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
  • Taqa raises $750m to finance water projects

    30 July 2026

    Abu Dhabi National Energy Company (Taqa) has issued a $750m five-year blue bond to finance sustainable water and wastewater management projects.

    The company said the transaction is the largest blue bond issuance in the Europe, Middle East and Africa region. It is also the largest blue bond issued by an integrated power and water utility globally.

    Issuing the bond allows Taqa to raise money from investors specifically to support water-related environmental projects. These can include desalination, wastewater treatment, water recycling and reuse, and infrastructure that improves water efficiency.

    It is the first blue bond issued under Taqa’s Green and Blue Finance Framework, and follows another blue financing transaction in the UAE earlier this year.

    On 8 January, Dubai-based Emirates NBD bank announced the completion of a $1bn dual-tranche sustainable bond issuance, comprising a $300m blue tranche with a three-year tenor and a $700m green tranche with a five-year tenor.

    Emirates NBD said at the time that the $300m tranche was the largest blue bond issued in the UAE and GCC. The proceeds are intended to support marine conservation and sustainable water projects, while proceeds from the green tranche will finance green initiatives.

    Taqa launched its original Green Finance Framework in 2023 and updated it in 2026 to include blue financing instruments. The latest issuance takes its total green and blue labelled bond issuances to $2.6bn since 2023.

    The Taqa financing also comes as the company expands and modernises its water infrastructure. Taqa is targeting reverse-osmosis technology for 66% of its desalination capacity by 2030, up from about 40% in 2025.

    In June, Taqa awarded a contract for the construction of a 1-million-cubic-metre emergency lagoon in Abu Dhabi. The project will be developed in two phases.

    Phase one has a capacity of 500,000 cubic metres and is planned to be completed within 18 months of the contract award.

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

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

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17845953/main.jpg
    Mark Dowdall
  • UAE renewables firm secures $375m in financing

    30 July 2026

    Positive Zero, the UAE-based renewable energy firm, has announced the successful closing of a financing facility of up to $375m.

    The long-term financing was arranged by Paris-headquartered Natixis Corporate & Investment Banking (Natixis CIB) and Saudi Arabia-based The Arab Energy Fund.

    Natixis CIB also acted as financial adviser, facility agent, security agent and green loan coordinator for the transaction.

    “The non-recourse financing is the first transaction of its kind in the region for a diversified portfolio of decentralised infrastructure assets, including distributed solar power generation, energy efficiency and clean mobility solutions,” Positive Zero said in a statement.

    “The financing will provide substantial long-term capital to support Positive Zero’s continued expansion in the United Arab Emirates, Saudi Arabia, Bahrain, Oman and Qatar, funding the growth of its distributed infrastructure portfolio, capital expenditure programme and strategic development initiatives,” the Dubai-based firm said.

    The new debt facility secured by Positive Zero builds on US-based BlackRock’s investment of up to $400m in the company in 2023, “further strengthening the company’s capital structure and supporting the next phase of its growth”.

    Positive Zero has the largest distributed solar capacity in the region with more than 500MW in operations and under construction, avoiding more than 450,000 metric tonnes a year of carbon emissions.

    The company has also saved over 100 million kilowatt-hours (kWh) in energy consumption across its client portfolio through its energy-efficiency solutions.

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

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

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17845491/main3835.jpg
    Indrajit Sen
  • US-Saudi consortium to build $5bn refinery outside Strait of Hormuz

    30 July 2026

    Register for MEED’s 14-day trial access 

    A consortium of privately owned US and Saudi companies has announced an investment commitment of $5bn to build an integrated oil refining, storage and export facility outside the volatile Strait of Hormuz shipping lane.

    After three years of evaluating sites across the Gulf, the consortium has shortlisted three GCC locations beyond the Strait of Hormuz. Discussions have advanced over the past two years, with a preferred site expected to be selected by the end of 2026.

    The consortium, Mera Oil, comprises Fort Worth, Texas-based MWG Enterprises; the US-based Patel Family Office; and PWS, an associate company of Saudi Arabia’s AHQ Group.

    Mera Oil said it remains open to alternative proposals that meet its infrastructure, resilience and development requirements.

    The proposed project will feature a 200,000-barrel-a-day refinery, deepwater port connectivity, large-scale crude and refined-product storage, and marine export facilities.

    A pre-feasibility study covering refinery design, logistics, capital requirements and execution planning is at an advanced stage.

    Once a host jurisdiction is confirmed, the project will proceed to detailed site assessments and engineering design, with mechanical completion targeted for end-2029, followed by commissioning and the start of commercial operations.

    The consortium plans to focus on producing high-specification middle distillates, including ultra-low sulphur diesel and jet fuel, for selected international markets.

    The project is expected to occupy about 1,200-1,500 acres of port-connected industrial land and could create up to 3,000 direct jobs, and around 15,000 indirect and induced jobs, during construction and operations.

    Mera Oil is also progressing discussions with feedstock suppliers and expects financing to include sponsor equity, sovereign and institutional investment, project finance, export-credit support and sharia-compliant funding structures.

    “Designed as a route-resilient energy hub, the development aims to strengthen regional manufacturing, logistics, technical expertise and energy security,” Mera Oil said.

    The first phase of the planned investment will “incorporate energy-efficient refining technologies, emissions-control systems, and potential future capabilities including sustainable aviation fuel co-processing and carbon management.”

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

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

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17843946/main.jpg
    Indrajit Sen
  • Local contractor to build nine Bahrain substations

    30 July 2026

     

    Bahrain’s Electricity & Water Authority (EWA) has awarded the local Al-Kooheji Electrical a contract to build nine 66kV substations across the kingdom, according to a source.

    The project is estimated to be worth $110m and is intended to support rising electricity demand from Bahrain’s domestic, commercial and industrial sectors.

    Four local contractors submitted commercial bids for the contract in January. The bidders were:

    • Nass Contracting ($28.4m)
    • Poullaides Construction Company ($31.7m)
    • Mohammed Jalal Contracting ($32.4m)
    • Al-Kooheji Electrical ($34m)

    The substations will be located at South Hidd Industrial, Mondelez, Alba Downstream Park, Muharraq North, Hamala West, Bani Jamra, Hoora, Maqabah East and West Riffa Club.

    The scope includes the construction of the nine substations and control rooms, as well as the installation of transformers, switchgear and feeders connecting the facilities to the grid.

    It also covers communication cabling, monitoring systems, safety and security systems, and associated civil and structural works.

    As MEED understands, the substations are scheduled to be commissioned in stages. Two are planned for 2026, followed by four in 2027 and the remaining three in 2028.

    Serbia’s Energoprojekt Entel was appointed as consultant for the project in April 2025. The consultant’s contract was valued at about $460,000.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17834380/main.jpg
    Mark Dowdall
  • CB&I’s newly acquired unit wins Abu Dhabi wells contract

    30 July 2026

    US-based Chicago Bridge & Iron (CB&I) has announced that its Asset Solutions business – acquired earlier this year from UK-headquartered contractor Petrofac – has won a hydrocarbon well services contract in Abu Dhabi.

    The contract was awarded by Cosmo E&P Albahriya, a wholly owned UAE-based subsidiary of Japan’s Cosmo Energy Holdings Company (Cosmo).

    Under the well engineering services contract, CB&I Asset Solutions will support drilling, engineering, planning and operational activities for offshore Block 4 in Abu Dhabi.

    Cosmo secured 100% exploration rights for offshore Block 4 – covering 4,865 square kilometres of Gulf waters northwest of Abu Dhabi city – in February 2021.

    The block was offered in Abu Dhabi’s second hydrocarbons block competitive bidding round, launched by Abu Dhabi National Oil Company (Adnoc) in May 2019.

    “The award strengthens Asset Solutions’ position in the Middle East and solidifies new relationships with key regional operators. With shared goals of prioritising safe, stable and environmentally conscious production, CB&I’s UAE-based team will draw on its local and global experience of delivering innovative well engineering solutions,” the Texas-based CB&I said in a statement.

    ALSO READ: Abu Dhabi awards production licences for hydrocarbon blocks

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

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

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17834142/main4710.jpg
    Indrajit Sen