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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Dubai advances Auto Market construction
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The construction works on the Dubai Auto Market, which is set to become one of the world’s largest and most advanced automotive trading hubs, are progressing.
Enabling works are under way, being carried out by local contractor Rad International Road Construction.
US-based engineering firm Aecom is serving as the project consultant.
In November last year, Dubai Municipality signed a partnership agreement with DP World’s Economic Zones division to establish and manage the market, as MEED reported. Under the agreement, DP World will provide integrated logistics and zone management services, including e-commerce and trade finance solutions.
The Dubai Auto Market will span a 22 million-square-foot complex, to be developed by DP World. It is planned to include more than 1,500 showrooms, clustered workshop zones, warehouses and multi-storey parking facilities, alongside a convention centre, hotel, auction house, retail outlets, and food and beverage areas.
The facility is designed to handle more than 800,000 vehicles a year, including new and used electric, hybrid and conventional models.
The UAE’s construction industry is projected to expand by 5% in real terms in 2026, supported by rising foreign direct investment (FDI), growth in the construction sector and increased oil sector activity.
According to the UAE’s Federal Competitiveness and Statistics Centre, construction value added rose by 8.8% year on year (YoY) in Q2 2025, following YoY growth of 7% in Q1 2025 and 10.8% in Q4 2024.
The commercial construction sector is forecast to grow by 6.4% in 2026 and to record average annual growth of 4.9% from 2027 to 2030, supported by investment in tourism and hotel facilities.
The industrial construction sector is expected to expand by 4.1% in real terms in 2026, then to average 4.4% annually from 2027 to 2030, supported by improved investment in manufacturing facilities.
The infrastructure construction sector is projected to grow by 5.8% in real terms in 2026, before averaging 4.3% annual growth from 2027 to 2030, supported by the government’s focus on improving regional connectivity through road and rail development.
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Saudi Arabia extends bid deadline for solar projects
6 May 2026
Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has extended the deadline for developers bidding for four solar projects under the seventh round of the National Renewable Energy Programme (NREP).
Round seven of the NREP comprises solar photovoltaic (PV) and wind independent power producer (IPP) projects with a combined capacity of 5,300MW. The renewables programme is being led and supervised by the Ministry of Energy.
The four solar PV projects comprise:
- 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf province)
- 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail province)
- 600MW Tathleeth solar PV IPP (Tathleeth, Aseer province)
- 500MW South Al-Ula solar PV IPP (Al-Ula, Medina province)
The projects were tendered in January, with an initial bid submission deadline of 30 April.
The new deadline is 30 June.
The solar projects are the latest in a string of large-scale power and water developments across the region to have bidding extended in recent weeks.
In the UAE, the bid deadline for the seventh phase of Dubai Electricity & Water Authority’s Mohammed Bin Rashid Al-Maktoum Solar Park was recently pushed back to 1 July.
Bids for the 1,300MW Bilgah and 900MW Shagra wind IPPs are currently still due by 14 May, according to a source.
In January, MEED reported that 16 developers qualified to bid as both managing and technical members for the four solar PV projects under the seventh round of the NREP.
These include:
- Abu Dhabi Future Energy Company (Masdar)
- Alfanar Company (Saudi Arabia)
- Al-Gihaz Holding Company (Saudi Arabia)
- EDF Power Solutions (France)
- Kahrabel (Engie) (UAE / France)
- Sembcorp Utilities (Singapore)
- Jinko Power (HK) (China)
- TotalEnergies Renewables (France)
- Al-Jomaih Energy & Water (Saudi Arabia)
- Korea Electric Power Corporation (Kepco) (South Korea)
- Nesma Renewable Energy (Saudi Arabia)
- Korea Western Power (South Korea)
- Marubeni Corporation (Japan)
- SPIC Shanghai Electric Power (China)
- WahajPeak Holdings (Saudi Arabia)
- FAS Energy for Trading Company (Saudi Arabia)
A further six companies qualified to bid as a managing member only for the solar PV projects. These include:
- Saudi Electricity Company (Saudi Arabia)
- Grupo Empresarial Enhol (Spain)
- Power Construction Corporation of China (Power China) (China)
- GD Power Development (China)
- Gulf Development Public Company (Thailand)
- Reliance NU Energies Private (India)
The renewable energy programme aims to supply 50% of the kingdom’s electricity from renewable energy by 2030.
Earlier rounds under the NREP have already put in place large capacities. Last October, SPPC awarded contracts to develop and operate five renewable energy projects under round six of the NREP.
These comprise four solar PV IPP projects and one wind IPP project with a total combined capacity of 4,500MW.
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EtihadWE awards EPC contract for Fujairah IWP
6 May 2026
Etihad Water & Electricity (EtihadWE) has awarded an engineering, procurement and construction (EPC) contract for the Fujairah 1 independent water producer (IWP) project.
The agreement was signed with a consortium of UAE-based NMDC Infra and Spain’s Lantania Aguas.
The EPC works will be delivered by Lantania NMDC Water. The company was formed after NMDC Infra acquired a 51% stake in Lantania Aguas in January 2026.
Fujairah 1 is the second desalination project procured by EtihadWE under a public-private partnership (PPP) model. It follows the 150-million-imperial-gallon-a-day (MIGD) Naqa’a IWP in Umm Al-Quwain.
The project involves developing a 60 MIGD seawater reverse osmosis (SWRO) desalination plant. The total investment is valued at AED1.046bn ($285m), the utility said in a statement.
The plant will be located at the Port of Fujairah on the Gulf of Oman and will include storage capacity equivalent to 18 hours of production.
Construction is expected to take about 30 months. Initial operations will begin at partial capacity, followed by ramp-up to full output.
Details of the water offtake agreement for Fujairah 1 have not been disclosed. EtihadWE previously signed a 35-year water-purchase agreement for the Naqa’a project.
Mohammed Al-Shehhi, CEO of the development and investment arm of EtihadWE, said the company is “currently developing multiple SWRO projects to be announced in due course”.
In January, Dubai International Financial Centre-based Deloitte Professional Services submitted the lowest bid for a contract to provide consultancy services to Dubai Electricity & Water Authority (Dewa) and EtihadWE.
The contract scope includes conducting a pre-feasibility study for an SWRO IWP and water transmission pipelines project.
The study will assess potential project sites, optimal plant capacity, technical and commercial parameters and the viability of associated water transmission infrastructure.
According to a source, the study’s consultant has not yet been appointed.
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June deadline for Riyadh section of Saudi Landbridge
6 May 2026
Saudi Arabia Railways (SAR) has set a 2 June bid submission deadline for a design-and-build contract to construct the Riyadh Rail Link, a new railway line running north to south across Riyadh.
The tender was issued on 29 January. The previous bid submission deadline was 29 April.
The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South railway to the Eastern railway network.
The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.
The project is expected to form a key component of the Saudi Landbridge railway.
In January, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium to construct it, as MEED reported.
In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements and that the project would now be delivered in several phases under a different procurement model.
The project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it through a public-private partnership.
Al-Malik said that the project cost is about SR100bn ($26.6bn).
It comprises more than 1,500km of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.
Other key sections include upgrading the existing Riyadh-Dammam line, a bypass around the capital called the Riyadh Link, and a link between King Abdullah Port and Yanbu.
The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later. Key stumbling blocks were rights-of-way issues, route alignment and its high cost.
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Bid deadline extended for Kuwait oil pipeline
6 May 2026
State-owned upstream operator Kuwait Oil Company (KOC) has extended the bid deadline for a project to develop a crude oil pipeline in the country.
The invitation to bid was originally tendered in October last year, with a bid deadline of 18 January 2026.
Since then, the deadline has been extended several times, and the latest announced bid deadline is 31 May 2026.
The new pipeline will have a diameter of 20 inches and will carry the crude oil blend known as Ratawi-Burgen.
The project scope will involve replacing a 30-kilometre section of the pipeline known as CR-058.
The pipeline originates from the Wafra field and feeds crude oil into the larger 36-inch CR-088 crude oil pipeline.
The pipelines on this network have had documented corrosion issues in the past, which were linked to slow flow rates within the pipelines.
The Wafra field is located in the Partitioned Zone between Kuwait and Saudi Arabia.
Both countries equally share the natural resources contained in this region.
Kuwait is currently pushing to increase its oil production capacity.
In 2024, Kuwait Petroleum Corporation’s chief executive, Sheikh Nawaf Al-Sabah, reiterated that his company plans to increase Kuwait’s oil production capacity to 4 million barrels a day (b/d) by 2035.
In September last year, Kuwaiti Oil Minister Tareq Al‑Roumi announced that the country’s oil production capacity had reached 3.2 million b/d, its highest level in more than 10 years.
Kuwait had a similar capacity in the late 2000s, peaking at a recorded 3.3 million b/d in 2010.
Since the US and Israel’s attack on Iran on 28 February, Kuwait’s oil and gas sector has been rocked by the disruption to shipping through the Strait of Hormuz, through which all of the country’s crude is normally exported.
Kuwait recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.
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Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
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