Jordan manages to maintain its balance
20 June 2024
Commentary
John Bambridge
Analysis editor
Amid the most severe geopolitical strife in the Levant since 2014 – when the Syrian civil war peaked and conflict also erupted in Gaza – Jordan has remained relatively calm these past eight months. While the kingdom’s streets have seen almost weekly demonstrations over the conflict in Gaza, there has been little sign of the protests seriously jeopardising its stability.
Economic growth is forecast to remain in the low single digits, despite a drop in tourism lowering the forecast in 2024 to 2.3%, and the government has managed to so far avoid being drawn away from its neutral stance on the situation in Israel and Gaza. Amman has withdrawn its ambassador from Tel Aviv and cancelled a planned cross-border utility deal with Israel, but it equally assisted Israel in mid-April by downing Iranian assets crossing Jordanian airspace. Amman claimed self-defence, but it trod a fine line.
Jordan’s neutrality is at once a boon, a necessity and a risk. Its relationship with the US has reinforced the kingdom’s security, and enabled Jordan to extract considerable financial aid from Western partners over the years. Tel Aviv is also a necessary partner for the kingdom in its custodianship of the Al-Aqsa Mosque. At the same time, Jordan has become dependent on Israel for part of its water supply. These dependencies could place Amman in a pretty tricky spot in case of a more serious regional escalation.
As it stands, however, Jordan is benefitting from significant external support – including a $1.2bn loan programme with the IMF and a $5bn Abu Dhabi-backed infrastructure investment fund – as it drives its 2023-33 Economic Modernisation Vision, though progress on the ground has been modest.
In the oil and gas sector, the re-stalling of the $2.6bn expansion of the Zarqa refinery, the country’s only crude refining asset, is a significant setback. In the utilities sector, activity has also slowed in recent years, though the signing of a deal with UAE-based Abu Dhabi Future Energy Company (Masdar) in December to develop 1,000MW of wind energy was a welcome boon. The 2033 vision has also promised a raft of new infrastructure projects.
Amman undoubtedly has ambition, and to date it has managed to ward off the more dire threats to the country and its economy. The big concern is that external events could simply overtake the kingdom.
MEED's July 2024 special report on Jordan includes:
> GOVERNMENT: Policymakers in Amman walk a political tightrope
> OIL & GAS: Jordan refinery project delay is major setback
> POWER & WATER: Jordan’s utility sector buckles up amid uncertainty
> CONSTRUCTION: Modernisation drives Jordan construction

Exclusive from Meed
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SAR tenders phosphate rail project management deal18 February 2026
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Veolia wins Jordan water services contract18 February 2026
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PIF-backed firm signs worker accommodation deal17 February 2026
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KBR wins 10-year maintenance contract from Petro Rabigh17 February 2026
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Bidders await NWC decision on sewage contract17 February 2026
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Veolia wins Jordan water services contract18 February 2026
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France's Veolia has signed a four-year performance-based management contract with the Water Authority of Jordan to support water and wastewater services in the country’s northern governorates.
Under the contract, Veolia will provide operations, maintenance and management services to Yarmouk Water Company, the public utility responsible for water supply and wastewater services in the region.
The agreement covers Irbid, Jerash, Ajloun and Mafraq, an area spanning nearly 30,000 square kilometres and covering about 3 million people.
The scope includes water and wastewater operations, maintenance, billing and collection, and customer service.
According to the firm, the performance-based structure prioritises measurable improvements, including service delivery, cost efficiency and revenue management.
The company said it will deploy technical and management specialists to support operations, rehabilitation works and investment initiatives.
The contract builds on Veolia’s existing operational role in Jordan’s water sector. The company operates the Disi-Amman scheme, which supplies about 100 million cubic metres of drinking water a year, under an operations and maintenance contract.
It also operates the Al-Samra wastewater treatment plant, which produces about 133 million cubic metres of treated wastewater annually for agricultural reuse.
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SAR tenders phosphate rail project management deal18 February 2026

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Saudi Arabian Railways (SAR) has floated another tender inviting firms to bid for a contract covering the project management consultancy services for its Phosphate 3 rail programme.
The tender was issued on 15 February with a bid submission deadline of 5 April.
The contract duration is 54 months.
The latest tender follows SAR floating a multibillion-riyal tender to double the tracks on the existing phosphate transport railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the kingdom’s Eastern Province.
The tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – was issued on 9 February. The bid submission deadline is 15 April.
Earlier this month, MEED reported that SAR received bids from contractors on 1 February for the project’s first phase, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.
The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.
The scope also covers support for signalling and telecommunications systems.
The tender notice was issued in late November with a bid submission deadline of 20 January.
Switzerland-based engineering firm ARX is the project consultant.
MEED understands that SAR is expected to tender a total of four packages for the phosphate railway line.
The other packages expected to be tendered shortly include the depot and the systems package.
In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train freight line and construct three new freight yards.
Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southwards to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.
Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.
State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.
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PIF-backed firm signs worker accommodation deal17 February 2026
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Saudi Arabia's Smart Accommodation for Residential Complexes Company (Sarcc) has signed an agreement with Riyadh-based Mawref Company to develop a 12,000-bed worker accommodation project in North Riyadh.
The project will cover about 120,000 square metres (sq m), with a total built-up area of 150,000 sq m.
The development is expected to cost over SR669m ($178m), with the first phase slated for completion in 2029.
Sarcc is backed by the Public Investment Fund (PIF), the Saudi sovereign wealth vehicle.
The agreement follows Sarcc signing another agreement in September last year with privately-owned local firm Tamimi Global Company to explore collaboration in developing worker accommodation facilities in the kingdom.
The PIF launched Sarcc in October 2024 with the aim of developing and operating staff housing and accommodation assets in the kingdom.
Sarcc will develop and operate the staff accommodation facilities at major construction projects in Saudi Arabia.
The company will seek opportunities to invest in the sector to strengthen staff housing standards. Sarcc will also look to engage the private sector by enabling investment and partnership opportunities in sectors including construction, catering, transportation and retail.
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KBR wins 10-year maintenance contract from Petro Rabigh17 February 2026
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Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) has awarded US-based consultant KBR a 10-year contract to provide maintenance services covering the company’s polymer plants in Rabigh, on the kingdom’s Red Sea coast.
“This [contract award] marks a major step in Petro Rabigh’s transformation journey, supporting safer operations, stronger reliability and long-term improvement across its facilities,” Petro Rabigh said in , without providing further details.
Work on the operations and maintenance contract will be executed by KBR’s business line, which operates under the Houston-headquartered firm’s Technology Solutions portfolio, sources told MEED.
Prior to this contract, in March 2024, Petro Rabigh awarded KBR a similar five-year asset condition monitoring programme contract. As part of that job, KBR is to provide predictive maintenance services at Petro Rabigh’s main plant.
Petro Rabigh was originally established in 1989 as a basic topping refinery with crude oil processing facilities, located in Rabigh, 165 kilometres to the north of Jeddah in Mecca Province.
Saudi Aramco and Japan’s Sumitomo Chemical Company formed an equal joint venture in 2005 to transform the Petro Rabigh crude oil refining complex into an integrated refinery and petrochemicals complex, with the strategic objective of expanding Saudi Arabia’s annual production capacity of refined products and petrochemicals.
Three years after the creation of the Petro Rabigh joint venture, the partners floated 25% of its shares in an initial public offering on the Saudi Stock Exchange (Tadawul) in 2008, following which Aramco and Sumitomo Chemical each held 37.5% shares in Petro Rabigh, with the remaining shares listing on the Tadawul.
In October last year, however, Aramco completed the acquisition of an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical. Following the completion of the transaction, valued at $702m or SR7 a share, Aramco became the majority shareholder in Petro Rabigh, with an equity stake of 60%, while Sumitomo retains an interest of 15%. The remaining 25% shares of Petro Rabigh continue to trade on the Tadawul.
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Following the formation of the Petro Rabigh joint venture in 2005, Aramco and Sumitomo Chemical launched the expansion of the refining facility into an integrated refining and petrochemicals complex in 2006, investing $9.8bn in the project, 60% of which was secured through external financing. Engineering, procurement and construction works on phase one were completed in 2009, with the integrated downstream complex entering operations in November of that year.
The Petro Rabigh downstream complex consists of a topping refinery that has a 340,000 barrel-a-day (b/d) crude distillation unit, a 47,000 b/d hydrotreater, a 12 million cubic-feet-a-day hydrogen plant, a 75,000 b/d naphtha merox unit and a 60,000 b/d kerosene merox unit, along with supporting utilities, product tankage and a marine terminal.
Aramco and Sumitomo Chemical initiated Petro Rabigh’s phase two expansion project, valued at $8bn, in 2014. The second expansion phase was commissioned in 2018 and added 15 chemicals plants to the Petro Rabigh complex, raising the facility’s total production capacity to 18.4 million tonnes a year (t/y) of petroleum-based products.
The expansion also increased Petro Rabigh’s capacity to process an additional 30 million cubic feet a year of ethane into 2.4 million t/y of ethylene and propylene-based derivatives, and achieved a naphtha output of 3 million t/y.
Expansion of the main existing chemicals plant and the establishment of a clean fuels complex comprising polyether polyols, naphtha treating and sulphur recovery units were also part of the phase two project.
Photo credit: Petro Rabigh on LinkedIn
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Bidders await NWC decision on sewage contract17 February 2026

Saudi Arabia’s National Water Company (NWC) is evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.
Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.
The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cubic metres a day (cm/d).
As MEED understands, the companies that have submitted proposals include:
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- Civil Works Company (Saudi Arabia)
- Miahona (Saudi Arabia)
- Beijing Enterprises Water Group – BEWG (Hong Kong)
- Al-Yamama (Saudi Arabia)
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