Meed | Region primed for global green hydrogen leadership

Region primed for global green hydrogen leadership

15 August 2022

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There have been fewer hot topics in the Middle East and Africa (MEA) over the past 18 months than the development of green hydrogen production.

Ever since Neom, Acwa Power and Air Products announced their $5bn investment in a world-scale green hydrogen production complex as the anchor project of the $500bn Neom development in 2020, energy companies around the world have been racing to establish plans of their own in the region.

Today, there are at least 46 known green hydrogen and ammonia projects across the MEA region, with an estimated total budget of more than $92bn.

Almost all have been announced since the start of 2021, equivalent to nearly two new projects a month.

Competitive advantage

This sudden surge of interest in hydrogen needs little explanation. Due to its climate, the region enjoys the world’s highest solar irradiation levels, enabling the production of some of the cheapest renewable energy anywhere.

The 600MW Al-Faisaliah independent solar photovoltaic (PV) power project in Saudi Arabia, for instance, currently holds the world record for the lowest renewable energy levelised cost of electricity of just $1.04 cents a kilowatt hour.

This electricity from renewable sources is used to electrolyse vast amounts of treated and filtered seawater to extract hydrogen, which in turn is processed with air-derived nitrogen to produce the more easily transportable ammonia.

The ammonia can then be liquefied, compressed and exported by ship to the end-user market, where it can be converted back to hydrogen to be used as a clean fuel or utilised as ammonia for fertiliser or other industrial processes.

Other alternatives include converting the hydrogen to methanol, another more easily transportable fuel product, or piping the hydrogen directly to the end user, either for domestic purposes or for export.

Along with plentiful sunlight, the other main requirement to house the huge solar and wind farms is space, something the region is generally not short of. Oil and gas-importing nations such as Morocco, Ethiopia and South Africa can also benefit from the hydrogen project boom.

First mover status

Aside from the environmental benefits of green hydrogen as a carbon-free fuel, it also offers the oil-exporting states of the Middle East the tantalising prospect of diversifying their dominant crude production position with hydrogen, thereby safeguarding their economies for decades to come as well as enhancing their geopolitical significance.

Speed of capital investment to drive technological leadership and potentially first-mover advantage is arguably going to be another important factor.

From a demand perspective, there is no doubt about green hydrogen’s potential. Demand in Europe alone is forecast to double to 30 million tonnes a year (t/y) by 2030 and to 95 million t/y by 2050.

Thanks to its geographical position, the Middle East is ideally located to meet this demand either by ship or pipeline.

Until recently, green hydrogen may not have been considered financially viable. Today, it could be described as an economic necessity

MEA Energy Week insights

The massive potential and development of a green hydrogen production industry was one of five central themes and insights emerging from the Middle East & Africa Energy Week hosted by Siemens Energy in June.

Yet a live poll of up to 400 delegates as part of Siemens Energy’s Middle East & Africa Energy Transition Readiness Index, produced in partnership with Roland Berger, highlighted that a substantial majority felt that Power-to-X technology – of which hydrogen production is a major component – was slow in meeting its potential.

To put this into perspective, with the notable exception of the Neom-based Helios project and the pilot green ammonia scheme at Ain Sokhna in Egypt, none of the other 44 announced green hydrogen projects in the region have yet to start work on the ground. Many have not even reached a full investor agreement.

The principal challenges revolve around financing, supply and power purchase agreements, land allocations and permitting. Ultimately, even with cheap electricity, green hydrogen is still comparatively expensive to produce after factoring in electrolysis, processing and transportation costs.

There is also some debate over whether the end-user market is ready to pay a premium for cleaner fuel or chemical feedstock.

A related poll question among the Energy Week’s attendees underlined this. Of 11 energy priorities presented, Power-to-X solutions were ranked as the lowest priority in terms of the impact on their companies’ achievement of climate targets.

However, this could change rapidly. The Russia-Ukraine crisis has focused European capitals on the pressing need to diversify fuel sources. Until recently, green hydrogen may not have been considered financially viable. Today, it could be described as an economic necessity.

Transitioning to hydrogen requires huge investment to develop technology, build projects and establish marketplaces that collectively contribute to a cleaner energy future. This coordinated effort by all stakeholders must be supported by policymakers

Nabil al-Nuaim, Saudi Aramco

Encouraging local demand

Equally important is the development of local hydrogen demand. To date, few formal policies or strategies have been announced to stimulate a market for domestic demand, reflected by the fact that almost all of the planned green hydrogen projects pipeline are export orientated.

While this export focus may make sense commercially, there was unanimity among the event’s participants that more could be done to encourage home-grown demand.

“Transitioning to hydrogen requires huge investment to develop technology, build projects and establish marketplaces that collectively contribute to a cleaner energy future,” said Saudi Aramco’s chief digital officer, Nabil al-Nuaim. “This coordinated effort by all stakeholders must be supported by policymakers to achieve success.”

This view was echoed by Khaled Sharbatly, CEO of solar PV panel manufacturer and power developer Desert Technologies. “We need to accelerate the growth of energy in Africa, accelerate energy storage and innovation, and build a regulatory framework where everyone is in sync,” he said.

The development of regulations and policy reforms to provide impetus will be vital for the market to grow, as will associated strategies such as introducing carbon pricing, reducing electricity subsidies, unbundling power networks and incentivising electric vehicle usage.

If it fails to do so, the region may miss the opportunity to capitalise on hydrogen’s potential to create jobs and a local manufacturing industry, diversify economies, and, most importantly, reduce carbon emissions and achieve net zero.

Click here to visit Siemens Energy

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MEED Editorial

Exclusive from Meed

Tender issued for Libyan gas project
17 September 2026
Nakheel awards $218m Dubai Islands buildings deal
17 September 2026
Aldar and Mubadala acquire Masdar City Square
17 September 2026
Dubai announces new 80km highway corridor
16 September 2026
Contractors submit Expo 2030 convention centre interest
16 September 2026

Tender issued for Libyan gas project
17 September 2026
An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

The bid submission deadline is 2pm today (17 September) Libyan time.

The scope of the project includes provision of:
- An environmental baseline study (EBS)
- An environmental impact assessment (EIA)
- An environmental management plan (EMP)
The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

The joint venture owns and operates six major oil and gas fields across the North African country.

According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:
- Libyan environmental legislation
- Ministry of Environment requirements
- NOC environmental guidelines
- Applicable international environmental standards and best practices
The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

It has six main packages:
- Onshore package
- Offshore Structure A
- Offshore Structure E
- Subsea pipeline package
- Site preparation work
- Carbon capture and storage facility
Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

The existing onshore complex includes housing, processing units, storage facilities and export facilities.

It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

The planned expansion of the complex will involve:
- Construction of a new fourth gas processing train
- Construction of a third condensate train
- Construction of a third natural gas liquids fractionation train
- Construction of a fourth sulphur recovery unit train
- Installation of a hydrogen sulphide enrichment unit
- Installation of a sulphur recovery unit
- Construction of other associated facilities
The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.
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Wil Crisp

Nakheel awards $218m Dubai Islands buildings deal

17 September 2026

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Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.

The contract was awarded to the local firm Metac General Contracting Company.

It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.

Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

The works are scheduled for completion in late 2028.

Bay Grove Residences will ultimately comprise 1,154 homes across 15 buildings. Planning is under way for the remaining 617 homes in phases two and four, with further contract awards expected.

In August last year, Nakheel awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes constructing 636 villas.

In April this year, another AED527m ($143m) contract was awarded to local firm Al-Nasr Contracting Company to construct the primary infrastructure and utilities works on Island B at the development.

The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

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

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

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

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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Yasir Iqbal

Aldar and Mubadala acquire Masdar City Square
17 September 2026

Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and local developer Aldar have completed the acquisition of Masdar City Square at Masdar City, in a transaction valued at AED918m ($250m).

The deal was executed through their joint venture established in 2024.

Masdar City Square comprises more than 47,000 square metres (sq m) of net leasable area across seven office buildings.

Completed in Q1 2026, the development is 99% occupied. Tenants include Taqa, the Department of Energy, Emirates College and the Mohamed Bin Zayed University of Artificial Intelligence.

The transaction expands the joint venture’s real estate portfolio in Masdar City, which is now valued at AED4.7bn ($1.3bn).

Masdar City is one of the region’s leading hubs for clean energy, artificial intelligence, advanced research and sustainable urban development.

The joint venture acquired The Link project at Masdar City for AED654m ($178m) in April.

Comprising about 32,000 sq m of net leasable area across five buildings, The Link is fully leased to a portfolio of major tenants, including Abu Dhabi Future Energy Company (Masdar) and the Mohamed Bin Zayed University of Artificial Intelligence.

The asset includes Grade A, Leed Platinum office space, a net-zero-energy headquarters building, a multi-use hall and residential accommodation, supporting its position as a high-performing, integrated component of Masdar City.

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Yasir Iqbal
Dubai announces new 80km highway corridor
16 September 2026

Dubai has approved the construction of the new fourth corridor, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

The corridor will extend 80 kilometres, from Al-Faya Road in Abu Dhabi to Al-Shanouf Road in Sharjah.

It will include 12 lanes, 72 bridges and 17 tunnels.

The project is expected to reduce travel times by up to 60% and serve more than 3.1 million people, while providing links to Al-Maktoum International airport and Etihad Rail.

It will have the capacity to accommodate 24,000 vehicles per hour in each direction.

The project will be delivered in two phases. The first phase, running from Al-Shanouf Road to Dubai-Al Ain Road, will be delivered at a cost of AED3.5bn ($953m).

The second phase will stretch from Dubai-Al Ain Road to Al-Faya Road in Abu Dhabi.

Hamdan bin Mohammed: In line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to boost investment in infrastructure, I approved the New Fourth Corridor to strengthen Dubai’s road network and enhance connectivity with the UAE’s federal road network.… pic.twitter.com/zlIyY2yKBN

— Dubai Media Office (@DXBMediaOffice) September 16, 2026

The scheme adds a fourth spine to a network that has long relied on three main corridors: the E11 (Sheikh Zayed Road/Al-Ittihad Road); the E311 (Sheikh Mohamed Bin Zayed Road) and the E611 (Emirates Road), which together carry more than 850,000 vehicles commuting between Dubai and the northern emirates daily.

That concentration has made the route one of the country’s most congested, with peak-hour bottlenecks a persistent problem for residents. The new corridor is designed to divert a significant share of that traffic onto a higher-capacity route, rather than add pressure to the existing network.

The project also aligns with the Dubai 2040 Urban Master Plan, which anticipates population growth to 5.8 million by 2040 and calls for the expansion of roads, railways, airports and ports to support that growth and reinforce Dubai’s position as a global trading hub. This is reflected in the corridor’s direct links to Al-Maktoum International airport and Etihad Rail.

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Yasir Iqbal

Contractors submit Expo 2030 convention centre interest

16 September 2026

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Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, received contractor interest on 14 September for a contract to design and build a convention centre in the site's Collaboration District.

Construction is slated to begin in January 2027 and take 29 months. The development will cover a total gross external area of more than 28,000 square metres (sq m). The total programme area will be about 22,000 sq m and the gross floor area will be 17,000 sq m. The maximum height of the building will be 41.5 metres.

The venue will be laid out across two levels, with a mezzanine, roof terraces and a 4,030 sq m basement, in addition to mechanical, electrical and plumbing and back-of-house spaces.

Two flexible exhibition halls are planned, covering a combined 7,280 sq m, as well as 3,800 sq m of pre-function space, 650 sq m dedicated to meeting rooms and 2,200 sq m of outdoor exhibition space in the north and south plazas.

The appointed main contractor will assume responsibility for packages including the early works substructure and the lead design consultant's deliverables, while carrying out the full scope of superstructure, above-ground waterproofing, external facades, masonry, base build and specialised fit-outs for VVIP, VIP and visitor areas.

Further scope includes delivering comprehensive MEP services; vertical transportation; final infrastructure tie-points; public-realm hard and soft landscaping; testing, commissioning, handover documentation; and management of the defects liability period.

The expression of interest notice was floated on 13 September.

The unusually brief expression of interest deadline of just one day underscores a compressed procurement timeline.

This accelerated tender and evaluation schedule signals that project organisers are operating under time pressure to secure contractors and maintain the tight schedule required ahead of the event's opening.

ERC expects to award the formal contract by the end of this year and begin construction in January next year.

The project is due for completion in early 2030, in time for the main event in October of that year.

Site progress

Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

Earlier this month, MEED exclusively reported that ERC has tendered a contract to deliver the Souq areas within the expo site.

These areas are divided into five precincts, with a total development area of about 300,000 sq m.

In September, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.

In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.

The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle (EV) charging.

These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems and EV charging stations.

The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.