Power sector awards momentum accelerates
26 December 2024

The Middle East and North Africa (Mena) region’s power sector awarded over $60bn of contracts between January and early November 2024, up 47.5% compared to the value of awarded contracts in the previous full year.
This figure is more than double the average value of annual contract awards recorded between 2014 and 2023, based on data from regional projects tracker MEED Projects.
It also exceeds by 21% the total combined value of contracts awarded between 2018 and 2020, when some regional governments and utilities began pivoting to renewable energy and freezing the expansion of thermal plant capacities, in line with goals aimed at decarbonising their electricity systems.
In 2020, the Covid-19 pandemic slowed down project activity and temporarily delayed the awarding of some contracts.
The market staged a short-lived comeback in 2021, when Saudi Arabia awarded a string of contracts for solar photovoltaic (PV) independent power projects (IPPs), including a contract to develop the 600MW Shoaiba solar PV scheme, which holds the world record for the lowest unsubsidised solar PV production at $cents1.04 a kilowatt-hour.
A slight contraction occurred the following year due to a spike in raw materials and engineering, procurement and construction (EPC) costs.
Last year saw a stunning recovery, however, helped by the award of new renewable energy projects in Saudi Arabia, the UAE, Egypt and Oman, as well as by a resumption of contract awards for new gas-fired power plants, particularly in Saudi Arabia, Libya and Iraq.
Yet 2024 is set to outshine 2023 in terms of awarded contracts for thermal, renewable energy and nuclear power generation plants, as well as for power transmission and distribution (T&D) infrastructure such as substations and overhead transmission lines.
Major 2024 awards
In 2023, power generation projects accounted for an estimated 79% of total contract awards, with T&D projects accounting for the rest.
A different picture is emerging in 2024, with data in the first nine months of the year suggesting that generation contract awards are retreating to about 64% of the total. This is due to increased T&D capital spending that has so far driven a 150% increase in award value compared to full-year 2023.
This is a clear indicator of T&D capacity buildout catching up with the generation capacity expansion, especially as larger economies such as Saudi Arabia strive to set up stronger and more efficient electricity links domestically, and as the energy-rich GCC states seek to establish stronger electricity links with one another and with their neighbours, including Egypt, Iraq and Jordan.
Saudi Arabia has dominated the overall Mena power contracts landscape. Its share of 29% in 2022 soared to 61% in 2023 and 67% in the first 10-11 months of 2024.
In May, principal buyer Saudi Power Procurement Company (SPPC) signed two power-purchase agreements with Japan’s Marubeni Corporation for contracts to develop two wind IPPs under the fourth round of the National Renewable Energy Programme (NREP). The Al-Ghat and Waad Al-Shamal wind IPPs have a total combined capacity of 1,100MW.
The contract for a third wind IPP, tendered as part of round four of the NREP, is also expected to be awarded soon.
In June, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) let the fourth batch of solar PV schemes, which it is implementing bilaterally through the Price Discovery Scheme.
A team comprising Acwa Power, PIF-backed Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco), a subsidiary of the state majority-owned oil giant Saudi Aramco, will develop the three solar projects, which will have a total combined capacity of 5,500MW and will require an investment of about $3.3bn.
The Haden solar PV and Muwayh solar power plants, which will each have a capacity of 2,000MW, will be located in Saudi Arabia’s Mecca region. The third project, the 1,500MW Al-Khushaybi solar PV plant, will be located in the Qassim region. The three new solar PV facilities are expected to become operational in the first half of 2027.
In early November, SPPC also announced the winning bidders for the contracts to develop four combined-cycle gas turbine plants comprising the second batch of thermal capacity that it has tendered since 2023. The four plants, located in Riyadh and the Eastern Province, will each have a capacity of 1,800MW and will require an investment of about $2bn each.
A developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company successfully bid for the contracts to develop and operate the Rumah 2 and Nairiyah 2 IPPs. Meanwhile, Saudi Electricity Company (SEC), Riyadh-based utility developer Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contracts to develop and operate the similarly configured Rumah 1 and Nairiyah 1 IPPs.
State utility SEC is also understood to have issued the limited notices to proceed for six greenfield thermal power plants with a total combined capacity of over 16,000MW.
Power generation projects for which final contracts are expected to be awarded before the end of 2024 include:
- Hajr: 3,600MW
- Marjan: 1,800MW
- Riyadh PP12: 1,800MW
- Qurayyah: 3,600MW
- Ghazlan 1: 2,400MW
- Ghazlan 2: 2,900MW
The $5.3bn high-voltage direct current network project connecting the central, western and southern regions of Saudi Arabia was the single largest power contract awarded in Saudi Arabia in 2024.
The UAE, meanwhile, has awarded three key power contracts this year, including for the Al-Ajban solar IPP, which was won by a team of France’s EDF and South Korea’s Korea Western Power Company (Kowepo), and for the Dhafra waste-to-energy project, which a team of Japan’s Marubeni Corporation, Japan Overseas Infrastructure Investment Corporation and Zurich-headquartered Hitachi Zosen Inova is developing.
Dubai Electricity & Water Authority (Dewa) is also understood to have awarded the contract to complete the Jebel Ali K-Station to Egypt-based Power Generation Engineering & Services Company.
2025 outlook
The Mena power projects pipeline remains robust, with over $45bn-worth of contracts under bid evaluation and another $50bn in the prequalification stage as of late 2024, according to MEED Projects.
Saudi Arabia is likely to remain dominant, particularly if SPPC and the PIF activate a plan by the Energy Ministry to procure 20,000MW of renewable energy capacity annually until it reaches its target for renewables to account for half of its energy production mix by 2030.
Morocco has the second-largest power projects pipeline thanks to several planned schemes to export clean energy and green hydrogen to Europe. Notably, the tender is under way for the country’s first two solar PV plus battery energy storage system (bess) projects, Noor Midelt 2 and 3.
Abu Dhabi also maintains a substantial renewables and gas-fired generation project pipeline. It has several upcoming IPPs with a total combined capacity of over 7,000MW, of which more than 6,000MW is in the tendering stage.
While the procurement process for Saudi Arabia’s first nuclear power plant in Duwaiheen has been delayed, the UAE has plans to procure the next phase of its nuclear power plant project in Barakah.
Green industrial development in steel and aluminium, as is being undertaken in the UAE, is a driver for ongoing clean energy capacity buildout, notes Karen Young, senior research scholar at Columbia University’s Centre on Global Energy Policy.
Egypt, Iran, Kuwait and Iraq have the next largest power projects pipelines. The key drivers in each state vary, with populous countries Egypt and Iran seeking to develop integrated green hydrogen hubs and nuclear power capacity, respectively, while Kuwait remains a promising market with extended plans to procure both conventional and renewable energy capacity to address peak demand.
There are indications that Iraq’s first utility-scale solar PV scheme – a 1GW project being developed by France’s TotalEnergies – will head into the construction stage in the coming months, along with other similar projects for which preliminary agreements were signed by Iraqi authorities in 2021-22.
Oman is actively pursuing renewable energy capacity, with the state offtaker having tendered the contracts for two wind IPPs in September 2024.
In Oman and Qatar, the main downstream companies, Petroleum Development Oman and QatarEnergy, are developing renewable energy capacity as a means of mitigating their greenhouse gas emissions, as well as to support their respective government’s net-zero targets.
In November, Bahrain started the procurement process for its fourth independent water and power project (IWPP) in Sitra, which replaced the previously planned Al-Dur IWPP 3 scheme.

Other trends
SEC affiliate National Grid Saudi Arabia has awarded EPC contracts for several bess packages to local firm Algihaz this year. In August, it tendered a contract for the construction of a further 2,500MW of energy storage capacity.
In parallel, the procurement process is under way for the first independent bess packages in Saudi Arabia and Abu Dhabi, with other utilities expected to follow suit in procuring bess using an IPP model. Bess will boost grid flexibility and spinning reserves in the face of increased renewable energy capacity and demand.
In addition to bess and several gigawatts of solar and wind capacity, Saudi Arabia gigaproject developer Neom, which plans to be powered 100% by renewable energy by the end of the decade, is also considering a network of large-scale pumped hydropower storage plants.
However, despite the ongoing capacity buildout across the Mena states, some end-users – particularly in fossil fuel-
scarce jurisdictions such as Morocco – continue to struggle with supply.
“I’ve been part of a research project in Morocco looking at the renewable power landscape and green economy more broadly. In that case, we do see massive buildout, but it is tailored for offtake to state-related industrials,” says Columbia University’s Young.
She adds that a telephone survey of 1,000 small and medium-sized businesses in Morocco about their perception of the accessibility and affordability of renewable energy yielded surprising results.
“They strongly suggested a lack of support, given that smaller enterprises continue to see power outages and this has in many cases caused damage to their equipment and abilities to stay open and service customers.
“The disconnect between power buildout and industrial advances in a green supply chain and how small and medium firms see power accessibility and reliability is very stark. In a Mena-wide sense, we might start to question how the delivery and transmission of power in an equitable way affects economic growth opportunities overall.”
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Kuwait shows tentative signs of economic development7 August 2026

Kuwait was one of the chief targets of Iranian drone and missile strikes during July, but against the backdrop of regional instability, the Kuwaiti authorities also managed to conclude a series of significant deals during the month. That suggests that, if the US and Iran can come to some sort of agreement to end their conflict, there is the potential for the Kuwaiti economy to diversify and expand in a way that it has, until now, struggled to do.
The sense of nascent progress was bolstered in early August, when a survey of local businesses found that the non-oil sector had returned to growth at the start of the third quarter, having been in a slump since the start of the war. However, the risk of renewed fighting means most observers remain deeply cautious about whether the latest purchasing managers index (PMI) is just a blip, or the start of a longer trend.
Debt deals
The first big deal came on 22 July, when the government sold $6bn-worth of bonds. It was the second debt issuance by the authorities since a long-awaited public debt law was passed by decree last year. The latest package included debt with tenors of three, five and 10 years. In a sign of the turbulent geopolitical environment, the bonds were priced at 70-85 basis points over US Treasuries. Notably higher than the 40-50 basis point spread the government achieved in its bond sale late last year.
The second significant development came just a few days later, with Kuwait Oil Company (KOC) unveiling a $16bn deal with international investors Blackstone, Brookfield and KKR for its crude oil pipeline network. In a similar structure to deals struck in the past by Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco, KOC will lease the country’s domestic and export pipelines to a new joint venture it has set up with the trio of international partners. The Kuwaiti energy company will then lease back the pipelines on an exclusive basis, in return for a volume-based tariff.
KOC will have a 51% stake in the joint venture and – in line with Kuwaiti law – will retain full ownership and operational control of the 320-kilometre network.
It was the largest energy infrastructure deal ever agreed in Kuwait and, according to KOC, the largest foreign direct investment made in the country. The $7.85bn that the three international partners will invest upfront will be used to support KOC parent company Kuwait Petroleum Corporation’s wider capital expenditure plans.
The fact that the country was able to secure the deal at a time when its only existing export route – through the Strait of Hormuz – has been effectively closed off is an important vote of confidence by investors in the country’s longer-term prospects. According to energy consultancy Wood Mackenzie, Kuwait’s crude export volumes had fallen from 1.2 million barrels a day before the year to zero in April.
It was the largest energy infrastructure deal ever agreed in Kuwait and, according to KOC, the largest foreign direct investment made in the country
UK-based Oxford Economics noted that the bond issue and the pipeline deal came at a time when Kuwait “faces elevated fiscal funding needs and remains one of the GCC’s most exposed oil exporters to any disruption in the Strait of Hormuz given its limited alternative export infrastructure”.
Blackstone said it also plans to open an office in Kuwait this year. There was a further show of investor interest in early August, when the Kuwait Investment Authority (KIA) reportedly agreed a $4.25bn, three-year loan from a group of 14 banks. The facility will be used for general corporate purposes, according to Bloomberg.
In a further notable development, Kuwait’s Ministry of Public Works also handed a contract in late July to China State Construction Engineering Corporation (CSCEC) to build the country’s largest wastewater treatment plant. The North Kabd plant will have a capacity of up to 1 million cubic metres a day (cm/d). Kuwaiti water desalination plants have been hit on several occasions by Iranian drones during this year’s war, causing fires and other damage.
Policy reforms
On a smaller level, some notable reforms have been rolled out to try to shape the direction of the non-oil economy too. In late July, the Ministry of Commerce & Industry stopped issuing any more sole-trader or freelance business licences, while a review is carried out into the sector and official oversight is tightened.
The authorities went a step further on 2 August, when a decree was issued to stop businesses offering goods and services without the right sort of licence. Anyone found to be working without the required permit could now face a prison term of up to three years and a fine of up to KD100,000 ($323,000) – or a sum equivalent to the profits generated by the unlicensed activity, whichever is greater.
Some steps have been taken to ease restrictions in other areas. In early August, a change to the visa system was announced that will allow some foreign nationals to convert a visit visa into a regular residency permit in return for a fee of KD150. The measure proved immediately popular, but many applicants had failed to read the small print and, according to local media reports, several hundred were rejected. The scheme is primarily aimed at those seeking to bring their wives or children to Kuwait, as well as humanitarian cases and others with exceptional circumstances.
Economic recovery
The wider economy is showing tentative signs of improvement. The latest PMI survey delivered an unexpectedly strong result, showing that the non-oil private sector returned to growth in July for the first time since the war began.
S&P Global Market Intelligence, which compiles the index, said the resumption of flights at Kuwait International airport had helped to support a rise in output and new orders – the first for five months. That in turn supported greater purchasing and hiring activity by local businesses and took the index up to 50.8 points – just above the 50-point threshold that separates growth from contraction.
Even so, S&P warned that market conditions remain “challenging” while local bank NBK Capital warned in early August that “it remains to be seen how much of this improvement [in the PMI] will be sustained … following the reescalation in US-Iran tensions in the past weeks”.
If the Kuwaiti economy is to make the most of its potential, the country needs the war between Iran and the US to come to a definitive end.
MEED’s September 2026 report on Kuwait also includes:
> BANKING: Necessity is the mother of invention for Kuwaiti lenders
> OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
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Seven opens entertainment complex in Abha7 August 2026
Saudi Entertainment Ventures (Seven) has opened its integrated recreational complex in Abha, the first of 14 entertainment destinations the company plans to develop across the kingdom.
Local contractor Modern Building Leaders (MBL) built the complex under an estimated SR950m ($253m) contract awarded in December 2022. The scheme has a built-up area of more than 70,000 square metres and features go-karting, edutainment, bowling and indoor golf facilities.
Seven is a wholly owned subsidiary of Qiddiya Investment Company. The Abha complex is the first Seven project to be completed, and supports the Public Investment Fund’s strategy to develop the entertainment and sports sector in line with Saudi Vision 2030.
The destination is located within the Abha International airport cluster and connects the airport with the region’s cultural, tourism and entertainment sites. Entertainment experiences at the complex include Formula E Karting alongside Seven-developed concepts such as Kawaken, GolFi, Cyber Bowling and Scene Cinema.
Consultants on the project include Dar Engineering and Lebanon’s Khatib & Alami, with the UK’s Mace International as project management consultant, according to regional projects tracker MEED Projects.
Seven plans to invest SR50bn ($13.3bn) in developing 21 integrated entertainment destinations across 14 cities in the kingdom as Riyadh pursues its strategy to diversify away from hydrocarbons, create jobs and improve quality of life.
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Nine contractors submit bids for Oman flood protection dam7 August 2026

Oman’s Ministry of Agricultural, Fisheries Wealth & Water Resources has received bids from nine contractors for the construction of the Wadi Rijma flood protection dam in Liwa, North Batinah Governorate.
The Wadi Rijma dam project is one of four flood protection dams being planned in the sultanate to intercept floodwaters flowing from the northern Omani mountain range into the coastal plain.
The bids include seven local contractors, one from Turkiye and one from China. The lowest offer of $50.6m was made by Strabag Oman.
The full list of bidders includes:
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- Detonator Engineering ($53.0m)
- AZ Engineers & Partners ($54.3m)
- Eksen Project Construction Tourism & Trade (Turkiye, $58.4m)
- Galfar Engineering & Contracting ($58.7m)
- The Arab Contractors Oman ($59.3m)
- Premier International Projects ($59.4m)
- China International Water & Electric Corporation (China, $60.0m)
- Khimji Ramdas Construction ($62.4m)
MEED reported in March that the ministry had issued the tender for the project, which aims to protect flood-prone areas, reduce risks to life and property, and support groundwater recharge where possible.
The proposed Wadi Rijma dam (R2A) is located between the mountain range to the south and west and the Gulf of Oman to the north and east. The area is characterised by wadis that cut deep valleys before spreading into multiple channels across alluvial fans.
In June 2025, MEED reported that the Islamic Development Bank (ISDB) had extended a $632m loan to the ministry to fund the construction of four major flood protection dams in the sultanate.
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- Wadi Ahin Flood Protection Dam in Saham North
In June, the ministry invited contractors to bid for the construction of the Wadi Al-Khoudh flood protection dam in Wilayat Al-Seeb, Muscat Governorate.
The contract is being tendered under ISDB’s Climate-Resilient Flood Protection Dams Project.
The tender marks the revival of a project that has been on hold since 2019. The project was originally planned by the former Ministry of Regional Municipalities & Water Resources and was previously estimated to be worth about $159m.
The bid submission deadline is 9 August.
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Syria signs 760MW solar power purchase agreements7 August 2026
The Syrian Electricity Company (Sec) has signed power purchase agreements (PPAs) with Saudi Arabia’s Mohammed Ahmed Al-Harfi Company for three solar power projects with a combined generation capacity of 760MW.
The projects will be supported by battery energy storage systems (bess) with a total storage capacity of 1,077MWh and will be located in the Widyan Al-Rabie area of Rif Dimashq.
The PPAs were signed in Damascus on 5 August under the supervision of Saudi Arabia’s Ministry of Energy. According to the ministry, the agreements range from 20 to 25 years and cover the provision of electricity at tariffs starting from $0.03/kWh.
Alongside the PPAs, Al-Harfi signed two technical cooperation agreements.
Saudi Electricity Project Development Company (PDC) will provide engineering and advisory services to support the management and implementation of the solar projects. Germany’s Siemens Energy will provide technical cooperation and expertise covering substations, power generation and bess.
The latest agreements build on a memorandum of understanding signed in February between Syria’s former General Establishment for Electricity Transmission and Distribution and Al-Harfi to develop a 210MW solar project supported by an 827MWh bess.
The projects are among the first major investments signed by Sec since it was established in April following a restructuring of Syria’s electricity sector. The new state-owned utility replaced the former Public Establishment for Generation and the Public Establishment for Transmission and Distribution of Electricity and assumed their assets, contracts and obligations.
Separately, in a LinkedIn post published on 6 August, Acwa vice-chairman and managing director Raad Al-Saady said he had accompanied the Saudi Ministry of Energy on a visit to Damascus to sign agreements and discuss existing and potential energy projects in Syria.
He said he represented Acwa and the infrastructure committee of the Saudi Syrian Business Council during the visit.
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Lowest bidder emerges for Dewa Solar Park phase seven7 August 2026

Abu Dhabi Future Energy Company (Masdar) is likely to be awarded the contract to develop the seventh phase of the Mohammed Bin Rashid Al-Maktoum Solar Park after submitting the lowest bid for the project, sources have told MEED.
Dubai Electricity & Water Authority (Dewa) received bids on 1 July, as previously reported by MEED.
According to a source, China’s BYD will act as battery energy storage system (bess) supplier for the project, while another Chinese firm, Gotion, is also understood to be in the running to supply battery storage technology.
Phase seven will add 2,000MW from photovoltaic (PV) solar panels and include a 1,400MW bess with a six-hour capacity, providing a total storage capacity of 8,400 megawatt-hours.
Technical and financial offers were opened last month after developers including Saudi Arabia’s Acwa, the UAE’s Etihad Water & Electricity and Masdar submitted bids for the project.
Dewa completed the prequalification process for the latest phase of the world’s largest single-site solar park in 2025.
As previously reported, 47 firms submitted their responses to Dewa’s expression of interest request for the contract in March 2025. The main tender was issued last November.
The transaction advisory team for the project comprises UK-headquartered Deloitte and US-based CMS and Sargent & Lundy as financial, legal and technical advisers, with Deloitte acting as lead adviser.
Dewa phase six
Masdar is also expected to commission the 1,800MW sixth phase of the MBR Solar Park in the third quarter of this year.
The $1.5bn facility is being implemented by Shuaa Energy 4, a special purpose vehicle jointly owned by Masdar (40%) and Dewa (60%). It is understood that the winning bidder for Dewa 7 will enter into a similar partnership.
The companies reached financial close on the sixth phase in 2024.
India’s Larsen & Toubro (L&T) has been working as the main engineering, procurement and construction (EPC) contractor. The firm is also working with Masdar on Abu Dhabi’s round-the-clock 5.2GW solar PV plus bess project that reached financial close last month.
Also in July, a Masdar-led consortium emerged as the frontrunner for a contract to develop Kuwait’s first utility-scale solar PV plant.
Once completed, the sixth phase will increase the solar park’s total production capacity to 4,660MW. Dewa increased its flagship solar project’s 2030 installed capacity target last year by 45%, from 5,000MW to 7,260MW. This comprises a total investment of AED50bn ($13.6bn).
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
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