Monthly briefing: 14 key developments in the region
21 November 2022
By MEED staff
> Lukewarm Cop27 ends
> UAE and US sign $100bn energy programme
> BlackRock looks to invest in projects with PIF
> Riyadh signs construction deals during Seoul visit
> Middle East outpaces global economic growth
> Riyadh Grade A office occupancy hits 98 per cent
> Dubai developer plans world's tallest residential building
> Saudi Arabia launches national automaker
> Alba reaches Block 4 financial close
> Partners award contracts for $8.5bn US chemicals project
> Investors launch Sohar industrial projects
> Aramco and IBM plan Riyadh innovation hub
COP27
Egypt climate conference ends with agreement on payout
Negotiators from nearly 200 countries at the 2022 UN climate summit Cop27, which took place in Egypt on 6-18 November, have agreed to set up a loss and damage fund aimed at helping vulnerable countries to cope with climate disasters. They also agreed that global greenhouse gas emissions need to be cut nearly in half by 2030.
The agreement also reaffirmed the goal of keeping global warming to 1.5 degrees Celsius above pre-industrial levels. However, a deal to phase out the use of fossil fuels, and not just coal, could not be agreed upon after a number of nations, including China and Saudi Arabia, blocked the proposal. Read more

The Middle East was thrust firmly onto the global stage on 20 November when football’s 2022 World Cup kicked off in Qatar
Region pitches to be global sporting hub
OIL
Opec and non-Opec partners cut 2 million b/d of production
Saudi Arabia, the world’s largest crude oil exporter, has started to cut its exports as Opec+ begins to reduce its overall target production by 2 million barrels a day (b/d).
Saudi Arabia had cut its crude oil exports by more than 400,000 b/d by the third week of November, while exports from Opec could be on course to drop by 1 million b/d.
In October, Opec+ announced it would slash its collective target by 2 million b/d from November. Although the actual reduction is expected to be about 1.1 million b/d, it is still the biggest cut since the record reduction announced in April 2020, when oil demand plunged at the start of the pandemic.
UAE-US DEAL
UAE and US sign $100bn clean energy partnership
The UAE and the US have signed a partnership that aims to catalyse $100bn in financing and other support, in addition to deploying 100GW of clean energy in the US, UAE and emerging economies around the world by 2035. They also reaffirmed their commitment to climate action, in line with their 2050 net-zero goals.
The two countries plan to stimulate private and public sector support in four areas: clean energy innovation, financing, deployment and supply chains; carbon and methane management; advanced reactors; and industrial and transport decarbonisation. Read more
PIF-BLACKROCK PARTNERSHIP
PIF and BlackRock agree to explore infrastructure projects
Saudi Arabia’s Public Investment Fund (PIF) has signed a non-binding memorandum of understanding with US asset manager BlackRock to jointly explore infrastructure projects in the Middle East, with a majority of the investment activity focused on Saudi Arabia.
The target projects are in several sectors, including energy, power, utilities, water, environment, transportation, telecommunications and social infrastructure.
BlackRock will look to build a dedicated infrastructure investment team in Riyadh to cover the Middle East region.
In a statement, the PIF said that the aim is to leverage positive Saudi and regional market dynamics to deliver sustainable long-term returns.
The sovereign wealth fund added that the two entities plan to work together to attract regional and international investors to participate in investment projects, and boost foreign direct investment into Saudi Arabia.
This will add value to the Saudi economy and the wider market while facilitating knowledge and skills transfer. Read more
ECONOMIC OUTLOOK
IMF predicts economic growth for the Middle East in 2022
The real GDP of oil exporting countries in the Middle East is projected to grow at 5.2 per cent in 2022, up from 4.5 per cent in 2021, according to the Washington-based IMF.
Growth is projected to slow to 3.5 per cent in 2023 as Opec+ production wanes, oil prices ease and global demand slows.
Crude producers are projected to accrue a cumulative oil windfall of about $1tn in 2022−26, which the IMF said oil-exporting countries like Saudi Arabia and the UAE could use to continue to invest in projects that support future economic growth. Read more
SAUDI-KOREA PROJECTS
Deals worth $30bn signed during royal visit to Seoul
Agreements totalling an estimated $30bn were signed during Saudi Crown Prince Mohammed bin Salman al-Saud’s visit to Seoul, South Korea on 17 November.
The biggest deal was a commitment from Saudi Aramco to invest $7bn in building an integrated refinery and petrochemicals complex in South Korea through its local affiliate S-Oil.
The new plant will have capacity to produce 3.2 million tonnes a year of petrochemicals.
Five South Korean companies – Korea Electric Power Corporation (Kepco), Korea Southern Power Company, Korea National Oil Corporation, Posco Holdings and Samsung C&T Corporation – have also signed agreements with Saudi Arabia’s Public Investment Fund to build and operate a green hydrogen and green ammonia production facility in Saudi Arabia. Read more
RIYADH REAL ESTATE
Riyadh Grade A office occupancy hits 98 per cent
Occupancy levels for prime office space in Riyadh have risen by four percentage points to 98 per cent according to a report by property consultancy Knight Frank.
Average lease rates for prime office space have increased by 18 per cent over the past 12 months to about SR1,775 ($473) a square foot. The company said there is unprecedented demand for Grade A office space.
“As the kingdom’s economic transformation plan unfolds, business activity is rising at an extraordinary pace. Seventy firms have now committed to relocating their regional headquarters to Riyadh, including Aldeham Education Group and French rolling stock manufacturer Alstom,” Knight Frank said. Read more
UAE
Dubai developer plans world’s tallest residential building
Local real estate developer Binghatti and jewellery brand Jacob & Co have announced plans to build the world’s tallest residential structure in Dubai’s Business Bay district.
Known as Burj Binghatti Jacob & Co Residences, the tower will comprise more than 100 storeys and will offer two- and three-bedroom apartments. Amenities in the building will include an infinity pool, a spa and a gymnasium.
Companies recently moved onsite in Business Bay to work on a 116-storey tower for Binghatti. The contractor is Granada Europe Construction. The consultant is Silver Stone Engineering Consultants. Read more
ELECTRIC VEHICLES
Saudi Arabia launches electric vehicle manufacturer
Saudi Arabia’s Crown Prince Mohammad bin Salman al-Saud has announced the launch of Ceer, the first Saudi electric vehicle brand. Ceer is the first Saudi automotive brand to produce electric vehicles in Saudi Arabia.
The company is a joint venture of Saudi sovereign wealth entity the Public Investment Fund and Taiwan-based Hon Hai Precision Industry Company, which trades as Foxconn internationally.
Foxconn will license component technology from BMW for use in the vehicle development process, with the first vehicles – sedans and sports utility vehicles – expected to be available in 2025.
Foxconn will develop the electrical architecture of the vehicles, which will feature infotainment, connectivity and autonomous driving technologies.
Ceer is expected to attract over $150m in foreign direct investment and create up to 30,000 direct and indirect jobs. Read more
Further reading
Alba agrees Block 4 financing
Aluminium Bahrain (Alba) has reached financial close on the 681MW combined-cycle gas turbine plant that comprises Block 4 of the smelter’s Power Station 5. China Export & Credit Insurance Corporation (Sinosure) will provide a $225m facility.
Contracts awarded for US plant
QatarEnergy and Chevron Phillips Chemical Company have reached final investment decision on the Golden Triangle Polymers Plant, an $8.5bn integrated polymers facility in the US. The plant will include the biggest ethylene cracker in the world with a capacity of 2.1 million tonnes a year.
Investors launch Sohar projects
Investors have launched two non-oil industrial projects in Sohar Freezone in Oman. The sultanate’s first petroleum coke calcining facility will be built at a total investment of about $155.9m, while a titanium dioxide production facility will be established at a cost of $112m.
Aramco plans innovation hub
Saudi Aramco and US technology company IBM plan to establish an innovation hub in Riyadh. The hub will support tech-driven economic growth in Saudi Arabia with the help of emerging technologies in hybrid cloud, artificial intelligence and quantum computing.
Exclusive from Meed
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Dubai tenders stormwater drainage projects14 August 2026
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Construction completed on $8.5bn Neom hydrogen project14 August 2026
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Lamprell announces Abu Dhabi offshore project contract14 August 2026
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Hitachi Energy signs Erbil substations deal14 August 2026
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Contracts signed for Algerian phosphate project14 August 2026
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Dubai tenders stormwater drainage projects14 August 2026
Dubai Municipality has issued three tenders for stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.
The projects cover drainage networks for Hind 4, connections to the stormwater network in Dubailand and a stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman.
The three tenders were issued through the municipality’s Sewerage and Recycled Water Projects Department.
All three have bid submission deadlines of 10 September.
Hind 3 and Hind 4 are two of four zones within Hind City. The Dubai government renamed the Al-Minhad area and surrounding areas as Hind City in 2023. The 83.9-square-kilometre area is served by Emirates Road, Dubai–Al-Ain Road and Jebel Ali–Lehbab Road.
The DS-316-C1 project covers the construction of sewer and stormwater networks in Hind 4. The stormwater network will include gravity drainage pipelines with diameters of up to 1,600 millimetres (mm), while the sewer network will include pipelines of up to 800mm.
The TF-24-C1 project will connect developers’ areas in Dubailand to the stormwater network. It includes 18 kilometres (km) of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.
The TF-25-C1 project involves the construction of a 9.2km stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman. The trunk line will include gravity drainage pipelines with diameters of up to 2,800mm. It will also serve main roads along its alignment, including sections of Dubai–Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.
The projects are intended to strengthen flood resilience and improve the reliability of Dubai’s drainage infrastructure.
Latest awards
Dubai has continued to accelerate investment in stormwater infrastructure under the Tasreef programme in recent months.
In July, MEED exclusively reported that Dubai Municipality had awarded the estimated $100m engineering, procurement and construction contract for the TF-15-C1 package of its Tasreef rainwater drainage network programme to local firm DeTech Contracting.
The municipality has also recently awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting, respectively.
The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033 and serve the emirate for the next century.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18585485/main.jpg -
Construction completed on $8.5bn Neom hydrogen project14 August 2026
Construction work on the $8.5bn Neom Green Hydrogen project at Oxagon in Saudi Arabia has been completed, with the facility entering the commissioning stage ahead of commercial operations targeted for 2027.
The project is being developed by Neom Green Hydrogen Company (NGHC), a joint venture of Saudi-listed Acwa, US-headquartered industrial gases group Air Products and Neom.
Acwa's chief financial officer, Abdulhameed Al-Muhaidib, said during the company’s recent H1 2026 earnings call that construction has been completed and commissioning activities are now under way.
"It’s really more now into commissioning and the target to go into commercial operation next year," he told investors.
The project is designed to produce up to 600 tonnes a day of green hydrogen, which will be converted into green ammonia for export. It is supported by about 4GW of solar and wind power generation capacity, with the renewable power that is generated being used to produce hydrogen through electrolysis.
As previously reported by MEED, Air Products is also the exclusive offtaker for green ammonia produced at the facility under a 30-year agreement.
NGHC said in March that its renewable power generation assets, including the wind and solar farms, and transmission grid, had reached approximately 95% completion.
India’s Larsen & Toubro (L&T) is the engineering, procurement and construction (EPC) contractor for the project’s renewable energy and transmission and distribution package.
L&T’s EPC scope includes a 2,200MW solar plant, a 1,370MW wind farm, a 400MW battery energy storage system and a transmission network extending 190 kilometres.
The project reached financial close in 2023. Once operational, the facility is expected to produce up to 1.2 million tonnes a year of green ammonia for export.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18567177/main.jpg -
Lamprell announces Abu Dhabi offshore project contract14 August 2026

Saudi Arabia/UAE-based Lamprell has announced it has won an engineering, procurement, construction and installation (EPCI) contract for a project in Abu Dhabi, for which it will “support the delivery of subsea pipeline infrastructure that will help strengthen offshore energy production and processing capabilities”.
The project includes the engineering, procurement and fabrication of approximately 50 kilometres (km) of subsea pipeline systems, along with associated flowlines, subsea connections and testing, Lamprell said in a statement.
With the engineering, procurement and construction (EPC) activities having been completed, preparations are under way for the offshore installation phase, Lamprell added, without revealing further details about the project, its client or value of the contract.
“Working alongside our sister company Algihaz Marine Contractors, the project demonstrates the value of combining complementary engineering, fabrication and offshore installation capabilities to deliver complex subsea infrastructure safely, efficiently and to a high standard,” the company said in a .
MEED understands the contract award relates to the first package of the Umm Shaif Gas Cap development project in Abu Dhabi, for which Abu Dhabi National Oil Company (Adnoc Group) and its foreign partners announced achieving a $6.2bn final investment decision (FID) in July.
MEED previously reported that Adnoc had awarded the EPCI contract for the package related to EPCI and fabrication of a 30,000-tonne gas compression system and associated subsea pipelines, flowlines and other structures, to a consortium of India’s Larsen & Toubro Energy Hydrocarbon (L&TEH) and Lamprell.
Larsen & Toubro (L&T) confirmed its contract award from Adnoc Group subsidiary Adnoc Offshore earlier in August, describing the order as “ultra-mega”, a term the company uses for contracts valued at more than Rs150bn ($1.57bn).
Mumbai-headquartered L&T added that the contract will be executed through a consortium, with its subsidiary L&TEH Offshore serving as the lead partner, without mentioning Lamprell.
The Umm Shaif Gas Cap reserve is located within the offshore Umm Shaif and Nasr hydrocarbons concession, which is operated by Adnoc as the majority stakeholder. The other stakeholders in the concession are Italy’s Eni, France’s TotalEnergies and China National Petroleum Corporation (CNPC).
Through this project, Adnoc and its concession partners intend to produce up to 600 million cubic feet a day (cf/d) of natural gas by unlocking the Umm Shaif Gas Cap in Abu Dhabi’s Gulf waters.
Adnoc, in its 21 July statement, said the FID includes three EPC packages totalling $5.1bn for large-scale offshore infrastructure, awarded to consortiums comprising UAE and international contractors. The company did not disclose the contractors or the scope of work.
MEED reported in May that the following contractors had emerged as frontrunners for the two offshore packages and one onshore package of the Umm Shaif Gas Cap and surface pressure boosting project:
- First offshore package – fabrication of a 30,000-tonne gas compression system: L&TEH (India) / Lamprell (Saudi Arabia/UAE)
- Second offshore package – fabrication of another 30,000-tonne gas compression system: McDermott (US)
- Onshore package – EPC of gas inlet and processing systems on Das Island: China Petroleum Engineering & Construction Company
Adnoc added that, as part of the FID, it has also awarded a $365m contract to its subsidiary Adnoc Drilling for a 14-well drilling and integrated drilling services scope, to be delivered over 18 months using three existing rigs.
Umm Shaif Gas Cap project
Adnoc Offshore, the offshore oil and gas business of Adnoc Group, is the operator of the Umm Shaif Gas Cap and surface pressure boosting project.
The primary objective is to increase gas production by 550 million cf/d and raise associated condensate output by 50,000 barrels a day (b/d).
Adnoc Offshore intends to feed about 520 million cf/d of the additional produced gas into Adnoc Group’s sales gas grid.
Adnoc Offshore is understood to have issued the main EPC tender for the Umm Shaif Gas Cap and surface pressure boosting project in the first quarter of 2025.
Contractors submitted technical bids for the three EPC packages by 30 October last year, while commercial bids were submitted by the 2 February deadline.
The following contractors are among those understood to be bidding for the three EPC packages, according to sources:
Offshore package 1:
- Saipem (Italy) / Seatrium (Singapore)
- L&TEH (India) / Lamprell (Saudi Arabia/UAE)
- NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)
Offshore package 2:
- China Offshore Oil Engineering Company (China)
- McDermott (US)
- L&TEH (India) / Lamprell (Saudi Arabia/UAE)
- NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)
Onshore package:
- Archirodon (Greece)
- China Petroleum Engineering & Construction Company (China)
- Engineering for the Petroleum & Process Industries (Egypt)
- Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
- Target Engineering Construction Company (UAE)
Australian firm Worley has performed front-end engineering and design (feed) work on the project.
Umm Shaif gas production
Adnoc Offshore operates the Umm Shaif hydrocarbons development, which is located 150km northwest of the city of Abu Dhabi. The field is located in Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, previously operated by former Adnoc Group companies Adma-Opco and Zadco.
In March and April 2018, Abu Dhabi’s Supreme Council for Financial and Economic Affairs awarded a 10% stake in the Umm Shaif and Nasr offshore block to Eni, 20% to TotalEnergies and 10% to CNPC. Adnoc Group retained the majority 60% interest. The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.
Gas is produced from the Umm Shaif Khuff and Uweinat reservoirs, as well as from the Arab C and Arab D Early Production Scheme 2. The Umm Shaif Khuff reservoir is a formation that consists of dry gas volumetric reservoirs located in the Umm Shaif field.
Khuff reservoirs have been in production in Abu Dhabi since August 1989. Umm Shaif Khuff gas is currently produced from 28 active wells within the Umm Shaif field. A majority of these wells supply gas to Adnoc Group subsidiaries Adnoc LNG and Adnoc Gas Processing, with the rest supporting oil reservoirs at the Umm Shaif field through gas injection.
The Umm Shaif Super Complex (USSC) processes and transports oil, condensates and natural gas in separate pipelines to Das Island for further processing and export. The condensates collected from the USSC are transported to Das Island through an 18-inch pipeline stretching 34.4km, or are spiked into the 36-inch Adnoc main oil line.
The gas collected from the USSC is transported to Das Island through two 46-inch pipelines, which also run 34.4km.
Pressure at the Umm Shaif Khuff gas reservoirs will start to decline by the end of 2028. The flowing wellhead pressures at some of the Khuff gas wellhead towers are likely to reduce, so boosting well deliverability and increasing the flowrates is necessary.
Therefore, new Khuff surface pressure boosting facilities are required to maintain the plateau – with a goal of achieving a 90% gas recovery factor – and increase production beyond the end of the plateau by lowering pressure at the Khuff reservoirs.
Project tendering exercise
Adnoc Offshore has been working to advance the Umm Shaif Gas Cap project since at least 2019 and has experimented with several project execution models.
According to the original schedule, the project was due to be commissioned in 2023, but progress slowed down, primarily due to the Covid-19 pandemic.
Adnoc Offshore launched a feed-to-EPCI competition for the project in May 2019 and selected the following three entities based on their feed submissions:
- McDermott (US)
- National Petroleum Construction Company (UAE; now NMDC Energy) / TechnipFMC (France)
- Saipem (Italy) / Petrofac (UK)
Technical bids for the EPCI works on the estimated $1.5bn project were submitted in January 2020 and commercial bids were submitted by August of that year.
The Saipem/Petrofac consortium emerged as the lowest bidder for the project in September 2020, MEED reported.
Petrofac is understood to have ultimately withdrawn from the consortium and was replaced by state-owned China Petroleum Engineering & Construction Company (CPECC).
In 2022, the Saipem/CPECC consortium was understood to be the sole remaining bidder for the Umm Shaif Gas Cap project. Adnoc Offshore engaged the consortium for a revised feed exercise and subsequently received commercial offers on a single-source basis.
In 2023, Adnoc Offshore cancelled the tendering process for the project and later decided to proceed with a conventional EPC-based project execution model.
The operator then appointed Worley to undertake feed works on the renewed Umm Shaif Gas Cap project in 2024. Worley has a legacy of involvement in the Umm Shaif hydrocarbons development.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18556614/main1931.jpg -
Hitachi Energy signs Erbil substations deal14 August 2026
Switzerland-headquartered Hitachi Energy has annnounced it has signed an agreement to supply high-voltage equipment for three 132/33kV substations being developed in Erbil in northern Iraq.
The substations are being built by Iraqi electrical contractor Hero Company under a ID100bn ($76.3m) contract signed with the Kurdistan Region's Electricity Ministry in May.
In a statement, Hitachi said it will act as the main technology provider for the project, which has a combined capacity of 753 megavolt-amperes.
According to local media reports, the substations will be located in Shamamak, Hasarok and Timar. The ministry said the projects are to be completed within two years.
Hitachi Energy says it has supplied more than 120 mobile substations and delivered more than 30 transmission substations in Iraq over the past 15 years. It also says it has upgraded assets including Iraq's National Control Centre.
Iraq’s power and water sector is currently undergoing one of its largest expansion programmes in decades amid chronic electricity and water shortages.
In 2025, it recorded its largest year of investment on record, with more than $17bn in combined contract awards.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18548939/main3553.jpg -
Contracts signed for Algerian phosphate project14 August 2026
Algeria’s national oil and gas company Sonatrach and the Algerian Chinese Fertilisers Company (ACFC) has signed two engineering, procurement and construction (EPC) contracts for the country’s planned phosphate integrated project in Tebessa Province.
ACFC was created in March 2022 by Algerian companies Asmidal and Manadjim El-Djazair (Manal), which own 56% of the company, and Chinese groups Wuhuan and Tianan, which own the remaining 44% stake.
Manal and Asmidal are both subsidiaries of Sonatrach.
The new contracts are part of the Bled El-Hadba phosphate development project, which is expected to be worth $7bn.
The contracts were signed by Italy’s Saipem and China Harbour Engineering Company (CHEC) as part of the first phase of the integrated phosphate project.
Saipem’s contract is worth approximately €500m ($577m), according to a statement released by the Italian company.
Saipem was previously awarded a front-end engineering and design (feed) contract for the same project in June 2025.
The signing ceremony for the latest two EPC contracts took place at the headquarters of Sonatrach's general directorate, in the presence of members of the government, Sonatrach CEO Nour Eddine Daoudi, the ambassadors of Italy and China in Algeria, as well as officials from Saipem and CHEC.
The first phase of the project involves the construction of industrial and port infrastructure, including a phosphate extraction and enrichment complex in Bled El-Hadba with an extraction capacity of 5.5 million tons a year (t/y) and an overall production capacity of concentrated phosphate estimated at 3.2 million t/y.
Phase one also includes the construction of an integrated industrial complex in Oued Kebrit with the capacity to produce 2.4 million t/y of phosphate fertiliser and 570,000 t/y of nitrogen fertiliser.
The facility in Oued Kebrit will also produce quantities of other intermediate products.
Port infrastructure will be constructed in Annaba with the aim of enabling the establishment of an integrated industrial and logistics ecosystem.
During the signing ceremony, Minister of State and Hydrocarbons Minister Mohamed Arkab said that the project benefits from special attention from Algerian President Abdelmadjid Tebboune, within the framework of his vision to exploit natural resources, strengthen national industrialisation, create added value, diversify the national economy and promote the country’s non-hydrocarbons exports.
He said that the project will be carried out according to an “accelerated EPC fast-track method”, in order to reduce completion times and bring production online faster.
This is expected to allow the first quantities of enriched phosphate to be produced in the first quarter of 2027 and fertiliser production is expected to start during the fourth quarter of the same year.
When the project is fully operational, it is expected to produce approximately 6 million t/y of enriched phosphate and 4 million t/y of different types of phosphate and nitrogen fertilisers.
It will also produce industrial materials such as sulfuric acid, phosphoric acid and ammonia, according to Arkab.
He said that Algeria's ambition is not limited to the production of phosphate and fertilisers and also includes the establishment of an integrated industrial chain capable of creating added value, developing skills, supporting the national economy and opening new horizons for Algerian products on international markets.
Daoudi, the chairman and chief executive of Sonatrach, said that the signing of the two contracts marked the effective transition to the implementation phase of this project, which "undoubtedly constitutes a key milestone in the industrial development process in Algeria".
The scope of the EPC contract signed by Saipem covers the construction of project facilities at the Bled El-Hadba site and the Oued Kebrit site.
Saipem’s chief executive Alessandro Puliti said that his company will try to deliver the project on time and will work with three local companies on the project.
The three companies are pipeline specialist Cosider Canalisations; Algerian Industrial Projects Realisation Company, which is a subsidiary of Sonatrach; and state-owned National Civil Engineering & Building Company.
The scope of the EPC contract signed by CHEC is focused on developing the Annaba port infrastructure project.
Speaking at the signing ceremony, CHEC's deputy general manager Chen Zhong said his company is committed to completing the first and second phases of the Annaba port project within the allotted timeframe.
The wider integrated phosphates project has four main focus areas.
These are:
- The Bled El-Hadba phosphate mine
- Phosphate enrichment units
- The Oued Kebrit chemicals processing complex
- Logistics facilities, including the extension of the port of Annaba and a railway network dedicated to the transport of raw materials and finished products
In its statement, Saipem described the document that it signed with Sonatrach as a limited notice to proceed (LNTP) for the execution of phase one of the integrated phosphate project in Algeria.
It said: “The full EPC contract will be based on a contractual framework which will allow both parties to share risks and rewards during the execution, including the LNTP period which will enable Saipem to start the preliminary activities that are preparatory and critical for achieving the first project milestones.
“These include but are not limited to feed completion and detailed engineering, procurement of long lead items, as well as preliminary project mobilisation and organisation activities, pending the negotiation and finalisation of the EPC contract.”
Saipem has been present in Algeria since 1968 and has developed infrastructure for hydrocarbons treatment and transportation, power generation plants and oil well drilling.
The Bled El-Hadba phosphate mine has over 1.2 billion tonnes of estimated total reserves, including 800 million tonnes of estimated exploitable reserves, making it one of the biggest mines of its kind in the world.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18499932/main.jpg