MEED February 2023 Webinar: Saudi Arabia 2023 Outlook and 2022 Review

26 February 2023

The webinar focuses on discussing the economic outlook, investment opportunities, and business strategies in Saudi Arabia for the year 2023.

As a MEED subscriber, you will be invited to exclusive monthly webinars on the trending topics in the region’s top sectors.

Saudi Arabia 2023 Outlook and 2022 Review brings together industry experts, government officials, and business leaders to share their insights and perspectives on the current state and future of the Saudi Arabian economy.

The discussion covers a range of topics, including the impact of the COVID-19 pandemic on the economy, the government’s plans for economic diversification, and investment opportunities in various sectors such as healthcare, infrastructure, and renewable energy.

The webinar provides an interactive platform for participants to engage with the speakers, ask questions, and exchange ideas. It also offers networking opportunities for participants to connect with other business professionals and potential partners in Saudi Arabia.

Related Articles
  • Saudi Electricity Company plans to add 30GW of capacity

    13 June 2024

    Riyadh-headquartered utility Saudi Electricity Company (SEC) is understood to be looking at developing approximately 30,000MW of gas-fired capacity within and outside Saudi Arabia. 

    SEC in 2022 completed divesting its full interest in the principal buyer, Saudi Power Procurement Company (SPPC), which has enabled it to bid for contracts to develop and operate power generation plants, in addition to operating the kingdom's power transmission and distribution network.

    Related read: Saudi energy restructuring gains momentum 

    According to industry sources, SEC has booked in advance some 30GW of gas turbine capacity with the industry's leading original equipment manufacturers (OEMs) in anticipation of domestic and overseas demand for gas-fired generation power plants.

    One of the sources said potential projects in Saudi Arabia will be developed through a bilateral agreement with SPPC and potentially in partnership with Saudi utility developer Acwa Power. 

    MEED understands SEC and SPPC have appointed a financial adviser to support the development of these future projects.

    A team comprising SEC and Acwa Power bid and won the contracts to develop and operate the Qassim 1 and Taiba 1 independent power projects last year. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

    A team that includes SEC is also expected to bid for the contracts to develop the Remah 1 and 2 and Nairiyah 1 and 2 gas-fired IPP projects being tendered by SPPC. 

    Ratings upgrade

    On 24 May, Fitch Ratings upgraded SEC's ratings from A to A+, aligning it to be on par with the national sovereign rating.

    SEC said: "The upgrade recognises SEC’s stable financial profile which is secured by the conversion of SR168bn of SEC's liabilities into equity-like instruments, the company’s leverage headroom and strong cash flow visibility, and its crucial role in KSA's energy plans".

    It added that the upgrade "was driven by….SEC’s robust decision-making, strong government support, and alignment with national policy".

    "The government’s 81% ownership, strategic oversight and SEC's key role in Saudi Arabia's decarbonisation efforts underscore this support."

    Notably, in April, the Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding with SEC to strengthen their partnership.

    JBIC said the MoU entails developing solutions to support SEC’s future projects through investments by Japanese companies, the introduction of Japanese products and technologies, and the provision of financial support.

    Six-year capex

    Last month, MEED reported that SEC was planning a SR472bn ($126bn) capital expenditure programme over the next six years to enhance the kingdom’s power generation, transmission and distribution infrastructure and to meet future demand growth.

    The largest component of this spending drive is the transmission sector, with a planned investment requirement of SR351bn. A total of SR116bn is envisaged for the distribution sector.

    A mere SR6.2bn is dedicated to power generation projects. This comparatively low amount is due to most new electricity production plants now tendered by SPPC under the kingdom’s public-private partnership (PPP) framework.

    Related read: Saudi Arabia plans two new gas-fired power plants

     

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    Jennifer Aguinaldo
  • Saudi Arabia plans two new gas-fired power plants

    12 June 2024

     

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    Saudi Power Procurement Company (SPPC) has invited companies to bid for the transaction advisory contracts for its next gas-fired independent power projects (IPPs).

    According to an industry source, the Saudi principal buyer has received bids for the financial, legal and technical consultancy roles for the Al-Rais and Riyadh 16 IPPs.

    The Al-Rais IPP will have a capacity of 2,400MW while the Riyadh 16 IPP has a planned capacity of 3,600MW.

    Since 2022, SPPC has procured two batches of combined-cycle gas turbine (CCGT) schemes.

    Qassim and Taiba IPPs

    SPPC awarded contracts to develop the Qassim 1 and Taiba 1 and the Qassim 2 and Taiba 2 IPPs last year.

    A consortium comprising Riyadh-based Saudi Electricity Company and Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPPs on 13 November. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

    A team comprising the local Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Qassim 2 and 1,800MW Taiba  2 IPP schemes.

    Each project will be developed on a build-own-operate basis by the winning consortiums, which will be 100% owned by the successful bidders.

    Remah and Nairiyah IPPs

    Meanwhile, the final consortiums of bidders are being formed for the contracts to develop and operate the Remah 1 and 2 and Nairiyah 1 and 2 IPPs, as MEED previously reported.

    Bids for the contracts are due on 30 June, although SPPC is understood to be reviewing whether an extension is necessary.

    Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Nairiyah 1 and 2 will be in the Eastern Region. Each IPP will have a capacity of 1,800MW.

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    Jennifer Aguinaldo
  • Kuwait receives South Sabah Al-Ahmed housing bids

    12 June 2024

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    Kuwait's Public Authority for Housing Welfare (PAHW) has received bids from contractors for a tender covering the infrastructure development works at its South Sabah Al-Ahmed township project in Kuwait's Al-Asimah Governorate.

    The contract includes the infrastructure works for 6,568 residential units in neighbourhoods N1, N2, N3 and N11.

    The tender was issued on 31 March and the bids were submitted on 10 June.

    The bidders include:

    • Avic International Holding Corporation (China) ($293m) 
    • Sinohydro Corporation (China) ($317.4m)
    • Mohammed Abdul Mohsen Al-Kharafi & Sons (Kuwait) ($329m)
    • Kuwait Factories Construction & Contracting Company (Kuwait) ($363.4m)
    • China State Construction Engineering Corporation (China) ($373.9m)
    • Combined Group Contracting Company (Kuwait) ($385.1m)
    • Al-Ghanim International (Kuwait) ($415.1m)
    • United Gulf Construction Company (Kuwait) ($460.4m)
    • Bayan National Construction Contracting Company (Kuwait) (undisclosed)

    UK-based Foster + Partners designed the masterplan for the South Sabah Al-Ahmad township project. The scheme includes constructing a residential development with over 11,000 housing units.

    The South Sabah Al-Ahmad project covers an area of 6,150 hectares and is located 70 kilometres south of Kuwait City.

    In May, PAHW awarded two contracts worth over $550m for the development of roads and infrastructure at the South Sabah Al-Ahmed township project.

    The first contract, for the roads and infrastructure networks for 7,623 residential units in the N5, N7, N9 and N10 neighbourhoods, was awarded to Beijing-headquartered China State Construction Engineering Corporation. The contract is valued at KD93m ($304m).

    The other contract, for the roads and infrastructure networks for 6,189 residential units in the N4, N6 and N8 neighbourhoods, was awarded to Sinohydro Corporation. The contract is valued at KD78m ($255m).

    Kuwait construction market

    According to data from regional projects tracker MEED Projects, the construction sector has $7.8bn of projects under execution, making it the second-largest sector in Kuwait after transport in terms of projects under execution. 

    The largest subsector in terms of work under execution is mixed-use, with $29bn-worth of work under way, followed by residential with $11.1bn. 

    PAHW is the largest single client in construction, with $1.8bn-worth of projects under construction.

    About $49.5bn-worth of construction projects are in the pre-execution phases of development in Kuwait. The majority of the upcoming construction projects are in the design phase, followed by the study, bid evaluation and main contract prequalification stages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11905198/main.jpg
    Yasir Iqbal
  • Oman seeks interest in old airport terminal PPP

    12 June 2024

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    Oman Airports Management Company has issued an expression of interest (EoI) notice to redevelop the old terminal building at Muscat International airport.

    The contract covers the redevelopment, operation and management of the terminal building on a build-operate-transfer basis.

    The notice was issued on 11 June and the deadline for submission is 9 July.

    The companies participating in the EoI round will be qualified to participate in the request for proposal process in the next round.

    Earlier this year, Naif Al-Abri, chairman of the Oman Civil Aviation Authority, said: "The old Muscat airport terminal building will be redeveloped as a multi-purpose facility, with plans to convert it into an aviation museum that will showcase the history of aviation of the country.”

    In 2020, Oman announced its National Aviation Strategy 2030, which aims to attract an investment of $3.6bn in airport cities over 20 years.

    The country plans to expand its navigation infrastructure and open the sector to private international investors by granting concessions for managing and operating local airports and aviation-related services.

    Oman's aviation sector has demonstrated positive growth and recovery, according to GlobalData.

    A recent report by the National Centre for Statistics and Information shows that airports in Oman have witnessed a significant increase in inbound and outbound passenger numbers.

    The total number of passengers travelling through airports in Oman by the end of January 2024 increased by 21.6% to reach 1.4 million, compared to 1.1 million by the end of January 2023.

    This data reflects the resilience and rebound of the aviation sector in Oman, indicating a recovery in travel and tourism activities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11904433/main.jpg
    Yasir Iqbal
  • Saudi Arabia seeks firms for Rub Al-Khali power plant

    12 June 2024

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    Saudi Arabia's Zakat, Tax & Customs Authority (Zatca), in collaboration with the National Centre for Privatistion & PPP (NCP), has invited companies to prequalify for a contract to develop a hybrid power plant at the Empty Quarter (Rub Al-Khali) land port.

    The project aims to reduce the use of diesel fuel by using renewable energy, and to ensure long-term power supply at the Empty Quarter land port.

    According to Zatca, the project will be implemented in partnership with the private sector under a design, build, finance, operate, maintain and transfer contract model for 25 years in addition to the construction period.

    In addition to building and operating the power plant, the project scope includes ensuring that the facility operates to defined requirements and output specifications and managing the power generation and the connection to the Zatca interface point for the entire project term.

    The deadline for companies to submit their prequalification applications is 21 July.

    This is the latest project announced by Zatca and the NCP. Other projects include the development of water and sewage treatment plants and residential buildings at several land ports in the kingdom.

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    Jennifer Aguinaldo