Middle East project disputes increasing
8 November 2023

The number of project disputes recorded every year in the Middle East and North Africa (Mena) is trending upwards as project activity increases and the pressure grows to execute projects on a fast-track basis.
Greater use of fast-track project models, where project execution starts before all the details of the preparatory design work are complete, can lead to a “triple whammy” of design issues that trigger disputes, according to Jad Chouman, a partner and the head of Middle East for the consultancy HKA, which specialises in risk mitigation and dispute resolution.
The three key causes of disputes related to fast-track projects are changes to the scope, design information being issued late, and incomplete designs supplied to contractors.
“In many fast-track projects, they start work before the design is 100 per cent complete,” says Chouman. “The fast-track nature of these projects is a major reason why we are seeing what we refer to as the ‘triple design whammy’.
“Owners want the projects quickly and they push the contractors to start early, and changes to the designs can cause serious problems to the projects.”
Growing pains
Due to the expanding Mena projects market, increasing project complexity and growing tendency to use fast-track project schedules, Chouman says he would not be surprised to see an upturn in the volume of project disputes every year until 2030.
“The rise in disputes related to fast-track projects is something that we’ve noticed over the past two or three years,” he says.
“The very compressed time frames for projects means that if there is disruption due to a change or a delay to an approval, the overall impact of that delay is often magnified.”
HKA also says some contractors are not fully considering the impact of the shortage of skilled labour in the region when estimating how quickly projects can be executed.
While these are all significant challenges, HKA also has reason to believe that many of the disputes could be resolved amicably.
Saudi resolution
In Saudi Arabia, Chouman says a share of future disputes could be resolved amicably because the kingdom is so focused on rapid project execution and will want to avoid projects stalling due to drawn-out legal disputes.
“In order for projects to be successful and to be completed within a reasonable time period, it is in the interest of everyone that they are resolved amicably.”
Another factor that could reduce the number of legal disputes is the increased use of more collaborative contract models.
In these contracts, the parties share the risk. The main contractor usually gets involved in the project at an earlier stage so they have a say in how the design is created.
One model increasingly used in Saudi Arabia is the early contractor involvement (ECI) model.
Under the ECI model, a single contractor is selected at an earlier stage of the design process. This may be either at the concept or detailed design stages, depending on the employer client’s preference and the level of involvement required.
A key objective of using an ECI contract and selecting a contractor early is to allow the contractor to use its knowledge and experience to influence design decisions to increase buildability or value during the process.
The contractor is appointed by the client during the first stage to perform services similar to a professional consultant.
“One of the main positive impacts that this sort of contract is likely to have is avoiding the worst kind of disputes between clients and contractors,” says Chouman.
“At the end of the day, the leadership in Saudi Arabia wants to be successful and get things done, and because of this, they are going to want to try and resolve any delays or cost overruns in a fair and amicable way.
“There is significant project momentum in Saudi Arabia and they want to maintain this positive environment.”
Arbitration centres
Dispute resolution processes have progressed significantly in several key markets in the Mena region over the past 20 years, which is having a positive impact on the projects market, according to Chouman.
He says Dubai and Abu Dhabi have developed mature arbitration processes that are competitive with international dispute resolution centres across the world.
The systems are maturing in Saudi Arabia and will soon reach a similar level.
“The development of these advanced dispute resolution centres has helped to make the UAE an attractive business hub,” says Chouman.
But while dispute resolution processes in some Mena markets parallel other world-leading hubs, the Middle East, on the whole, performs poorly in terms of project delays.
According to data collected by HKA, the average delay for projects in the Middle East is 82 per cent of the original time schedule.
This is high compared to the US, Europe, Asia and Oceania, where the average delay times are 59 per cent, 60 per cent, 63 per cent and 49 per cent.
Africa is the only continent that performs worse than the Middle East, with average project delays of 83 per cent of the original project schedule.
A key reason for the significant delays in the Middle East is the size of the projects market and complexity of the projects, says Chouman.
“It is a market with a lot of ambitious projects both in terms of size and complexity,” he says. “Additionally, the clients and contractors are also being even more optimistic with their predictions for project completion times, which is a factor.”
With the Mena region’s projects market continuing to expand rapidly, there are plenty of opportunities for contractors. However, there is also a growing scope for delays and disputes over project execution.
As the region’s biggest markets push ahead with ambitious project plans, it remains to be seen whether they have put enough thought into dispute resolution frameworks and methods to keep construction issues out of the courts.
Exclusive from Meed
-
Oman awards $2.3bn water services contract30 June 2026
-
Gulf aviation’s toughest test since the pandemic30 June 2026
-
-
Read the July 2026 MEED Business Review30 June 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Oman awards $2.3bn water services contract30 June 2026
Oman Water & Wastewater Services Company (Nama Water Services) has awarded a $2.28bn contract to a consortium led by French utility firm Suez to operate and maintain water and wastewater services in parts of the sultanate.
In a statement, the operator said the 15-year performance-based contract covers Muscat and the North Sharqiyah and South Sharqiyah governorates, known as Cluster 1. The area is home to approximately 2.3 million people, representing about 43% of Oman’s population.
The consortium also includes local firms National Trading Company and National Energy Centre, a local utility development and infrastructure company. It will deliver the contract through a dedicated company, National Sustainable Water Alliance.
According to Suez, the contract is the company’s largest ever in the Middle East.
The scope includes the operation and maintenance of 240 wells and 10,700 kilometres of water pipelines that distribute 470,000 cubic metres a day (cm/d) of drinking water. It also covers the refurbishment and upgrading of four desalination plants and the operation of more than 400,000 smart water meters.
The wastewater package includes the operation and maintenance of 22 wastewater treatment plants with a combined treatment capacity of 280,000 cm/d. It also covers about 3,000km of sewer networks, 400km of treated effluent networks, and the installation and operation of new wastewater house connections.
The contract includes 33 key performance indicators that will determine the consortium’s remuneration. These include reducing water losses from 34% to 11% by 2040, maintaining a continuous 24-hour water supply and improving preventive maintenance to extend the lifespan of water assets.
The contract also includes a capacity-building programme to develop operational and management skills. Suez said the project will target more than 83% Omanisation in support of the government’s Vision 2040 objectives.
Under the agreement, Nama Water Services will retain responsibility for strategic oversight and regulation, while the consortium will manage day-to-day operations.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492322/main.jpg -
Gulf aviation’s toughest test since the pandemic30 June 2026
Commentary
Colin Foreman
EditorThe conflict that erupted on 28 February has tested Gulf aviation more severely than any event since the Covid-19 pandemic. Yet the sector’s response has revealed both its vulnerability and its underlying resilience in equal measure.
The scale of the disruption has been severe. Between 28 February and 5 March alone, more than 15,000 flights were cancelled across seven major regional airports. Jet fuel prices are expected to average $152 a barrel this year, almost 70% above 2025 levels, while the International Air Transport Association now forecasts global airline net profit of $23bn in 2026, roughly half its earlier projection.
For Gulf hub carriers, whose business models depend on stable long-haul routings and transfer traffic, the financial hit has been unavoidable.
The sector’s response has revealed both its vulnerability and its underlying resilience
What is striking, however, is the speed and confidence of the recovery. Etihad is already operating at 90% of pre-war capacity, with fares back at pre-war levels and no plans to discount. Emirates, despite flying at just 58% of its capacity in March, posted a record annual profit and announced a 20-week salary bonus for staff. Riyadh Air pressed ahead with five new destinations in June. Dubai and Riyadh are together preparing to award tens of billions of dollars in airport construction contracts before the year is out.
The pattern is consistent across tourism, too. Hotel and resort construction contracts in the GCC have already surpassed last year’s full-year total, and sovereign entertainment projects such as the Sphere Abu Dhabi are being formalised mid-conflict. Governments are making clear that their long-term infrastructure ambitions are not contingent on short-term demand.
The coming months will determine how quickly international airline confidence, and the passengers that follow it, returns to the Gulf. The signals from within the region point firmly in one direction.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492201/main.gif -
DP World and Bahraini firm break ground on Jafza facility30 June 2026
Dubai-based ports operator DP World and Lintara Properties, the real estate development arm of Bahrain-headquartered Arcapita Group Holdings, have commenced construction of a new 20,000-square-metre (sq m) build-to-suit logistics facility at Jebel Ali Free Zone (Jafza) in Dubai.
The Grade A asset is being developed by Lintara Properties and will be operated by DP World as part of its integrated, end-to-end supply chain offering in the region.
The project is slated for completion in Q1 2027.
The facility will provide high-clearance warehousing, temperature-controlled zones, dedicated dangerous goods storage, office accommodation and related operational support amenities.
The latest announcement follows Arcapita’s agreement last week with US-based firm Hines to establish an investment platform focused on industrial and logistics real estate assets across the GCC.
The initiative will be supported by Lintara Properties.
Arcapita has also signed an agreement with Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, to deliver a 1.4 sq m built-to-suit logistics complex at King Salman Energy Park (Spark) in Saudi Arabia.
The project will feature a 43,000 sq m temperature-controlled Grade A warehouse; more than 3,000 sq m of office space and staff amenities; 5,300 sq m dedicated to chemical storage; and an open yard spanning about 1.2 million sq m.
Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, and automation and robotics.
Lintara Properties was formally launched in October last year as a dedicated real estate asset management, development and investment advisory firm.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17491690/main.jpg -
Read the July 2026 MEED Business Review30 June 2026
Download / Subscribe / 14-day trial access The events that unfolded from 28 February delivered the Gulf aviation sector its toughest test since the Covid-19 pandemic.
Missile and drone attacks exposed the fragility of one of the region’s most vital economic engines, triggering unprecedented disruption. In just one week, more than 15,000 flights were cancelled across seven major Gulf airports, leaving over 1.5 million passengers stranded and sending shockwaves through global travel networks.
While the Gulf's national airlines have largely restored services, many international carriers remain absent, highlighting the lasting impact of the crisis.So what does this mean for the future of Gulf aviation? In the July issue of MEED Business Review, MEED editor Colin Foreman examines how the industry responded under extraordinary pressure – and why the crisis revealed not only its vulnerabilities, but also the remarkable resilience that will shape its next chapter.
July’s market focus is on the Levant, and finds the region’s three markets – Jordan, Lebanon and Syria – recovering at different speeds and from very different starting points.
This edition also includes a tourism report as the first signs of recovery begin to emerge in Dubai, and the region presses ahead with tourism projects.
In the latest issue, we speak to EtihadWE about its roadmap for future projects, examine why the Mena projects market continues to show remarkable resilience despite regional conflict, and investigate whether Big Tech is delivering on its data centre ambitions.
We also explore the multibillion-dollar opportunity emerging from the region’s evolving retirement savings market and discover how Aramco's citizen developers are accelerating digital transformation from within.
We hope our valued subscribers enjoy the July 2026 issue of MEED Business Review.

Must-read sections in the July 2026 issue of MEED Business Review include:
> AGENDA: Gulf aviation ambitions face uncertain future
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitionsINDUSTRY REPORT:
Tourism investment
> Dubai eyes tourism sector recovery
> GCC presses ahead with tourism projects> INTERVIEW: EtihadWE prepares roadmap for future projects
> PROJECTS MARKET: Mena project momentum holds despite conflict
> DATA CENTRES: Big Tech falls short on data centre promise
> SAVINGS: Retirement creates multibillion-dollar opportunity for region
> LEADERSHIP: Aramco’s citizen developers accelerate digital change
> INTERVIEW: Samsung E&A’s hydrocarbons business rooted in Mena
> LEVANT MARKET FOCUS:
> COMMENT: Levant recovers in three speeds
> GOVERNMENT: Jordan consolidates as deeper reforms lag
> BANKING: Caution governs Jordanian bank lending
> POWER & WATER: Record investment drives Jordan’s utilities market
> ECONOMY: Gulf liquidity outpaces Syria’s financial revival
> PROJECTS: Momentum builds for Syrian projects
> OIL & GAS: Activity ramps up in Syria’s oil and gas sector
> CONSTRUCTION: Prospects improve for Levant construction
> OIL & GAS: Lebanon taps foreign players to assess resources
> DATABANK: Jordan faces fresh round of challenges> MEED COMMENTS:
> UAE clears the path for recovery
> Water tariffs near their floor
> Petrofac seeks to reclaim lost ground
> The UAE’s eastern pivot> GULF PROJECTS INDEX: Gulf index extends growth streak into 15th month
> MAY 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The price of permanent risk
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17490904/main.gif -
Consortiums sign agreements to develop Oman energy projects30 June 2026
Consortiums led by France’s EDF Power Solutions have signed agreements to develop a 2,000MW pumped hydro energy storage (PHES) project and a 500MW solar independent power producer (IPP) project in Oman.
The agreements were signed in Paris on 29 June during the official visit of a high-level Omani delegation to France, led by Sultan Haitham Bin Tariq.
The framework agreement for the 2,000MW Jabal Abyad PHES project was signed by a consortium comprising EDF Power Solutions, Oman National Engineering & Investment Company (ONEIC), Takhzeen Oman and local firm Green Universe Enterprise, along with the Authority for Public Services Regulation.
The project will be located near Wadi Dayqah Dam and is expected to be the Middle East’s largest PHES plant.
The power purchase agreement for the 500MW Al-Kamil solar IPP was signed by a separate consortium comprising EDF Power Solutions, ONEIC and the local OQ Alternative Energy, alongside Nama Power & Water Procurement Company (Nama PWP).
The project will be financed, built and operated by the consortium.
The Al-Kamil solar photovoltaic IPP is EDF Power Solutions’ third renewable energy project in Oman following the 500MW Manah 1 solar PV IPP and the 120MW JBB wind IPP.
As previously reported, the Kamil IPP sits alongside renewables schemes in Nama PWP’s development pipeline, including the 400MW Sina and 280MW Marsa solar IPPs. Plans also include the 800MW Mahout and 300MW Duqm 2 wind IPPs, both of which are targeted for commissioning between 2027 and 2029.
Separately, the Omani government, EDF Power Solutions and Synergy Investments signed a memorandum of understanding to develop a 1,000MW sustainable digital infrastructure platform.
The project aims to position Oman as a regional hub for artificial intelligence, advanced computing and cloud services in line with Oman Vision 2040.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17491165/main.jpg