meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/13145640/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Abu Dhabi mends fences with Riyadh

    9 October 2026

     

    Ongoing political turmoil in the region may be prompting Abu Dhabi to review its approach to key diplomatic issues, not least its relations with its larger neighbour, Saudi Arabia.

    In late September, UAE Vice-President Sheikh Mansour Bin Zayed Al-Nahyan travelled to Riyadh for talks with Crown Prince Mohammed Bin Salman and Defence Minister Prince Khalid Bin Salman. Such visits may have been commonplace in the past, but over the past year they have been relatively rare, given the friction between the two Gulf powers over issues such as the conflict zones of Yemen and Sudan, relations with Israel and economic rivalry.

    At the start of the year, the UAE retreated from Yemen under pressure from Riyadh, after the UAE-backed Southern Transitional Council made rapid territorial gains at the expense of Saudi-backed groups and advanced close to the kingdom’s southern border.

    Since then, against the backdrop of the Iran war, relations have shown further signs of strain, with cross-border financial transactions reportedly being blocked or delayed.

    However, there have been intermittent attempts to present a more collegial relationship, such as in July, when a photo emerged on social media of Sheikh Mansour and Prince Khalid posing with their arms around each other, reportedly while on holiday in Europe.

    Yemen dynamics

    Gains by another group in Yemen may lie behind the latest rapprochement between Riyadh and Abu Dhabi. The visit by Sheikh Mansour on 29 September came in the wake of significant advances by the Houthis, who had recently captured Mokha port and strategically significant areas of land overlooking the Bab El-Mandeb Strait – heightening their ability to menace passing ships.

    Saudi Arabia has been leaning on its allies – particularly Pakistan and Turkiye – to support its campaign against the Houthis. It is unclear whether the UAE would be willing to get involved militarily in Yemen again, or whether Riyadh would be happy for it to do so, but it could still be a useful ally in the fight. Analysts have noted that UAE-backed forces have, over the years, had a far greater record than anyone else of scoring battleground victories against the Houthis.

    It is also notable that Mansour’s delegation to Riyadh included several senior security officials, including Ali Bin Hammad Al-Shamsi, secretary general of the Supreme Council for National Security; Ali Saeed Matar Al-Neyadi, chairman of the National Emergency, Crisis and Disaster Management Authority; and Nasser Humaid Al-Nuaimi, secretary general of the Tawazun Council for Defence Enablement.

    The visit was a surprise, given the GCC states’ lack of unified action this year amid the crises in Yemen and Iran. Speaking at an event in Washington in mid-September, Bernard Haykel, professor of Near Eastern Studies at Princeton University, noted that: “Despite the fact that [the GCC states] all face a common threat in Iran and its proxies, you still don’t see real coordination between them. You still have these differences between the Saudis and the UAE, for instance; you have differences between the Qataris and the UAE. If anything would have united them, this would be it. And you don’t see that kind of unity.”

    Writing for the Arab Gulf States Institute in early October, Kristian Coates Ulrichsen, a Baker Institute fellow for the Middle East at Rice University, said Mansour’s visit to Riyadh in late September was “likely meant to signal that the thaw [in bilateral relations] was real” and “designed to enable a more coordinated approach to managing the forces ranged against the Houthis in southern and central Yemen”.

    Further signs of warming ties came on 8 October, when UAE Investment Minister Mohamed Hassan Alsuwaidi signed a memorandum of understanding with Saudi Industry and Mineral Resources Minister Prince Abdulaziz Bin Salman covering power grid interconnections, trade in electricity and freight rail connectivity.

    On the same day, the Saudi ambassador to the UAE invited President Sheikh Mohamed Bin Zayed Al-Nahyan to attend a GCC-EU Summit in Saudi Arabia later in the month.

    Sheikh Mansour was not the only senior Emirati on diplomatic manoeuvres in recent weeks. The day after the vice-president was in Riyadh, national security adviser Sheikh Tahnoun Bin Zayed Al-Nahyan was in Muscat for talks with Sultan Haitham Bin Tariq Al-Said.

    Oman is a critical partner for the UAE in several areas. Omani ports have provided a trade lifeline for Emirati importers and exporters at a time when ports in Dubai and Abu Dhabi have been sidelined by Iran’s threats against shipping through the Strait of Hormuz. Muscat’s approach of maintaining dialogue with all actors means it is also able to mediate with both Iran and Yemen’s Houthis.

    Strategic independence

    The flurry of diplomatic activity may be a sign of closer coordination between the UAE and its neighbours on some critical issues, but that does not necessarily herald a sea change in its approach.

    Speaking at the UN General Assembly in New York on 28 September, Minister of State Khalifa Shaheen Al-Marar reviewed the crises in Iran, Sudan, Gaza, Ukraine and elsewhere and said “the importance of developing and reforming regional and international multilateral institutions … remains paramount” – but while he name-checked the UN, he did not mention the GCC.

    It is also notable that the UAE has not yet joined either of the two security initiatives launched by Saudi Arabia during the summer: a maritime defence alliance designed to protect shipping in the Red Sea, or a mutual defence pact that Riyadh signed with Turkiye and Pakistan.

    In his speech to the UN, Al-Marar listed what he saw as the main pillars of the UAE’s national strength: “strategic independence” was the first item in his list.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20432716/main.gif
    Dominic Dudley
  • Adnoc secures Thailand LNG supply deal

    9 October 2026

    Abu Dhabi National Oil Company (Adnoc) has secured a deal with Thailand-based energy and infrastructure company Gulf Group to supply 2 million tonnes a year of liquefied natural gas (LNG), with deliveries starting in 2027.

    The multi-year sale and purchase agreement (SPA), whose exact duration Adnoc did not disclose, builds on an initial LNG supply deal agreed between the two companies last year. The transaction was arranged through Adnoc’s integrated LNG marketing and trading platform, which was established in July within Abu Dhabi Global Market.

    The hub integrates the marketing operations of Adnoc subsidiaries Adnoc Gas and XRG with the trading activities of Adnoc Trading. It targets a combined portfolio of 47 million t/y of marketable LNG by 2035. Adnoc Trading has developed an active third-party trading portfolio over the past four years, operating from commercial offices in Abu Dhabi, Singapore and Geneva.

    ALSO READ: Adnoc signs energy agreements with Japan and South Korea

    Separately, Adnoc has secured offtake commitments covering approximately 90% of the 9.6 million-t/y capacity planned for its low-carbon Ruwais LNG project.

    In July, Adnoc signed a 15-year SPA with Japan’s Inpex Corporation for the supply of up to 1 million t/y from Ruwais. That contract marked Adnoc’s third long-term Ruwais supply agreement with a Japanese buyer, following deals with Osaka Gas and Mitsui & Co in March and April 2025, respectively. Together, the agreements with the three Japanese firms account for 2.4 million t/y – one-quarter of the terminal’s total capacity, which will be delivered across two 4.8 million-t/y liquefaction trains.

    Adnoc has also secured long-term Ruwais LNG supply agreements with Malaysia’s Petronas, Germany’s EnBW Energie Baden-Wurttemberg and SEFE (Securing Energy for Europe), China’s ENN Natural Gas, UK-based Shell and Indian Oil Corporation.

    Currently under construction in Ruwais Industrial City, Abu Dhabi, the facility is scheduled to begin commercial operations in 2028. Its commissioning will more than double Adnoc’s LNG production capacity to approximately 15 million t/y.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20421415/main4048.jpg
    Indrajit Sen
  • Fibrex wins $217m Abu Dhabi Seamont residences contract

    9 October 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi-based contractor Fibrex Construction Group has won an AED800m ($217m) contract to build the Seamont Autograph Collection Residences project, located on Al-Reem Island in the UAE capital.

    Abu Dhabi-based real estate developer Royal Development Holding, a subsidiary of Emirates Stallion Group, and local firm Saas Properties awarded the contract.

    The development comprises two 22-storey towers offering 497 residences, ranging from one- to four-bedroom apartments.

    The construction programme is scheduled to run for 27 months, with completion due in December 2028.

    Fibrex will begin mobilisation immediately, following the completion of enabling works this month, which were undertaken by Sharjah-based Swiss Pro Foundations.

    Dubai-based architectural firm Dewan Architects & Engineers is the project consultant.

    The contract marks another major win for the contractor. Last year, Dubai-based developer Nakheel awarded Fibrex a AED2.6bn ($708m) contract to build the Bay Villas project at Dubai Islands.

    That contract includes the construction of 636 villas.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20420509/main.jpg
    Yasir Iqbal
  • Dubai picks contractor for Al-Maktoum airport terminal

    9 October 2026

     

    Dubai Aviation Engineering Projects (DAEP) has selected a contractor for an estimated AED10bn ($2.7bn) substructure package for the West Terminal, as part of the first phase of the $35bn expansion of Al-Maktoum International airport.

    A joint venture of Beijing-headquartered China Civil Engineering Construction Corporation (CCECC) and Abu Dhabi-based Tristar Engineering & Construction will execute the contract.

    According to a description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level facility spanning 800,000 square metres, with annual capacity for 45 million passengers.

    The terminal will be the second of three planned terminals at Al-Maktoum International airport. It will connect to the airside via a 14-station automated people-mover (APM) system.

    In July, MEED exclusively reported that DAEP had awarded an estimated $1.5bn contract to a joint venture of Japan’s Mitsubishi Corporation and Indian contractor Larsen & Toubro for the APM system.

    The APM will run beneath the apron and terminal areas, using multiple tracks to transport passengers between terminals and concourses. Four underground stations are planned in the first phase, while the full airport development is expected to include 14 stations.

    The latest awards form part of a wider programme of contracts recently signed by DAEP, covering enabling works, the second runway, initial structural foundations for passenger terminals and concourse substructures.

    Upcoming awards

    In June 2026, DAEP said it will award construction contracts worth over AED55bn ($15bn) for Al-Maktoum International airport by the end of the year.

    At the time, DAEP said the planned awards included substructure works for the West Terminal, the fourth aircraft concourse and the baggage-handling system. The programme also included superstructure works for the West Terminal and the first, second and third aircraft concourses.

    The packages are expected to include long-span structural frameworks for buildings covering about 1.5 million square metres, infrastructure works for the southern airfield area, and power-generation and district-cooling plants supporting the construction programme.

    DAEP also plans to award façade and roofing packages in 2026.

    The Dubai Government approved updated designs and timelines for its largest construction project in April 2024. In September 2024, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as lead masterplanning and design consultants for the Al-Maktoum International airport expansion.

    Construction of the airport is planned in three phases. Once complete, the airport will cover 70 square kilometres south of Dubai and include five parallel runways and 430 aircraft gates.

    It will be five times the size of Dubai International airport and is planned to have a passenger-handling capacity of 260 million passengers a year – the largest in the world. For cargo, it is planned to have the capacity to handle 12 million tonnes a year.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20417755/main.jpg
    Yasir Iqbal
  • Nakheel awards Dubai Islands marine works contract

    9 October 2026

    Dubai-based developer Nakheel, part of Dubai Holding Real Estate, has awarded local firm Mar Marine & Building Contracting a contract for marine and beach works on Island B at Dubai Islands.

    The scope includes constructing breakwaters, removing existing rock revetments and forming a new 320-metre beach near the Bay Villas development.

    The contractor will also refurbish existing beach areas and undertake remedial works along approximately 3 kilometres of the island’s western shoreline.

    The works are scheduled for completion in the fourth quarter of 2027.

    The package supports the Bay Villas project, which comprises 636 villas and townhouses on Island B. Nakheel awarded Fibrex Contracting an AED2.6bn ($708m) construction contract for the residential development in August 2025.

    The marine works award follows Nakheel’s AED527m primary infrastructure and utilities contract for Island B, which was awarded to Al-Nasr Contracting Company in April 2026.

    In September, Nakheel awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands. The contract was awarded to local firm Metac General Contracting Company.

    The contract covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings. Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20418469/main.jpg
    Yasir Iqbal