Related Articles

• 
  Three prepare to bid for UAE wastewater PPP contract

  15 April 2025

  

   

  Three teams are preparing to bid for a contract to develop and operate a wastewater treatment plant project in the UAE's northern emirate of Ras Al-Khaimah.

  The Rakwa Wastewater Infrastructure Project entails the development of a wastewater treatment plant with a capacity of 60,000 cubic metres a day (cm/d), which could be expanded to 150,000 cm/d.

  Ras Al-Khaimah's Public Services Department (PSD) and Investment & Development Office (IDO) previously expected to receive bids for the contract by 15 April, but this deadline has since been extended to 6 May, sources told MEED.

  MEED understands that three consortiums are planning to bid for the contract. They include:

  • Besix (Belgium) / Orascom (Egypt)
  • Metito / Sogex (Oman)
  • Abu Dhabi National Energy Company (Taqa, local) / Saur (France) / Etihad Water & Electricity (local)   

  The scope of the build, own, operate and transfer scheme will include extensive sewerage and distribution works in addition to the main treatment plant.

  The project clients prequalified 13 companies and consortiums that can bid for the contract, MEED reported in September.

  In addition to the consortium members cited above, the other firms that were prequalified for the contract were:

  • Acciona (Spain)
  • China Harbour Engineering Company (China) / BOWT
  • Cobra (Tedagua, Spain)
  • GS Inima (Spain/South Korea) / Alkhorayef Water & Power Technologies (Saudi Arabia)
  • FCC Aqualia (Spain)
  • MA Kharafi (Kuwait) / Passavant Energy & Environment (UAE, Germany)
  • Miahona Company (Saudi Arabia)
  • Veolia Middle East (France/local)

  Two companies that previously provided utility services in the UAE, Abu Dhabi Sustainable Water Solutions, which has since rebranded as Taqa Water Solutions, and Sharjah-based Etihad Water & Electricity, have been prequalified to bid for the contract to develop the project.

  This is the first STP public-private partnership (PPP) that is being developed by the Ras Al-Khaimah authorities.

  For its part, Etihad Water & Electricity plans to procure another utility PPP project for the northern emirate.

  The project involves expanding the capacity of an existing seawater reverse osmosis plant in Ghalilah, which became operational in 2015. 

  If successfully procured, it will be the first independent water project in Ras Al-Khaimah.

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  Jennifer Aguinaldo
• 
  Retired General Petraeus to chair KKR Middle East

  15 April 2025

  US-headquartered investment firm KKR has appointed retired US Army general David Petraeus as chairman of the firm's Middle East operations as part of its regional expansion plans.

  Petraeus, who is also a former Central Intelligence Agency director and US Central Commander, is a KKR partner.

  Julian Barratt-Due, a managing director at the firm, will lead KKR's dedicated investment team in the region.

  The firm said these appointments build on KKR’s "ongoing strategic commitment to the region, including having local offices since 2009 and deploying capital directly since 2019".

  KKR recently agreed to invest in the UAE-based Gulf Data Hub, an independent data centre platform, which operates seven data centres in the UAE and Saudi Arabia, and has plans to build additional data centre facilities in the rest of the GCC states, including Kuwait, Qatar, Bahrain and Oman.

  "Building on 16 years in the region, KKR has also strengthened and grown its global client solutions team based across KKR’s offices in the UAE and Saudi Arabia, with directors Patricia Bandeira Vieira and Michael de Freitas moving to the region last year to focus on strategic partnerships and client engagement across the Middle East," the firm said.

  In addition to the strategic partnership with Gulf Data Hub, KKR’s prior investments in the region include a strategic partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, which marked the first midstream infrastructure collaboration between a global institutional investor and a national oil company in the Middle East.

  KKR also acquired a portfolio of commercial aircraft from Etihad Airways in 2020 through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.

  In January, Gulf Data Hub and KKR announced that funds affiliated with KKR will acquire a stake in the data centre operator.

  In a statement, KKR said the two firms "have committed to support over $5bn of total investment to grow GDH's market-leading position and to support its international growth plans through organic and inorganic strategies".

  The investment will require customary approvals and is being made through KKR's global infrastructure strategy.

  GDH said at the time that it aims to deliver the infrastructure required to meet hyperscale demand across the region to support increasing data consumption driven by the growing trends in digital connectivity, cloud and artificial intelligence (AI).

  Data centre construction boom

  The UAE, Saudi Arabia and Qatar, have a booming data centre market, thanks to their governments’ drive to set up regional AI hubs, increase digital adoption and improve efficiencies in line with their economic diversification agendas. 

  The Middle East data centre construction market is projected to reach $4.39bn by 2029, growing at a compound annual growth rate of 10.99%. 

  According to GlobalData, total investment in data centres globally reached $70.6bn in 2024 and is projected to grow by 5% to $74.3bn in 2025.

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  Jennifer Aguinaldo
• 
  UAE-Qatar causeway could face a geopolitical challenge

  15 April 2025

  Commentary
  Edward James 
  Head of content and analysis

  Register for MEED’s 14-day trial access 

  The news that early construction bids have been submitted for a new road causeway and ferry linking the UAE and Qatar could have a geopolitical impact in addition to potentially transforming transportation networks in the region. 

  The multibillion-dollar West Link project, tendered by the UAE’s Etihad Rail, will link the two states directly, enabling for the first time freight and car traffic to bypass the land connection in Saudi Arabia dividing them. 

  However, it could well provoke a diplomatic response from Riyadh if recent history is a guide.

  In 2006, Saudi Arabia protested and ultimately blocked the planned Dolphin Energy gas pipeline between Qatar and the UAE from passing what it claimed at the time was its territorial waters. In the end, the pipeline alignment had to be rerouted to avoid any potential encroachment. 

  Riyadh’s intervention made global headlines and came at a time of some tension between the kingdom and the UAE. The latter has never ratified the 1974 Treaty of Jeddah that formally disconnected the UAE’s land connection with Qatar. While there is general consensus on the land borders between Abu Dhabi and Riyadh, the offshore maritime border has never been delimited. 

  The Treaty of Jeddah stipulates that the two parties have joint sovereignty in the general maritime area between the two nations until formal demarcation could be agreed. It also gave the kingdom the right to construct ‘general installations’ on Al-Qaffay and Makasib islands, which lie within UAE territory, although it is not believed to have ever done so.

  More recently, last year Riyadh deposited a note verbale at the UN affirming its rejection of a 2019 UAE Amiri Decree that expanded the Yasat marine reserve to encompass Al-Qaffay Island, stating that the kingdom “does not recognise any actions or practices taken by the Government of the United Arab Emirates in the maritime area off the coast of Saudi Arabia, including the territorial sea of the Kingdom of Saudi Arabia, the joint sovereign area between the two countries and the islands of Makaseb and Qafai”.

  The new road causeway and ferry project will start on the UAE-Saudi border at Ras Ghumais and then run 40km in a northeast direction to Makasib, presumably also passing through Al-Qaffay. From there a ferry will take road traffic onto Qatar. 

  It is unclear what Riyadh’s position will be on the new connection, but given its diplomatic protest over the Yasat marine reserve, it is likely to want to have some say on its development. At the same time, it remains to be seen what impact the project will have on prospects for the long-planned GCC railway link between Saudi Arabia and the UAE, which has not seen much signs of progress despite the UAE side having completed its line to the Saudi border two years ago.

  Regardless, the project will be seen as another step in the closer integration of transport links in the GCC, offering an increasing number of options for traffic to flow between the economic bloc.

  ---

  READ THE APRIL 2025 MEED BUSINESS REVIEW – clck here to view PDF

  Regional construction heads underground; Riyadh reaps both diplomatic and economic success; Luxury GCC hospitality projects drive tourism

  Distributed to senior decision-makers in the region and around the world, the April 2025 edition of MEED Business Review includes:

  > AGENDA 1: Traffic drives construction underground > AGENDA 2: Muted public spending hinders global tunnelling > IRAQ: Chinese contractors to benefit from BP’s investment in Iraq > TOURISM 1: Beaches and luxury drive regional tourism > TOURISM 2: Region’s hotel projects pipeline balloons > EDMOND DE ROTHSCHILD: Investing in Saudi Arabia’s infrastructure opportunities > BAPCO: Securing Bahrain’s hydrocarbons potential > DATA CENTRES: GCC’s top five data centre projects > POWER: GCC battery storage pipeline hits over 55GWh > SAUDI PPPs: Rise in PPPs reflects Saudi budgetary pragmatism > SAUDI ARABIA REPORT: Riyadh enjoys buoyant fortunes > GULF PROJECTS INDEX: Gulf index sees minor correction > CONTRACT AWARDS: Project awards slump notably in February > ECONOMIC DATA: Data drives regional projects > OPINION:  Is this the end for Middle East studies?

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

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  Edward James
• 
  Chinese firm wins $263m Saudi Lenovo plant contract

  15 April 2025

  

   

  Chinese firm China National Materials International Engineering (Sinoma) has won an estimated $263m contract to build a manufacturing facility in Riyadh for Chinese computer maker Lenovo.

  The manufacturing facility will be constructed on a 200,000 square-metre site at the Special Integrated Logistics Zone at King Khalid International airport in Riyadh.

  The plan is for the construction works to be undertaken in two phases, both of which are expected to be operational by 2026.

  The project’s first phase involves the construction of the first plant building, main office building, warehouses, other buildings and associated infrastructure.

  The second phase covers the construction of the second plant building and other associated buildings.

  MEED understands that the proposals for the project, known as the Oasis Project, were submitted on 10 February.

  The tender notice was issued on 3 January.

  According to local media reports, Alat, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), and Lenovo broke ground on the manufacturing facility on 9 February.

  Lenovo secured a $2bn investment deal with Alat to manufacture computer devices in the kingdom in January.

  In May 2024, Lenovo signed a collaboration agreement with Alat to set up a manufacturing facility in Saudi Arabia.

  The funding will also support Lenovo in establishing a regional headquarters for the Middle East and Africa market in Riyadh. The headquarters will include customer centres, research and development centres, and manufacturing facilities for personal computers and servers.

  In February last year, the PIF unveiled its $100bn capital-backed company Alat, which aims to transform Saudi Arabia into a global hub for electronics and advanced industries. 

  The company aims to create 39,000 direct jobs and achieve a direct non-oil GDP contribution of $9.3bn in Saudi Arabia by 2030.

  It was reported that Alat would have seven business units focusing on areas such as semiconductors, artificial intelligence, next-generation infrastructure, and smart appliances and smart buildings.

  According to the PIF, Alat will manufacture more than 30 product categories, including robotic systems, communications systems, advanced computers and digital entertainment products, as well as advanced heavy machinery used in construction, building and mining.

  Alat is expected to focus on providing sustainable manufacturing solutions for international companies by accessing clean energy resources in Saudi Arabia to reach carbon-neutral goals by 2060, while the PIF’s own goal is to be carbon-neutral by 2050.

  According to GlobalData, China is the largest producer of laptops, manufacturing a significant portion of the world’s supply. In recent years, it has faced challenges due to supply chain disruptions, including the impact of the Covid-19 pandemic and geopolitical tensions, particularly affecting markets like Ukraine and Russia.

  Following China, the US also plays a crucial role in laptop production, with major companies like Dell and HP operating extensively within the country. South Korea, Japan and Taiwan are also notable players in the laptop manufacturing sector.

  South Korea is reported to produce about 20% of the global supply of semiconductors, which are essential for laptop production, while Taiwan is recognised for its advanced semiconductor manufacturing capabilities. Additionally, India is working to enhance its domestic laptop production, although it currently imports over 80% of the laptops in use.

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  Yasir Iqbal
• 
  Kuwait firm bids low for Dubai substation works

  15 April 2025

  Kuwait-headquartered Imco Engineering & Construction (Imco) has submitted the lowest bid for a contract to build a new power transmission and distribution network project in Dubai.

  The firm submitted a bid of AED126.6m ($34.5m) for the contract to design, supply, install, test and commission a 132-kilovolt (kV) overhead line and cable works between the 400/132kV substation in Shams and the 132/33kV substation in Margham.

  The company's offer for the contract is 56% lower than the second-lowest bid, submitted by India's Kalpataru Projects at AED198.5m.

  India-based Dineshchandra Agarwal Infracon offered a base price of AED253.16m for the contract, plus two other options, priced at AED259.7m and AED286.9m, respectively.

  The local contracting firm, Centaur Electromechanical Contracting Company, offered to build the project for AED253.6m.

  State utility, Dubai Electricity & Water Authority (Dewa), tendered the contract in October last year, and received bids in February.

  In July last year, Dewa said it plans to tender 50 132-kilovolt (kV) substations over the next three years.

  Dubai has been ramping up renewable energy installed capacity in line with the energy diversification agendas of the emirate and the UAE.

  Increasing renewable energy's share of the electricity production mix will require a more robust power transmission network.

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  Jennifer Aguinaldo