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  Read the July 2025 MEED Business Review

  3 July 2025

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  The UAE’s investments in Turkiye, along with the contracts won by Turkish firms in the UAE, highlight the mutual opportunities available to both countries.

  Turkiye is already the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021. Last year, non-oil trade between the UAE and Turkiye grew by 11.5%, reaching $40.5bn.

  With this momentum set to continue, MEED's latest issue takes an in-depth look at the growing trade relationship between the two countries. 

  In our 10-page opening Agenda section, MEED editor Colin Foreman speaks exclusively to the president of the investment and finance office of the Presidency of the Republic of Turkiye, Burak Daglioglu, about bilateral investment; and talks to Kalyon Holding CEO Mustafa Kocar about the construction firm’s new focus on the Middle East. 

  There are also interviews with DenizBank CEO Recep Bastug, on the strengthening financial links, and with the vice-president of sales at Turkish Airlines, Erol Senol, on the airline’s plans for further growth. 

  This month’s Levant market focus covers Jordan, Lebanon and Syria and finds all three countries working to recover from recent events beyond their control.

  MEED's latest issue also includes a comprehensive GCC real estate report, covering all six markets in detail. While growth is continuing, the sector is showing signs of facing a more nuanced reality due to economic slowdown, regional tensions, oversupply risks and delivery constraints. Read more here.

  We hope our valued subscribers enjoy the July 2025 issue of MEED Business Review. 

  

   

  Must-read sections in the July 2025 issue of MEED Business Review include:

  > AGENDA: 
  > UAE-Turkiye trade gains momentum
  > Building on UAE-Turkiye trade
  > Turkiye's Kalyon goes global
  > Strengthening UAE-Turkiye financial links
  > Turkish Airlines plans further growth

  > CURRENT AFFAIRS:
  > Middle East tensions could reduce gas investments

  INDUSTRY REPORT: GCC real estate  > GCC real estate faces a more nuanced reality

  > PROJECTS: GCC projects market collapses

  > INTERVIEW: Hassan Allam eyes role in Saudi Arabia’s transformation  

  > INTERVIEW: Aseer region seeks new investments for Saudi Arabia

  > LEADERSHIP: Nuclear power makes a global comeback

  > LEVANT MARKET REPORT: 
  > COMMENT: Levant states wrestle regional pressures
  > ECONOMY: Jordan economy nears inflection point
  > GAS: Jordan pushes ahead with gas plans 
  > POWER & WATER: Record-breaking year for Jordan’s water sector
  > CONSTRUCTION: PPP schemes to drive Jordan construction
  > DATABANK: Jordan’s economy holds pace, for now
  > ECONOMY: Lebanon’s outlook remains fraught
  > RECONSTRUCTION: Who will fund Syria’s $1tn rebuild?

  > MEED COMMENTS: 
  > Dubai's tall towers reach new heights
  > Contractors return to Palm Jebel Ali
  > Nuclear U-turn is an opportunity
  > Adnoc pursues global gas ambition

  > GULF PROJECTS INDEX: Gulf projects index continues climb

  > MAY 2025 CONTRACTS: Mena contract award activity remains subdued

  > ECONOMIC DATA: Data drives regional projects

  > OPINION: A farcical tragedy that no one can end

  > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

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

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  MEED Editorial
• 
  Algeria plans to expand fertiliser plant

  3 July 2025

  

   

  Algeria’s national oil and gas company Sonatrach is developing a project that will expand the country’s fertiliser plant located in Arzew, according to industry sources.

  Sonatrach has not publicly said when it expects to issue the invitation to bid for the main contract for the project.

  The original $2.4bn contract to develop the Arzew Fertiliser Complex was executed by a joint venture of South Korea’s Daewoo E&C and Japan’s Mitsubishi Corporation.

  The joint venture won the contract in April 2008 and completed the facility in April 2013.

  The fertiliser production complex was built in the Arzew industrial zone near Oran, on the Mediterranean coast.

  It produces ammonia from natural gas, and almost all of the ammonia output is converted to urea for producing granular urea to be used as fertiliser.

  The complex includes two ammonia production units, each with a capacity of 2,000 tonnes a day (t/d).

  It also includes two urea production units, each with a capacity of 3,500 t/d, as well as granulation plants and supporting facilities.

  Sonatrach is currently trying to boost Algeria’s capacity to produce fertilisers.

  In December, a total of six companies were shortlisted as part of the tender process for another fertiliser project in Algeria’s Annaba region, according to information released by the Industrial Group for Fertilisers & Phytosanitary Products (Asmidal).

  Asmidal is a wholly owned subsidiary of Sonatrach.

  The scope of the contract being tendered included preparing a front-end engineering and design (feed) study for a project to create a fertilisers, food phosphates and derivatives complex.

  The project is expected to be worth about $1bn.

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  Wil Crisp
• 
  Kuwait extends bid deadlines for projects worth $1.57bn

  3 July 2025

  State-owned upstream operator Kuwait Oil Company (KOC) has extended the bid deadlines for four strategic oil projects worth a total of $1.57bn.

  The first contract, estimated to be worth KD292m ($951m), is focused on developing a separation facility in the NK SA/BA Area, close to Gathering Centre 23 (GC-23) and GC-24.

  The scope of the contract also includes a new injection facility at GC-31 and effluent water injection networks in north Kuwait.

  The project’s latest bid deadline has been set for 22 July.

  The second contract is to develop the planned Mutriba remote boosting facility in northwest Kuwait.

  It was originally tendered earlier this year with a bid submission deadline of 29 June. The deadline has now been extended to 27 July 2025.

  The project has an estimated budget of about KD130m ($420m) and its scope includes:

  • Development of the Mutriba oil field
  • Installation of the degassing station
  • Installation of manifolds
  • Installation of condensate facilities
  • Installation of wellhead separation units
  • Installation of the pumping system
  • Installation of wellhead facilities
  • Installation of oil and gas treatment plants
  • Installation of a natural gas liquid plant
  • Installation of a water and gas injection plant
  • Construction of associated utilities and facilities

  The onshore Mutriba oil field is located in northwest Kuwait.

  In October 2024, KOC announced that it was preparing to tender a project management contract for a scheme to develop the field.

  At the time, it said four international companies had been invited to participate in the tender process. These were:

  • Schlumberger (US)
  • Halliburton (US)
  • Baker Hughes (US)
  • Weatherford International (US)

  KOC also said that the list of qualified companies could be extended before the invitation to bid was issued.

  The third project, estimated to be worth $100m, is for an effluent water injection network in north Kuwait.

  Effluent water injection or water flooding is a secondary hydrocarbons recovery technique where produced water is injected into a well’s formation under high pressure and temperature conditions to recover more of the oil initially in place.

  The bid deadline has been extended from 24 June to 22 July 2025.

  The fourth project is estimated to be worth around $100m and is focused on the construction of a new injection network in north Kuwait that will service the Sabriyah/Bahra (SA/BA) area.

  Its bid deadline has also been extended from 24 June to 22 July 2025.

  Kuwait is in the middle of an upstream projects push, in line with its goal of producing 4 million barrels a day of oil by 2035.

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  Wil Crisp
• 
  Miral tenders Harry Potter attraction in Abu Dhabi

  3 July 2025

  

   

  Register for MEED’s 14-day trial access 

  Abu Dhabi’s Miral has started the procurement process for the contract to build the Harry Potter-themed expansion to the Warner Bros World Yas Island entertainment destination in Abu Dhabi.

  According to sources close to the project, the tender for the estimated AED2bn-AED3bn ($545m-$816m) main construction works has been issued to contractors, with bids due in July.

  The scope of the Warner Bros World phase two expansion includes adding 40,000 square metres (sq m) to the existing theme park. This will include a Harry Potter-themed zone with three new rides, retail, and food and beverage outlets.

  The enabling works on the project have begun and are being undertaken by the local firm NSCC International. Another local firm, Emirates Electrical & Instrumentation Company, is undertaking the early works on the project.

  Canadian engineering firm Ellisdon is the project consultant.

  Responding to a request for a comment, Miral said relevant project updates would be shared in due course. “Miral does not comment on speculative and inaccurate information from unknown sources,” the developer said.

  According to media reports, the Abu Dhabi project will be the world’s sixth Harry Potter-themed park. The others are in Florida and California in the US, Beijing in China, Osaka in Japan and Leavesden in the UK.

  The Abu Dhabi project was first announced in November 2022.

  Yas Waterworld

  Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island and has worked with several local and international contracting companies.

  On 1 July, Miral opened the new 16,900 sq m expansion of its Yas Waterworld park to the public.

  The expansion added 3.3 kilometres of slide sections to the park. The addition of 18 new rides and attractions, bringing the total number of rides to more than 60, is expected to grow visitor capacity by 20%.

  The construction was carried out by the local contractor Alec.

  Disney park

  In May, The Walt Disney Company and Miral signed an agreement to build a Disney theme park resort on Yas Island.

  Disney, which is based in the US, said it will be its seventh theme park resort. The others are in California and Florida in the US, Paris in France, Hong Kong and Shanghai in China and Tokyo in Japan.

  In a statement, Disney highlighted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to the largest global airline hub in the world, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

  The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, and dining and retail experiences.

  Abu Dhabi hopes bigger is better with Disney theme park

  In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.

  In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.

  
  Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island 

  ---

  Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam of the Netherlands was the contractor for the Arena and Germany’s Zublin was the contractor for Clymb.

  Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park.

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  Yasir Iqbal
• 
  GCC real estate faces a more nuanced reality

  3 July 2025

  

   

  The GCC real estate market in 2025-26 is characterised by dynamic growth, largely propelled by ambitious government-led diversification strategies and large-scale masterplanned projects. 

  Robust sales and significant development pipelines have been interpreted as indomitable market fundamentals across the region, particularly in Saudi Arabia and the UAE. 

  This year, a more balanced perspective has emerged that reveals new challenges as markets cope with external threats including a weakening global economy and regional geopolitical tensions, combined with domestic challenges such as oversupply and affordability. 

  Concerns about potential oversupply in certain residential and retail segments, especially in Dubai and Riyadh, are notable, with ratings agencies such as Fitch forecasting price corrections. 

  With so many real estate projects planned in the GCC region, the construction sector is poised for continued expansion, yet concerns are growing over delivery as capacity is constrained and contractors are becoming increasingly risk averse as their orderbooks fill.   

  Balancing population growth with project pipelines and the delivery of national visions will be critical in shaping the market’s performance in the future. 

  Investors and developers will need to navigate these complexities if they are to continue enjoying the success they have achieved in the past four years.

  ---

  Bahrain

  Bahrain’s real estate sector performed steadily in 2024, led by the residential market, which benefitted from demographic growth, improved affordability and supportive government initiatives.

  Updated immigration policies such as the introduction of a Golden Visa programme have encouraged more expatriates to purchase properties, which has been stimulating demand. 

  The price of high-end apartments increased modestly year-on-year, with an increase of 1.4% in 2024, while villa prices remained stable, indicating strengthening demand for premium properties with modern amenities, according to real estate services company Savills. 

  There was an even greater increase in rental values, which rose by 23% across Bahrain in 2024, with the Capital Governorate accounting for 48% of rental transactions, Savills says. 

  The country’s commercial office market faced challenges in 2024, however, with limited demand and relatively flat rental growth, despite new developments such as SayaCorp Tower entering the market, Savills reports. 

  Conversely, Bahrain’s retail sector showed signs of recovery last year, driven by luxury brands opening new stores in Marassi Galleria, increasing foot traffic and demand.

  For industrial space, larger warehouses saw a slight increase in rental rates, with a 2.1% year-on-year growth, while rates for smaller units remained stable, Savills says. This sector remains integral to Bahrain’s economic diversification strategy, with further infrastructure investments expected to support demand.

  ---

  Kuwait 

  Kuwait’s residential prices have softened over the past year. Overall residential sales in the first quarter of 2025 declined by 24% quarter-on-quarter, marking the weakest growth since Q2 2024, but only dipped by 2% year-on-year despite an 11.7% rise in transactions, potentially indicating a shift towards smaller or lower-value units in outer areas, according to National Bank of Kuwait (NBK). 

  The residential price index remained negative, falling by 1.7% year-on-year in its eighth consecutive quarterly decline, although at a slower pace, suggesting abatement of downward pressure, NBK says.

  The slowdown in residential sales in Q1 2025 indicates potential market sensitivity to seasonal factors and a normalisation from strong previous levels. 

  The fiscal deficit for 2025 is expected to be -4.2% of GDP, up from -3.1% in 2024 on the back of declining oil revenue due to lower prices. 

  Fiscal pressures could impact government spending on projects if oil prices remain low or decline even further.

  ---

  Oman

  Oman’s real estate sector is experiencing steady growth, supported by the country’s broader economic expansion. 

  The residential market has registered a 3.6% increase in supply, adding about 38,400 new units in 2024. 

  Despite the increase, occupancy rates remained stable at 85.2%, with villas and houses experiencing higher demand. The growth in residential supply is essential to meet the projected housing demand gap by 2035, which underscores the need for proactive planning to avoid potential shortfalls.

  Oman’s tourism sector has also contributed positively to the real estate market, with guest arrivals at three- to five-star hotels up 3.6%, leading to a 6.1% rise in revenue. Hotel occupancy rates improved to 53.5%, indicating a gradual recovery in demand.

  Looking ahead, Oman’s real estate sector is expected to benefit from government initiatives under Vision 2040, which aims to attract investment and foster economic diversification. Anticipated population and workforce growth will drive demand for housing and commercial properties. 

  Challenges such as market dynamics and potential delays in project completions will require careful management. Overall, the outlook for Oman’s real estate sector remains stable, with opportunities for strong growth in both residential and tourism-
  related developments.

  ---

  Qatar

  Qatar’s real estate market has continued to adapt to evolving demand patterns and macroeconomic conditions, according to real estate consultancy Knight Frank. While some sectors showed resilience, overall trends point to a period of moderation across the residential, commercial and retail segments.

  In the residential sales market, average villa and apartment prices declined by 5% year-on-year. Despite the fall, demand for homes in locations such as Pearl Island and West Bay Lagoon remains stable. Abu Hamour recorded the highest average villa sale price at QR8,587 ($2,359) a square metre (sq m), while the Waterfront led the apartment segment at QR14,300/sq m. 

  Mortgage activity rose sharply, with a 168% year-on-year increase in Q4 2024, partly attributed to declining interest rates.

  Rental rates in the villa segment dropped by 2.6% in 2024, averaging QR15,875 a month, although premium areas such as West Bay Lagoon continued to command higher rents. The apartment rental market remained relatively stable, with luxury developments such as Pearl Island seeing sustained demand and rents for three-bed properties averaging QR15,721 a month.

  In the office market, Grade A rents dipped by 2.3%, settling at QR90/sq m. Prime areas like West Bay and Marina District remain in demand, although vacancy rates in secondary locations are contributing to downward rental pressure.

  Retail rents declined by 1.5% amid increasing supply and shifting consumer behaviour. Lifestyle and experiential retail developments outperformed, while secondary malls faced growing competition. 

  E-commerce also continued to gain ground, with online sales surging 32% year-on-year in December 2024.

  The outlook for Qatar’s real estate market will depend on the pace of economic diversification … and broader regional stability

  Qatar’s hospitality sector saw marked improvements, supported by a 25% rise in tourist arrivals in 2024. Key performance indicators, including occupancy rates and revenue per available room, recorded double-digit growth, reflecting the country’s appeal as a leisure and business destination.

  The outlook for Qatar’s real estate market will depend on the pace of economic diversification, infrastructure investment and broader regional stability. While high-end residential and hospitality sectors appear well positioned, other segments may find the outlook more challenging.

  ---

  Saudi Arabia

  Saudi Arabia’s real estate market has displayed a mixed performance across all sectors, with momentum in residential and tourism-led hospitality markets counterbalanced by slower activity in the office and retail segments, according to real estate agency CBRE’s latest market review.

  In Riyadh, residential sales remained resilient, underpinned by population growth, ongoing reforms and increased demand from Saudi nationals and expatriates. Despite high mortgage rates, key developments such as Diriyah and King Salman Park continue to attract investor attention. 

  Demand in Jeddah is more subdued, with price growth stabilising after recent surges. Supply constraints and the government’s focus on increasing home ownership to 70% by 2030 remain influential drivers.

  The hospitality sector showed significant growth, particularly in the religious and leisure tourism segments. Strong visitor numbers to Mecca and Madina supported high hotel occupancy rates, while developments in Al-Ula and the Red Sea contributed to the expansion of the kingdom’s tourism offering. 

  Saudi Arabia recorded a surge in international tourist arrivals, reflecting its broader push to diversify the economy through the Vision 2030 strategy. Major global hotel brands continued to announce new projects, signalling long-term confidence in the sector’s prospects.

  The office market remained relatively stable, although demand patterns are evolving. In Riyadh, Grade A office spaces remained in demand amid limited supply, while older or lower-grade buildings experienced elevated vacancy levels. 

  In Jeddah and Dammam, activity was more modest, with tenants preferring flexible leasing arrangements. CBRE notes that public sector activity and government-backed gigaprojects continue to play a significant role in driving office demand.

  Retail sector performance varied, with experiential and lifestyle-focused retail formats gaining traction, while traditional malls faced ongoing pressure from e-commerce growth and shifting consumer behaviours. Developments in Riyadh and Jeddah reflect a broader industry shift towards mixed-use destinations with entertainment and leisure at the core.

  Looking ahead, Saudi Arabia’s real estate outlook remains cautiously optimistic. Continued progress on gigaprojects such as Neom, Qiddiya and the Red Sea developments are expected to support long-term demand across several asset classes. 

  However, affordability challenges, financing constraints and evolving global economic conditions could temper short-term momentum.

  ---

   UAE

  After four strong years, Dubai’s residential market has shown signs of plateauing in 2025. 

  The market recorded more than 42,000 sales transactions in the first quarter of this year, reflecting a 10% quarterly decline due to fewer new project launches and seasonal factors, according to property consultant Cavendish Maxwell. 

  At the same time, year-on-year performance remained strong, with transaction volumes rising by 23.1% and total sales value reaching AED114.4bn ($31bn), a 29.6% increase. 

  Residential rents increased by 1% quarter-on-quarter and 14.4% year-on-year in Q1 2025, marking the slowest quarterly rise in two years. Gross rental yields averaged 7.3% for apartments and 5% for villas and townhouses in March 2025.

  In May, Fitch Ratings forecast a residential price correction in Dubai, starting in H2 2025 into 2026, driven by a record increase in new supply. This is a direct cause-and-effect relationship, where past sales, leading to new projects, are now translating into future supply, which will likely dampen price growth.

  Fitch Ratings forecasts a residential price correction in Dubai starting in H2 2025 into 2026, driven by a record increase in new supply

  Residential prices surged approximately 60% between 2022 and Q1 2025. Simultaneously, a record number of new property projects were initiated in 2023-24, with a peak delivery of 120,000 units expected
  in 2026. 

  Fitch says that this average 16% increase in supply in 2025-27 will exceed the forecast population growth of about 5%. This imbalance is the direct cause of the predicted 15% fall in residential property prices.

  Rental yields are already showing pressure. While a correction is anticipated, Fitch also notes that UAE banks and developers are well-equipped to handle the downturn due to improved leverage and capital buffers. This suggests that the market is maturing, and stakeholders have learnt from previous cycles, potentially leading to a moderate correction rather than a significant crash.

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  Colin Foreman