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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MEED Editorial
Related Articles
  • Dubai extends deadlines for stormwater drainage projects

    1 September 2026

     

    Dubai Municipality has extended bid submission deadlines for three tenders linked to stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.

    The projects (DS-316-C1, TF-24-C1 and TF-25-C1) 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 new bid submission deadline is 24 September. Bids were originally due on 10 September.

    The municipality’s Sewerage and Recycled Water Projects Department issued the tenders in August. 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 up to 1,600 millimetres (mm) in diameter, while the sewer network will include pipelines 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 the Dubai-Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.

    The latest tenders follow a series of recent Tasreef package awards by Dubai Municipality.

    In July, MEED reported that local contractor DeTech Contracting had won the estimated $100m TF-15-C1 EPC contract. The municipality has also awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting.

    The wider Tasreef programme is intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19220861/main.jpg
    Mark Dowdall
  • Saudi Arabia redirects towards AI

    1 September 2026

    Commentary
    Colin Foreman
    Editor

    The groundbreaking by Humain and DataVolt at Oxagon this month signals where Saudi Arabia’s project spending is heading.

    Over the past year, the dominant story has been reprioritisation, following Neom’s loss of the Asian Winter Games and the cancellation of contracts at Trojena and The Line. While the negative headlines have attracted international attention, it is important to remember that spending has not stopped. Instead, it has changed course, and artificial intelligence (AI) and the new economy are increasingly where it is going.

    The old economy still has a role to play. Over the next eight years, Expo 2030 and the 2034 Fifa World Cup will keep the construction market busy. Looking further ahead, however, the longer-term opportunity lies elsewhere. AI and the wider new economy could sustain a pipeline of construction work that outlasts the events – from data centres and their power supply to the industrial and digital infrastructure that surrounds them.

    Saudi Arabia also has a comparative advantage. Aiman Al‑Mudaifer, Neom’s chief executive, said at Leap that the ability to secure power, land and connectivity was becoming critical to the economics of AI computing capacity. The kingdom has cheap energy, coastline, sovereign capital and, at Oxagon, subsea cables linking to Europe and Africa.

    The build-out is gathering pace. Humain, the PIF-owned AI company launched in May 2025, has struck deals with US chipmakers AMD and Nvidia, attracted interest from Aramco and tendered a separate 6GW campus in east Riyadh. The Oxagon campus is planned to reach 1.5GW, with the first 100MW due in 2028. For contractors and consultants, this points to demand for power distribution, substations, cooling and connectivity rather than stadiums and mountain resorts.

    Whether it pays off is far from settled. Data centre economics depend on customers, chips and reliable power, and Saudi Arabia is a late entrant to a crowded field.

    For construction, the transition will be uneven, and some parts of the projects market will feel the redeployment before they feel the benefit. But for a market that has spent a year dealing with the impact of cancelled contracts and project slowdowns, a clearer sense of where the money is going next is a positive sign.

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    Colin Foreman
  • Petrojet signs Jordan gas pipeline contract

    1 September 2026

    Egypt’s Petrojet has signed a new contract to deliver a natural gas pipeline project in Jordan, according to a statement from the company.

    The pipeline network will connect the Al-Muwaqqar Industrial Development Zone, south of Amman, to Jordan’s natural gas network.

    The contract was signed by Saleh Al-Kharabsheh, Jordan’s minister of energy and mineral resources, and Walid Lotfy, the chairman of Petrojet.

    The project covers the engineering, procurement, construction and installation of approximately 22 kilometres of natural gas pipelines, including connection to the Arab Gas Pipeline.

    It also includes developing gas pressure reduction and metering stations, as well as a pig launcher and receiver facility.

    The contract has an 18-month execution period.

    In its statement, Petrojet said the project would further strengthen its international portfolio and demonstrate its engineering, construction and project-execution capabilities across regional and global markets.

    The invitation to bid on the project was issued in June this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19219983/main.jpg
    Wil Crisp
  • Kuwait sets fresh bid deadline for $240m oil project

    1 September 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has announced a new bid deadline for the planned project to upgrade gas booster stations 140 and 150 (BS-140 and BS-150).

    The new bid deadline is on 20 September 2026.

    This replaces a previous bid deadline scheduled for 23 August 2026.

    The project, first announced in 2014, is estimated to be worth $240m, and the invitation to bid was issued in May this year.

    The scope of work on the project covers:

    • Upgrade of BS-140 and BS-150
    • Replacement of dehydration facilities
    • Laying of pipelines
    • Installation of safety system
    • Construction of associated facilities

    It was announced in 2017 that the following companies had been prequalified to bid for the project:

    • Daelim Industrial (South Korea)
    • Daewoo Engineering & Construction (South Korea)
    • Fluor (US)
    • Hyundai Heavy Industries (South Korea)
    • JGC Corporation (Japan)
    • Kellogg Brown & Root (US)
    • Larsen & Toubro Hydrocarbon Engineering (India)
    • National Petroleum Construction Company (UAE)
    • Petrofac (UK)
    • Saipem (Italy)
    • Samsung Engineering (South Korea)
    • SK E&C (South Korea)
    • Kentech (UAE; formerly SNC-Lavalin)
    • Technip Energies (France)
    • Tecnicas Reunidas (Spain)

    The list of prequalified companies has likely changed significantly since the previous list was published.

    Kuwait’s oil and gas sector is currently in the midst of a major crisis as disruption to shipping through the Strait of Hormuz has dramatically reduced the volume of exported crude oil.

    The disruption is also creating significant challenges for construction projects in the oil and gas sector, which normally import equipment and materials through the Strait of Hormuz.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19219867/main.jpg
    Wil Crisp
  • Libyan company secures upstream oil project

    1 September 2026

     

    Libya’s BaderOya Oilfield Services & Energy has been awarded a contract to hook up six wells to an early production facility (EPF) at the Erawin field.

    Engineering contractor Petrofac previously handled the scope of this project. However, Petrofac stopped work before completing the full scope.

    The outstanding work accounted for about 2%-3% of the overall project, according to industry sources.

    The client for the six-well hook-up contract is Zallaf Libya Oil & Gas Exploration & Production Company, which was established in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation (NOC).

    In March this year, MEED reported that Petrofac had stopped work on the EPF development project and reduced its Libyan workforce.

    The scope of the original contract awarded by Zallaf to Petrofac included surface facilities at the Erawin oil field, such as well pads and flowlines. It also included a pipeline to transport crude oil about 100 kilometres (km) to the El-Sharara oil field, plus a control room, substation and telecoms system located there.

    Petrofac completed several elements of the original scope, including the pipeline infrastructure, which has been in operation for more than a year, according to the company.

    Zallaf awarded the Erawin EPF contract to Petrofac under an engineering, procurement, construction and commissioning model. In a 2021 statement, Petrofac said the contract was valued at more than $100m, but did not provide a precise figure. The regional project-tracking service MEED Projects has estimated the contract value at $440m.

    Petrofac did not respond to a request for comment on the award of the well hook-up contract to BaderOya Oilfield Services & Energy.

    Financial problems

    On 27 October last year, Petrofac announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.

    At the time, the total value of projects awarded to Petrofac and under construction in the region was $5.83bn, according to information recorded by MEED Projects.

    Petrofac also had bids under evaluation for 15 projects in the region worth a total of $19.28bn.

    Since then, key parts of the business have been sold off, and many of the company’s staff have been made redundant.

    The redundancies included around 180 employees who were issued termination notices in October last year.

    In December, the US-based company CB&I announced it had entered into a deal to buy Petrofac’s asset solutions business in the first quarter of 2026.

    In January this year, the proposed company voluntary arrangement related to the sale of its Asset Solutions business was approved.

    Also this year, Petrofac completed the sale of Petrofac Emirates, a business unit it established in Abu Dhabi in 2008.

    The unit was bought by a consortium of financial investors led by the New York-headquartered hedge fund Mason Capital Management and UK-based asset management firm Pearlstone Alternative.

    Project disruption

    After the sale of Petrofac’s asset solutions to CB&I, the US-based company adopted responsibility for close-out works for the Erawin EPF project, according to an industry source.

    This was because the project “fell within an entity that was moving as part of the CB&I sale”, the source said.

    CB&I and Petrofac declined to comment on recent developments relating to the Erawin EPF project and the contract awarded to JOS.

    Erawin exports

    Libya shipped its first cargo of crude from the Erawin oil field in November 2023.

    The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.

    Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the EPF project in 2019.

    The Erawin field development project is located about 800km south of Tripoli and 100km southwest of the El-Sharara field.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19219414/main.jpg
    Wil Crisp