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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Local contractor to build nine Bahrain substations30 July 2026
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Oman tenders advisory for 3GW solar programme30 July 2026
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Azerbaijan seeks interest for wastewater PPP29 July 2026
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Kuwait construction holds up despite regional strife29 July 2026
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Local contractor to build nine Bahrain substations
30 July 2026
Bahrain’s Electricity & Water Authority (EWA) has awarded the local Al-Kooheji Electrical a contract to build nine 66kV substations across the kingdom, according to a source.
The project is estimated to be worth $110m and is intended to support rising electricity demand from Bahrain’s domestic, commercial and industrial sectors.
Four local contractors submitted commercial bids for the contract in January. The bidders were:
- Nass Contracting ($28.4m)
- Poullaides Construction Company ($31.7m)
- Mohammed Jalal Contracting ($32.4m)
- Al-Kooheji Electrical ($34m)
The substations will be located at South Hidd Industrial, Mondelez, Alba Downstream Park, Muharraq North, Hamala West, Bani Jamra, Hoora, Maqabah East and West Riffa Club.
The scope includes the construction of the nine substations and control rooms, as well as the installation of transformers, switchgear and feeders connecting the facilities to the grid.
It also covers communication cabling, monitoring systems, safety and security systems, and associated civil and structural works.
As MEED understands, the substations are scheduled to be commissioned in stages. Two are planned for 2026, followed by four in 2027 and the remaining three in 2028.
Serbia’s Energoprojekt Entel was appointed as consultant for the project in April 2025. The consultant’s contract was valued at about $460,000.
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CB&I’s newly acquired unit wins Abu Dhabi wells contract
30 July 2026
US-based Chicago Bridge & Iron (CB&I) has announced that its Asset Solutions business – acquired earlier this year from UK-headquartered contractor Petrofac – has won a hydrocarbon well services contract in Abu Dhabi.
The contract was awarded by Cosmo E&P Albahriya, a wholly owned UAE-based subsidiary of Japan’s Cosmo Energy Holdings Company (Cosmo).
Under the well engineering services contract, CB&I Asset Solutions will support drilling, engineering, planning and operational activities for offshore Block 4 in Abu Dhabi.
Cosmo secured 100% exploration rights for offshore Block 4 – covering 4,865 square kilometres of Gulf waters northwest of Abu Dhabi city – in February 2021.
The block was offered in Abu Dhabi’s second hydrocarbons block competitive bidding round, launched by Abu Dhabi National Oil Company (Adnoc) in May 2019.
“The award strengthens Asset Solutions’ position in the Middle East and solidifies new relationships with key regional operators. With shared goals of prioritising safe, stable and environmentally conscious production, CB&I’s UAE-based team will draw on its local and global experience of delivering innovative well engineering solutions,” the Texas-based CB&I said in a statement.
ALSO READ: Abu Dhabi awards production licences for hydrocarbon blocks
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/17834142/main4710.jpg -
Oman tenders advisory for 3GW solar programme
30 July 2026
Nama Power & Water Procurement Company (Nama PWP) has invited bids for financial and commercial consultancy services for the development of three 1GW solar independent power projects (IPPs).
The projects will connect to Oman’s main interconnected system (MIS) and are targeted to reach commercial operation by the second quarter of 2030.
The successful bidder will provide financial and commercial consultancy services for the development of the projects and advise Nama PWP on the competitive tendering process.
The tender was issued on 28 July, and the bid submissions deadline is 10 September.
The three projects covered by the financial and commercial consultancy tender are understood to also be part of the 4GW programme, for which a technical advisory tender was issued on 15 July.
As MEED reported, this covers four 1GW solar projects connected to the MIS, also targeting commercial operation by the second quarter of 2030.
The deadline for bids is 26 August.
Oman Electricity Transmission Company (OETC) had earlier outlined the planned grid connection for four 1GW solar IPPs as part of the sultanate’s renewable energy expansion through 2030.
The projects are included in OETC’s Five-Year Annual Transmission Capability Statement for 2026-30.
The first, the 1GW Adam solar IPP, is scheduled for grid integration in 2028 and is further ahead in the procurement process, with Nama PWP issuing a request for qualification for the project in June.
OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.
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Azerbaijan seeks interest for wastewater PPP
29 July 2026
Azerbaijan has invited developers to submit expressions of interest (EoIs) for a public-private partnership (PPP) project to rehabilitate the Hovsan wastewater treatment plant (WWTP) and develop new wastewater recycling facilities.
The scheme will be Azerbaijan’s first wastewater PPP. The Asian Development Bank (ADB) is advising the government on the project.
The Hovsan WWTP is Azerbaijan’s largest wastewater treatment plant with a design capacity of 640,000 cubic metres a day (cm/d).
The project comprises two components. The first covers the rehabilitation, financing, operation and maintenance of the existing Hovsan plant to improve discharge quality and sludge management.
The second component covers the design, construction, financing, operation and maintenance of a new wastewater recycling facility with a capacity of 100,000 cm/d. The facility will supply recycled water for irrigation.
The overall project is expected to serve up to 2.5 million people in Baku.
ADB’s Office of Markets Development and PPP (OMDP) is acting as transaction adviser. Its role includes supporting project concept development and structuring, preparing and executing the competitive tender process, and assisting the government in achieving financial close.
The deadline for interested firms to submit EoIs is 21 August.
Azerbaijan has previously used the PPP model to attract private investment into large infrastructure projects, including in the water and renewable energy sectors.
The country’s first PPP tender in the water sector was for a seawater reverse osmosis desalination plant at Sumgayit Industrial Park, northwest of Baku.
As previously reported, a consortium of Saudi Arabia’s Acwa and Turkiye’s IC Ictas Insaat Sanayi ve Ticaret won the contract to develop the $400m plant, which will have a capacity of 300,000 cm/d.
In September 2025, Acwa signed agreements with the government of Azerbaijan covering a public‑private partnership agreement, a land lease, a sovereign undertaking, and a product water sale and purchase agreement.
The plant has a 27.5-year project term, with early commercial operations scheduled for the second half of 2028.
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:
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Kuwait construction holds up despite regional strife
29 July 2026
Kuwait’s construction and transport sectors are emerging from one of their strongest periods on record, with contract awards totalling $5.5bn last year, close to the record $5.6bn set in 2024.
Against that backdrop, momentum has held up better than expected in 2026. Awards in the construction and infrastructure sectors reached about $1.2bn in the period to 27 July, only marginally down from the $1.6bn recorded over the same period last year. Given the disruption to investor confidence and tender timelines across the Gulf caused by regional conflict, the near-flat comparison points to a market that has held its footing rather than stalled.
That steadiness reflects a broader push to keep major projects moving even as the region navigates a more uncertain operating environment. Underpinning the momentum is the $4bn engineering, procurement and construction (EPC) contract awarded to China Communications Construction Company (CCCC) in late December for the remaining phases of Mubarak Al-Kabeer Port on Boubyan Island, covering dredging, marine works and terminal infrastructure.
Although the deal predates the current period of regional disruption, it helped establish momentum that has carried into 2026, with Kuwait continuing to advance large-scale schemes across ports, roads and utilities.
This marks a notable shift for a market that, prior to its recent run, had a reputation for slow decision-making and a thin pipeline relative to regional peers. Contractors and consultants point to a steadier flow of tenders reaching the award stage this year, even with overall values marginally below last year’s pace – a gap narrow enough to suggest Kuwait’s pipeline has proven more insulated from regional volatility than many expected.
Infrastructure pipeline
Kuwait’s infrastructure pipeline is now approaching $16bn, spanning ports, roads and utilities projects at various stages of tendering and execution. The most recent addition came at Shuaiba Port, Kuwait’s oldest and principal industrial gateway, where the Kuwait Ports Authority (KPA) received bids in July for infrastructure and electrical modernisation works.
The package sits alongside longer-term plans for Shuaiba. Since December, KPA has been in talks with Abu Dhabi’s AD Ports Group over a possible concession to develop a new container terminal, adding to a pipeline that already includes upgrade works at Shuwaikh and Doha ports under KPA’s wider tender programme.
Elsewhere, Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City. Local firm United Buildings Company has emerged as the lowest bidder on both, with combined offers worth KD44m covering the construction, completion and maintenance of services, infrastructure and public buildings across different district centres.
Tendering is also under way for the estimated KD222m ($718m) rainwater drainage networks serving Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra. The works comprise a major concrete sewer, three collection basins and an extensive stormwater drainage network, with collection tanks linked through an independent system that discharges to sea via the Nuwaiseeb outlet.
Construction gains pace
This infrastructure momentum has been mirrored in the construction sector, where Kuwait awarded an estimated $232m contract to China State Construction Engineering Corporation (CSCEC) in mid-July to construct the new headquarters of the Kuwait Direct Investment Promotion Authority (KDIPA). The contract covers a 275-metre, 55-storey office tower in Kuwait City’s Sharq district, targeted for completion in the second quarter of 2028.
Beyond the KDIPA award, several schemes forming part of Kuwait’s estimated $36bn construction pipeline are expected to progress in the coming months.
The largest is the first phase of the planned $22bn Sabriya City project, for which Beijing- and Shanghai-listed Metallurgical Corporation of China (MCC) is expected to sign one of the main contracts. MCC presented a fully funded proposal to Kuwaiti ministers for the city last year. The project is expected to include 52,000 housing units, alongside a power plant, hospital and marina.
Consultants are meanwhile bidding for the design and supervision of the estimated $580m service hub buildings at Al-Mutlaa Health City, a project spanning more than 351,000 square metres.
The Kuwait Authority for Partnership Projects (Kapp) has also awarded two landmark public-private partnership (PPP) deals this year.
In January, it awarded an estimated $252m contract to develop the Al-Muthanna Complex real estate project to a local consortium comprising Real Estate House, National Investments Company, Arkan Kuwait Real Estate Company, Beyout Holding Company and Osoul Investment Company. The contract covers the rehabilitation, development, operation and management of the complex under a 15-year usufruct arrangement.
In February, United Real Estate Company was awarded the third phase of a waterfront real estate project in Sharq, Kuwait City, under a similar 15-year arrangement covering rehabilitation, development, operation and management.
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