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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Seven bid for Bahrain highway upgrade21 September 2026
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Teams prepare bids for Oman PPP wastewater project21 September 2026
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Oman reveals Sohar airport and Salalah Thumrait Road plans21 September 2026
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Saudi Arabia tenders Dariya-Afif road dualisation21 September 2026
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ADES completes acquisition of Saipem’s Saudi drilling business18 September 2026
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Seven bid for Bahrain highway upgrade21 September 2026
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Seven contractors have submitted bids for the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade project.
According to results published by the Bahrain Tender Board, the firms that have submitted bids include:
- Nass Contracting Company
- Haji Hassan Group
- Almoayyed Contracting Group
- Mohammed Abdulmohsen Al-Kharafi & Sons
- Eastern Asphalt & Concrete Production
- Cebarco Bahrain
- Kingdom Asphalt
The contract scope includes expansion works on 2 kilometres of the highway. It consists of a four-lane dual carriageway with service roads on both sides.
The scope of works also includes excavation and backfill work, construction of stormwater drainage networks, a pumping station, installation of ducts for future utilities, upgraded street lighting, traffic signs and directional signage.
The project aims to improve traffic capacity, reduce congestion and enhance safety along the transport corridor linking Manama with industrial zones.
In April, MEED reported that Bahrain had approved a financing agreement framework to fund the construction of the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade.
In March last year, the Kuwait Fund for Arab Economic Development and the Bahraini government signed a KD10m ($32.4m) loan agreement to fund the second phase of the project, which is expected to cost about $404m.
This was followed in September 2025 by the appointment of US-based Parsons Corporation on a $1.5m contract to provide pre-contract engineering consultancy services for the project.
According to data from regional project tracker MEED Projects, construction of the first phase was completed in 2020.
A joint venture of local firm Nass Contracting and Kuwait’s KCC Engineering & Contracting undertook the main construction works.
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Teams prepare bids for Oman PPP wastewater project21 September 2026

At least three consortiums are preparing bids for a contract to develop and operate two major sewage treatment plants (STPs) in Oman.
The public-private partnership (PPP) project covers expanding two Muscat-based plants: the Al-Ansab STP (phase three) and the Al-Amerat STP (phase two). It will be delivered under a build-own-operate-transfer model.
At Al-Ansab, capacity will increase from 125,000 cubic metres a day (cm/d) to 207,000 cm/d. At Al-Amerat, capacity will rise from 18,000 cm/d to 54,000 cm/d.
According to sources, the bidders for the project include:
- Etihad Water & Electricity (UAE) / Metito (UAE)
- Lamar Holding (Bahrain) / Tawzea (Saudi Arabia)
- Civil Works Company (CWC, Saudi Arabia) / Suez (France)
The bid submission deadline is 5 January 2027.
State-owned Nama Water Services (NWS) issued a request for proposals for the project in July, as exclusively reported by MEED.
It is understood that Veolia (France), Miahona (Saudi Arabia) and Samsung E&A (South Korea) are also among the firms that prequalified for the project after the request for qualifications was issued last November.
The project scope includes the design, financing, construction, operation and maintenance of the new facilities, alongside the long-term operation of the existing facilities.
It has been over a decade since the Al-Ansab STP first entered full operation at a capacity of about 54,000 cm/d. In 2015, South Korea’s Doosan Ennerbility, formerly Doosan Heavy Industries, was awarded the main engineering, procurement, and construction contract for the phase two expansion, which increased the facility’s maximum flow capacity to 125,000 cm/d. This phase was completed in 2017.
Phase one of the Al-Amerat STP was awarded to a joint venture of France’s Degremont (Suez) and local contractor Al-Ansari Trading Enterprise under a design, build and short-term operation contract valued at about €50m ($58.1m). The plant was developed for Haya Water and commissioned in 2019 as part of the Muscat wastewater scheme.
Haya Water, the former wastewater utility, was later incorporated into NWS following a government restructuring programme.
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Oman reveals Sohar airport and Salalah Thumrait Road plans21 September 2026
Oman is planning a new passenger terminal at Sohar Airport to expand regional air connectivity and strengthen the airport’s role in the national aviation network.
According to Said Bin Hamoud Al-Maawali, Oman’s minister of transport, communications and information technology, new routes are expected to be announced before the end of the year. Potential destinations include Dammam in Saudi Arabia, Gwadar in Pakistan, and southern Iran.
The planned terminal and additional routes will give residents of northern Oman more travel options.
Al-Maawali also provided an update on the long-delayed Salalah-Thumrait truck road, saying the project will be procured through a conventional tendering model rather than a public-private partnership (PPP).
In August 2023, Oman shortlisted five of eight prequalified teams to compete for the Salalah-Thumrait truck road project, which was set to be the sultanate’s first PPP road project.
The 67-kilometre road project is specially designed for heavy vehicles.
The road is a key link in Dhofar’s transport network, connecting Thumrait with Salalah and supporting movement between the interior and the governorate’s main urban and economic centre.
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Saudi Arabia tenders Dariya-Afif road dualisation21 September 2026

Saudi Arabia’s Ministry of Transport has launched an estimated SR1.1bn ($296m) tender for the dualisation of the Dhariya-Afif road over approximately 65 kilometres, alongside the reconstruction of sections of the existing roadway.
The bid submission deadline is 1 October.
MEED understands that the bidders include:
- Al-Ayuni Investment & Contracting (local)
- Alomaier Trading & Contracting Company (local)
- Al-Rashid Trading & Contracting Company (local)
- Al-Rawaf Contracting (local)
- Alshalawi International (local)
- Almabani (local)
- Alyamama (local)
- El-Seif Engineering Contracting (local)
- FCC Construction (Spain)
- Hassan Allam Construction (Egypt)
- Kolin Construction (Turkiye)
- Mohammed Ali Al-Swailem Group (Masco) (local)
- Saudi Pan Kingdom (Sapac) (local)
- Shibh Al-Jazira Contracting (local)
The scheme covers the construction of a dual carriageway on the Dhiba/Sakaka/Afif route.
The works include reconstructing parts of the existing road and connecting at-grade intersections in line with approved design plans and cross-sections.
The project scope also includes the construction of bridges and culverts at multiple locations, including:
- Station 935+44 with a length of 300 metres
- Station 455+56 with a length of 250 metres
- Station 335+76 with a length of 550 metres
Local firm Euro Group Engineering Consultancy is the project consultant.
The Roads General Authority is the project client.
The contract duration is 47 months from the construction start date.
According to UK analytics firm GlobalData, Saudi Arabia’s construction industry is expected to grow by 3.6% in real terms in 2026, supported by an increase in foreign direct investment and continued investment in the housing and manufacturing sectors.
The infrastructure construction sector is expected to grow by 4.3% in real terms in 2026 and to record an average annual growth rate of 5.2% from 2027 to 2030, supported by government investment in transport infrastructure projects to improve regional connectivity.
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ADES completes acquisition of Saipem’s Saudi drilling business18 September 2026
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Al-Khobar-based ADES Holding Company has completed a transaction to acquire Italian oil and gas contractor Saipem’s shallow-water drilling subsidiary based in Saudi Arabia.
Under the deal, ADES Saudi, an indirect subsidiary of Saudi Stock Exchange (Tadawul)-listed ADES Holding, will acquire Saudi Arabian Saipem, which operates a fleet of five jack-up rigs.
The fleet includes three owned rigs – Perro Negro 7, Perro Negro 8 and Perro Negro 10 – as well as two leased rigs, Perro Negro 11 and Perro Negro 13. Four of the acquired rigs operate in Saudi Arabia, while Perro Negro 10 operates in Mexico under a charter structure and retains a valid contract in Saudi Arabia.
ADES began the transaction to acquire Saudi Arabian Saipem in June, when it was estimated to be valued at about $285m. The deal was structured on a debt-free, cash-free basis, which was to be settled entirely in cash upon closing.
Following completion, ADES operates a fleet of 128 units, comprising 88 offshore units – including 51 premium units – and 40 onshore rigs.
The transaction also marks ADES’ entry into Mexico, extending the company’s international footprint to 21 countries, and adds approximately SR3.7bn ($992.9m) in backlog as of the completion date.
The purchase of Saudi Arabian Saipem by ADES Holding follows the company’s takeover of Dubai-based, Oslo-listed Shelf Drilling in November last year, in a transaction valued at $379m. Following the completion of the cash merger, Shelf Drilling was wholly delisted from the Oslo Stock Exchange.
The combined Shelf Drilling-ADES entity has been operating as a global player in shallow-water drilling in the world’s most prolific basins, with a fleet of 83 offshore jack-ups, including 46 premium jack-ups and 40 onshore rigs. The acquisition expanded ADES Holding’ global footprint from 13 to 19 countries, allowing entry and deeper operational integration into Southeast Asia, India, West Africa, the North Sea and the broader Mediterranean.
Saudi Arabian Saipem generated revenues of SR636m ($170m) in 2025, highlighting the scale of the business being transferred.
The divestment aligns with Saipem’s broader industrial strategy of reducing exposure to mature shallow-water drilling markets and concentrating resources on deepwater and harsh-environment offshore projects, where technical complexity and barriers to entry are generally higher.
These segments have attracted growing investment in recent years as operators pursue offshore developments in regions such as the North Sea, Brazil, West Africa and the US Gulf of Mexico.
For ADES, the acquisition further expands its presence in the Middle East offshore drilling market, particularly in Saudi Arabia, one of the world’s largest offshore jack-up rig markets, driven by activity from Saudi Aramco.
Saipem previously said proceeds from the transaction will be used in accordance with the objectives outlined in its industrial plan. The Milan-listed company was advised on the transaction by Moelis & Company as financial adviser and Clifford Chance, together with AS&H Clifford Chance, as legal counsel.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19795697/main5616.jpg