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.
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Exclusive from Meed
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Contractor wins $161m Meraas City Walk Crestlane deal7 September 2026
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Six groups qualify for Saudi Arabia’s Qassim airport PPP7 September 2026
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Dubai sets October deadline for metro Gold Line7 September 2026
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Oman power firms move closer to merger7 September 2026
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Red Sea utilities project reaches commercial operation7 September 2026
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Contractor wins $161m Meraas City Walk Crestlane deal
7 September 2026
Local contractor Parkway International Contracting has won a AED590m ($161m) contract to build phase three of the City Walk Crestlane project in Dubai’s Al-Wasl area.
The contract covers the construction of four residential buildings comprising 394 apartments.
Construction is expected to commence shortly, with completion slated for 2028.
Local real estate developer Meraas, part of Dubai Holding, awarded the contract.
In December last year, Meraas announced the next phases of the City Walk Crestlane project as it continues to expand its City Walk residential community in Dubai.
City Walk Crestlane 4 and 5 comprise four residential towers offering 360 one- to five-bedroom units.
In June 2025, Meraas announced the initial phases of the City Walk Crestlane project, which comprise two residential towers offering 198 one- to five-bedroom units.
Earlier this year, Meraas awarded two major construction contracts worth AED2.4bn ($653m) to build 557 villas as part of the second phase of its residential community, The Acres, in Dubailand.
The contracts were awarded to local construction firms United Engineering Construction (Unec) and GCC Contracting. Unec will build 371 three- to five-bedroom villas at The Acres, while GCC Contracting will deliver 186 five- to seven-bedroom residences at The Acres Estates.
Meraas’ latest project contract awards in Dubai reflect heightened real estate activity in the UAE’s construction market. Schemes worth more than $323bn are in execution or planning stages, according to UK-based analytics firm GlobalData.
The company forecasts that output from the UAE’s residential construction sector will grow by 3% in real terms between 2026 and 2029, supported by developments in infrastructure, energy and utilities, as well as residential construction projects.
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Six groups qualify for Saudi Arabia’s Qassim airport PPP
7 September 2026
Saudi Arabia’s Civil Aviation Holding Company (Matarat), through the National Centre for Privatisation & PPP (NCP), has qualified five groups and one standalone company to bid for a contract to develop Prince Naif Bin Abdulaziz International airport in Qassim, Saudi Arabia.
These include:
- YDA Insaat / Safari Group / Lamar Holding / Egis (Turkiye/local/Bahrain/France)
- Ports Projects Management & Development Company / Algihaz Holding (local/local)
- Mada International Holding / TAV Airports Holding (local/Turkiye)
- Namaya International Investment Company / Oman Airports Management Company / AlBawani Capital / Tanama (local/Oman/local/UAE)
- Vision Invest / Asyad Holding / DAA International (local/local/Ireland)
- GMR Airports (India)
The prequalification process follows 89 firms expressing interest in the contract, as MEED reported in March.
The project scope includes the redevelopment of the passenger terminal as well as other associated facilities such as airside infrastructure, including runway, taxiways and aprons.
The project will be developed on a design-finance-construction-operations-maintenance-transfer basis.
The clients issued an expression of interest notice for the project on 9 February, and companies were given until 23 February to submit responses.
Tendering is also ongoing for the new Taif International airport project in Mecca Province.
The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport and will have a capacity of 2.5 million passengers by 2030.
In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.
The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.
The new airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of the city of Taif and its surrounding areas, in line with the kingdom’s National Aviation Strategy.
It is also expected to meet the needs of Umrah pilgrims, as an alternative within the region’s multi-airport system, which includes King Abdulaziz airport in Jeddah, Prince Mohammed Bin Abdulaziz airport in Medina and Prince Abdulmohsen Bin Abdulaziz airport in Yanbu.
Previous tenders
The Taif, Hail and Qassim airport schemes were previously tendered and awarded as public-private partnership (PPP) projects using the build-transfer-operate (BTO) model.
Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.
A team of Turkiye’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.
A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.
However, these projects stalled following the restructuring of the kingdom’s aviation sector.
Saudi Arabia has already privatised airports including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.
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Dubai sets October deadline for metro Gold Line
7 September 2026
Dubai’s Roads & Transport Authority (RTA) has set a deadline of 9 October for contractors to submit their prequalification statements for a contract to build the new Gold Line as part of the Dubai Metro network’s expansion.
The previous deadline was 7 September.
The RTA issued the request for qualification notice for the project in June, with an initial submission deadline of 17 August, as MEED exclusively reported.
The prequalification notice followed the RTA’s invitation to contractors to express interest in building the new Gold Line in May.
Dubai officially announced the launch of the new Gold Line in April.
In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project will cost about AED34bn ($9.2bn).
The Gold Line will increase Dubai Metro network’s total length by 35%.
The project is scheduled for completion in September 2032.
The Gold Line will be a fully underground network covering more than 42 kilometres, with 18 stations.
It will pass through 15 areas in Dubai, benefiting 1.5 million residents.
The project is expected to provide connectivity to over 55 under-construction real estate development projects.
The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.
It will connect to Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger line.
The contractor will be responsible for the design and build of all civil works, electromechanical equipment, rolling stock and rail systems.
The selected contractor will also be required to assist in the systems maintenance and operations during an initial three-year period.
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.
Stage one covers concept design, stage two covers preliminary design, stage three covers the preparation of tender documents, stage four encompasses construction supervision, and stage five covers the defects and liability period.
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Oman power firms move closer to merger
7 September 2026
Oman’s Financial Services Authority has given in-principle approval for the proposed merger of Al-Suwadi Power Company and Al-Batinah Power Company.
In a disclosure to the Muscat Stock Exchange on 6 September, Al-Suwadi said the proposed merger remains subject to legal and regulatory requirements as well as approvals from relevant lenders and shareholders of both companies.
Al-Suwadi and Al-Batinah are independent power producers (IPPs) that operate two major gas-fired power plants in Oman. Al-Suwadi operates the 750MW Barka 3 IPP, while Al-Batinah operates the 750MW Sohar 2 IPP.
The two companies began assessing a potential merger in May. Al-Suwadi said the companies have similar assets, business operations and founders.
The companies recently secured new 15-year power purchase agreements (PPAs) with Nama Power & Water Procurement Company for Barka 3 and Sohar 2.
The new PPAs will take effect on 1 April 2028 and run until 31 March 2043. They will allow the two plants to continue supplying electricity under long-term contracts after their existing PPAs expire.
Al-Suwadi said in May that potential cost savings from a merger had been taken into account when the new PPAs were negotiated.
The company has also started assessing potential refinancing options for its existing financing arrangements, as well as funding requirements for capital expenditure during the new PPA period.
The refinancing assessment remains at an early stage. Any refinancing would be subject to approvals from the relevant regulatory authorities, existing lenders and Al-Suwadi’s board of directors.
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Red Sea utilities project reaches commercial operation
7 September 2026
The utilities system serving Saudi Arabia’s Red Sea tourism destination has reached commercial operation, marking the start of a 25-year concession for one of the world’s largest integrated off-grid utilities projects.
The Project Commercial Operation Date was signed by Marafiq Red Sea for Energy Company, the Acwa-led project company, and The Red Sea Utilities Company, a subsidiary of Red Sea Global.
The milestone brings into commercial service an integrated system covering power, potable water, wastewater treatment, district cooling and waste management. The system operates without a connection to Saudi Arabia’s national grid and is powered by renewable energy.
The project, known as the Marafiq Red Sea Project or Red Sea Utilities Multi-Utilities Project, combines 340MWac of solar photovoltaic capacity with a 1,227MWh battery energy storage system. Acwa describes the battery facility as the world’s largest off-grid battery installation.
The system currently supplies Red Sea Global’s operational hotels, Red Sea International airport, logistics hub, electric fleet, staff village and community facilities.
The solar and battery system has been sized to meet the destination’s initial energy demand and can generate up to 760,000MWh of clean electricity a year. At full capacity, it is expected to avoid about 600,000 tonnes of carbon dioxide emissions annually.
The utilities scope also includes three seawater reverse osmosis plants, a sewage treatment plant (STP), a waste management centre and 32,500 refrigeration tonnes of district cooling capacity.
The STP has a treatment capacity of 16,000 cubic metres a day. Treated wastewater will be used for irrigation and to support wetland habitats at the destination.
The integrated system has been designed to expand as further phases of The Red Sea destination come online.
As MEED previously reported, financial close was reached in February 2022, with about $1.33bn of senior debt facilities and total investment of about $1.84bn.
The consortium comprises Acwa, China’s SPIC Huanghe Hydropower and Saudi Tabreed. Marafiq holds the 25-year utilities concession.
Sepco 3, the Shandong Tiejun consortium, was the engineering, procurement and construction contractor. Acwa Operations is responsible for operating and maintaining the utilities system under a long-term agreement aligned with the concession period.
The project is the first gigaproject in Saudi Arabia to bring its complete utility systems into commercial operation powered solely by renewable energy, Acwa said.
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