Related Articles

• 
  Saudi Arabia’s growth trend heads up

  1 April 2025

  Download the PDF

  

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  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development

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  MEED Editorial
• 
  March 2025: Data drives regional projects

  31 March 2025

  Click here to download the PDF

  Includes: Commodity tracker | Construction risk | Brent Spot Price | Construction output

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

  Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

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

  > AGENDA 1: Chinese firms dominate region’s projects market > AGENDA 2: China construction at pivotal juncture > LIBYA: Uncertainty and instability damage Libyan oil sector optimism > UPSTREAM 1: Offshore oil and gas sees steady capex > UPSTREAM 2: Saudi Arabia to retain upstream dominance > BAPCO: Bahrain to benefit from $7bn project by year’s end > MASDAR: Masdar meets renewable’s moonshot challenge > DIRIYAH: Diriyah CEO sets the record straight > SAUDI POWER: Saudi power projects hit record high > AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector > EGYPT: Egypt battles structural issues > GULF PROJECTS INDEX: Gulf hits six-month growth streak > CONTRACT AWARDS: High-value deals signed in power and industrial sectors > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s foreign policy shakes global relations

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

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  MEED Editorial
• 
  Two bid for Madinat Zayed IPP contract

  28 March 2025

  

   

  Abu Dhabi-based utility and offtaker Emirates Water & Electricity Company (Ewec) has received bids for a contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in the emirate.

  According to industry sources, two teams led separately by France’s Engie and Saudi Arabia’s Aljomaih Energy & Water submitted bids for the Madinat Zayed OCGT independent power producer (IPP) project on 28 March.

  Aljomaih is understood to have partnered with the local Etihad Water & Electricity (Etihad WE) for its bid.

  The Madinat Zayed IPP is expected to begin commercial operations in Q3 2027. It will provide up to 1,500MW of backup generation, which can be operational “at very short notice”. 

  “Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system,” Ewec said when it issued the tender for the project in July last year.

  “[This type of plant] will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources.”

  Capacity buildout

  Abu Dhabi’s current electricity generation installed capacity sits at about 22GW, with gas-fired plants accounting for 68.7% of the total, and renewable and nuclear power contributing 12% and 19%, respectively.

  Construction work is under way for a 1,500MW solar photovoltaic (PV) power plant and a 2,457MW combined-cycle gas turbine (CCGT) plant.

  Two solar IPPs with a combined capacity of 3,000MW are under bid evaluation or main contract bid, while the tendering proceedings are under way for the Taweelah C CCGT IPP, in addition to the Madinat Zayed OCGT.

  The procurement processes are also under way for the 140MW Al-Sila wind IPP, the emirate’s first independent battery energy storage system plant, and another major CCGT, the 3.3GW Al-Nouf 1 project.

  In January, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for a 5,200MW solar PV plant with a 19 gigawatt-hour battery energy storage system, which is expected to provide round-the-clock solar power.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13579141/main.gif

  Jennifer Aguinaldo
• 
  Miahona wins $267m Modon wastewater plant deal

  28 March 2025

  Saudi Authority for Industrial Cities and Technology Zones (Modon) has awarded the local Miahona Company a contract for the construction and operation of an industrial wastewater treatment plant in Jeddah.

  The contract is valued at SR1bn ($266.7m), Miahona said in a bourse filing on 26 March.

  This project scope includes the rehabilitation, development, construction, operation and maintenance of wastewater treatment systems.

  The wastewater treatment plant will be located in Jeddah 1st Industrial City.

  According to Miahona, the project scope includes capital investment, land utilisation, service provision and revenue generation through treated water sales, within a 25-year rehabilitation, operation and transfer (ROT) framework.

  Last year, Miahona Company and Belgium’s Besix won the contract to develop and operate the Al-Haer independent sewage treatment plant (ISTP) project in Riyadh, Saudi Arabia.

  Another local firm, Power & Water Utility Company for Jubail & Yanbu (Marafiq), subsequently joined the developer team.

  The Al-Haer ISTP project involves the development of a water treatment plant with a capacity of 200,000 cubic metres a day (cm/d).

  It also includes the development of a treated sewage effluent (TSE) reuse system that covers a 32-kilometre pipeline with a capacity of 400,000 cm/d, a pumping station and TSE reservoir tanks with a capacity of 200,000 cubic metres.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13578624/main.jpg

  Jennifer Aguinaldo
• 
  Saipem moves to maintain grip on Gulf offshore market

  28 March 2025

  Commentary
  Indrajit Sen
  Oil & gas editor

  Saipem is by far the largest contractor in the Gulf’s offshore oil and gas industry. The Italian firm won five out of the eight offshore engineering, procurement, construction and installation (EPCI) jobs awarded by Saudi Aramco in 2024 and succeeded in Qatar with both phases of the multibillion-dollar North Field Production Sustainability (NFPS) programme.

  Despite its accomplishments, Saipem realises the need to grow its business. In February, the Milanese company started a merger transaction with UK-based Subsea7 to create an offshore services giant that will dominate the Gulf and international projects market in the future.

  Saipem’s concerns about its position in the regional market are not unfounded. In late March, India’s Larsen & Toubro (L&T) announced winning the largest contract in its history. The job, estimated to be worth $4bn-$5bn, is also part of the second phase of QatarEnergy LNG’s NFPS programme.

  Abu Dhabi’s NMDC Energy, which has grown to become a regional giant in recent years, is also a major challenger to Saipem. The Abu Dhabi-listed firm is deeply entrenched in its home market, and competing with it for Abu Dhabi National Oil Company (Adnoc) offshore projects is no easy task for overseas contractors.

  There are others, such as Lamprell and China Offshore Oil Engineering Company (COOEC). Since being acquired by its Saudi owners in 2022, Lamprell has grown its workforce and assets, resulting in key Aramco project wins.

  COOEC, too, has been winning offshore work from Aramco, and is now seeking to grab a bigger share of the Saudi market. The Chinese firm recently signed an agreement with Aramco to potentially invest in a fabrication facility in the kingdom – a move that has, and continues to, pay dividends for its peers Saipem, Lamprell and NMDC Energy.

  In Saudi Arabia, competition for every Aramco offshore EPCI job is fierce, and past performances count for little. By renewing Long-Term Agreements with some of the contractors earlier this year, Aramco has pushed the reset button and ensured a level playing field for all. 

  The backdrop to this intense competition is a GCC offshore oil and gas industry that is going through a prolific era, heralded by a surge in capital expenditure on projects by regional operators since 2023.

  With capital expenditure on GCC offshore projects in 2025 set to surpass last year’s record, competition for work is expected to remain vigorous – a situation project operators will be keen to maintain.

  ALSO READ: Regional offshore oil and gas sees steady capex

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  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13578632/main4600.jpg

  Indrajit Sen