Mena clean energy pipeline climbs to 246GW
14 February 2025
Some 47.4GW of clean and renewable energy power generation plants are under construction across 15 countries in the Middle East and North Africa (Mena) region.
Based on the latest available data from MEED and MEED Projects, a further 199GW are in the study, design, prequalification and bid stages.
The total pipeline of 246GW is close to half of renewable energy capacity additions globally, which stood at 510GW in 2023.
Saudi Arabia leads with some 17.7GW of renewable energy capacity under construction, mainly comprising an estimated 16.5GW of capacity from solar power plants, which were procured under a public tendering process as well as direct negotiations. Wind power accounts for the rest.
Egypt is the second-largest market, with under-construction projects including the first two units of the El-Dabaa nuclear power plant in Matrouh and some 3GW of solar and 3.8GW of wind power plants.
Iran has the third-largest clean energy capacity under construction, including over 3.4GW of hydropower and 2.4GW of nuclear power.
The UAE ranks fourth, with a total of 3.7GW of capacity under execution. These projects include the 1.5GW Al-Ajban solar photovoltaic (PV) plant in Abu Dhabi, the 1.8GW phase 6 of Dubai’s Mohammed Bin Rashid Al-Maktoum Solar Park project, the 250MW hydropower plant in Dubai and a waste-to-energy project in Abu Dhabi.
Morocco’s capacity under construction is estimated at around 3.6GW, dominated by solar power plants, which have a cumulative capacity of roughly 2.8GW.
Overall, solar PV projects – some in combination with battery energy storage system plants – account for 32GW or close to 68% of the capacity under construction across the Mena region.
Wind and nuclear account for 14% and 10% of the total, respectively, with hydropower plants accounting for 8.4%.
An estimated 9.4GW of the projects under execution, mostly solar, are due to be completed this year. A further 11.9GW are set to be delivered in 2026, and 23GW by 2027. The rest, including the first reactors of the El-Dabaa nuclear power plant in Egypt, are expected to be completed in 2028 or beyond.
This implies that electricity from clean and renewable power sources is set to become a substantial part of the region’s energy mix, particularly in the states that have been cited.
The known solar PV installed capacity in the Middle East, for instance, is estimated to be around merely 18GW as of 2023.
It could also imply that the targets for clean and renewable sources to account for 50% or more of the electricity production mix in certain Mena countries may be achievable, with the region’s largest economy, Saudi Arabia, aiming to procure 20GW of renewable energy annually until it reaches the new target of up to 130GW by 2030 “subject to demand growth”.
Pre-execution
The pipeline of pre-execution projects is equally impressive, potentially yielding an electricity production capacity of close to 200GW, if all these planned projects are implemented.
Most of these projects are envisaged to be grid-connected and exclude captive renewable energy plants catering to industries or enterprises, or those announced as part of integrated green hydrogen and ammonia production facilities.
Saudi Arabia has the largest pre-execution pipeline of over 83GW. This includes around 55GW of capacity in the conceptual stage, catering to the Neom gigaproject, the $500bn masterplan northwest of the kingdom that aims to be powered 100% by renewable energy.
Saudi Arabia’s clean and renewable energy pipeline, inclusive of the Duwaiheen nuclear plant project, is larger than the planned capacity across the next four largest markets: Egypt, Morocco, the UAE and Iraq.
Notably, roughly a quarter of the pre-execution projects in Saudi Arabia are in the prequalification and bidding stages, whereas a mere 3.2% of the planned projects in Egypt have so far reached these stages.
In Morocco, a project called Xlinks, which aims to deliver clean energy to the UK, accounts for about half of the renewable energy capacity being planned.
In the UAE, some 19% of the $16.4bn pre-execution projects are in the prequalification and bid stages. The bulk of capacity in the design stage includes the next phase of the Barakah nuclear power plant as well as the round-the-clock solar PV and battery energy storage system (bess) plant facility in Abu Dhabi.
The 5.2GW solar /19GWh bess project in Abu Dhabi, estimated to require an investment of $6bn, is expected to reach financial close in Q2, which means it will rapidly move from design to execution. Abu Dhabi Future Energy Company (Masdar), the project’s main developer, has already selected the engineering, procurement and construction and other sub-contractors for the project.
Risks and opportunities
The massive renewable capacity buildout across the major Mena region is expediting the procurement of bess plants, whether independently by the transmission and distribution (T&D) entities – as exemplified by recent projects in Saudi Arabia – or in combination with a solar PV project, such as the UAE’s 1GW round-the-clock solar project.
Batteries will help boost the flexibility of the electricity grids as more intermittent renewable power is added and overall demand increases.
The rapid decline in battery unit prices has helped bring several bess projects with substantial capacities to the market over the past 12 to 18 months, and this pace is expected to further accelerate in the future.
Yet, batteries alone will not be sufficient to address the peak electricity demand, particularly across the GCC states, which some experts say falls between 6:00 pm and 6:00 am, especially in the summer months, coinciding with a period when solar PV plants do not produce power and where only a very limited wind capacity may be available.
“There is no doubt batteries can help address that gap, but maybe not to the extent some may envisage,” notes a Dubai-based industry source.
“The issue is not the unit price of batteries, but the volume that you need to address that gap and how much it would cost. Depending on the configuration and the volume of batteries installed, you have bess systems that can provide five to six hours of storage today,” he explains. “The big question is how will the grid cope with the surge in electricity demand at 6 am?”
Given that the cost of lithium-ion batteries was considered highly prohibitive as recently as a year ago, the expectation is that the scale of new projects and demand will continue to drive rapid innovations to enable more flexible grids during the energy transition.
READ THE FEBRUARY MEED BUSINESS REVIEW
Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.
Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:
> AGENDA 1: Trump 2.0 targets technology
> AGENDA 2: Trump’s new trial in the Middle East
> AGENDA 3: Unlocking AI’s carbon conundrum
> GAZA: Gaza ceasefire goes into effect
> LEBANON: New Lebanese PM raises political hopes
> WATER DEVELOPERS: Acwa Power improves lead as IWP contract awards slow
> WATER & WASTEWATER: Water projects require innovation
> INTERVIEW: Omran’s tourism strategies help deliver Oman 2040
> PROJECTS RECORD: 2024 breaks all project records
> REAL ESTATE: Ras Al-Khaimah’s robust real estate boom continues
> QATAR: Doha works to reclaim spotlight
> GULF PROJECTS INDEX: Gulf projects market enters 2025 in state of growth
> CONTRACT AWARDS: Monthly haul cements record-breaking total for 2024
> ECONOMIC DATA: Data drives regional projects
> OPINION: Between the extremes as spring approaches
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Exclusive from Meed
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Power market reshapes contractor landscape
16 October 2025
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Local firm wins Oman wastewater consultancy deal
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Wood Group CEO to step down following takeover deal
16 October 2025
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Saudi firm signs $5.4bn oil and gas contract in Algeria
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Power market reshapes contractor landscape
16 October 2025
Commentary
Mark Dowdall
Power & water editorRegister for MEED’s 14-day trial access
The number of UAE-based power projects awarded under the traditional engineering, procurement and construction (EPC) model has fallen to its lowest level in the past decade.
Admittedly, this does not include the Covid year of 2020, but the point stands. Across the GCC, capital is still flowing into the sector at record levels. What has changed is how that capital is being deployed.
In a recent analysis, I revealed 2025 to be a record-breaking year, with the UAE’s power market recording its highest annual total for contract awards on record. Yet instead of a broad spread of smaller contracts, governments and utilities are concentrating investment in fewer larger and more complex schemes that are reshaping how the region’s energy systems are built and financed.
In 2025, a single solar and battery storage independent power project (IPP) in Abu Dhabi accounts for 67% of the country’s total power contract value. EPC contracts, once the mainstay of the market, have been eclipsed by developer-led models as the preferred route for large-scale power generation.
Saudi Arabia is moving in the same direction, albeit at a different pace. While EPC work remains central to grid expansion, the kingdom’s largest investments are now in utility-scale IPPs backed by the Public Investment Fund.
In my recent annual ranking of private power developers across the GCC, the surge in power generation capacity owned by Saudi Arabia’s Acwa Power was telling. Not only did the firm’s net equity grow by 70% in a single year, but it now eclipses the combined equity of the other leading developers in the region, a direct result of its dominant role in PIF-backed schemes. These projects, including multi-gigawatt solar and wind developments, are redefining the scale and structure of procurement.
Behind this shift is a combination of market maturity, financing strategy and energy transition goals. Developer-led projects concentrate capital and risk in fewer hands, streamline procurement timelines and align closely with long-term policy objectives.
For governments, they deliver capacity without requiring large upfront capital commitments. For developers, they offer stable, long-term returns through secure offtake agreements.
But this concentration also narrows the field of opportunity. Where dozens of smaller EPC packages once supported a broad ecosystem of contractors and suppliers, today’s market is increasingly revolving around a handful of mega deals.
Competition is intensifying for fewer projects, and entry barriers, ranging from balance sheet strength to technical capabilities, are rising.
Smaller EPC contractors, once central to power delivery across the GCC, risk being pushed to the margins. Some will adapt by partnering with larger developers, but others may find fewer opportunities to participate.
Which takes me back to the UAE. In the water sector, 2026 is already shaping up to be a landmark year, with nearly $31bn-worth of projects in tender. A single project, Dubai’s $22bn Strategic Sewerage Tunnel scheme, accounts for over 70% of this total.
It will follow a public-private partnership (PPP) delivery model that consolidates the entire scope under one consortium, streamlining delivery. However, this approach significantly reduces the number of prime contracting opportunities, with smaller EPC firms more likely to find themselves competing for limited subcontracting roles rather than leading bids.
It is important to note that while large-scale projects tend to dominate during major build-out phases, attention inevitably turns to smaller, more distributed schemes.
However, this alone does not necessarily mean a return to the EPC-heavy landscape of the past. For now, as these large projects set the pace, the region’s energy transition may accelerate, but it will also decide who gets to reshape and build it.
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Saudi crown prince launches King Salman Gate project
16 October 2025
Register for MEED’s 14-day trial access
Saudi Arabia's Crown Prince, Mohammed Bin Salman Bin Abdulaziz Al-Saud, has launched a mixed-use development in Mecca known as King Salman Gate.
The project will have a gross floor area of over 12 million square metres (sq m) and will be adjacent to the Holy Mosque in Mecca.
The integrated mixed-use development will offer residential, hospitality, commercial and cultural facilities. The project will also add capacity for approximately 900,000 indoor and outdoor prayer spaces.
HRH Crown Prince announces the launch of #King_Salman_Gate, a transformative multi-use development in the Holy City of Makkah. pic.twitter.com/JLxCi8J50W
— Public Investment Fund (@PIF_en) October 15, 2025
The King Salman Gate project will be developed by Rua Al-Haram Al-Makki Company, which is backed by Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund (PIF).
In an official statement published by the Saudi Press Agency, the firm said: "The project will also restore and develop approximately 19,000 sq m of heritage sites, preserving Mecca’s cultural and historical legacy. The project will contribute to Saudi Vision 2030’s goals of economic transformation through generating more than 300,000 jobs by 2036."
The statement added: "The company aims to support the PIF’s strategy by advancing urban development around the Al-Masjid Al-Haram to establish Mecca as a global benchmark for real estate development."
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Local firm wins Oman wastewater consultancy deal
16 October 2025
Register for MEED’s 14-day trial access
Muscat-based Monenco Consulting Engineers has been appointed as the consultant for a major wastewater network upgrade and extension project in Dhofar Governorate in Oman.
The three-year contract was awarded by Nama Dhofar Services, a subsidiary of state-owned Nama Group responsible for elecricity, water and wastewater services in the southern Omani governorate.
The project includes design and supervision services across civil, structural, mechanical, electrical, hydraulic and control disciplines. It is part of broader efforts to expand critical utility networks in the governorate, which is Oman’s largest by area.
In February, Nama Dhofar Services commissioned the RO45m ($117m) Sahalnout sewerage project in Salalah, one of the largest wastewater infrastructure schemes in the Dhofar region.
It said the scheme will serve 4,000 connection points initially, with plans for future expansion to accommodate up to 20,000.
The utilities provider also recently carried out site assessments in the wilayat of Sadah for a planned wastewater treatment facility, part of its strategy to increase coverage from Salalah's current 76% to 95%.
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Wood Group CEO to step down following takeover deal
16 October 2025
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Ken Gilmartin has informed the board of directors of Wood Group of his intention to step down from his position as group CEO of the company and as a director on its board, according to a statement from the UK-based engineering company.
The announcement comes less than two months after Wood agreed to a $292m conditional takeover bid from Dubai-based Sidara.
Gilmartin will step down after an upcoming shareholder vote on the Sidara transaction and until then will remain in post to support an orderly transition, according to a statement from Wood.
Iain Torrens, currently the company’s interim group chief financial officer (CFO), will take on the role of CEO following Gilmartin’s departure.
A process is under way to identify a new CFO and further announcements will be made in due course on that appointment and the timing of Gilmartin’s departure, Wood said.
The company’s chairman, Roy Franklin is also due to step down in the near future. In May this year, he said that he will step down “as soon as there is greater clarity regarding Wood’s future direction”.
Commenting on the departure of Gilmartin and the appointment of Torrens, Franklin was quoted in the Wood statement as saying: “We are pleased to announce the appointment of Iain as Wood’s new CEO. Since joining the company earlier this year, Iain has demonstrated experience, leadership and decisiveness to guide the business through a very challenging period.
“The board is confident he is well-placed to lead the company into its next chapter.”
In June, Wood announced the appointment of Nick Shorten as the new executive vice-president of the company's projects business unit.
Wood in Mena
As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.
In the Middle East, the company has project contracts in Iraq; Kuwait; Oman; Qatar; Saudi Arabia; and the UAE, where it has opened its third office in Sharjah.
The firm’s regional projects pipeline includes pre-front-end engineering and design work on Saudi Aramco’s Southern and Northern Areas project in Saudi Arabia.
It is also delivering integrated front-end engineering and design, detailed design, procurement support and construction and commissioning services for TotalEnergies in Iraq.
Despite several years of financial difficulties, Wood Group’s integration into Sidara will significantly boost UAE-based engineering capacity – at a time when many firms in the Middle East and North Africa (Mena) region cite attracting and retaining top engineering talent as a major challenge.
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Saudi firm signs $5.4bn oil and gas contract in Algeria
15 October 2025
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Algeria's national oil and gas company Sonatrach and Saudi Arabia-based Midad Energy have signed a hydrocarbons exploration and production sharing agreement related to Algeria’s Illizi South block.
The agreement is valued at $5.4bn and has a duration of 30 years, with the option to be extended for an additional 10 years, according to a statement by Sonatrach.
This contract was signed by Sonatrach CEO Rachid Hachichi and the CEO of Midad Energy North Africa, Sheikh Abdelilah Ben Mohamed Ben Abdellah Al-Aiban, at Sonatrach’s headquarters in Algiers.
The investments for exploration and exploitation of the block, which is located about 100 kilometres south of In Amenas, will be financed entirely by Midad Energy and include $288m allocated for research investments.
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In a statement, Sonatrach said: “The work programme associated with this contract will be implemented in strict compliance with environmental protection requirements and in accordance with applicable Algerian regulations.
“This programme also includes the use of the latest technological and digital solutions,” it added.
Projected production from the Illizi South offshore development by the end of the contractual period is estimated at 993 million barrels of oil equivalent, including 125 billion cubic metres of marketable gas and 204 million barrels of liquid fuels.
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The latest contract signed by Sonatrach and Midad Energy follows on from an agreement protocol concluded between the two companies on 3 March 2024.
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