    The Abu Dhabi energy giant has awarded a contract for concept studies and front-end engineering and design (feed) to Abu Dhabi-based NT Energies, a joint venture of Abu Dhabi-based contractor NMDC Energy and France’s Technip Energies, sources told MEED.

    NT Energies is expected to carry out the concept studies and feed on a “fast-track basis”, with the work anticipated to take seven months, sources said.

    A kick-off meeting between the client and the appointed consultant took place on 6 July, sources added.

    Additionally, Adnoc has appointed Australia-headquartered Worley to provide project management consultancy (PMC) services, sources further said.

    West-East oil pipeline

    In May, Adnoc said it was accelerating work on the West-East crude transport pipeline project from Jebel Dhanna to Fujairah, upon directions from its board.

    The West-East pipeline project involves constructing a cross-country pipeline to transport crude from Adnoc’s export terminal at Jebel Dhanna to the Fujairah terminal, covering a distance of about 520km.

    The pipeline will double Adnoc’s crude export capacity through Fujairah on the Indian Ocean coast and enable shipments to bypass the geopolitically volatile Strait of Hormuz.

    Crude will be sourced from Adnoc’s offshore processing centres at Das, Zakum and Umm Lulu islands before being stored at new storage facilities to be built at the Jebel Dhanna terminal.

    The pipeline will be segmented into three sections:

    • Jebel Dhanna to Habshan main pumping station (MPS) – 115km
    • Habshan MPS to Sweihan depot – 254km
    • Sweihan depot to Fujairah terminal – 153km

    Adnoc awarded Egyptian contractor Engineering for Petroleum & Process Industries (Enppi) an engineering, procurement and construction management (EPCm) contract for the project in February 2024.

    Adnoc’s total spend on EPCm works could be as high as $3bn, MEED previously reported.

    Sources have told MEED that Adnoc has, in turn, appointed state-owned China Petroleum Pipeline (CPP) and locally based Bin Asheer to carry out construction works on the three segments of the West-East pipeline network.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18887774/main0639.jpg
    Indrajit Sen