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  Gulf nuclear revival takes shape

  1 September 2026

  

   

  Nuclear energy is becoming an increasingly important part of long-term energy planning in the GCC as governments seek to diversify power generation, strengthen energy security and meet decarbonisation targets.

  The signing of a civil nuclear cooperation deal between Saudi Arabia and the US in July marked the most significant development in the kingdom’s nuclear programme for several years, providing a framework for bilateral cooperation as Riyadh advances preparations for its first commercial nuclear power plant.

  The agreement also comes as the regional power market is setting the stage for a broader nuclear revival. Rapid growth in electricity demand from industry, desalination and digital infrastructure is increasing the need for reliable low-carbon electricity.

  With the UAE operating the Middle East’s first commercial nuclear power station, Saudi Arabia targeting up to 17GW of nuclear generating capacity by 2040 and Bahrain evaluating small modular reactor (SMR) technologies, nuclear energy is set to play an increasingly important role in the GCC’s long-term power projects pipeline.

  Nuclear ambitions

  Saudi Arabia’s nuclear ambitions are not new. The kingdom announced plans in 2011 to build 16 nuclear reactors over 20 years as part of its energy diversification strategy.

  Riyadh views nuclear power not only as a source of low-carbon electricity, but also as a way to reduce domestic consumption of oil and natural gas while supporting industrial growth and expanding desalination capacity.

  Since then, the programme has evolved to focus initially on the development of two large-scale reactors, while also supporting longer-term plans for SMRs, domestic fuel-cycle development and the regulatory institutions required for a civilian nuclear industry.

  Despite progress being slower than initially envisaged, Saudi Arabia has continued to develop the regulatory, institutional and procurement framework for its nuclear programme, and has established the Nuclear and Radiological Regulatory Commission and the Saudi Nuclear Energy Holding Company.

  The US-Saudi civil nuclear agreement is the latest milestone in that process. It follows a joint declaration signed last November and lays the legal foundation for a decades-long, multibillion-dollar partnership between the two countries. 

  According to the US Department of Energy, the agreement will also provide access for US companies to Saudi Arabia’s nuclear energy programme and “expand American nuclear technology exports”.

  The deal is part of a broader US effort to regain a stronger position in the global civil nuclear market. An executive order signed by President Donald Trump in May 2025 directed the US government to promote American nuclear exports and expand international nuclear cooperation. The Saudi deal explicitly builds on that policy.

  While the agreement does not determine which company will build Saudi Arabia’s first reactors, it creates a clearer route for US firms to participate in the kingdom’s civilian nuclear programme, subject to the necessary regulatory and congressional approvals.

  Nuclear is set to play an increasingly important role in the GCC’s long-term power projects pipeline

  Flagship project

  Saudi Arabia’s first commercial nuclear power plant is central to the kingdom’s nuclear ambitions. Planned at Khor Duwaiheen on the Gulf coast, the project comprises two 1.4GW reactors and is being advanced by King Abdullah City for Atomic & Renewable Energy under the Saudi National Atomic Energy Project.

  Technical bids were invited in 2022 and Saudi Arabia has since continued technical and commercial discussions with shortlisted reactor vendors, despite bid deadlines being extended several times. 

  The four nuclear technology providers reported to be pursuing the project are China National Nuclear Corporation, Electricite de France (EDF), Korea Electric Power Corporation and Russia’s State Atomic Energy Corporation Rosatom. 

  US nuclear technology company Westinghouse was previously involved in the Duwaiheen project procurement, although it had dropped out of the race by March 2025, according to sources.

  The US nuclear industry’s own revival could help to strengthen its ability to compete in overseas markets. Westinghouse confidentially filed for a US initial public offering in July, highlighting renewed investor interest as Washington seeks to broaden investment in the sector.

  Meanwhile, the Nuclear Energy Agency identifies Saudi Arabia’s procurement process as one of the important unresolved reactor competitions in the international market. About 40% of proposed nuclear projects globally have yet to select a technology supplier, leaving markets such as Saudi Arabia open to major international vendors.

  The scale of the opportunity also extends beyond the reactor contract itself. The planned 2.8GW facility represents only about a sixth of Saudi Arabia’s stated aim of developing 17GW of nuclear capacity by 2040, suggesting the kingdom’s first commercial power plant is likely to be the beginning of a broader programme rather than a standalone project.

  Beyond the reactor

  While the engineering, procurement and construction (EPC) contract for the reactor will be the programme’s highest-profile award, it is only one element of the wider investment needed to establish a civilian nuclear industry. Nuclear programmes require extensive ecosystems of supporting infrastructure, specialist engineering capabilities, fuel supply, workforce development and regulatory oversight that extends well beyond construction.

  This is illustrated by the UAE’s Barakah programme, which entered commercial operations in September 2024. According to Emirates Nuclear Energy Company (Enec), more than 2,000 UAE firms have secured contracts worth over $6.7bn supporting the construction, operations and maintenance of the Barakah plant.

  Enec says the programme has helped develop a local nuclear supply chain, while the plant’s long-term operation continues to create opportunities in maintenance, spare parts and other services. 

  In July 2025, Enec and Westinghouse signed an agreement to explore fuel supply chain cooperation and the expansion of Westinghouse’s support for operations and maintenance at Barakah.

  Saudi Arabia has also made clear that its ambitions extend beyond large commercial reactors. The kingdom’s long-term strategy includes plans for SMRs, the development of domestic uranium resources and elements of the nuclear fuel cycle.

  Energy Minister Prince Abdulaziz Bin Salman has said Saudi Arabia intends to use its domestic uranium resources across the nuclear fuel cycle, including in the production of yellowcake and low-enriched uranium. 

  These plans could significantly broaden the future projects market in the kingdom. In addition to power generation assets, opportunities could emerge in uranium exploration, mining, processing, fuel services, research facilities, specialist manufacturing and long-term operations and maintenance.

  The kingdom’s long-term strategy includes plans for SMRs, the development of domestic uranium resources and elements of the nuclear fuel cycle

  Regional outlook

  Saudi Arabia’s programme forms part of a broader shift towards civilian nuclear energy across the Gulf. 

  The UAE has already demonstrated the region’s ability to develop, finance and operate large-scale nuclear infrastructure through the 5.6GW Barakah nuclear power plant, which now supplies approximately a quarter of the country’s electricity through its four installed units.

  The country’s next nuclear expansion is at an early stage. Additional nuclear capacity of 2.8GW is not expected to be installed until 2039, implying procurement discussions could begin next year.

  The UAE’s Federal Authority for Nuclear Regulation said in February that it is prepared for future capacity additions and is ready to adopt new nuclear technologies, although it had yet to receive a formal proposal for an expansion. Tariff comparisons with the UAE’s growing pipeline of round-the-clock renewables projects are also expected to influence the viability and timing of further nuclear schemes.

  Elsewhere in the region, Bahrain is exploring the use of nuclear power for domestic consumption, as well as for the potential export of surplus. State energy conglomerate Bapco Energies is tasked with studying the prospect of building a modular nuclear power plant in the country.

  According to sources, the proposed project is being led by BeVentures, the venture capital arm of Bapco Energies, which was launched in July 2024. Under the plan that is being studied, power produced by a nuclear facility would be supplied mainly to major industrial complexes in the country, such as Aluminium Bahrain and Bapco Refining, for the clean production of aluminium and refined products.

  Meanwhile, Egypt is making progress with its first commercial nuclear power plant. Construction is under way on the four-unit, 4.8GW El-Dabaa project being developed with Russia’s Rosatom. 

  In July, the reactor pressure vessel was installed at Unit 2 of the plant. The project is expected to begin generating electricity from its first units in 2028. 

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  Mark Dowdall
• 
  Dubai extends deadlines for stormwater drainage projects

  1 September 2026

  

   

  Dubai Municipality has extended bid submission deadlines for three tenders linked to stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.

  The projects (DS-316-C1, TF-24-C1 and TF-25-C1) cover drainage networks for Hind 4, connections to the stormwater network in Dubailand and a stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman.

  The new bid submission deadline is 24 September. Bids were originally due on 10 September.

  The municipality’s Sewerage and Recycled Water Projects Department issued the tenders in August. Hind 3 and Hind 4 are two of four zones within Hind City. The Dubai government renamed the Al-Minhad area and surrounding areas as Hind City in 2023. The 83.9-square-kilometre area is served by Emirates Road, Dubai-Al-Ain Road and Jebel Ali-Lehbab Road.

  The DS-316-C1 project covers the construction of sewer and stormwater networks in Hind 4. The stormwater network will include gravity drainage pipelines up to 1,600 millimetres (mm) in diameter, while the sewer network will include pipelines up to 800mm.

  The TF-24-C1 project will connect developers’ areas in Dubailand to the stormwater network. It includes 18 kilometres (km) of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

  The TF-25-C1 project involves the construction of a 9.2km stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman. The trunk line will include gravity drainage pipelines with diameters of up to 2,800mm. It will also serve main roads along its alignment, including sections of the Dubai-Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.

  The latest tenders follow a series of recent Tasreef package awards by Dubai Municipality.

  In July, MEED reported that local contractor DeTech Contracting had won the estimated $100m TF-15-C1 EPC contract. The municipality has also awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting.

  The wider Tasreef programme is intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/19220861/main.jpg

  Mark Dowdall
• 
  Saudi Arabia redirects towards AI

  1 September 2026

  Commentary
  Colin Foreman
  Editor

  The groundbreaking by Humain and DataVolt at Oxagon this month signals where Saudi Arabia’s project spending is heading.

  Over the past year, the dominant story has been reprioritisation, following Neom’s loss of the Asian Winter Games and the cancellation of contracts at Trojena and The Line. While the negative headlines have attracted international attention, it is important to remember that spending has not stopped. Instead, it has changed course, and artificial intelligence (AI) and the new economy are increasingly where it is going.

  The old economy still has a role to play. Over the next eight years, Expo 2030 and the 2034 Fifa World Cup will keep the construction market busy. Looking further ahead, however, the longer-term opportunity lies elsewhere. AI and the wider new economy could sustain a pipeline of construction work that outlasts the events – from data centres and their power supply to the industrial and digital infrastructure that surrounds them.

  Saudi Arabia also has a comparative advantage. Aiman Al‑Mudaifer, Neom’s chief executive, said at Leap that the ability to secure power, land and connectivity was becoming critical to the economics of AI computing capacity. The kingdom has cheap energy, coastline, sovereign capital and, at Oxagon, subsea cables linking to Europe and Africa.

  The build-out is gathering pace. Humain, the PIF-owned AI company launched in May 2025, has struck deals with US chipmakers AMD and Nvidia, attracted interest from Aramco and tendered a separate 6GW campus in east Riyadh. The Oxagon campus is planned to reach 1.5GW, with the first 100MW due in 2028. For contractors and consultants, this points to demand for power distribution, substations, cooling and connectivity rather than stadiums and mountain resorts.

  Whether it pays off is far from settled. Data centre economics depend on customers, chips and reliable power, and Saudi Arabia is a late entrant to a crowded field.

  For construction, the transition will be uneven, and some parts of the projects market will feel the redeployment before they feel the benefit. But for a market that has spent a year dealing with the impact of cancelled contracts and project slowdowns, a clearer sense of where the money is going next is a positive sign.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/19222074/main.jpg

  Colin Foreman
• 
  Petrojet signs Jordan gas pipeline contract

  1 September 2026

  Egypt’s Petrojet has signed a new contract to deliver a natural gas pipeline project in Jordan, according to a statement from the company.

  The pipeline network will connect the Al-Muwaqqar Industrial Development Zone, south of Amman, to Jordan’s natural gas network.

  The contract was signed by Saleh Al-Kharabsheh, Jordan’s minister of energy and mineral resources, and Walid Lotfy, the chairman of Petrojet.

  The project covers the engineering, procurement, construction and installation of approximately 22 kilometres of natural gas pipelines, including connection to the Arab Gas Pipeline.

  It also includes developing gas pressure reduction and metering stations, as well as a pig launcher and receiver facility.

  The contract has an 18-month execution period.

  In its statement, Petrojet said the project would further strengthen its international portfolio and demonstrate its engineering, construction and project-execution capabilities across regional and global markets.

  The invitation to bid on the project was issued in June this year.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/19219983/main.jpg

  Wil Crisp
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  Kuwait sets fresh bid deadline for $240m oil project

  1 September 2026

  State-owned upstream operator Kuwait Oil Company (KOC) has announced a new bid deadline for the planned project to upgrade gas booster stations 140 and 150 (BS-140 and BS-150).

  The new bid deadline is on 20 September 2026.

  This replaces a previous bid deadline scheduled for 23 August 2026.

  The project, first announced in 2014, is estimated to be worth $240m, and the invitation to bid was issued in May this year.

  The scope of work on the project covers:

  • Upgrade of BS-140 and BS-150
  • Replacement of dehydration facilities
  • Laying of pipelines
  • Installation of safety system
  • Construction of associated facilities

  It was announced in 2017 that the following companies had been prequalified to bid for the project:

  • Daelim Industrial (South Korea)
  • Daewoo Engineering & Construction (South Korea)
  • Fluor (US)
  • Hyundai Heavy Industries (South Korea)
  • JGC Corporation (Japan)
  • Kellogg Brown & Root (US)
  • Larsen & Toubro Hydrocarbon Engineering (India)
  • National Petroleum Construction Company (UAE)
  • Petrofac (UK)
  • Saipem (Italy)
  • Samsung Engineering (South Korea)
  • SK E&C (South Korea)
  • Kentech (UAE; formerly SNC-Lavalin)
  • Technip Energies (France)
  • Tecnicas Reunidas (Spain)

  The list of prequalified companies has likely changed significantly since the previous list was published.

  Kuwait’s oil and gas sector is currently in the midst of a major crisis as disruption to shipping through the Strait of Hormuz has dramatically reduced the volume of exported crude oil.

  The disruption is also creating significant challenges for construction projects in the oil and gas sector, which normally import equipment and materials through the Strait of Hormuz.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/19219867/main.jpg

  Wil Crisp