meed-logo

line1 line2 line3
SIGN IN / REGISTER

Mena water delivers exceptional growth

26 January 2024

 

Click here for MEED's latest water developer ranking

As a water-scarce hotspot facing geopolitical tensions and climate change, many jurisdictions in the Middle East and North Africa (Mena) region have long recognised that water is an important security concern. It requires sustained investments, especially in light of the region’s long-term economic diversification agendas.

This fact supports the major upturn in spending in 2023, when the total value of awarded contracts within the sector climbed to $20bn – up 74 per cent compared with the $11.5bn-worth of contracts awarded the previous year.

Prior to this, the region awarded the highest value of contracts for a year in 2021, at $14.5bn.

Saudi Arabia registered the largest share, accounting for over 56 per cent, or about $11bn, of the contracts awarded in 2023. This was 69 per cent more than in 2022.

The value of contracts awarded in the UAE, the region’s second-largest market,  grew by more than 250 per cent to reach approximately $4.9bn in 2023. This was driven by the awards of three independent water producer (IWP) projects, as well as major water pipeline, sewerage and storm water packages. 

All the remaining Mena countries recorded higher values of awarded contracts in 2023 compared to 2022, except for Qatar, which declined by 72 per cent; Jordan, which fell 58 per cent; and Algeria, with a drop of 57 per cent.

Water transmission and distribution network projects continued to represent a significant share of the total awarded contracts, contributing 37 per cent, or $7.7bn, in 2023. This was 1 per cent higher than in the previous year.

A total of $6.8bn-worth of water treatment plant projects was awarded in 2023, in a 180 per cent increase on the value of awarded contracts in 2022. The value of awarded water desalination contracts also grew from $1.8bn to close to $4bn in 2023.

Future opportunities

An estimated $77.5bn-worth of projects across the five Mena water sub-sectors are in the pre-execution phase. This is 29 per cent higher compared to the value of projects on the pipeline a year earlier.

This means that major opportunities remain for both utility developers and engineering, procurement and construction (EPC) contractors looking to win more work within the sector.

As in previous years, Saudi Arabia commands a significant share of future opportunities, with planned and unawarded projects worth close to $30bn. This is expected to grow as the kingdom ramps up capacity to meet its 2030 target to reduce reliance on ground and surface water and enhances its storage capacity – and as the execution of gigaprojects such as Neom gathers pace. 

Private utility developers are expected to take a more prominent role as the pipeline of independent water desalination, sewage treatment, water transmission and storage facilities being planned in Saudi Arabia and beyond grows.

This does not preclude growth in EPC projects, with the Saline Water Conversion Company (SWCC) and National Water Company ramping up their procurement activities, and state water offtaker Saudi Water Partnership Company focusing on independent water infrastructure projects.

Beyond the GCC

Last year, Morocco awarded its first major independent water producer (IWP) contract. Spain’s Acciona, in consortium with local firms Afriquia Gaz and Green of Africa, won the $875m contract to develop the Grand Casablanca seawater reverse osmosis (SWRO) plant. The 30-year, build-operate- transfer project will have a design capacity of 548,000 cubic metres a day.  

Morocco’s National Office of Electricity & Drinking Water (Onee) is advancing plans for the development of a new IWP following the Grand Casablanca project. To be located in Morocco’s Oriental region, the project will cater to the cities of Nador, Oujda, Berkane, Taourirt and Saidia.

In December, Jordan’s Water & Irrigation Ministry received a single bid for the multibillion-dollar Aqaba-Amman water conveyance and desalination project. If things go as planned, the sole bidder is expected to be awarded the estimated $2bn-$3.5bn contract this year. There is also an expectation that the first batch of Egypt’s planned renewable energy-powered SWRO plants will be tendered over the next 12-24 months.

Sewerage infrastructure 

Dubai and Qatar offer some of the most lucrative sewerage tunnel and infrastructure projects over the short to medium term. This year, Qatar’s Public Works Authority (Asghal) is expected to tender four packages of the South of Wakrah and New District of Doha pumping station and outfall scheme. The packages have an estimated value of $1bn-$2bn.

Last year, Dubai Municipality revived its strategic sewerage tunnels project, which is expected to require an investment of up to $22bn. Known as the Deep Tunnels Portfolio, it involves developing assets across Dubai and Hatta. 

This includes two sets of deep tunnels terminating at two terminal pump stations located at sewage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta. The scheme also includes recycled water distribution systems connected to the STPs.

For the foreseeable future, water transmission and distribution projects will continue to be a priority in the region. They will remain the largest water sub-sector as utility companies expand their networks to accommodate new residential, commercial and industrial developments; link new desalination and treatment plants to their networks; and replace ageing infrastructure to curb water losses. 

Click here for MEED's latest water developer ranking

https://image.digitalinsightresearch.in/uploads/NewsArticle/11442866/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Egypt signs $420m Gabal El-Zeit wind agreements

    10 June 2026

    Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.

    Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.

    The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.

    Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.

    The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.

    The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.

    The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.

    According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.

    The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor. 

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg
    Mark Dowdall
  • Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC

    10 June 2026

    Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).

    The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.

    The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.

    In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.

    In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg
    Colin Foreman
  • Saudi Arabia and Turkiye sign railway agreements

    10 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.

    Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.

    Agreement scope

    The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.

    More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.

    The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.

    Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.

    Turkish projects

    Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.

    The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.

    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/17169958/main.gif
    Colin Foreman
  • Joint venture tenders Algeria field development contract

    10 June 2026

     

    Register for MEED’s 14-day trial access 

    Hassi Bir Rekaiz Group (GHBR), which operates Algeria’s Hassi Bir Rekaiz field, has issued a tender for phase 2A of the asset’s field development project.

    GHBR is a joint venture of Algeria’s national oil and gas company Sonatrach and Thailand’s national exploration and production company PTTEP.

    The scope of the contract focuses on the “provision of engineering and supervision services”, according to documents published by Sonatrach.

    The tender has been issued with a bid deadline of 16 June 2026.

    In May, GHBR signed a $1.1bn contract for phase two of the Hassi Bir Rekaiz development project.

    The contract was won by a consortium of Egypt’s Petrojet and Italian engineering and contracting company Arkad.

    Petrojet’s portion of the project was estimated to be worth around $600m, and Arkad’s portion was estimated to be worth $500m.

    The contract used the engineering, procurement, construction and commissioning model.

    The scope of the project contract is focused on the construction of a central processing facility (CPF) capable of processing crude oil and associated gas.

    It also includes developing off-plot pipelines, as well as related utilities and infrastructure.

    The CPF will have the capacity to process 32,000 barrels a day (b/d) and will be designed to support future expansions.

    The related infrastructure will include an extensive pipeline network spanning approximately 217 kilometres, as well as a road network.

    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/17163750/main3325.jpg
    Wil Crisp
  • Algeria extends deadline for urea-formaldehyde project

    10 June 2026

     

    Algeria’s national oil and gas company Sonatrach has extended the bid deadline for a project to develop a new concentrated urea-formaldehyde unit in its Arzew industrial zone.

    The latest bid deadline is 15 June.  

    The contract uses the engineering, procurement, construction and commissioning model, and the bid deadline for technical tender submissions was originally set for early April.

    The condensed urea-formaldehyde unit will be located at the CP1-Z facility.

    The CP1-Z facility began operations in 1975 and has a capacity of 152,000 tonnes a year. It produces products including methanol, resin and formol.

    It is a two-phase tender. The first phase is a technical bid submission, and the second phase is a commercial bid submission.

    To be eligible to win this contract, companies must specialise in petrochemical industrial installation projects.

    They also need to have a share capital of at least $7m and more than 15 years of relevant experience.

    The new unit, UFC85, will have the capacity to produce 40,000 metric tonnes of concentrated and condensed urea-formaldehyde annually.

    The project’s scope also includes the development of auxiliary equipment and installations.

    Urea-formaldehyde has a wide range of uses, including the production of laminates, textiles and paper.

    In the wood industry, it is used as a thermosetting adhesive to bond wood to create plywood and particleboard. In agriculture, urea-formaldehyde is widely used as a slow-release fertiliser.

    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/17163657/main.jpg
    Wil Crisp