meed-logo

line1 line2 line3
SIGN IN / REGISTER

Local firms rise in GCC Power Developer Ranking

24 September 2024

 

Two Saudi Arabia-headquartered firms have joined Acwa Power in the top 10 of MEED’s 2024 GCC Power Developer Ranking.

Aljomaih Energy & Water Company and Ajlan & Bros have entered the list, occupying the sixth and ninth spots, respectively.

The latest developer ranking included a survey of 109 privately owned and financed power generation plants in the six GCC states, including those with attached water desalination facilities. These plants have a collective gross electricity generation capacity of approximately 112,400MW.

These projects include seven solar, two wind and two gas-fired plants, as well as one industrial steam and cogeneration facility, with a total combined gross capacity of 19,635MW, for which contracts were awarded between September 2023 and August 2024.

Of the total capacity awarded during the 12-month period, solar photovoltaic (PV) and wind capacity accounted for 58%, or 11,400MW. Three solar PV contracts with a total capacity of 5,500MW, directly negotiated between Saudi Arabia’s Public Investment Fund (PIF) and a team led by Riyadh-headquartered Acwa Power, comprised nearly half of the awarded renewable IPP capacity.

These three contracts, along with a fourth for the development and operation of the 3,800MW Taiba 1 and Qassim 1 combined-cycle gas turbine (CCGT) IPP, helped boost Acwa Power’s dominance over its competitors.

Acwa Power's 35.1% stake in the 2,000MW Haden, the 2,000MW Muwayh and 1,500MW Al-Khushaybi solar PV projects, and its 40% share in Taiba 1 and Qassim 1, increased the company's total net capacity by 3,200MW, up 23% from last year’s 13,340MW. This figure takes into account the dilution of its shares in Rabigh Arabian Water & Electricity Company. As a result of the contracts it won, Acwa Power’s gross capacity also rose by 8,800MW to reach a total of 45,150MW.

Acwa Power has occupied the top spot in MEED’s GCC Power Developer Ranking in terms of net capacity since 2021, but it overtook its main rival, French utility developer and investor Engie, in terms of gross capacity only the following year.

Excluding the capacity of the directly negotiated solar IPP contracts that Acwa Power secured with the PIF in the past
three years does not change the company’s dominant position in the ranking, although it decreases its net and gross capacities by 25% and 24%, respectively.

Contenders

With no new contracts won, Engie still managed to retain second place in the ranking, with a net capacity of close to 8,000MW.

The successful bids of a team comprising Japan’s Marubeni Corporation and Ajlan & Bros for the contracts to develop and operate the 600MW Al-Ghat and 500MW Waad Al-Shamal wind schemes in Saudi Arabia increased Marubeni’s net capacity to 4,257MW, up 555MW compared to the previous year.

As with Engie, Japan’s Mitsui did not win any new contracts but retained its fourth place in the ranking, just above EDF, which climbed two positions to claim this year’s fifth spot and registered a net capacity that nearly doubled to reach 2,047MW.

EDF’s impressive performance accrued from its equities in three contracts: the 1,100MW Hinakiyah solar PV and the 3,960MW Taiba 2 and Qassim 2 CCGT projects in Saudi Arabia, and Abu Dhabi’s 1,500MW Al-Ajban solar PV scheme.

EDF knocked Japanese developer Sumitomo down the ranking; it landed in the seventh spot this year. Saudi Arabia’s Aljomaih Energy & Water Company – which was not part of the top 10 last year – rose past Sumitomo to claim sixth position.

Aljomaih’s 30% shareholding in the Taiba 2 and Qassim 2 IPP increased its net capacity by close to 1,200MW from just 775MW in the previous 12-month period.

Previously ranked sixth, Japan’s Jera fell to eighth place, despite having won the contract to develop the Najim cogeneration plant catering to Saudi Arabia’s Amiral petrochemicals complex, which it secured along with Abu Dhabi National Energy Company (Taqa).

Below Jera in the ranking is Ajlan & Bros, which is Marubeni’s partner for the contract to develop the Al-Ghat and Waad Al-Shamal wind IPPs. Ajlan is also understood to have taken a 30% stake in the consortium that won the contract to develop the Taiba 2 and Qassim 2 CCGT project.

China’s Jinko Power rounded out the top 10. It led the team that won the contract to develop the 400MW Tubarjal solar IPP in Saudi Arabia in November last year.

Local developers

The rise of Aljomaih and Ajlan & Bros, which led to South Korea’s Korea Electric Power Corporation (Kepco) and Singapore’s Sembcorp dropping out of the power developer ranking’s top 10 this year, confirms the improving profile of regional utility developers.

The resurgence of gas-fired power generation IPPs – in part due to Saudi Arabia’s liquid fuel displacement programme and the overall demand for baseload to address rising renewable energy capacity – is helping local developers to strengthen their footing.

“The reduced interest from European and Japanese contractors in bidding for gas-fired power generation projects could present an opportunity for local developers and investors,” says a senior executive with an international developer.

“As these firms are less constrained by their 2040-50 net-zero targets, they might focus on efficiency and quick deployment rather than on adhering to decarbonisation timelines, allowing for more flexibility in CCGT projects.”

The fact that only two teams submitted bids for the contracts to develop the next pair of CCGT IPPs in Saudi Arabia supports this observation. Similarly, Qatar’s General Electricity & Water Corporation (Kahramaa) received only one bid from a team led by Sumitomo for the contract to develop the Facility E independent water and power producer (IWPP) project earlier this year.

Conscious of its own net-zero targets, and those of its partners, Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) is adopting a slightly different approach for its next CCGT project in Taweelah by announcing that a carbon-capture facility will be installed as part of the project once such solutions become commercially viable.

In addition, the power-purchase agreement (PPA) for Taweelah C is expected to expire by 2049, making it several years shorter than previous PPAs and in line with the UAE's plan to reach net-zero carbon emissions by 2050.

So far, the market has responded positively, with nine companies having met Ewec’s prequalification requirements for Taweelah C.

However, the scale and volume of gas and renewable energy projects planned by Saudi Arabia, which has said it could procure up to 20GW of renewable energy capacity annually starting this year, is expected to continue to boost the net capacity of local developers and their less net-zero-constrained counterparts for the foreseeable future.

There is also an expectation that the exclusion of Acwa Power from the latest round of tenders for Saudi Arabia’s National Renewable Energy Programme (NREP) could further open up opportunities for other companies, regardless of their origin and net-zero targets.   

Tariffs

There are mixed expectations in terms of how levelised electricity costs (LCOE) will behave over the next 12 months. Compared to the preceding decade, when unsubsidised renewable energy production costs consistently and sharply declined, tariffs have become less predictable since 2022.

In the region, solar PV tariffs in particular have trended upward since Acwa Power offered to develop the Shuaibah 1 solar IPP scheme for $cents 1.04 a kilowatt-hour (kWh) in 2020-21.

These tariffs have remained highly competitive relative to those seen in other, less renewable energy-intense regions, however, disincentivising some developers that felt they could not compete on price.

The next six to 12 months could prove decisive, according to one industry expert.

“It is possible that the surge in renewable projects could limit the availability of competent engineering, procurement and construction (EPC) contractors. The combination of aggressive national targets and competition for EPC services may drive up prices and slow project timelines,” the Dubai-based executive tells MEED.

“With raw materials and commodity prices trending downward, it's feasible that renewable energy tariffs could remain low in the short term. However, sustained record-low tariffs will also depend on the availability of financing, local regulations and grid integration costs.”

The LCOE trend for gas-fired power generation schemes seems more predictable.

According to the executive, the limited capacity of original equipment manufacturers, particularly for turbines and other key components of CCGT plants, will likely push tariffs up over the next 12 months.

“Limited availability of high-efficiency equipment will increase procurement costs and construction timelines, influencing the overall project cost.”

This extends to CCGTs incorporating carbon capture, where the LCOE will likely increase due to additional capital and operational expenses. “Whether these costs are absorbed through renegotiation or passed on to the state offtaker will depend on the power-purchase agreement structure,” he says.

Brisk pace of IPP awards set to continue

https://image.digitalinsightresearch.in/uploads/NewsArticle/12556220/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Read the April 2026 MEED Business Review

    2 April 2026

    Download / Subscribe / 14-day trial access

    When the first missiles and drones were fired at the GCC on 28 February, the region’s economic story pivoted abruptly, from long-term vision-building to near-term resilience.

    The conflict is now the Gulf’s most consequential economic stress test in a generation. It is challenging the safe haven premium that underpins capital inflows, while disrupting the physical networks that keep the region’s economies running, from energy exports and shipping lanes to airports and tourism.

    MEED editor Colin Foreman asks whether the GCC can sustain investor confidence as energy assets, trade routes, airports and banks absorb the shock. Read more here.

    April’s market focus is on Saudi Arabia, where the Iran war is compounding the logic behind the kingdom’s strategic pivot in its investment plans.

    This edition also includes MEED’s 2026 GCC contractor ranking, in which Chinese firms have surged to the top as Saudi spending cuts and geopolitical risks weigh on GCC construction activity.

    In the latest issue, we explore the region’s evolving arbitration landscape; present exclusive leadership insight from Jacobs on the future of passenger rail in the Middle East; and talk to Leyla Abdimomunova, head of real estate and construction at the Public Investment Fund’s National Development Division, about remaking Saudi construction.

    We hope our valued subscribers enjoy the April 2026 issue of MEED Business Review. 

     

    Must-read sections in the April 2026 issue of MEED Business Review include:

    > AGENDA: Gulf economies under fire

    INDUSTRY REPORT:
    GCC contractor ranking
    > Construction guard undergoes a shift

    > LEGAL: Redefining the region’s arbitration landscape

    > QATAR LNG: Qatar’s new $8bn investment heats up global LNG race  

    > INTERVIEW: Leyla Abdimomunova, National Development Division, PIF

    > LEADERSHIP: Shaping the future of passenger rail in the Middle East 

    > SAUDI MARKET FOCUS: 
    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    > MEED COMMENTS: 
    >     Iran war erodes LNG’s image of reliability
    > Dubai's real estate faces a hard test
    > Energy resilience matters as much as capacity
    > Drawn-out conflict may shift planning priorities

    > GULF PROJECTS INDEX: Gulf index rises amid tensions

    > FEBRUARY 2025 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The end of the republic and the end of times

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16222272/main.gif
    MEED Editorial
  • Iranian missiles hit Qatari and Kuwaiti fuel tankers

    1 April 2026

    Iranian missiles have struck fuel tankers in Gulf waters belonging to Qatar and Kuwait, as Tehran continues to target energy, industrial and logistical assets in GCC countries.

    A fuel oil tanker chartered by QatarEnergy, named Aqua 1, was struck by missiles in Qatar’s northern territorial waters in the early hours of 1 April, the company said in a statement.

    “None of the crew members on board were injured, and there is no impact on the environment as a result of this incident,” QatarEnergy said.

    Earlier, on 31 March,  said one of its very large crude carriers, Al-Salmi, caught fire after being hit by an Iranian missile while anchored in UAE waters just outside Dubai.

    The vessel’s crew, with support from UAE authorities, extinguished the fire by 04:26 Kuwait time on 31 March, KPC said. It added that all 24 crew members were safe and that no oil spill or environmental damage occurred.

    “KPC is continuing to assess the damage in coordination with relevant authorities,” the Kuwaiti state energy conglomerate said.

    ALSO READ: Iran strikes Gulf aluminium assets after hits on its steel sector
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16217670/main4010.jpg
    Indrajit Sen
  • One killed and one injured in drone attacks on the UAE

    1 April 2026

    Debris falling from Iranian drones intercepted by the UAE’s air defence systems has killed one person in the emirate of Fujairah and injured another in Umm Al-Quwain in two separate incidents on 1 April.

    A successful interception of a drone by UAE air defence forces resulted in debris falling on a farm in Fujairah, leading to the death of a Bangladeshi national.

    The latest fatality brings the total death toll in the UAE since the start of the US-Israel-Iran war to 12. Most of the deaths have been caused by falling debris following interceptions. Among the deceased are two members of the UAE armed forces who died while performing their duties, as well as a Moroccan civilian contracted by the armed forces.

    The remaining victims were of Bangladeshi, Indian, Nepali, Pakistani and Palestinian nationalities.

    Hours after the Fujairah incident, authorities in Umm Al-Quwain confirmed that an Indian national was injured when debris from an intercepted drone fell in the emirate.

    In a statement posted on its official social media channels, the Umm Al-Quwain government media office said the incident occurred near an industrial facility in the Umm Al-Thuoob area, after air defence systems successfully intercepted an unmanned aerial vehicle (UAV).

    Meanwhile, the latest data from the UAE Ministry of Defence, released on 31 March, showed that air defence systems had engaged 36 UAVs, four cruise missiles and eight ballistic missiles in the previous 24 hours. Cumulatively, authorities said 1,977 drones, 19 cruise missiles and 433 ballistic missiles have been intercepted since the onset of the war on 28 February.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16218126/main.jpg
    Indrajit Sen
  • Contractors submit Al-Maktoum airport superstructure bids

    1 April 2026

     

    Dubai Aviation Engineering Projects (DAEP) received proposals on 31 March from contractors for three packages covering superstructure works for the first phase of the expansion of Al-Maktoum International airport.

    MEED understands that the selected contractor will undertake superstructure works on three packages:

    • West Terminal and concourse one
    • Concourse two
    • Concourse three

    Construction on these packages began in November last year, when DAEP formally selected a contractor to deliver the substructure works.

    According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000-square-metre facility with an annual capacity of 45 million passengers.

    It will be the second of three terminals at Al-Maktoum International airport, linked to the airside by a 14-station automated people-mover (APM) system.

    In August last year, MEED exclusively reported that DAEP had received bids from firms to build the APM at the airport. 

    The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Construction progress

    Construction on the first phase has already begun. In May last year, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based Tristar E&C.

    Construction on the project’s first phase is expected to be completed by 2032.

    The government approved the updated designs and timelines for its largest construction project in April 2024.

    In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    The statement added that the project will create housing demand for 1 million people around the airport.

    In September 2024, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultants on the expansion of Al-Maktoum airport.

    Project history

    The expansion of Al-Maktoum International, also known as Dubai World Central (DWC), is a long-standing project. It was officially launched in 2014, with a different design from the one approved in April 2024. At that time, it involved building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

    An initial phase, due to be completed in 2030, involved increasing the airport’s capacity to 130 million passengers a year. The development was to cover an area of 56 sq km.

    Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16215664/main.jpg
    Yasir Iqbal
  • Drone strikes Kuwait International airport

    1 April 2026

    Register for MEED’s 14-day trial access 

    Kuwait International airport was hit by further drone attacks on Wednesday, with strikes on fuel tanks sparking a major fire.

    Kuwait’s state news agency Kuna said the attack caused significant damage to fuel tanks belonging to Kuwait Aviation Fuelling Company. No casualties were reported.

    This was the second reported incident at the airport in recent days. Local media reported that the airport was attacked on 28 March by multiple drones, causing significant damage to its radar system.

    The airport is currently undergoing expansion works that are expected to be completed by 2027, as MEED reported previously.

    Project execution of the second terminal began in 2017, with the completion date pushed back from the original 2022 target.

    The second terminal project consists of three packages.

    These are:

    • Package 1: Main works – $4,329m
    • Package 2: Multistorey car park building, connection roads, bridges and landscaping works – $550m
    • Package 3: Aircraft parking, runways and service buildings – $950m

    Turkiye’s Limak Holding is executing the main works.

    The terminal building was designed by Foster+Partners and Gulf Consult.

    Spanish firm Ineco is providing the project management services for the new terminal building and the airfield.

    The scope of the main package includes the new terminal building, a building for cooling and electricity supply facilities, and a building for the water supply and the future Automatic People Mover (APM) connection to the satellite building.

    The terminal building will be three times the size of the original building and will have 36 boarding gates.

    The building will cover more than 700,000 square metres and have five floors, one of which will be underground.

    It will have the capacity, at maximum service level, for 25 million passengers a year once the first phase has been completed and up to 50 million passengers after further phases are completed.

    The second package of works includes a new car park with approximately 5,000 parking spaces, connected to the new passenger terminal.

    It also includes all new access roads to the airport and landscaping.

    The scope of the third package comprises the main platform, new taxiways and several tunnels, including one under the platform between the terminal building and the future cargo area of the airport.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16216797/main.png
    Yasir Iqbal