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
  • Caution governs Jordanian bank lending

    12 June 2026

     

    In a region where geopolitical turbulence has amplified by an order of magnitude, Jordan is managing to stand out as a beacon of relative stability, with the Hashemite kingdom’s banking sector acting as a case in point.

    Lending has grown in recent years, with credit up by an average 4.9% between 2020 and 2025, according to the Central Bank of Jordan (CBJ) – a faster rate than average nominal GDP growth of 2.3% over the same period.

    The IMF took care to note an increase in credit to the private sector in its latest Article IV assessment of Jordan, standing at 80.1% of GDP at end-2024, compared to just 66.6% 10 years earlier.

    Banks in the kingdom ended 2025 in a liquid state, but caution remains the watchword for local lenders. The loan-to-deposit relationship bears that out. For that year, deposits ended up 7.1% to JD50bn ($70.5bn), while credit facilities were up just 3.7% to JD36.1bn ($50.9bn).

    Analysts see this as a case of Jordanian banks being prudent, given the tricky operating environment and limited lending opportunities, rather than banks being excessively defensive. 

    According to Christos Theofilou, an analyst at Moody’s Investors Service, it is cautious lending in fraught macroeconomic conditions.

    “On the one hand, we’ve seen a structurally strong and stable deposit base that has been growing more compared to lending. That indicates a certain degree of limited risk appetite, but also the fact that, given the challenging operating conditions, there were limited business opportunities in the market,” says Theofilou.

    Liquidity banked

    Jordan’s banks look able to withstand further shocks, given solid capital positions and relatively strong earnings performances. Arab Bank, the largest lender, saw net profits grow 12% last year to $1.13bn, despite a highly charged geopolitical situation across Jordan and the neighbouring Palestinian territories.

    As Moody’s notes, Jordanian banks’ funding base remains stable, with banks mainly deposit-funded – with deposits at 67% of total assets as of December 2025 – mostly comprising well-diversified retail deposits. The ratings agency noted that banks retain the capacity to increase lending without relying on more volatile and costly external funding, as indicated by the 72% loan-to-deposit ratio.

    The earnings outlook in Jordan may be better than other banking sectors in the immediate region, but this does not translate into a picture of booming profits going forward.

    “Profits should remain resilient, but we’re not expecting any significant improvement,” says Theofilou. “We have the challenging operating conditions, and the lower interest rates that have come down over the past few years. On the other hand, banks have had lower provisioning in the past 12 to 18 months compared to the period prior to that.”

    Asset quality remains a strong point, despite some weakening over recent years. Moody’s sees non-performing loans (NPLs) falling below 5.5% this year from 5.8% in June 2025.

    However, the continuing Iran conflict and its deleterious regional impacts – including on the West Bank, where about 9% of Jordanian banks’ loans are located – suggest that bank exposures to troubled sectors will require focus.

    Concentration bites

    Another challenge is the banks’ high credit concentration among large corporates, with a noted high exposure to real estate.

    Commercial and residential real estate loans accounted for 17.4% of total credit facilities as of year-end 2024, while residential mortgages accounted for 40.9% of household credit. Regulatory oversight may limit the impacts – the CBJ caps loans for real estate at 20% of local currency customer deposits.

    The real estate exposures are meaningful, but Moody’s views overall concentration risk as more material rather than real estate risk per se.

    “So, on the one hand, Jordanian banks have real estate loans, both commercial and residential, slightly below a fifth of the total credit facilities,” says Theofilou. “Banks also face challenges in quickly disposing of properties, but within the context of a relatively lengthy foreclosure process. On the flipside, we see Jordanian banks having fairly high collateralisation, so they do hold a lot of collateral against the real estate exposures.”

    The CBJ has earned plaudits for its regulatory oversight, with the IMF lauding its strengthening of the Financial Stability Committee, while refocusing its role on macroprudential policies and systemic risks. 

    Jordanian banks’ brisk uptake of digital technologies has also been a positive.

    Last year, digital payment systems in Jordan recorded over 184 million digital transactions, exceeding $38bn in value. The CBJ has introduced an AI regulatory framework for the sector and the authorities are now working to burnish the country’s credentials as a fintech hub, based on a 90% plus internet penetration. 

    In the year ahead, Jordanian banks will be looking to find exposures to new lending opportunities, given the past risk aversion that has prevented them from building stronger growth avenues.

    Projects beckon

    Big new infrastructure projects could yet come to the fore as bankable opportunities for local players. For example, the National Water Carrier Project, costed at $5.8bn and aiming to increase water supply by 40%, is looking to achieve financial close this summer. It is the type of project that could prove significant in helping diversify local lenders’ exposure away from real estate towards infrastructure.

    “If we see a lot of these infrastructure projects requiring financing coming to the market, then we could see a bit of a pickup in lending growth as well,” says Theofilou.

    New lending opportunities will come from large corporates and infrastructure-related lending. Those will play the key role in any significant pickup in credit growth, says the Moody’s analyst, in contrast to the small- and medium-enterprise (SME) sector, which poses a different challenge for banks.

    “The SME segment does represent a potential growth opportunity and it’s supported by policy focus, however its expansion is constrained by the operating environment. The sector is exposed to high overall credit risks, and when conditions are challenging, banks tend to be more cautious in lending to the SME markets,” says Theofilou.

    So long as the regional conflict persists, banks will be inclined more towards caution than exuberance in their lending approaches. And yet that strong and stable inclination may be what serves them best in a notably turbulent year in the Middle East’s recent history.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17204176/main.gif
    James Gavin
  • Oman tenders environmental survey consultancy contract

    12 June 2026

    Nama Power & Water Procurement Company (Nama PWP) has issued a tender seeking consultancy firms to provide environmental and seawater quality surveys under an ad hoc services contract.

    The selected consultants will be appointed for a four-year period and engaged on an as-needed basis to undertake environmental survey work.

    According to the tender notice, the scope of work includes environmental surveys, vertical profiling of seawater quality, seawater sampling and testing, environmental and social baseline studies, and bird and bat surveys.

    Bids are due by 1 July.

    Environmental and seawater studies are typically undertaken during the early development stages of power generation, desalination and other water infrastructure projects.

    Oman’s project pipeline includes a series of large-scale independent power projects (IPPs) scheduled for delivery between 2027 and 2031, according to the seven-year plan released by Nama PWP in March.

    Earlier in June, Nama PWP issued a supervisory consultancy tender for the 280MW Marsa solar IPP project in North Al-Batinah Governorate.

    The project is scheduled to enter commercial operation in the first quarter of 2028.

    The company is seeking project management and supervisory consultancy services during the construction, commissioning and testing phases of the project.

    The bid submission deadline is 26 July.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17209109/main.jpg
    Mark Dowdall
  • Emirates to offer passengers insurance amid travel warnings

    12 June 2026

    Dubai-based airline Emirates is to offer its own insurance product to passengers flying to or through Dubai, as it seeks to reassure travellers deterred by government advisories against travel to the region.

    The airline’s president, Tim Clark, confirmed the move in an interview with the London-based Financial Times. He said Emirates was working with insurance companies to introduce a “reasonably priced” product that would guarantee passengers could get home regardless of whether they returned on Emirates or another carrier.

    The move is designed to address concerns that travellers could become stranded if the conflict were to restart. More than three months after fighting began, several countries continue to maintain no-fly recommendations covering Gulf routes, leaving passengers unable to obtain conventional insurance for trips to or through the region.

    “I think one of the big concerns is that if they get caught overseas and they can’t get back,” Clark said. The group was working with insurance companies “to do the right thing”, he added.

    Emirates has played a leading role in supporting Dubai’s tourism sector since Iran began targeting the UAE with missiles and drones on 28 February.

    In early June, the Department of Economy and Tourism told stakeholders attending its bi-annual City Briefing that the emirate worked closely with airports and aviation partners, including Emirates and FlyDubai, to ensure continued connectivity for travellers.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17206867/main.jpg
  • Conflict to push global growth to post-pandemic low

    12 June 2026

    The ongoing conflict in the Middle East is expected to drag global economic growth to its lowest level since the Covid-19 pandemic, with Gulf states bearing the heaviest burden of any region, the World Bank Group has warned in its latest Global Economic Prospects report.

    Global growth is forecast to slow to 2.5% in 2026, down from 2.9% in 2025, with forecasts downgraded for two-thirds of economies. Economies in the Gulf directly affected by the conflict are expected to see growth collapse from 3.9% in 2025 to nearly zero this year, marking the steepest regional decline.

    The closure of the Strait of Hormuz has severely disrupted energy markets, with Brent crude prices projected to average $94 a barrel in 2026, 36% above 2025 levels, assuming the worst disruptions ease by July. Fertiliser price increases are compounding the pressure, feeding through to food prices and pushing global inflation to an expected 4.0% this year, up from 3.3% in 2025.

    The World Bank says downside risks remain substantial. Should energy supply disruptions prove more severe than currently assumed and be accompanied by significant financial stress, global growth could fall as low as 1.3% in 2026, with inflation climbing to 4.4%.

    The World Bank is making up to $50bn-$60bn immediately available through existing instruments, including $25bn in pre-arranged financing, to support affected countries through social safety nets, fiscal capacity and working capital for businesses. More than 30 countries are actively working with the bank to enhance readiness under the response plan. If the conflict and its economic fallout persist, support could be scaled to $80bn-$100bn over 15 months.

    Despite the severity of the near-term shock, the bank projects a significant Gulf rebound, with growth recovering to around 5% in 2027-28 as trade normalises and reconstruction spending begins.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17204153/main.jpg
    Colin Foreman
  • Emaar announces $55bn Dubai project

    12 June 2026

    Register for MEED’s 14-day trial access 

    Mohammed Alabbar, the founder of Emaar Properties, has released a statement saying that the Dubai-based real estate developer is about to announce a $55bn project in Dubai.

    On his social media channels including Instagram and X, he said: “Emaar is preparing to unveil its most ambitious project yet: a development worth AED200bn (around $55bn), commanding an extraordinary vista that brings together, in a single frame, three of the city’s timeless icons – Burj Khalifa, Burj Al-Arab and Palm Jumeirah – complete with the finest essentials of modern living, in the city of Dubai.”

    Emaar has delivered some of the world’s most ambitious real estate projects, including the world’s tallest tower, the 828-metre-tall Burj Khalifa, and the surrounding Downtown Dubai development.

    Commenting on the new project, Alabbar added: “This is no ordinary new development. It is a landmark that takes its place in the legacy of the United Arab Emirates, writing a new chapter in the story of a nation that knows no limits to its ambition.”

    In a statement on the Dubai Financial Market on 11 June, Emaar Properties said it “stands on the threshold of a historic announcement” and revealed more details about the project. It said it will have a total development value of AED200bn, with a gross floor area exceeding 4.5 million square metres.

    It added that it will include a mix of landmark residential towers, signature villas and mansions, Grade-A commercial offices, world-class retail destinations, luxury hospitality, and civic and cultural amenities. Altogether, the development will accommodate a projected population of nearly 150,000 residents. The statement also said the development will be connected to proposed metro lines.

    The exact location of the development was not revealed. Emaar has announced major projects in the past without giving precise locations. In June 2023, it announced the $20bn Oasis project. At the time, the details on the site’s location indicated it was situated in a prime location in Dubai, surrounded by high-end developments and within proximity to four international golf courses. It was later confirmed that the site sits between Damac Properties’ Lagoons development and Dubai Investment Park.   

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17203921/main5547.gif
    Colin Foreman