meed-logo

line1 line2 line3
SIGN IN / REGISTER

Monthly briefing: 20 key developments in the region

25 October 2022

By MEED staff

> Opec and its allies cut oil output

> Saipem wins $4.5bn North Field offshore gas contract

> Qatar to inaugurate 800MW solar farm

> Lebanon and Israel agree maritime border deal

> Aramco launches SME stimulator programme

> Region to be third-largest hydrogen source by 2050

> Egypt ready to supply natural gas to Lebanon

> Riyadh makes debt announcements

> Neom hydrogen project expected to close by year-end

> Abu Dhabi transfers ownership of Etihad Airways to ADQ

> Mipco secures $4bn to refinance Abu Dhabi plant

OIL OUTPUT CUTS

Opec+ to slash production from November to keep prices high

The Opec+ alliance of oil producers has decided to reduce oil production by 2 million barrels a day (b/d) from November to further shore up crude prices, which have fluctuated amid fears that a global recession could curb oil demand. 

The decision, which was led by Saudi Arabia and Russia, was taken at a meeting of the group in Austria on 5 October. 

The move represents a major reversal in production policy for Opec+, which slashed output by a record 10 million b/d in early 2020 when demand plummeted as a result of the Covid-19 pandemic. Since then, the group has gradually unwound those cuts. Read more

 Tight oil market increases unease for stakeholders



The 33rd Opec and non-Opec ministerial meeting on 5 October. Credit: Opec

US FALLOUT

Saudi Arabia and UAE condemn US warning of ‘consequences’

Saudi Arabia and the UAE have rejected as baseless accusations that the Opec+ decision to reduce oil production from November was politically motivated against the US.

Riyadh has insisted decisions by Opec and its allies were taken “purely on economic considerations”, and said its economic advice had been to resist calls to delay the production cut. 

The UAE issued a statement calling upon the US to refrain from “politicisation” of the Opec+ decision. US President Joe Biden had previously warned that there would be “consequences” for Saudi Arabia and the Opec+ members for their decision to cut oil output.

EGYPT

World leaders to gather for meeting on climate change

Leaders from almost 200 countries will meet in Sharm el-Sheikh, Egypt, on 6-18 November for the UN’s 27th Conference of the Parties (Cop 27) climate change summit. 

Egypt’s International Cooperation Minister, Rania al-Mashat, has previously said that the focus of Cop 27 should be moving from “pledges to implementation”. The conference aims to deliver action on issues critical to tackling the climate emergency, from reducing greenhouse gas emissions, building resilience and adapting to the impacts of climate change, to delivering on the commitments to finance climate action in developing countries.

STEEL

Region could lead global steel decarbonisation efforts

As the global steel industry considers switching to direct reduced iron (DRI) production, the Middle East and North Africa (Mena) region is primed to start producing carbon-neutral steel, according to a report by the Institute for Energy Economics & Financial Analysis. 

“The Mena region can lead the world if it shifts promptly to renewables and applies green hydrogen in its steel sector,” says Soroush Basirat, the author of the report. 

“The region’s steel sector is dominated by direct reduced iron-electric arc furnace technology, which releases lower emissions than the … coal-fuelled blast furnace and basic oxygen furnace process used in 71 per cent of global crude steel production in 2021.” 

The Mena region produced just 3 per cent of global crude steel last  year, but accounted for nearly 46 per cent of the world’s DRI production. 

Basirat adds: “Mena has an established supply of DR-grade iron ore and its iron ore pelletising plants are among the world’s largest.”

SAUDI ARABIA

Riyadh announces government spending increase in 2022-24

Saudi Arabia has announced increases in government spending in 2022-24 of more than 18 per cent, which is close to SR175bn ($47bn) or 4 to 4.5 per cent of GDP. 

The rise in spending targets points to smaller fiscal surpluses in the coming years, according to Moody’s Investors Service. 

Increased spending could contribute to reducing the kingdom’s economic reliance on hydrocarbons, provided the spending is successfully deployed to advance government-sponsored diversification projects.

Saudi Arabia’s finances and ambition align

IRAQ

Prime minister-designate vows to act against corruption

Iraq’s prime minister-designate Mohammed Shia al-Sudani has pledged to take action against corruption after authorities announced that ID3.7tn ($2.5bn) had been embezzled from the General Tax Authority’s trust account held by a branch of Rafidain Bank. 

The Iraqi Integrity Commission has said it is opening an investigation into the theft 

On 13 October, Iraq’s parliament elected Abdul Latif Rashid as the country’s new president. He then tasked Al-Sudani with forming a new government to end a year of political gridlock. 

Al-Sudani faces a challenge in the coming weeks as he attempts to appoint a new cabinet of ministers. Members of the Iraqi political bloc led by Shiite cleric Moqtada al-Sadr have said that they will not join the new government.

YEMEN

Houthi rebels attack oil terminal in southern Yemen

Iran-backed Houthi rebels have claimed responsibility for an attack on a cargo ship at an oil terminal in the south of the country on 21 October. The group said the attack by explosives-laden drones was meant to prevent pro-government forces from using the Al-Dhabba terminal for oil exports. 

The incident occurred in Ash-Shihr in the Hadramawt governorate, and targeted the Marshall Islands-flagged tanker Nissos Kea. The Greek owners of the tanker said it was undamaged. 

The internationally recognised government of Yemen said that its forces had intercepted armed drones launched against the Al-Dhabba oil terminal. 

UN special envoy for Yemen, Hans Grundberg, called the attack a “deeply worrying military escalation”. The Yemeni government sent a letter to the UN Security Council regarding the “threat to disrupt international maritime navigation and target ships and oil infrastructures”. 

The attack was the first military action announced by the Houthis since a truce between Yemen’s warring sides expired on 2 October.

LEBANON-ISRAEL

Lebanon and Israel reach maritime border deal

Lebanon and Israel have forged a deal to end a long-running maritime border dispute in the gas-rich Mediterranean Sea. Lebanon’s deputy speaker Elias Bou Saab said that an agreement had been reached that satisfies both sides. 

It is hoped that the new deal will resolve the two countries’ dispute over a swathe of territory in the Mediterranean Sea in an area where Lebanon aims to explore for natural gas, and near waters where Israel has already found commercially viable quantities of hydrocarbons. Read more

GCC

Region faces green hydrogen production challenges

GCC governments including Oman, Saudi Arabia and the UAE are developing zero-carbon green hydrogen and low-carbon blue hydrogen schemes. However, achieving large-scale production, especially of green hydrogen, will be challenging in the coming years, according to Moody’s Investors Service. 

While both green and blue hydrogen will play a role in reducing the global carbon footprint, only green hydrogen has the potential to reduce the reliance of GCC countries on hydrocarbons, but this will take several years, Moody’s says. 

In the short to medium term, GCC countries’ access to cheap domestic natural gas, their carbon capture and storage expertise, and the limited availability of infrastructure make blue hydrogen production a more viable option than the more expensive and challenging production of green hydrogen.

Region to be third-largest hydrogen source by 2050
https://image.digitalinsightresearch.in/uploads/NewsArticle/10112593/main.gif
MEED Editorial

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • State-backed spending cushions UAE construction slowdown

    13 October 2026

     

    The UAE projects market is undergoing a structural realignment. Following a surge in private real estate investment after the Covid-19 pandemic, activity in the commercial and residential segments has softened amid regional geopolitical uncertainty.

    Rather than allowing the market to contract, state and government-related entities (GREs) – particularly in Dubai – have stepped in to offset the shortfall, deploying balance-sheet capital countercyclically into strategic infrastructure, cultural and tourism projects.

    Dubai recalibrates

    Dubai’s construction sector has remained resilient at a headline level. On-site work continues, and major international contractors are securing new work.

    A clear indicator of this stability came in September, when China State Construction Engineering Corporation secured an AED5bn ($1.3bn) contract from Dubai Holding for the developer’s new headquarters and the Jumeirah Residences Emirates Towers scheme.

    Beneath this headline stability, however, procurement drivers have shifted dramatically. Private real estate activity, which supported the market’s post-pandemic resurgence, cooled following the onset of regional conflict at the end of February. Off-plan residential sales declined from a monthly peak of $9bn in February to $4bn in August.

    Monthly contract awards for residential projects mirrored this contraction, dropping from $3bn to $306m over the same period as private developers deferred new project launches and conserved capital.

    Government and government-related clients have absorbed much of the resulting shortfall. Dubai awarded $52.6bn of contracts in 2025, of which state-backed clients accounted for $26bn, or about 49%.

    In 2026 to date, government and GRE procurement has reached $22.4bn of the $34.6bn in contracts awarded, representing almost two-thirds of total market activity.

    The shift towards sovereign-backed spending appears intended to support construction activity and limit pressure on the supply chain during a period of private sector retrenchment.

    This state intervention is underpinned by an unawarded projects pipeline of $530bn in Dubai, according to MEED Projects data.

    The city’s future construction pipeline remains heavily weighted towards housing and integrated urban developments. Unawarded construction projects in the emirate total about $144.5bn, with residential and mixed-use developments accounting for almost 89% of the total value.

    Planned residential schemes account for $66.5bn, or 46%, of the pipeline, followed by large-scale mixed-use developments at $61bn, or 42.7%. The remainder comprises hospitality projects ($5bn), commercial offices ($4.8bn), telecommunications ($2bn) and retail ($2bn), alongside smaller allocations for education and civic facilities.

    Abu Dhabi accelerates

    A similar dynamic is evident in Abu Dhabi, where sovereign-backed entities continue to shape construction procurement. Unlike Dubai, which has historically relied more heavily on private developers, Abu Dhabi’s market is largely led by state-affiliated master developers.

    Entities such as Aldar Properties and Modon Holding remain the primary engines of the emirate’s residential and mixed-use pipeline, progressing vast masterplans across Saadiyat Island, Yas Island and Hudayriyat Island.

    At the same time, Abu Dhabi is directing public capital expenditure towards entertainment, culture and hospitality as it pursues the objectives of its Tourism Strategy 2030.

    Rather than moderating capital deployment amid regional geopolitical strains, state-backed entities are accelerating destination developments designed to expand visitor capacity and build long-term economic resilience.

    Leisure developer Miral has already confirmed plans to invest more than AED12bn ($3.2bn) across Yas Island over the next five years. The investment will fund new attractions and expand hotel capacity, separate from the planned Disney development.

    Work is already under way on a 63,000-square-metre phase-two expansion of Warner Bros World Yas Island, featuring a Harry Potter-themed zone.

    Major civic entertainment venues are also moving to construction. In May, Alec Engineering & Contracting received the letter of award for the $1.7bn Sphere Abu Dhabi project on Yas Island. The venue is being developed by the Department of Culture and Tourism–Abu Dhabi (DCT Abu Dhabi) in partnership with US-based Sphere Entertainment, and is scheduled to be completed in the third quarter of fiscal year 2029.

    On neighbouring Saadiyat Island, DCT Abu Dhabi has broken ground on Dar Al-Funoon, a performing arts venue designed by the late Frank Gehry. The project is planned to accommodate more than 6,000 people across a 2,000-seat multipurpose hall, an open-air amphitheatre, a studio theatre and a jazz venue. Main contract bids are currently under evaluation ahead of an imminent award and a 2030 opening.

    Abu Dhabi’s unawarded projects pipeline is led by mixed-use and residential developments, which together account for about $51.3bn, or 54% of the roughly $95bn total shown.

    Telecommunications and data infrastructure forms the single largest individual segment at $33.4bn (35%). Subsequent phases of the estimated $40bn Stargate project represent the bulk of the emirate’s planned data-centre capacity. The planned artificial intelligence infrastructure initiative is designed to strengthen Abu Dhabi’s position as a regional data and connectivity hub, with construction on phase one already under way.

    Hospitality accounts for a further $7.6bn (8%) of the pipeline. The remaining balance of roughly $2.5bn is distributed across retail, culture, leisure, healthcare, public facilities, commercial offices, earthworks and education.

    Along with Dubai’s $79.6bn in near-term tenders, the combined $116bn in active procurement confirms that sovereign liquidity will continue to insulate the UAE construction market from broader private sector volatility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20536766/main.gif
    Yasir Iqbal
  • Consortium signs EPC contract for Rabigh 2 IPP expansion

    13 October 2026

    A consortium comprising PowerChina, Egypt’s Elsewedy Electric and Beijing-headquartered Sinohydro has signed an engineering, procurement and construction (EPC) contract for Saudi Arabia’s Rabigh 2 combined-cycle gas-turbine (CCGT) independent power project (IPP) expansion.

    The signing ceremony took place in Riyadh on 12 October and the contract involves the plant’s design, procurement, installation, construction, commissioning, grid connection and performance testing.

    MEED previously reported that construction works had commenced, with Elsewedy Electric and Sinohydro carrying out works on the project.

    The signing follows the project’s financial close earlier this month, after it secured SR9.69bn ($2.58bn) in long-term financing.

    The financing has a tenor of approximately 34 years and was provided by a consortium of local, regional and international lenders.

    The project is being developed by Al-Morjan Two Electricity Company, in which Acwa and Saudi Energy, formerly Saudi Electricity Company, each hold a 40% stake.

    In April, MEED reported that Acwa and Saudi Energy had signed a 31-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC) for the project.

    The agreement is valued at SR11.5bn ($3.07bn) and covers the development of a CCGT plant in the Mecca region under a build, own and operate arrangement. The project also includes the development and expansion of a 380kV electrical substation. The plant is designed to be ready for the future installation of carbon-capture technology.

    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/20535598/main3026.jpg
    Mark Dowdall
  • Contractor groups prequalify for Dubai Metro Gold Line

    13 October 2026

     

    Six contracting groups submitted prequalification statements on 9 October for the contract to build Dubai Metro’s new Gold Line.

    The Roads & Transport Authority (RTA) issued the request for qualification notice for the project in June, as MEED exclusively reported.

    The consortiums formed to bid for the main contract are:

    • Alstom / China Railway Engineering Corporation / National Projects Construction / Dogus Construction (France/China/local/Turkiye)
    • CRRC / Limak / Mapa Group (China/Turkiye/Turkiye)
    • Hitachi / China Harbour Engineering Company / China State Construction Engineering Corporation (Japan/China/China)
    • Siemens / Petrojet / Concord Engineering & Contracting / Rowad Modern Engineering (Germany/Egypt/Egypt/Egypt)
    • Hassan Allam / IC Ictas / Siemens (Egypt/Turkiye/Germany)
    • Larsen & Toubro / Powerchina / Wade Adams (India/China/local)

    Dubai officially announced the Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project would cost about AED34bn ($9.2bn).

    The Gold Line will increase the Dubai Metro network’s total length by 35%. The project is scheduled to be completed in September 2032.

    The fully underground line will extend for more than 42 kilometres and include 18 stations. It will pass through 15 areas of Dubai and serve 1.5 million residents.

    The project is expected to connect more than 55 under-construction real estate developments.

    The Gold Line will begin at Al-Ghubaiba in Bur Dubai and terminate at Jumeirah Golf Estates. It will connect with the existing Red and Green lines and integrate with the Etihad Rail passenger network.

    The contractor will be responsible for the design and construction of all civil works, electromechanical equipment, rolling stock and rail systems. The selected contractor will also be required to support systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design; stage two, preliminary design; stage three, tender-document preparation; stage four, construction supervision; and stage five, the defects-liability period.

    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/20531469/main.png
    Yasir Iqbal
  • Egypt discusses technology cooperation with SLB

    13 October 2026

    Egypt is in talks with US-based oilfield services company SLB to expand technical cooperation in the country’s oil and gas sector, according to a statement from the Ministry of Petroleum & Mineral Resources.

    Egyptian Minister of Petroleum and Mineral Resources Karim Badawi met SLB chief executive Olivier Le Peuch in Riyadh, the ministry said.

    During the meeting, they discussed ways to strengthen their strategic partnership and expand cooperation in technology and digital transformation.

    They also discussed how SLB could support exploration and production activities, with the aim of increasing output and attracting further investment in Egypt’s oil and gas sector.

    Badawi emphasised the importance of extending the existing partnership with SLB, including its role in technology transfer and the development of technical capabilities in Egypt’s oil sector, according to the statement.

    He said Egypt should build on existing areas of cooperation and deploy advanced technological solutions to reduce exploration risk, increase recovery and production rates from existing fields, and improve operational efficiency.

    Badawi and Le Peuch also discussed progress on a seismic survey project being undertaken by SLB in partnership with France-based Viridien.

    The project includes an ocean-bottom node seismic survey covering about 95,000 square kilometres of Egypt’s eastern Mediterranean waters.

    The discussion focused on the data processing and analysis schedule, the steps required to prepare and release preliminary results, and the drilling schedule.

    Badawi and Le Peuch also discussed expanding the use of horizontal drilling technologies in Egypt. This would involve identifying suitable locations and developing a commercial and contractual model for their deployment.

    The Ministry of Petroleum & Mineral Resources and SLB are also exploring opportunities to expand the use of artificial intelligence in reservoir management and production optimisation.

    This work is being explored in partnership with the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company.

    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/20517735/main.jpg
    Wil Crisp
  • Kuwait tenders gas export pipeline

    13 October 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to develop a gas export pipeline.

    The 24-inch-diameter pipeline will extend from Booster Station 171 (BS-171) to the Intermediate Slug Catcher (ISC) facility in southeastern Kuwait, passing through the tie-in point known as TP-1.

    The bid deadline is 5 January 2027. A preliminary online meeting to discuss the project is scheduled for mid-November.

    BS-171 was inaugurated in February 2018. It serves as a central gas-treatment facility for gas and condensate from several gathering centres in West Kuwait and other areas.

    The feeder gathering centres include GC-17, GC-27, GC-28 and GC-16.

    BS-171 was Kuwait’s first facility designed specifically to handle acid gas.

    The ISC facility is located about 80 kilometres from BS-171.

    KOC announced plans to tender the project last year. At the time, it said that the scope would include the installation of bidirectional pig traps above the new pipeline.

    A pig trap is a section of piping that enables a pipeline pig – a device used to clean, inspect or maintain a pipeline – to be launched or received.

    The chosen contractor will need to provide:

    • Valves
    • Piping
    • Fittings
    • Civil services
    • Structural services
    • Electrical and instrumentation services
    • Tie-ins
    • Testing services
    • Pre-commissioning services
    • Commissioning services

    The ISC facility is a major gas-handling facility in Kuwait’s Burgan area. It receives sour gas from West Kuwait oil fields before the gas is transported onwards to the Mina Al-Ahmadi gas-processing facilities.

    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/20517716/main.jpg
    Wil Crisp