Mena power rides high into 2024

29 December 2023

 

The Middle East and North Africa (Mena) region’s power generation and transmission sector awarded an estimated $25.3bn-worth of contracts between January and November 2023.

While this pales in comparison to the record high of $37.7bn awarded in 2015, it is up 38 per cent on the previous full year 2022, according to MEED Projects.

Year-on-year, the value of awarded power generation contracts increased by 40 per cent to reach $19bn, outperforming the transmission sub-sector growth by nine percentage points.

Saudi Arabia accounted for 60 per cent of the awarded power contracts in 2023. These include the contracts to develop four independent power projects (IPPs) that use combined-cycle gas turbines (CCGT), the first to be procured since the kingdom awarded the contract to develop the 1,500MW Al-Fadhili IPP to France’s Engie in 2016.

The Taiba 1 and 2 and Qassim 1 and 2 IPP projects each have a generation capacity of 1,800MW and require a combined investment of $7.8bn, of which roughly 80 per cent is accounted for by engineering, procurement and construction (EPC) costs.

The kingdom also awarded an EPC contract for the 1,200MW expansion of a power plant complex in Jubail during the year.

On the renewable energy front, the principal buyer, Saudi Power Procurement Company (SPPC), and the Public Investment Fund awarded some 6.7GW of solar photovoltaic (PV) IPP projects.

The uptick in awards marks a major improvement after a year of tepid renewables project activity in 2022, barring the solar and wind farm projects being developed as part of the large-scale green hydrogen and ammonia project in Neom.

The transmission and distribution sub-sector contributed to Saudi Arabia’s sterling market performance this year, delivering contracts worth over $3.5bn.

The kingdom’s electricity grid is expected to continue to be upgraded to accommodate growing renewable energy capacity and the rise in electricity demand as Vision 2030-related projects enter the execution phase.

The plan to accelerate electricity trade with its GCC neighbours and other countries in the region, such as Egypt and Iraq, is also anticipated to encourage future grid investments. 

The award of the $2bn multi-utilities package for the Amaala development project also stood out, not least due to the inclusion of a 700 megawatt-hour battery energy storage system to enable the hotels within the development to be completely off-grid.

Unlike in the previous two years, Kuwait, the UAE and Oman also tendered or awarded substantial power generation contracts in 2023.

Nama Power & Water Procurement Company awarded the contracts to develop the second and third utility-scale solar PV schemes in the sultanate, Manah 1 and 2, each with a capacity of 500MW, in the first half of the year.

In September, Dubai Electricity & Water Authority awarded the contract to develop the sixth phase of the Mohammed bin Rashid solar complex.

Looking forward

The Mena power sector is expected to maintain its momentum into 2024, if the final quarter of 2023 is anything to go by.

Saudi Arabia is likely to continue dominating power project activities, with other states such as the UAE, Oman, Morocco, Egypt, Kuwait and Qatar offering significant opportunities for developers and EPC contractors.

Saudi Arabia’s SPPC has held a market-sounding event for the four solar IPPs under the fifth round of the kingdom’s National Renewable Energy Programme (NREP), while bid evaluation is still under way for the three wind IPPs under the NREP’s round four.

The tender documents are also being prepared for two CCGT projects in Riyadh, PP15 and Al-Khafji, with each expected to have a capacity of 3.6GW.

Qatar and Kuwait are advancing the procurement process for independent water and power producer (IWPP) projects that were held back over the past few years.

Abu Dhabi has initiated the procurement process for its fourth solar PV IPP and first twin battery energy storage facilities. 

It will also almost certainly kick off the procurement process for one or two thermal power plants in the months ahead in anticipation of the need to replace expiring gas-fired capacity.

North Africa

The procurement of renewable energy plants, particularly in the North African states, led by Egypt and Morocco, is also expected to ramp up, in part due to their goals to develop green hydrogen hubs and export clean energy to Europe.

“Morocco is definitely going to be a major market from 2024 and onwards, with several IPPs in the planning and study stage,” says a senior partner with a transaction advisory firm.

Expectations also continue to thrive for many thermal projects planned in Libya and solar PV IPPs in Iraq, despite political uncertainties. 

For Iraq in particular, the external pressure to rely less on Iranian electricity imports will provide impetus to its solar and CCGT capacity programmes.

The future trend for levelised costs of electricity is likely to remain mixed over the coming months

LCOE trend 

The future trend for levelised costs of electricity (LCOEs) – or the pre-agreed, long-term tariffs an offtaker pays utility developers for their plants’ electricity output – is likely to remain mixed over the coming months, according to a region-based expert.

“The LCOEs for CCGTs are likely to remain stable next year, while solar LCOEs could slightly decline, compared with those seen in 2023,” the source tells MEED.

Supply chain constraints for gas turbines remain a concern for future CCGT power plants, given what is understood to be a long lead time for delivery and the production capacity constraints in the EU plants of the leading suppliers such as Germany’s Siemens Energy and the US’ GE.

While this opens opportunities for gas turbine manufacturers based in China, it is foreseeable that there remains a dominant preference for EU-made products across the Mena region, particularly in the GCC states.

The same expert argues, however, that the massive increase in gas turbine demand may be temporary, with demand likely to start petering off sometime after 2024, when clients and utility developers alike will have to consider the impact of these assets, whose concession agreements extend between 25 and 30 years, to their net-zero commitments.

As previously cited, Saudi Arabia will continue to dominate the region’s power sector project activities in the foreseeable future. Its ambition for renewable energy sources to account for half its capacity by 2030 and the Vision 2030-related plans to build off-grid developments such as Neom, the Red Sea and Amaala, as well as its multibillion-dollar industrialisation programme, will drive this.

According to MEED Projects data, Iran, Algeria, Kuwait, the UAE and Qatar are the other key markets for projects in the bidding stage. Morocco, Egypt, Kuwait and the UAE are the most promising markets for projects outside Saudi Arabia in the study, design or prequalification stage.

Overall, the net-zero commitments made by key states such as Saudi Arabia and the UAE, and plans to build green hydrogen valleys from Abu Dhabi to Morocco, in addition to an endemic rise in electricity demand as populations and economies grow, will likely keep the overall power sector buoyant over the coming years, barring any major events, like the Covid-19 pandemic in 2020 or the Russia-Ukraine war in 2022. 

Sustainability drives water investments

https://image.digitalinsightresearch.in/uploads/NewsArticle/11336705/main.gif
Jennifer Aguinaldo
Related Articles
  • Kuwait utilities investment shifts towards water

    11 August 2026

     

    China State Construction Engineering Corporation recently signed a contract for Kuwait’s North Kabd wastewater treatment plant, the country’s largest wastewater infrastructure project to date.

    The award, following more than a decade of planning, propelled Kuwait’s water sector contract awards to more than $4bn as of early August, according to regional project tracker MEED Projects.

    The facility will have a treatment capacity of up to 1 million cubic metres a day (cm/d), with the $3.3bn contract covering the design, construction, operation and maintenance of the plant over a 10-year period.

    It marks a significant recovery for the sector after several years of subdued activity and the first time since 2020 that annual water awards have exceeded $1bn.

    North Kabd is the largest of several major water projects awarded this year, alongside contracts covering desalination and the expansion and rehabilitation of water distribution infrastructure.

    Desalination and distribution

    These include a $316m contract awarded to local firm United Gulf Construction (UGC) by the Ministry of Electricity, Water & Renewable Energy (MEWRE) for the rehabilitation and expansion of the Doha water distribution complex.

    The five-year project includes a new pump station and will add about 130 million imperial gallons of storage capacity, while increasing pumping capacity to 220 million imperial gallons a day (MIGD).

    UGC was also selected in February to upgrade the Hawally water distribution complex in Kuwait’s Hawalli Governorate. The facility serves one of Kuwait’s most densely populated governorates, with the project intended to address chronic low water pressure, particularly during peak summer demand, and improve continuity of supply.

    The upgrade will increase freshwater storage capacity by 66 million gallons and raise potable-water pumping capacity to 54.5 million gallons a day.

    In April, Kuwait’s Central Agency for Public Tenders approved MEWRE’s recommendation to award a $371m contract for phase two of the Doha seawater reverse osmosis (SWRO) desalination plant.

    A joint venture of Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco) and India’s VA Tech Wabag will carry out the project, which will have a capacity of about 272,000 cm/d.

    Upcoming water awards

    Meanwhile, Kuwait’s Ministry of Public Works (MPW) has been progressing several tenders for major water infrastructure projects covering rainwater drainage and treated water systems in the country’s southern and northern regions.

    In July, local Combined Group Contracting submitted the lowest bid for a contract to develop a major treated water system in the southern region. The contractor submitted a price of about $515m for the scheme, according to a company disclosure.

    For the smaller northern treated water system, Contractor General Trading & Contracting submitted the lowest bid of $169m.

    In what is already a standout year for Kuwait’s water sector, further awards could push activity significantly higher. More than $1bn of water projects are currently under bid evaluation, indicating further evidence of a sustained recovery in the months ahead.

    Power sector activity

    Kuwait’s power sector recorded just $271m of contract awards by early August, according to MEED Projects, putting activity well below recent annual levels.

    This compares with a record full-year total of $5.5bn in 2025 and $2.7bn in both 2024 and 2023.

    Several large-scale generation projects have been slow to advance, with deadline extensions a notable feature in recent months. The outlook is stronger, however, with these projects now progressing through procurement and significant awards expected in the months ahead.

    Kuwait is advancing the 1,800MW Al-Khairan phase one independent water and power project (IWPP), for which two developer consortiums led by Abu Dhabi National Energy Company (Taqa) and Saudi Arabia’s Acwa submitted bids in June.

    The project will also include a desalination plant with a capacity of 125 MIGD. A second phase of the Al-Khairan IWPP, estimated at $750m, is understood to include a further 1,800MW of generation capacity through a combined-cycle gas-fired power plant. The project remains in the early development stages, with tendering not expected until at least 2027.

    Renewable energy programme

    The Kuwait Authority for Partnership Projects (Kapp) is also progressing the Al-Dibdibah power and Al-Shagaya renewable energy programme in partnership with Kuwait’s MEWRE.

    The contract to develop the 1,100MW phase three, zone one solar photovoltaic (PV) project is expected to be confirmed soon, with a consortium led by Abu Dhabi Future Energy Company (Masdar) previously reported to be the frontrunner.

    A separate 500MW solar PV project is also being procured under phase three, zone two of the same programme, with bids submitted on 26 July. If the contract is awarded by the end of the year, the two Shagaya contracts would add about $2bn to the value of power sector awards.  

    Another notable development was the 25-year energy conversion and water purchase agreement signed in February for the Al-Zour North IWPP phases two and three. The signing marked a key step towards financial close on the estimated $4bn project. Once completed, the facility will add 2,700MW of power and 120 MIGD of desalinated water to Kuwait’s supply network

    The Shagaya, Khairan and Zour North projects form a key part of Kuwait’s generation portfolio. The country is aiming to reach 22,100MW of installed renewable energy capacity by 2030, under a 20-year strategy announced in March 2025 that extends to 2050.

    Kuwait is also continuing to invest in existing generation plants. MEWRE is evaluating bids for the $1.7bn upgrade of the Subiya power and water plant, including the conversion of units from open-cycle to combined-cycle operation and the modernisation of existing facilities.

    Battery energy storage systems

    In the near to medium term, more than $10bn-worth of power projects are under bid evaluation. This includes several battery energy storage system projects with a planned total storage capacity of 1.5GW.

    In June, Kuwait approved sites in Al-Mutlaa and Jaber Al-Ahmad cities for the development of the projects. The projects will be implemented in phases, with the first phase providing 500MW of storage capacity. The first facilities are expected to be operational by summer 2027 and will supply stored energy to the electricity grid during periods of peak demand.

    Elsewhere, MEWRE continues to evaluate offers from Shanghai Electric Group and local firm Heavy Engineering Industries & Shipbuilding Company (Heisco) for the estimated $400m engineering, procurement and construction contract to rehabilitate and modernise eight boilers at the Subiya power generation and water distillation station. The bid bond validity has been extended to 23 August, indicating that the procurement process remains ongoing.


    MEED’s September 2026 report on Kuwait also includes:

    > ECONOMY: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > CONSTRUCTION: Kuwait construction holds up despite regional strife

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18333042/main.gif
    Mark Dowdall
  • Syrian court gives death penalty to Bashar Al-Assad

    11 August 2026

    A Syrian court has sentenced former president Bashar Al-Assad to death after trying him in absentia, convicting him of crimes committed during the country’s nearly 14 years of civil war.

    It is the first such ruling under Syria’s transitional authorities, who ousted Al-Assad in December 2024 and vowed justice and accountability for crimes committed under his rule.

    Al-Assad fled to Moscow as Islamist-led forces closed in on Damascus after a lightning offensive.

    In a Damascus court, Judge Fakhr Al-Din Al-Aryan convicted Al-Assad of crimes including “premeditated murder, the intentional killing of more than one person, the intentional killing of children under 15 years … torture, torture leading to death, and deprivation of liberty on multiple occasions” — acts the court classified as crimes against humanity and war crimes.

    “He is therefore sentenced to death,” the judge said in his ruling.

    The court also sentenced six former military and security officials to death in absentia, including Al-Assad’s brother Maher, who ran the army’s elite Fourth Division and also fled the country.

    Those convicted included former defence minister Fahd Al-Freij and Louay Al-Ali, who headed military intelligence in Daraa province in 2011.

    ALSO READ: Syria charts post-war reconstruction course

    The officials were convicted of crimes including murder, incitement to murder, torture leading to death and repeated deprivation of liberty, also classified as crimes against humanity and war crimes.

    Former security official Atif Najib – the only defendant tried in person – was also sentenced to death for crimes against humanity committed while he headed political security in Daraa province, the cradle of the country’s 2011 uprising.

    Najib, a cousin of Al-Assad who was arrested in January last year, was convicted of crimes including murder, the intentional killing of children under 15 and torture leading to death.

    The acts attributed to him are “crimes against humanity”, the court said as it handed down “the harshest punishment … which is the death penalty”.

    ALSO READ: US lifts sanctions on Syria after the EU takes similar action

    Syria began proceedings in April against Al-Assad and other officials, accused both in person and in absentia of atrocities during the civil war, which erupted after the former authorities’ brutal repression of pro-democracy protesters.

    More than half a million people were killed and millions displaced, while tens of thousands disappeared, many into the country’s brutal prison system.

    The uprising began in Daraa in March 2011 after 15 students were arrested for allegedly writing anti-government slogans on the city’s walls.

    Residents said the students were tortured, prompting protests demanding their release that ended in bloodshed.

    Security forces suppressed demonstrations and fired live ammunition to disperse sit-ins at several locations.

    Najib was dismissed after the crackdown as protests spread to other provinces.

    Judge Al-Aryan said Najib had denied the charges and shown “no remorse”.

    Al-Assad took power in Syria in 2000 in an unopposed election following the death of his father, Hafez Al-Assad, who was president from 1971.

    ALSO READ: Syria exports first crude oil batch in 14 years
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18331541/main.gif
    MEED Editorial
  • Oman extends deadline for $150m water transmission project

    11 August 2026

     

    State-owned Nama Water Services (NWS) has extended the bid submission deadline for a contract to build a $150m water distribution network project in Jalan Bani Bu Ali Wilayat in Oman’s South Sharqiyah Governorate.

    The new deadline is 24 August. The original deadline was 17 August.

    The engineering, procurement and construction (EPC) contract covers the development of water distribution infrastructure in the JBBA North and JBBA Coastal areas.

    The scope includes new water storage reservoirs, elevated tanks, booster pump stations and transmission and distribution pipelines.

    The project includes two reservoirs in the JBBA North area with a capacity of 40,000 cubic metres, along with about 58 kilometres of ductile iron distribution pipelines and 343km of high-density polyethylene (HDPE) pipelines.

    The JBBA Coastal works include reservoirs at Asilah, Ashkarah, Wadi Sal and Khabbah, as well as elevated tanks and pump stations. The scope also includes about 38.5km of 400mm-diameter ductile iron transmission pipeline.

    NWS issued the main contract tender on 4 June. UK-headquartered Mott MacDonald is the main consultant on the project.

    The project is one of three water distribution schemes being tendered under a wider $350m masterplan covering Jalan Bani Bu Hassan, Jalan Bani Bu Ali, and Al-Kamil and Al-Wafi wilayats.

    The Jalan Bani Bu Hassan scheme includes a new 40,000-cubic-metre ground reservoir at Al-Sayah Al-Sharqi 4, a pump station and associated transmission and distribution pipelines. It will also include a pump station serving the Industrial Area and an inline booster pump station supplying Al-Mintajjah and Sariq Haryah.

    The projects covering Jalan Bani Bu Ali and Al-Kamil and Al-Wafi wilayats are estimated to cost £100m each. The bid submission deadline for both projects is 17 August.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18326851/main.jpg
    Mark Dowdall
  • Medina invites bids for major stormwater project

    11 August 2026

     

    Saudi Arabia’s Madinah Municipality has issued a tender for an engineering, procurement and construction (EPC) contract to upgrade the city’s rainwater drainage network.

    According to regional project tracker MEED Projects, it is the first main contract tender the municipality has issued for a major water infrastructure project since 2022.

    The $30m project covers the construction of rainwater drainage networks and the repair of existing stormwater pipelines across major roads and corridors within the urban area of Medina.

    It aims to improve the performance of the city’s stormwater drainage system, reduce surface flooding, and protect roads and nearby assets during heavy rainfall.

    The bid submission deadline is 5 September.

    According to MEED Projects data, Madinah Municipality completed two rainwater drainage network projects in Medina in 2024.

    The local Al-Ayuni Investment & Contracting was the EPC contractor for both Phase 1 and Phase 2 projects. Saudi contractor Azmeel Contracting also previously submitted bids for both projects.

    The municipality is also understood to be nearing completion of a separate Phase 1 rainwater drainage network project in Al-Rawabi in Al-Madinah province. This project was tendered in 2022 and awarded to Al-Naeim Contracting (Saudi Arabia) in 2023.

    Meanwhile, Madinah Municipality received prequalification documents at the beginning of the year for two stormwater drainage projects in Yanbu. It is unclear if the main contract tender will be issued this year.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18325305/main.jpg
    Mark Dowdall
  • Adnoc Gas expects Habshan to hit full capacity in 2027

    11 August 2026

    Adnoc Gas hopes to restore full output capacity at its Habshan gas processing facility in Abu Dhabi by the second quarter of next year, following attacks on the facility in March and April during the US-Iran conflict.

    Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), said it has already restored 85% of the Habshan facility’s capacity, surpassing the year-end target set in May.

    The Habshan complex is one of the largest gas processing facilities in the UAE and the wider Middle East and North Africa region. It has a processing capacity of 6.1 billion cubic feet a day. The complex comprises five trains and 14 processing units that receive gas feedstock from onshore and offshore fields in Abu Dhabi.

    The Habshan facility was struck at least three times in March and April by Iranian drones and missiles. On 19 March, UAE authorities suspended operations at Habshan after it was affected by debris falling from Iranian missiles intercepted by the country’s air defence systems.

    Adnoc Gas then announced on 23 March that operations were continuing safely across its asset base, after similar missile and drone attacks by Iran on facilities owned by its parent, Adnoc Group, although it did not specifically mention the Habshan plant.

    The worst of the attacks on Habshan took place on 3 April, when Iranian drones intercepted by the UAE’s air defence systems caused damage at the site, resulting in the death of an engineer working at the facility for Egyptian contractor Petrojet during an evacuation. Four other contractors sustained minor injuries, but were later discharged from hospital after receiving treatment.

    ALSO READ: Adnoc Gas to move prudently on Bab Gas Cap project

    On 8 April, Abu Dhabi authorities said three people – two Emiratis and an Indian national – sustained minor injuries after debris fell at the Habshan gas complex following a successful interception by the UAE’s air defence systems.

    The debris also sparked several fires at the facility, prompting a temporary suspension of operations as safety and response teams assessed the situation.

    “Adnoc Gas responded swiftly to the security-related incidents at the Habshan site on 3 and 8 April, prioritising safety and minimising disruptions to customers,” the company said on 10 August.

    “The company has concluded its technical assessment of the impact from these incidents and recovery has progressed ahead of schedule, with gas supply already restored to 85%,” Adnoc Gas said as part of its announcement of financial results for the second quarter of 2026.

    During a press conference to discuss Adnoc Gas’ Q2 2026 results, Peter Van Driel, the company’s chief financial officer, said: “At the moment, we have progressed to 85% of supply being reinstated, so the balance will be reinstated between now and the first half of 2027.

    “If I look at the cost impact, we are still firming up our estimates. There are uncertainties around the pricing of certain items that we need to install as part of the final reinstatement.

    “If we look at the key driver for our results in the second half, the 85% reinstatement of supply is definitely important. We’re encouraged by the fact that the 85% was delivered ahead of schedule,” Van Driel told journalists.

    Fatema Al-Nuaimi, Adnoc Gas’ CEO and board member, said: “If I may add one point: it might be 85%, but in reality, today we are supplying 100% of our customers’ requirements locally.”

    She added: “On exports, of course, we try our best to satisfy requirements and work closely with customers. But in terms of gas supply to the UAE, we are at 100%.”

    Role of robotics and AI

    Responding to a question about the deployment of robotics and artificial intelligence (AI) to carry out damage assessment and repair work at the Habshan gas processing facility, Al-Nuaimi said: “One of the technical challenges in restoring the facilities quickly was that we had to inspect a significant part of our assets – some 600 kilometres of piping of different sizes across the facilities.

    “If we had done this in the conventional way, we would have spent around 100 additional days putting up scaffolding and sending people to conduct manual and visual inspections.”

    The CEO continued: “Instead, we used robotics supported by AI-driven software, which enabled us to shorten the inspection and response time and carry out repairs faster.

    “It was not just about time; it was also about safety. It spared us from sending our people into critical areas that might not yet have been safe.”

    She added: “We also used robotics in responding to fires and accessing certain parts of the assets.

    “When we talk about AI, it is not a headline. It is real work and real value that we see every day in our business,” Al-Nuaimi further remarked.

    ALSO READ: Adnoc announces FID on $6.2bn Umm Shaif gas cap project
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18324488/main.jpg
    Indrajit Sen