meed-logo

line1 line2 line3
SIGN IN / REGISTER

Mena pushes for nuclear future

2 August 2023

 

The Middle East and North Africa (Mena) region is set to register a rise of at least 30 per cent in power generation capacity by 2030 due to population growth and industrial expansion.

The rapid increase requires a strategy to advance energy security while reducing carbon emissions and fossil-fuel dependence, creating strong interest in nuclear power and renewable energy.

Iran has a 1GW nuclear plant in Bushehr and construction is under way for a second 300MW reactor in Khuzestan.

In the UAE, three of the four 1.4GW reactors at the GCC region’s first multi-unit nuclear power plant in Barakah, Abu Dhabi, are now connected to the electricity grid.

Egypt, in partnership with Russia’s Rosatom, is building its first nuclear power plant in El-Debaa.

Riyadh, meanwhile, tendered the contract to build its first large-scale power plant in Duwaiheen last year.

Beyond the GCC, Jordan has announced the production of 20 kilograms of yellowcake from 160 tonnes of uranium ore at a newly operational processing facility, while Morocco has completed a study supporting a plan to go nuclear.

Alternative base load

Apart from Saudi Arabia, these countries have significant renewable capacity as of 2023. All aim for renewables to account for up to half of installed capacity by the end of the decade.

Nuclear is seen as an alternative base load to thermal capacity to counter the intermittency of renewables in the absence of viable storage solutions. This has helped build the case for adding nuclear to the energy mix – although, in the UAE, the Barakah plant predated the renewable energy programme.

The decarbonisation potential of nuclear may be overstated, however, says a leading regional expert on utility projects.

“We should use all available clean-carbon solutions to decarbonise all industrial and human consumption and endeavour,” says Paddy Padmanathan, former CEO of Saudi utility Acwa Power. “Clearly we need to decarbonise as soon as possible.”

The rate at which the residual carbon budget is being consumed implies that even zero emissions by 2050 will not be sufficient, according to the executive. This begs the question: Which technologies will deliver solutions at scale to quickly achieve decarbonisation.

Nuclear power plants, which – with the exception of Abu Dhabi’s Barakah – have struggled to be delivered on time and within budget, may not be a viable solution, says Padmanathan, who now sits on the board of the UK energy startup Xlinks and green hydrogen firm Zhero.

He says nuclear power plants outside China have taken twice as long to build than planned and have typically cost more than twice their budget. Such capital expenditure and long construction times mean nuclear may only make sense if you have lots of spare cash, he adds.

Hence it is unwise to factor in nuclear to plans to decarbonise power generation by 2050, Padmanathan argues. “We already have much – if not all – the technologies to get the job done,” he notes, referring to renewable energy and battery storage solutions, among others. 

He continues: “One cannot bank on such a rare outlier as Barakah, which got completed with only a marginal increase in cost and time, and rely on nuclear to deliver any meaningful level of flexible base load.”

Saudi programme

Budget availability and the urgency of decarbonisation aside, other factors complicate nuclear projects in the region, particularly in Saudi Arabia.

The kingdom’s nuclear energy programme dates back to 2010 with the creation of King Abdullah City for Atomic & Renewable Energy (KA-Care). In 2021, KA-Care invited consultancy bids for its first large-scale nuclear power project in Duwaiheen, close to the Qatar border. It awarded the financial, legal and technical advisory services contracts last year.

In October 2022, Riyadh issued the request for proposals for the main contract to Russian, South Korean, Chinese and French firms.

Earlier this year, it formed the Saudi Nuclear Energy Holding Company, which plans to develop nuclear power plants as early as 2027 to produce electricity and to desalinate seawater, as well as for thermal energy applications. 

Most recently, the state offtaker Saudi Power Procurement Company floated a tender for advisers to help prepare and review project agreements related to the procurement of electricity from Saudi’s first nuclear power plant, raising further speculation about the nuclear project.

The Saudi programme, particularly the kingdom’s plans to mine uranium as part of its economic and industrial strategy, is a thorn in Washington’s side. It is understood to have been a key theme in discussions when US President Joe Biden visited Riyadh last year.

Washington is wary of the nuclear power plant contract being awarded to Chinese or Russian contractors, not only because this could drive Riyadh closer to geopolitical rivals of the US, but also because it weakens US demands for Riyadh to abandon its nuclear fuel cycle ambitions before signing any bilateral nuclear cooperation agreement (NCA), otherwise known in Washington as a 123 agreement.

Uranium has to be enriched to up to 5 per cent for use in nuclear power plants and to 90 per cent to become weapons-grade. According to an Energy Intelligence report, the stalemate between Washington and Riyadh centres around US demands for Saudi Arabia to commit to the NCA and not pursue a domestic uranium enrichment or reprocessing programme.

The US also wants the kingdom to sign and ratify the International Atomic Energy Agency’s (IAEA) Additional Protocol, allowing nuclear inspectors fuller access to Saudi Arabia’s nuclear programme.

The report alludes to the US supporting South Korean contractor Kepco’s bid to develop the nuclear plant because it provides Washington with a final lever for pressuring Riyadh to accept its conditions for the 123 agreement and IAEA protocol.

Done deal

Biden’s visit did not produce material results, although unconfirmed reports say he may have given his blessing to the project, while others argue Riyadh did not need it.

“I think, in the end, this is a done deal, meaning that Saudi Arabia will pursue a nuclear energy programme,” says Karen Young, a senior research scholar at the Centre on Global Energy Policy at Columbia University in the US.

“They will pursue domestic uranium mining and likely enrichment, and we will see a more global ramp-up of nuclear energy use – and also, over time, possibly areas of proliferation in security uses not just in the Mena region, but across a wide geography.”

The US can either take solace from the fact that it takes time to develop a nuclear project, or it can – if it is not too late – revisit its relationship with Saudi Arabia, especially in the wake of a rapprochement between Tehran and Riyadh under a deal brokered by China.

“Moving into design and procurement phases … whether with Russian, Chinese or South Korean [firms] … heightens already sensitive notions of strategic competition in the Gulf, as the US understands it,” notes Young.

In hindsight, it appears the US government has under-appreciated the seriousness of the Saudi plan or the importance of localised industry and mining as a domestic economic and security interest.

“Saudi Arabia sees an opportunity to play the US against its other options, so this is a unique moment of bargaining in which the nuclear file can be traded against broader foreign policy priorities for the Saudi leadership,” Young says.

Russian conundrum

The Barakah nuclear process, which entailed Abu Dhabi signing a 123 agreement with Washington, is seen as a gold standard. Emirates Nuclear Energy Company (Enec) signed supply contracts with France’s Areva and Russia’s Tenex for the supply of uranium concentrates and for the provision of conversion and enrichment services.

It then contracted Uranium One, part of Russia’s Rosatom, and UK-headquartered Rio Tinto for the supply of natural uranium for the plant. US-based ConverDyn provided conversion services, while British firm Urenco provided enrichment services.

The enriched uranium was supplied to Kepco Nuclear Fuels to manufacture the fuel assemblies for use at the Barakah nuclear power plant.

Fuel supply, processing, removal and storage are now complicated by Russia’s conflict and its global reputation, notes Young. The reference to Russia is important, given that Iran has provided drones to the country for use in its war with Ukraine, in exchange for the sale of advanced military equipment and cyber warfare. This is seen as a direct threat to Opec ally Riyadh.

The Tehran-Riyadh rapprochement only makes sense from a viewpoint where a dead Iran nuclear deal could expedite the Islamic Republic’s plan to build a bomb, potentially leading to a nuclear arms raise in the region, which everyone – particularly the two countries’ biggest client, China – would rather avoid.

Despite these complexities, the regional and global push to build nuclear capacity following the invasion of Ukraine and the threat to global gas supplies does not appear to be slowing.

The UAE, for instance, has partnered with the US to mobilise $100bn to support clean energy projects at home and abroad, and has pledged $30bn for energy cooperation with South Korea. Both these commitments involve significant investments in renewable and civilian nuclear energy projects.

This suggests that nuclear as a clean energy option is here to stay, despite mounting costs and geopolitical risks

Unfortunately, however, in a region marked by perennial instability, there are few incentives for the involved countries to be more transparent about their programmes.

While the evolving rapprochement between countries that have previously considered each other existential threats might not eliminate the spectre of a nuclear arms race, it can defuse tensions in the interim while helping push decarbonisation agendas.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11013559/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Contractor appointed for Oman power plants

    13 May 2026

     

    A consortium of China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility has been appointed as the main contractor on the Misfah and Duqm combined-cycle gas turbine power plants in Oman.

    The contracts cover the construction of two independent power producer (IPP) projects, with work scheduled to begin in the third quarter of 2026.

    State offtaker Nama Power & Water Procurement (Nama PWP) had previously signed power-purchase agreements (PPAs) for the development and operation of the plants.

    The developer’s contract was awarded to a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.

    The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate, with a planned capacity of 1,600MW.

    The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate, with a capacity of 800MW.

    According to Nama PWP, the total investment for the two projects is estimated at approximately RO1bn ($2.6bn).

    MEED reported last October that Nama PWP had received three bids for the development and operation of the gas-fired IPPs.

    The other bids included a consortium comprising China’s Shenzhen Energy Group and Oman National Engineering & Investment Company, and a lone bid from Saudi Arabia’s Acwa Power.

    Synergy Consulting is the financial adviser and lead adviser to Nama PWP for these projects.

    In November, Oman’s OQ Gas Networks received final investment approval to proceed with gas supply connections for the facilities.

    The Misfah IPP will receive 8.5 million cubic metres a day (cm/d) of natural gas. The Duqm IPP will be supplied with 4.5 million cm/d of natural gas.

    In March 2025, the same Sepco 3 and Doosan Enerbility consortium signed an engineering, procurement and construction contract with Saudi Electricity Company for the expansion of the Riyadh Power Plant 12 (PP12).

    Located about 150 kilometres northwest of Riyadh, the 1,863MW power plant is expected to be completed in 2028.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16816237/main.jpg
    Mark Dowdall
  • Financial challenge tests Iraq’s resolve

    13 May 2026

     

    On 21 April, as a fragile ceasefire held between the US and Iran, the Trump administration halted a $500m shipment in cash headed for Iraq, as it sought to clamp down on Iranian-backed Shia militias in the country. 

    That cash, derived from Iraqi oil exports and routed via the US Federal Reserve to the Central Bank of Iraq (CBI), is a vital cog in Iraq’s financial arteries, enabling it to cover foreign exchange demand.

    This was not the first time that Iraq’s financial system has felt the US’s warm breath on its neck.

    Back in February 2025, the US Treasury Department blacklisted five Iraqi banks from participating in dollar transactions, citing concerns about their role in illicit financial flows that benefited Iran’s Islamic Revolutionary Guards Corps.

    Iraq has also itself often circumscribed dollar use within its own financial system.

    In July 2023, the CBI banned 14 banks from conducting dollar transactions in a crackdown on dollar smuggling. In February 2024, it banned a further eight banks from dollar transactions as part of a crackdown on fraud and money laundering.

    Dollar pressure

    The recent halt in US dollar cash shipments has nevertheless added pressure to Iraq’s parallel currency market gap, says Lucila Bonilla, lead emerging market economist at Oxford Economics.  

    “The gap between the parallel exchange rate has widened noticeably against the official peg, to around 20%,” she says.

    “Dollar demand has risen as citizens and traders seek to hedge uncertainty – dollar deposits are up, and there are reports of a notable shift in the composition of cash holdings toward dollars.”

    Ratings agencies see the US move on Iraqi dollar use as a challenge, but one that might not prove too onerous.

    “Iraq can overcome a short-term war as it has $100bn of reserves and its debt profile is bearable,” says Gilbert Hobeika, a director at Fitch Ratings.

    “But a longer-term conflict will hurt Iraq as the economy is reliant on oil revenues and government involvement, while facing at the same time risk from the US stopping delivery of US dollars.”

    How persistent the pressure proves will depend largely on the duration of the Hormuz shock and how the relationship with the US evolves.

    “Forming a new government that is palatable to the US could ease the pressure, though Iraq’s protracted government formation process adds uncertainty to that timeline,” says Bonilla.

    The US-Iran war is putting even more pressure on banks.

    “There are uncertainties with regard to depositors,” says Hobeika. “The public sector banks have weak management and governance structures. Financial reporting is weak, and that puts pressure on asset quality and capitalisation.”

    If the conflict lasts a long time, the government will start withdrawing funds to pay salaries and contractors.

    “That will affect deposits at the public sector banks in the near term,” says Hobeika.

    State-heavy system

    Iraq’s banking system is dominated by a handful of state-owned banks with a market share of 75%-80%, and then 60-plus private banks competing for the remaining 20%-25% of the pie. 

    “Private banks have struggled to compete in a market with limited opportunities, small deposit bases and a narrow range of products, often focusing on very basic activities,” says Lea Hanna, an analyst at Moody’s.

    “In 2019, we had a wave of Islamic banks getting bans on dealing with US dollars – reducing what had been a primary source of business.”

    A few private banks have benefitted since then, namely those with majority ownership by foreign banks such as National Bank of Iraq, a subsidiary of Capital Bank of Jordan, and Bank of Baghdad, a subsidiary of Jordan Kuwait Bank.

    “Supported by their affiliates, these banks are relatively well run compared to domestic peers and have ample capital buffers,” says Hanna.

    “They have captured a large market share of US dollar transfers thanks to their strong US correspondent banking relationships that allow them easier access to US dollars. They have seen a surge in their profitability and an increase in their deposit base.”

    Financial reform

    The CBI has attempted to introduce reforms to the banking system, as part of a wider effort to enable it to channel funding to the private sector.

    In early 2025, it increased the minimum issued and paid-up capital requirement to ID400bn ($305m), along with a requirement to establish correspondent banking relationships for foreign-currency trading. The plan was to increase these in ID50bn increments every six months, to hasten sector consolidation.

    However, of Fitch’s rated banks, just two – state-owned Trade Bank of Iraq and Mansour Bank, a subsidiary of Qatar National Bank – met the full capital requirement.

    “While a lot of banks managed to increase their capital, a number of them didn’t and have been struggling to improve their systems and compliance with anti-terrorism and anti-money laundering regulations,” says Hobeika.

    “These systems take a long time to improve, and it costs the banks too. For that reason, they have agreed with the central bank to postpone implementation to 2027/28.”

    The expectation is that the number of private Iraqi banks will shrink from 60 to about half that number by 2028.

    “Iraq’s banking sector is undergoing a significant overhaul, with the Central Bank pushing through higher capital requirements, improved anti-money-laundering compliance, and a shift towards commercial banks managing their own international correspondent relationships. These moves are welcomed,” says Bonilla.

    But the harder work remains, argues Bonilla: state-owned banks still carry high levels of non-performing loans, weak governance and a history of politically directed lending, while private sector credit remains among the lowest in the region.

    “The stakes are high as the IMF estimates that a comprehensive reform of the financial sector, alongside broader governance and regulatory changes, could double Iraq’s non-oil growth potential over the medium term, adding around 4 percentage points to GDP,” says Bonilla.

    “For now, the reforms address the plumbing. The structural transformation of a banking system to serve the private sector is still largely ahead.”

    Clouded outlook

    So far, Iraq’s financial system seems to have averted a worst-case scenario of large-scale deposit withdrawals related to the Iran conflict.

    Any deposit withdrawals seem to be more related to the introduction of a digital custom system ASYCUDA (Automated System for Customs Data) aimed at helping the government collect revenues, which saw a lot of traders trying to bypass the custom charges.

    “This drove some exporters or traders to source US dollars outside the banking system, in the parallel market, to avoid stricter requirements and up-front payment of customs duties. That has now eased,” says Hanna.

    Looking ahead, Fitch anticipates that most government financing is likely to come from the CBI through indirect purchases of government securities.

    The central bank’s total claims on the central government represented about 52% of the domestic debt stock and 25% of the total debt stock at end-2024, notes the agency.

    It envisages that a smaller portion will come from the government’s cash deposits, anticipated to fall to an average 12% by 2027.

    Fitch says the CBI’s balance sheet limits refinancing risks, while the FX reserves are large enough to absorb the expansion of that balance sheet without putting pressure on the exchange-rate peg with the US dollar.

    Surging foreign direct investment comes as a source of comfort, with annual inflows rising from around $2bn in 2022 to $5bn-$7bn from 2023 onwards. 

    Reform of the financial system will remain at the top of the new government’s in-tray.

    The regional environment is unconducive to this mammoth task, and it can only hope that an end to the conflict would support ongoing Iraqi efforts to build a financial system comparable to that of some of its Gulf neighbours.

    MEED’s June 2026 report on Iraq also includes:

    > OVERVIEW: Iraq enters era of resilience, reform and rising risks
    > OIL & GAS: Iraqi oil and gas sector in crisis
    > POWER & WATER: Focus shifts to delivery of Iraq utilities expansion
    > CONSTRUCTION: Momentum builds in Iraq’s post-war construction sector

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16799540/main.gif
    James Gavin
  • JinkoSolar signs 2GW deal for Abu Dhabi solar project

    13 May 2026

    China’s JinkoSolar has signed an agreement with Abu Dhabi Future Energy Company (Masdar) to supply 2GW of photovoltaic (PV) modules for the round-the-clock renewable energy project in Abu Dhabi.

    The agreement covers the supply of JinkoSolar’s Tiger Neo series modules for the project, which is being developed by Masdar in collaboration with Emirates Water & Electricity Company (Ewec).

    The landmark $6bn project combines a 5.2GW solar PV plant with a 19 gigawatt-hour battery energy storage system (bess).

    It entered construction in October 2025 with India’s Larsen & Toubro and Power China working as contractors. It is known as the world’s first gigascale round-the-clock renewable energy project.

    Masdar had earlier selected JinkoSolar and JA Solar as preferred suppliers for solar PV modules, and CATL (Contemporary Amperex Technology) as preferred supplier for the bess segment.

    The project is designed to provide baseload renewable power and address intermittency challenges associated with solar generation. The developers said the scheme will serve as a model for similar projects internationally.

    JinkoSolar said the Tiger Neo modules supplied for the project are based on N-type TOPCon technology and have been adapted to meet the technical requirements of the development.

    Senior executives from both companies attended the signing ceremony in Abu Dhabi, including Mohamed Jameel Al-Ramahi, CEO of Masdar, and Charlie Cao, CEO of JinkoSolar.

    Jinko has won several major contracts in recent years, including a contract to supply solar PV modules with a capacity of 3GW for Saudi Arabia’s Haden and Al-Khushaybi solar projects.

    It also recently announced the signing of a 2GW solar PV module supply agreement with China Energy Engineering Corporation (CEEC) for Saudi Arabia’s Phase Six Khurais PV project.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16813268/main1816.jpg
    Mark Dowdall
  • Dubai opens prequalification for Jebel Ali STP expansion

    13 May 2026

     

    Dubai Municipality has issued a request for qualifications for the Jebel Ali sewerage treatment plant (STP) expansion – phase 3 project.

    The DS150/3 project will be delivered under a public-private partnership (PPP) model on a design, build, finance, own, operate and transfer basis.

    The project involves the development of a new water resource recovery facility with an ultimate treatment capacity of up to 1 million cubic metres a day (cm/d).

    It is being procured through Dubai Municipality’s Sewerage and Recycled Water Projects Department and will be delivered through a two-stage operational approach over a 30-year concession period.

    The bid submission deadline is 18 June.

    UK-headquartered Deloitte is acting as financial adviser, Aecom as technical adviser and CMS as legal adviser.

    Dubai Municipality said the project will also include additional land uses and community-focused amenities as part of broader sustainability and urban integration objectives.

    Phase one and two expansion

    In April, the deadline was extended for contractors to submit bids for an engineering, procurement and construction (EPC) contract covering the expansion of the Jebel Ali STP phases one and two.

    Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.

    The upgraded facility will be capable of treating an additional sewage flow of 100,000 cm/d, with the expansion estimated to cost $300m.

    The new bid submission deadline is 11 June.

    UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16812872/main.jpg
    Mark Dowdall
  • Iraq LNG project delayed until next year

    13 May 2026

    Register for MEED’s 14-day trial access 

    Iraq’s first liquefied natural gas (LNG) import terminal, which has an estimated project value of $450m, is now expected to become operational in 2027 due to delays caused by the regional war and disruption to shipping through the Strait of Hormuz.

    Work on jetty reinforcement and fixed terminal infrastructure at the Port of Khor Al-Zubair has been delayed, according to a statement from US-based Excelerate Energy, which is contracted to develop the facility.

    In its statement, the company said: “We are revising our full-year guidance to reflect the delayed startup of our Iraq terminal due to the ongoing conflict in the Middle East.”

    It added: “The Iraq project fundamentals remain unchanged. Looking ahead, we continue to have confidence in our sequenced earnings growth through 2028.”

    In October 2025, Excelerate signed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the development of the country’s first LNG import terminal.

    The integrated project includes a five-year agreement for regasification services and LNG supply, with extension options, and a minimum contracted offtake of 250 million standard cubic feet a day (cf/d).

    Excelerate said: “Jetty reinforcement and construction of the fixed terminal infrastructure have been delayed temporarily due to the conflict in the Middle East and the terminal is no longer expected to commence operations in the third quarter of 2026 as previously disclosed.

    “Project startup is now expected in 2027. The long-term fundamentals supporting the project remain unchanged, driven by chronic power shortages and limited domestic gas processing capacity in Iraq.

    “Current conditions further reinforce the country’s need for reliable and scalable LNG import infrastructure and construction will resume as conditions allow.”

    Earlier this year, Iraq’s Ministry of Electricity said that the terminal was on track to come online on 1 June, ahead of expected gas shortages during the summer months.

    Then, in late April, the ministry said the project had been delayed by several months and was expected to come online in August at the earliest.

    Although Iraq is Opec’s second-largest oil producer after Saudi Arabia, it is a net natural gas importer because its lack of infrastructure investment has meant that, until 2023, it flared roughly half of the estimated 3.12 billion cf/d of gas produced in association with crude oil.

    Iraq’s reliance on flaring associated gas instead of gathering and processing it has prevented the country from fully realising its potential as a gas producer and forced the Iraqi government to rely on costly gas and electricity imports from Iran.

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

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16803348/main.jpg
    Wil Crisp