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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Dubai seeks consultants to develop drainage strategy18 March 2026
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Oman awards power purchase agreements18 March 2026
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DP World awards Jafza warehouse construction deal18 March 2026
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Jabal Omar plans next phase of its Mecca development18 March 2026
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Dubai seeks consultants to develop drainage strategy
18 March 2026
Dubai Municipality has issued a request for qualifications (RFQ) for a study to develop a sustainable urban drainage systems (Suds) strategy across the emirate.
The bid submission deadline is 9 April.
The tender, issued through the Sewerage and Recycled Water Projects Department, covers the development of a strategy and conceptual implementation plan for Suds in Dubai.
It follows a separate RFQ issued by the municipality in March for consultancy services to study the emirate’s sewage treatment strategy.
The Suds project, designated TF-23-D1, aims to support the emirate’s flood protection and drainage infrastructure by promoting a more sustainable approach to stormwater management.
The scope of work includes a review of international best practices in Suds and their applicability to Dubai. It also involves undertaking a Suds opportunity study and carrying out catchment-scale modelling and financial evaluation for a pilot study area.
Consultants will be required to develop Suds design guidelines, specifications and standard drawings. The project also includes establishing a strategy, policy, legal and regulatory framework to support a Suds implementation roadmap.
Dubai Municipality said the initiative represents “a significant step towards a more resilient, sustainable and forward-looking stormwater management approach for Dubai.”
The study forms part of a broader review of Dubai’s water and wastewater infrastructure. Earlier this month, the municipality issued a separate consultancy tender (P115-D1) to assess the emirate’s sewage treatment and recycled water distribution strategy.
The study will focus on infrastructure requirements to support future population growth.
This includes identifying locations for potential future facilities such as treatment plants and pumping stations.
The bid submission deadline is 23 March.
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Oman awards power purchase agreements
18 March 2026
Oman’s Nama Power & Water Procurement Company (PWP) has issued letters of award (LoA) for new power purchase agreements (PPAs) to three independent power producers (IPPs), according to regulatory filings.
The new PPAs will extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.
The projects have a combined capacity of about 3,500MW.
The agreements have been awarded to Phoenix Power Company, Al-Batinah Power Company and Al-Suwadi Power Company.
Phoenix Power Company operates the 2,000MW Sur IPP. It is owned by a consortium of international and regional investors, including Japan’s Marubeni Corporation and Chubu Electric Power, Qatar’s Nebras Power, Qatar Electricity & Water Company and Multitech of Oman’s Bahwan Engineering Company.
Al-Batinah Power Company and Al-Suwadi Power Company operate the 750MW Sohar 2 IPP and the 750MW Barka 3 IPP, respectively.
According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle (SPC) called Al-Suwadi Power Company.
The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%) and the Public Authority for Social Insurance (10%).
In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.
All three companies said the new PPAs will run for 15 years under agreed commercial terms. Acceptance of the LOAs has been requested by 18 March 2026.
The new agreements for Sohar 2 and Barka 3 will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the Sur IPP will commence on 1 April 2029 and run until 31 March 2044.
The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.
In Oman, IPP projects are developed under a build-own-operate model. This allows plant operators to continue running assets beyond the initial PPA term, either through contract extensions or by selling power into a future electricity market.
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DP World awards Jafza warehouse construction deal
18 March 2026
Dubai-based ports operator DP World has awarded a contract to build a multi-tenant warehouse development at Jebel Ali Freezone in Dubai, UAE.
The contract was awarded to local firm Group Amana.
The development spans 141,916 square metres (sq m) and comprises 187 units across seven blocks.
These comprise warehouses, light industrial units, a retail shop, a mosque and other associated infrastructure.
The new contract builds on their existing partnership to deliver the logistics park at Jeddah Islamic Port in Saudi Arabia.
In February last year, MEED exclusively reported that Dubai’s DP World and the Saudi Ports Authority (Mawani) had awarded a SR347m ($92m) design-and-build contract to Group Amana for the project.
The scope of the contract covers construction work on the buildings under package two of the project’s first phase.
Earlier this week, MEED reported that DP World has kept its 2026 capital expenditure budget at nearly $3bn, focusing on two domestic assets and four overseas projects.
The company said in a statement that the priority developments include Jebel Ali and Drydocks World in Dubai.
Earlier this month, the group announced record financial results for 2025, with revenue up 22% to $24.4bn and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) up 18% to $6.4bn, delivering a 26.3% margin.
DP World said this performance was driven by strong momentum across its ports and terminals and logistics business.
The group’s gross throughput rose 5.8% to 93.4 million 20-foot equivalent units.
Profit for the year increased 32.2% to $1.96bn, and operating cash flow grew 14% to $6.3bn.
Return on capital employed increased to 9.9% in 2025, up from 8.9% in 2024, reflecting stronger earnings despite ongoing geopolitical and trade uncertainty.
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Egyptian firm starts building Sal’s Riyadh logistics centre
18 March 2026
Egyptian contractor Rowad Modern Engineering, a subsidiary of the Elsewedy Electric Group, has begun construction on the expansion of Saudi Logistics Services Company (Sal) facilities at King Khalid International airport in Riyadh.
The scope of work includes the rehabilitation and upgrade of existing infrastructure, as well as the construction of new supporting facilities and services.
Sal started the tendering process for its SR4.2bn ($1bn) logistics zone in the north of Riyadh in September last year, as MEED reported.
UAE-based Global Engineering Consultants is the project consultant.
The logistics hub aims to meet the demand for customised warehouses located near King Khalid International airport and the Riyadh Metro.
The project is in line with Vision 2030 and the National Transport & Logistics Strategy, which aims to support the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.
Sal and Sela signed an agreement to develop the project in March last year.
This was followed by another lease agreement for the project, which will span about 1.57 million square metres.
According to an official statement: “The lease will extend for 30 years, which is further extendable to an additional 15 years upon agreement of both parties.”
GlobalData expects the kingdom’s construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.
Growth will also be supported by government investments in rail, dams, industrial and road infrastructure projects.
The industrial sector is estimated to grow by 3.3% in 2025-28, supported by investments in the development of manufacturing, logistics, chemicals and pharmaceuticals plants.
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Jabal Omar plans next phase of its Mecca development
18 March 2026
Saudi Arabian developer Jabal Omar Development Company is carrying out planning for phase seven of its Jabal Omar master development in Mecca, according to a fourth-quarter 2025 financial presentation.
The company said phase seven will be a mixed-use scheme comprising hotels, retail and residential components, but did not disclose a breakdown of the project elements.
Jabal Omar plans to use a development partnership model for the phase to minimise capital expenditure.
Separately, the developer said it is targeting the delivery of 1,346 hotel keys and more than 20,000 square metres of gross leasing area in phase four by 2027.
Rotana Jabal Omar Makkah, comprising 655 keys, is due to be fully operational in the first quarter of 2026, after 450 keys began operating in the final week of December 2025.
The 1,141-key Sofitel is scheduled to become operational in the fourth quarter of 2026, while the 20,000 square metres of gross leasable area is expected to be ready in 2027.
Jabal Omar estimates its 2026 capital expenditure at SR1.1bn ($293m), with spending expected to fall once the phase four hotels are completed.
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