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
  • Contractors submit revised bids for Dukhan field facilities upgrade

    6 October 2026

     

    Contractors have submitted revised proposals to QatarEnergy for a key tender to upgrade facilities at the Dukhan oil field in Qatar, about 80 kilometres west of Doha.

    Following the submission of the initial round of bids for the project on 9 August, QatarEnergy requested revised proposals from contractors, which they submitted by 27 September, sources told MEED.

    The following local contractors, among others, are understood to be bidding for the DPFU Phase 1B (Part 2) tender, according to information obtained by MEED Projects:

    • Doha Petroleum Construction Company (Dopet)
    • Galfar Al-Misnad Engineering & Contracting
    • Qatar Engineering & Construction Company (Q-con)

    QatarEnergy originally stipulated a bond validity of 150 days (until 23 December) and a bid validity of 120 days (until 23 November) for the project.

    The engineering, procurement, installation and commissioning scope covers upgrades to 56 oil manifolds, 108 gas-lift manifold slots, chemical injection systems and key pumping facilities, along with associated piping, instrumentation, control, electrical and civil works.

    The scope includes the demolition of obsolete equipment, degassing station enhancements, and full testing and handover. It also encompasses additional capacity enhancement works under Part 3, mainly the installation of new oil export and produced-water transfer pumps, along with supporting facility modifications.

    The project involves complex interfaces and shutdown-critical activities, requiring expertise in live-plant integration.

    QatarEnergy issued the tender for the DPFU Phase 1B (Part 2) project on 8 June and initially set a bid submission deadline of 26 July, later extending it to 9 August.

    Dukhan, Qatar’s first and only onshore oil field, was discovered in 1938, with oil production starting in 1939-40. The country currently produces about 1.8 million barrels a day (b/d) of crude, with the Dukhan field accounting for about 350,000 b/d.

    The Dukhan oil field covers about 80km by 8km and consists of four reservoirs: Khatiyah, Fahahil, Jaleha and Diyab. The first three are oil reservoirs. The more recently developed Diyab reservoir contains non-associated gas and is estimated to hold around 2 billion barrels of crude oil reserves. Diyab lies on Dukhan’s southern flank.

    ALSO READ: QatarEnergy selects contractors for offshore oil field expansion
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  • Dubai issues PMC tender for four stormwater projects

    6 October 2026

     

    Dubai Municipality has invited consultants to bid for a contract to provide construction supervision services for four stormwater projects.

    The bid submission deadline is 29 October.

    All four projects are part of the municipality’s Tasreef programme, 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.

    The tender for TF-06-S1 Supervision of Stormwater Drainage System Projects – Package 4 was issued on 6 October.

    The consultancy covers the following projects:

    • TF-06-C1: Construction of a stormwater pond connecting Al-Maktoum Airport and Dubai South
    • TF-06-C2: Construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South
    • TF-07-C1: Construction of a stormwater drainage system on Sheikh Zayed Bin Hamdan Road connecting developers
    • TF-24-C1: Connecting developers’ areas to the stormwater networks in Dubailand 

    In documents seen by MEED, the municipality said it will require a dedicated supervision team for each project.

    The consultancy will cover construction supervision, including the deployment of resident engineers, civil engineers, inspectors, quantity surveyors, land surveyors and planning engineers. Mechanical engineers will also be required, along with health and safety personnel and NOC engineers, depending on the project. 

    TF-07-C1 is the same strategic stormwater drainage project that Dubai Municipality recently tendered for construction, with contractors preparing to submit bids on 22 October.

    The project covers more than 100 million square metres between Sheikh Mohammed Bin Zayed Road and Emirates Road, and from Expo Road to Dubailand.

    It will provide stormwater infrastructure and service connections for more than 20 private developers and Al-Yalayis 5, as well as supporting major roads in the Jebel Ali area. The construction scope includes a major gravity drainage system with pipeline diameters of up to 3,000mm.

    TF-24-C1 is one of three water infrastructure tenders issued by the municipality in August, as reported by MEED. The 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.

    Bidding for the engineering, procurement and construction contract was recently extended to 1 October, with Nael Construction & Contracting and Al-Nasr Contracting Company among those expected to make an offer for the project.


    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
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  • Aramco nears contract award for Jafurah fifth expansion phase

    6 October 2026

     

    Saudi Aramco is believed to be close to awarding the main contract for a major project representing the fifth expansion phase of the Jafurah unconventional gas development programme in Saudi Arabia.

    The main scope of work for the fifth expansion phase of Jafurah involves the engineering, procurement and construction (EPC) of three gas compression plants at the gas basin in the kingdom’s Eastern Province. Each plant will be capable of processing up to 200 million cubic feet a day (cf/d).

    Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) is the favourite to win the main EPC contract, according to sources.

    “Negotiations between Aramco and L&T have reached an advanced stage and the [Indian] contractor is now in pole position to clinch the deal,” one source told MEED.

    MEED previously reported that China Petroleum Engineering & Construction Company (CPECC) was in a favourable position to secure the main EPC contract for the Jafurah fifth expansion phase, based on Aramco’s initial evaluation of proposals. The situation remained subject to change as Aramco negotiated with the project’s other bidders, MEED reported in August.

    Aramco set 19 July as the final deadline for proposals, and contractors submitted their bids by that date, MEED previously reported.

    ALSO READ: Aramco receives interest for major gas processing plant

    The Saudi energy giant is understood to have issued the main EPC tender for the project in the first quarter of this year.

    Aramco issued a solicitation of interest for the Jafurah fifth expansion phase in mid-November, with contractors submitting responses by 30 November, MEED previously reported.

    UK-headquartered Wood Group has carried out the front-end engineering and design for the project.

    The Jafurah basin is the largest liquid-rich shale gas play in the Middle East, spanning about 17,000 square kilometres. The reserve is estimated to contain 229 trillion cubic feet of gas and 75 billion stock-tank barrels of condensate.

    Aramco recently brought the greenfield Jafurah gas processing plant online, with a production capacity of 450 million cf/d, marking the commissioning of the first phase of its $100bn capital expenditure programme to produce gas from the unconventional resource base.

    The company previously stated that it expected to start gas production at Jafurah in 2025, with the intention of progressively ramping up to 2 billion cf/d of sales gas, 420 million cf/d of ethane and 630,000 barrels a day (b/d) of high-value liquids by 2030.

    Aramco has said that its unconventional gas programme, at peak production, is expected to generate electricity equivalent to displacing 500,000 b/d of oil.

    Jafurah gas development phases

    Alongside nearing an EPC contract award decision for the fifth expansion phase at Jafurah, MEED also recently reported that Aramco had completed the solicitation of interest process with contractors for the unconventional gas programme’s sixth phase.

    The main scope of work on the Jafurah sixth expansion phase is similar to the fifth phase, and involves the EPC of three gas compression plants at the giant gas reserve, each with an output capacity of 200 million cf/d.

    Aramco also kicked off EPC works on the Jafurah fourth expansion phase in the second quarter of the year.

    MEED reported in April that Aramco had selected Mumbai-headquartered L&TEH as the main contractor for the fourth phase, which sources estimate could be valued at about $1.5bn.

    The main scope of work on Jafurah’s fourth expansion phase involves the EPC of two gas compression trains at the gas basin. Each plant will be able to process up to 200 million cf/d.

    EPC work on the third phase of the Jafurah unconventional gas development programme is also advancing.

    In July 2024, Aramco issued a non-binding letter of intent to a consortium of Tecnicas Reunidas and Sinopec Group for the EPC contract for phase three. The contract is estimated at $2.24bn.

    The objective of the third expansion phase is similar to that of the fourth phase. The main scope of work involves the EPC of three gas compression plants, each with a capacity of 200 million cf/d.

    The third phase’s scope of work also includes building a 230kV substation to power the new gas compression plants, and installing other utilities units, piping systems and safety equipment.

    The selection of contractors for the third expansion phase came within weeks of Aramco officially awarding EPC contracts for the second phase, which aims to raise the field’s processing potential to up to 2 billion cf/d of raw gas.

    Aramco awarded 16 contracts, worth a combined total of about $12.4bn, for the second expansion phase on 30 June 2024.

    The EPC scope of work for that project involves the construction of gas compression facilities and associated pipelines, and the expansion of the Jafurah gas plant, including the construction of gas processing trains, utilities, sulphur and export facilities, Aramco said in a statement.

    The main EPC packages of the Jafurah second expansion phase project, their estimated values and the selected contractors are:

    • Package 1 – gas processing plant and main process units – $2.9bn: Larsen & Toubro Energy Hydrocarbon (India)
    • Package 2 – utilities and offsites – $2.4bn: Hyundai Engineering (South Korea)
    • Package 3 – gas compression units – $1bn: Larsen & Toubro Energy Hydrocarbon
    • Riyas natural gas liquids (NGL) package 1 – NGL fractionation trains – $1bn: Tecnicas Reunidas / Refining & Chemical Engineering Group (part of China’s Sinopec Group)
    • Riyas NGL package 2 – utilities, storage and export facilities – $2.2bn: Tecnicas Reunidas/Refining & Chemical Engineering Group
    • Riyas NGL package 6 – site preparation works – $107m: Mofarreh Alharbi & Partners (Saudi Arabia)
    • Riyas NGL package 9 – temporary construction facilities – $80m: Mofarreh Alharbi & Partners

    Aramco kickstarted EPC works on the first phase of the programme in November 2021 by awarding $10bn-worth of subsurface and EPC contracts.

    In February 2020, Aramco received a capital expenditure grant of $110bn from the Saudi government for the long-term phased development of the Jafurah unconventional gas resource base.

    The Jafurah programme is central to Aramco’s goal of increasing gas production capacity. The target has recently been raised to 80%, with 2021 as the baseline, up from 60%, to meet rising domestic and global demand. The company expects life-cycle investment in Jafurah to exceed $100bn.

    Aramco completed an $11bn lease-and-leaseback deal in late October 2025 for gas processing facilities at the Jafurah unconventional gas reserve with a consortium led by funds managed by Global Infrastructure Partners (GIP), part of US asset manager BlackRock.

    Under the transaction, a newly formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights to the Jafurah field gas processing plant and the Riyas natural gas liquids fractionation facility.

    After 20 years, JMGC will lease the assets back to Aramco. JMGC will collect a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from the Jafurah resource base.

    Aramco will hold a 51% majority stake in JMGC, while the GIP-led consortium will hold the remaining 49%. Investors participating in the GIP-led consortium include Hassana Investment Company, the Arab Energy Fund and Aberdeen Investcorp Infrastructure Partners, as well as other institutional investors from North and Southeast Asia and the Middle East.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20299556/main3638.jpg
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  • Joint venture wins Riyadh data centre construction deal

    6 October 2026

     

    Register for MEED’s 14-day trial access 

    Egyptian contractor Hassan Allam Construction and India’s Sterling & Wilson have won an estimated SR750m ($200m) contract to build the first phase of a data centre project in Riyadh.

    The first phase will have an IT load capacity of 16.2MW, with overall capacity reaching 50MW in the second phase.

    The scope includes civil, architectural, and mechanical, electrical and plumbing (MEP) works, infrastructure works and other associated works.

    Upon completion of both phases, the facility will comprise one 5MW standard-density hall and four high-density halls, each rated at 11.2MW.

    Saudi Arabian artificial intelligence (AI) firm Humain and Center3 – the digital infrastructure subsidiary of local telecom company STC Group – are jointly developing the project.

    The first phase is scheduled to take 16 months.

    In December last year, Center3 and Humain partnered to develop and operate AI-focused data centres across Saudi Arabia, with a planned capacity of up to 1GW.

    The partners said the first phase will deliver up to 250MW of capacity, designed for high-density AI workloads and large-scale model training.

    The venture combines Center3’s data centre operations and regional connectivity with Humain’s full-stack AI capabilities, with the latter responsible for aligning facility design with advanced compute requirements and future architectures.

    The companies said the programme will deliver purpose-built facilities engineered for high power density, low latency and resilient operations, to support large language models and other mission-critical AI applications.

    They added that the initial schemes will serve as a template for subsequent rollouts as capacity scales towards the 1GW target.


    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20298893/main.jpg
    Yasir Iqbal
  • Chevron signs Egypt oil and gas exploration deal

    6 October 2026

    State-owned Egyptian Natural Gas Holding Company (Egas) and US-headquartered Chevron have signed an agreement related to oil and gas exploration in Egypt’s offshore Lotus concession.

    Under the agreement, Chevron will invest at least $88m in exploration activities within the concession, according to a statement from Egypt’s Ministry of Petroleum & Mineral Resources.

    Chevron has agreed to drill two deepwater exploration wells and to reprocess 3D seismic data for the concession.

    Egypt’s Ministry of Petroleum & Mineral Resources said the agreement was part of the ministry’s “efforts to expand exploration activities and unlock new areas for petroleum investments”.

    It also said that the deal reflected Chevron’s “commitment to pumping new investments into exploration activities in Egypt”.

    In August, Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, presented the ministry’s five-year production strategy, which aims to double Egypt’s oil and condensate output while strengthening the country’s position as a regional hub for petroleum product trading and gas liquefaction.

    Egypt has been working towards this goal by forging a range of new deals with international oil companies.

    Chevron has offshore exploration and development rights for several Egyptian concessions, including Nargis, North El-Dabaa, North West Atoll, North Simian and North Cleopatra, where it partners with Shell.

    In April, Egypt’s cabinet approved a draft version of the Lotus concession agreement between Egas and Chevron during a meeting chaired by Prime Minister Mostafa Madbouly.


    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20298172/main.jpeg
    Wil Crisp