meed-logo

line1 line2 line3
SIGN IN / REGISTER

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 Amman has withdrawn its ambassador from Tel Aviv and cancelled a planned cross-border utility deal with Israel, but it equally assisted Israel in mid-April by downing Iranian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

 

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11959915/main.gif
John Bambridge

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

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait tenders major infrastructure packages

    23 March 2026

     

    Kuwait’s Ministry of Public Works (MPW) has tendered several contracts for infrastructure works across various parts of the country.

    The first tender covers the construction of rainwater drainage systems in the Sabah Al-Ahmad South, Sabah Al-Ahmad, Al-Khairan and Al-Wafra residential areas.

    The second tender includes the construction of a treated water system in Kuwait’s southern region.

    The third tender covers the construction of a treated water system in Kuwait’s northern region.

    The final tender covers the construction of roads, bridges, stormwater drainage, sewage and other services for a section of the Kabd-Sulaibiya Road, as well as a section of the Kabd-Sulaibiya industrial road link.

    MPW issued all of these tenders on 22 March, with a bid submission deadline of 21 April.

    UK analytics firm GlobalData expects Kuwait’s construction industry to grow by 5.1% in 2026-29, supported by government investment in the oil and gas sector aimed at raising production, as well as investment in the infrastructure sector.

    In the short term, growth will be boosted by planned expenditure under the 2025-26 budget, which was approved in March 2025.

    The construction industry in Kuwait is expected to record an annual average growth rate of 4.9% in 2026-29, supported by investments in renewable energy, transport, and oil and gas projects.

    The commercial construction sector is expected to grow by 4.8% in 2026-29, supported by public and private sector investment in the construction of hotels, retail outlets and office buildings.

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

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16083252/main.jpg
    Yasir Iqbal
  • Qiddiya tenders new infrastructure package

    23 March 2026

     

    Saudi Arabian gigaproject developer Qiddiya Investment Company (QIC) has tendered a contract inviting firms to bid for new infrastructure works in Qiddiya Entertainment City.

    The scope covers two infrastructure development packages in District 0 of Qiddiya Entertainment City, including the construction of four event park-and-ride facilities.

    The tender was issued on 11 March, with a bid submission deadline of 22 April.

    Lebanese firm Dar Al-Handasah and Saudi-based Sets International are serving as project consultants.

    QIC is accelerating plans to develop additional assets at Qiddiya City. Earlier this month, the company set a 16 April deadline for firms to submit prequalification statements for the Qiddiya high-speed rail project in Riyadh.

    Previously, MEED reported that QIC had received bids from contractors on 23 February for a SR980m ($261m) contract covering the construction of staff accommodation at Qiddiya Entertainment City.

    The project will cover an area of more than 105,000 square metres (sq m).

    Last month, QIC started the main construction works on its performing arts centre at Qiddiya Entertainment City.

    The Qiddiya City performing arts centre is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, Prince Mohammed Bin Salman Stadium, a motorsports track, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    In December last year, QIC officially opened the Six Flags theme park to the public.

    The theme park covers an area of 320,000 sq m and features 28 rides and attractions, 10 of which are thrill rides and 18 designed for families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    The kingdom’s tourism sector posted record-breaking numbers last year, with over 130 million domestic and international visitors entering the kingdom, representing a 6% increase over 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16083013/main.jpg
    Yasir Iqbal
  • Libya redirects oil after fire at Sharara field

    23 March 2026

    Libya’s state-owned National Oil Corporation (NOC) has redirected flows from the Sharara oil field after a fire broke out, according to a statement.

    NOC said that alternative pipelines have been used and production remains stable.

    It also said there were no casualties as a result of the fire.

    Some oil was redirected using the El-Feel oil field pipeline to the port of Mellitah, while remaining volumes were diverted ​through the Hamada pipeline to storage tanks in Zawiya.

    ​NOC said the diverted flows would “significantly reduce losses”.

    Libya’s crude production averaged 1.37 million barrels a day in 2025, its highest level in more than a decade.

    Oil generates more than 90% of the government's revenues, and the North African country has an estimated 48-50 billion barrels of proven reserves.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16034164/main.png
    Wil Crisp
  • Dubai seeks consultants to develop drainage strategy

    18 March 2026

    Dubai Municipality has issued a request for qualifications (RFQ) for a study to develop a sustainable urban drainage systems (Suds) strategy across the emirate.

    The bid submission deadline is 9 April.

    The tender, issued through the Sewerage and Recycled Water Projects Department, covers the development of a strategy and conceptual implementation plan for Suds in Dubai.

    It follows a separate RFQ issued by the municipality in March for consultancy services to study the emirate’s sewage treatment strategy.

    The Suds project, designated TF-23-D1, aims to support the emirate’s flood protection and drainage infrastructure by promoting a more sustainable approach to stormwater management.

    The scope of work includes a review of international best practices in Suds and their applicability to Dubai. It also involves undertaking a Suds opportunity study and carrying out catchment-scale modelling and financial evaluation for a pilot study area.

    Consultants will be required to develop Suds design guidelines, specifications and standard drawings. The project also includes establishing a strategy, policy, legal and regulatory framework to support a Suds implementation roadmap.

    Dubai Municipality said the initiative represents “a significant step towards a more resilient, sustainable and forward-looking stormwater management approach for Dubai.”

    The study forms part of a broader review of Dubai’s water and wastewater infrastructure. Earlier this month, the municipality issued a separate consultancy tender (P115-D1) to assess the emirate’s sewage treatment and recycled water distribution strategy. 

    The study will focus on infrastructure requirements to support future population growth. 

    This includes identifying locations for potential future facilities such as treatment plants and pumping stations.

    The bid submission deadline is 23 March.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027434/main.jpg
    Mark Dowdall
  • Oman awards power purchase agreements

    18 March 2026

    Oman’s Nama Power & Water Procurement Company (PWP) has issued letters of award (LoA) for new power purchase agreements (PPAs) to three independent power producers (IPPs), according to regulatory filings.

    The new PPAs will extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.

    The projects have a combined capacity of about 3,500MW.

    The agreements have been awarded to Phoenix Power Company, Al-Batinah Power Company and Al-Suwadi Power Company.

    Phoenix Power Company operates the 2,000MW Sur IPP.  It is owned by a consortium of international and regional investors, including Japan’s Marubeni Corporation and Chubu Electric Power, Qatar’s Nebras Power, Qatar Electricity & Water Company and Multitech of Oman’s Bahwan Engineering Company.

    Al-Batinah Power Company and Al-Suwadi Power Company operate the 750MW Sohar 2 IPP and the 750MW Barka 3 IPP, respectively.

    According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle (SPC) called Al-Suwadi Power Company.

    The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%)  and the Public Authority for Social Insurance (10%).

    In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.

    All three companies said the new PPAs will run for 15 years under agreed commercial terms. Acceptance of the LOAs has been requested by 18 March 2026.

    The new agreements for Sohar 2 and Barka 3 will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the Sur IPP will commence on 1 April 2029 and run until 31 March 2044.

    The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.

    In Oman, IPP projects are developed under a build-own-operate model. This allows plant operators to continue running assets beyond the initial PPA term, either through contract extensions or by selling power into a future electricity market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027001/main.jpg
    Mark Dowdall