meed-logo

line1 line2 line3
SIGN IN / REGISTER

Read the June 2024 MEED Business Review

30 May 2024

Download / Subscribe / Guest programme

There has been a sharp decline in the value of contracts awarded on Saudi gigaprojects this year as Riyadh seeks to balance the delivery of its ambitious schemes with the reality of its financial capabilities.

Although major new projects continue to be launched – such as the mixed-use Jaumur community at Neom’s Gulf of Aqaba development, which was announced in early May – a recalibration is under way in the kingdom’s projects market as spending is reined in. 

“The feedback we are getting is that budget spending for 2024 has been reduced by about 30% on average,” one international consultant tells MEED.

Against this backdrop, the use of a public-private partnership (PPP) model for the procurement of the multi-utility packages for the Red Sea and Amaala developments, as well as for the staff accommodation packages at Neom, opens up an alternative route for Saudi Arabia to finance its gigaprojects.

Saudi Aramco, the main engine of the kingdom’s economy, is also exploring the PPP pathway, reaching out to external investors in order to make more funds available for its main shareholder, the Public Investment Fund, to spend on Saudi Vision 2030 plans and the kingdom’s gigaprojects.

While Aramco has once again topped the MEED Top 100 ranking of the largest listed firms in the Middle East and North Africa (Mena) region, this year the oil giant has dipped in value from $2.1tn to about $1.95tn – making it a key contributor to a fall in the overall value of the list. The combined value of the region's 100 biggest firms has fallen slightly amid rising regional geopolitical risk, from $3.8tn last year to $3.7tn in 2024.

Meanwhile, this month's exclusive 15-page market report highlights Iraq, where Prime Minister Mohammed Al Sudani is facing mounting pressure as he struggles to maintain political stability.

MEED's latest issue is packed with insight and analysis. The team examines Kuwait's efforts to expedite its oil projects; assesses the political crackdown in Tunisia; considers how nuclear power will help the region to achieve its artificial intelligence ambitions; and looks at why Petrofac projects worth $6.6bn are at risk in the Mena region.

This month's issue also features MEED's Economic Activity Index, which assesses the near-term economic health of regional markets. A gap has opened up between the economic and fiscal performances of Saudi Arabia and the UAE in 2024 to date, allowing the UAE to top the index. 

The June issue also includes an interview with Sumayah Al Solaiman, CEO of the Architecture and Design Commission at the Saudi Arabia Ministry of Culture, in which she explains the organisation’s objectives and strategies. Omar Al Hashmi, CEO of Taqa’s Transmission & Distribution business, shares his insight on efforts to decarbonise the global energy grid, and we reveal the winners of the Mena Banking Excellence Awards.

We hope our valued subscribers enjoy the June 2024 issue of MEED Business Review. 

 

Must-read sections in the June 2024 issue of MEED Business Review include:

> AGENDA: Riyadh reins in spending; PPP offers budget and efficiency routes; Opening up property sales; Aramco explores PPP pathway

> CURRENT AFFAIRS: ​Kuwait moves to expedite oil projects; Political crackdown in Tunisia causes concern

INDUSTRY REPORT:
MEED’s Top 100 Companies
> Middle East equities weather the storm

> ECONOMIC ACTIVITY INDEX: UAE economy regains regional lead

> LEADERSHIP: Decarbonising the global energy grid

> NUCLEAR: Nuclear power will help region achieve AI ambitions

> OIL & GAS: Petrofac projects worth $6.6bn at risk in Mena region

> INTERVIEW: Saudi Ministry of Culture leads design change

> BANKING AWARDS: Mena Banking Excellence Awards winners revealed

> IRAQ MARKET REPORT:

> COMMENT: Baghdad faces mounting pressure
> GOVERNMENT: Al Sudani struggles to maintain Iraq’s political stability
> ECONOMY: Iraq economic revival faces headwinds
> SECURITY: Iraq gas field attack to impact projects
> OIL & GAS: Iraqi oil and gas projects activity dips, but holds
> POWER: Iraq electricity sector makes slow progress
> CONSTRUCTION: Iraq steps up post-war revival

> MEED COMMENTS: 
> Al Maktoum airport expansion must go ahead this time
> Aramco keeps the project spending wheel turning
> Electric vehicles have a long way to go
> Boycotts are a boon for local brands

> GULF PROJECTS INDEX: UAE leads market expansion

> APRIL 2024 CONTRACTS: Five countries record multibillion-dollar deals

> MARKET SNAPSHOT: Mena PPP projects

> OPINION: US foreign policy approach remains adrift

> 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/11816655/main.gif
MEED Editorial

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Egypt seeks to accelerate gas pipeline project with Libya

    10 November 2026

    Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.

    Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.

    Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.

    Egypt is currently trying to address an energy squeeze that has escalated ​due to elevated global liquefied natural gas (LNG) prices since the ​start of the US-Israeli war on Iran in February of this year.

    In his statement, Abdelatty called ‌for ⁠cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export ​it.

    He also said that Abdulsadek would ​visit ⁠Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

    The ⁠statement ​did not provide ​details on costs or the status of the projects.

    Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.

    In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg
    Wil Crisp
  • Omani company signs Kuwait drilling contract

    10 November 2026

    Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).

    Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.

    The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.

    The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.

    “It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”

    He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”

    In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png
    Wil Crisp
  • Adnoc Drilling wins $315m Kuwait offshore rig deals

    10 November 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company (Adnoc Group) subsidiary, Adnoc Drilling, has been selected for two offshore drilling rig contracts in Kuwait with a combined maximum value of KD96.55m ($315m), according to documents published by Kuwait’s Official Gazette.

    The Higher Purchasing Committee of state-owned Kuwait Petroleum Corporation (KPC) has given approval for its subsidiary Kuwait Oil Company (KOC) to award the contracts to the Abu Dhabi-listed drilling contractor after Adnoc Drilling submitted the lowest compliant bids.

    While the maximum combined contract value has been confirmed as KD96.55m ($315m), the individual contract values, rig identities, durations and expected commencement dates have not been disclosed.

    The approval comes as Kuwait moves to expand offshore exploration and development following a series of discoveries in its territorial waters.

    It is currently unclear how Kuwait will provide security for its planned offshore oil and gas projects in the Gulf, adding uncertainty to the outlook for these plans.

    On 5 October, KPC chief executive Shaikh Nawaf Al-Sabah reiterated the company’s commitment to developing three major offshore oil discoveries in the region.

    KPC initially launched the Al-Seef project to develop the three fields in February, just weeks before the US and Israel attacked Iran, triggering a regional war that has sparked a crisis in Kuwait’s oil and gas sector.

    The regional conflict has seriously disrupted shipping through the Strait of Hormuz, a key export route for Kuwaiti oil.

    The war has also led to dozens of attacks on Kuwaiti oil and gas infrastructure, with at least one causing damage to a Kuwaiti offshore platform.

    This attack took place on 12 July, when a drone struck a KOC offshore drilling platform in Kuwaiti territorial waters, causing damage to the platform and injuring one worker.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273678/main2430.jpg
    Wil Crisp
  • Aramco-backed firm tenders logistics hub expansion

    9 November 2026

     

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.

    The logistics hub will add over 124,000 square metres (sq m) at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.

    The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.

    Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.

    The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif
    Yasir Iqbal