Monthly briefing: 22 key developments in the region

28 September 2022

By Indrajit Sen


Opec+ agrees minor production increase

King appoints crown prince as Saudi prime minister

Lebanon parliament approves $1.2bn draft budget

Iraq court rules against national oil company

Libya oil production continues to grow

President approves Egypt's Olympic plans

> Dubai prepares hydrogen strategy

GCC central banks raise interest rates

UK and GCC hold ministerial meeting at the UN


OIL

Oil producers will raise output by 100,000b/d in October

The Opec+ alliance of oil producers decided in September that it would increase oil production by just 100,000 barrels a day (b/d) in October to support crude prices, which have fluctuated in recent weeks amid fears that a global economic recession will curb demand for oil. 

Opec+ members also increased overall oil production by 100,000b/d in September. 

The alliance agreed to increase its July and August crude production by about 50 per cent to 648,000b/d, fully restoring the 5.8 million b/d output that the group had cut at the peak of the Covid-19 pandemic. Read more


IRAN

Deadly protests follow woman’s death in custody

Thirty-five people have been killed in protests in Iran following the death of Mahsa Amini in police custody on 16 September.

Protests have been reported in 31 provinces.

The 22-year-old Amini had been detained for breaking headscarf rules and was reportedly beaten with batons.

Officials said she suffered heart failure and Interior Minister Ahmad Vahidi has stated that she was not beaten. 

President Ebrahim Raisi pledged to crack down on the unrest on 24 September.

The official Islamic Republic News Agency reported on 25 September that there had been large-scale demonstrations to condemn the protests.



21 September: Iranian demonstrators take to the streets of Tehran during a protest for Mahsa Amini, days after she died in police custody. Credit: AFP via Getty Images


SALIK IPO

Dubai toll operator raises over $1bn from oversubscribed stock listing

Dubai toll operator Salik raised $1.017bn from its initial public offering (IPO) on the Dubai Financial Market, as part of a series of IPOs of state enterprises aimed at boosting the size of the emirate's capital market.

The IPO was more than 49 times oversubscribed across all tranches, with total gross demand at $50.2bn.

The company had set its offering price at AED2 ($0.54) a share, giving it a valuation of more than $4bn.

The emirate's government sold more than 1.867 billion shares in the company, or 24.9 per cent, up from the previously announced 1.5 billion shares, equivalent to 20 per cent.


ARAB PEACE

Saudi Arabia, Arab League and EU hold meeting in New York

Saudi Foreign Affairs Minister Prince Faisal bin Farhan al-Saud and Arab League secretary-general Ahmed Aboul Gheit attended a meeting of the Arab Peace Initiative Committee and its sponsors in the EU. The meeting took place at the UN General Assembly in New York. 

The Arab Peace Initiative, which Saudi Arabia launched in 2002, is a proposal to end the Arab-Israeli conflict. The members of the Arab Peace Initiative Committee are Jordan, Egypt, Bahrain, Tunisia, Algeria, Saudi Arabia, Sudan, Iraq, Palestine, Qatar, Lebanon, Morocco and Yemen. The initiative is sponsored by Spain, Sweden and France.


GCC

Two years of high oil prices set to improve regional outlook

Rating agency Moody’s Investors Service has said that elevated oil prices during the next two years will lead to a significant improvement in the fiscal and external positions of GCC sovereigns, partly reversing the sharp deterioration in their balance sheets since 2015. 

Improvements in creditworthiness will hinge on the extent to which regional governments utilise the windfall to address constraints posed by their exposure to cyclical oil price and demand volatility, and by longer-term carbon transition risks, Moody’s said.

The agency expects oil prices to average about $105 a barrel in 2022 and $95 a barrel in 2023. As a result, most hydrocarbon-exporting countries in the GCC will run fiscal and current account surpluses, allowing governments to pay down debts, rebuild fiscal reserves and accumulate foreign-currency buffers.


GULF BANKS

Regional banks are returning to pre-pandemic form

After a strong first half, ratings agency S&P Global expects that earnings for most GCC banks will almost reach pre-pandemic levels by the end of this year amid high oil prices and rising interest rates.

In the second half of 2022, S&P forecasts further strengthening of regional banks’ interest margins and a manageable rise in cost of risk amid lingering effects from the Covid-19 pandemic via loans that benefited from support measures and were then restructured. Combined, these factors will be a net positive for banks’ earnings.


SAUDI ARABIA

Saudi infrastructure and property projects top $1.1tn

The aggregate value of property and infrastructure projects since the launch of Saudi Arabia’s National Transformation Plan in 2016 has crossed $1.1tn as the kingdom continues to diversify its economy, according to real estate consultancy Knight Frank. 

The $500bn Neom city development is the biggest of 15 major projects in Saudi Arabia that are currently at various phases of construction. The kingdom plans to have more than 555,000 residential units, 275,000 hotel rooms, 4.3 million square metres (sq m) of retail and 6.1 million sq m of new office space by 2030. 

The country is also developing several large-scale tourism projects as it seeks to increase the economic contribution of the sector from 3 per cent of GDP to 10 per cent by the end of this decade.


JERUSALEM

UK prime minister considers relocating British embassy

UK Prime Minister Liz Truss is considering moving the British embassy in Tel Aviv to Jerusalem. 

Truss spoke about a possible move to the contested city during a meeting with Israeli Prime Minister Yair Lapid on the sidelines of the UN General Assembly in New York in September. 

Despite Israel having designated Jerusalem as its capital, Britain has long maintained its embassy in Tel Aviv. 

When he was president of the US, Donald Trump took the controversial decision to relocate the American embassy to Jerusalem in May 2018. 

Both Israelis and Palestinians claim the city as their capital.


SAUDI ARABIA

First Saudi woman to be sent to space in a crewed mission

Saudi Arabia plans to send a woman into space for the first time as part of its new mission programme. 

A crew will be launched next year that will include the first Saudi female pilot and astronaut. 

The kingdom’s astronaut programme aims to produce qualified Saudi citizens who will take part in short- and long-term space flights, as well as participate in scientific experiments, international research and future space-related missions. 

The new programme comes under the umbrella of Saudi Vision 2030 and will fall under the National Space Strategy, the details of which will be announced in the coming months.


FIFA WORLD CUP

Qatar to shut borders to non-World Cup ticket holders

Entry to Qatar will be restricted from 1 November to citizens, residents and holders of the World Cup Hayya card, the tournament’s organising committee has announced. 

The suspension of visits by people not attending Fifa World Cup matches will continue until 23 December, five days after the final match takes place in Doha. 

The restrictions apply to all air, land and sea borders into Qatar. 

Football fans in possession of a match ticket for the World Cup must also apply for a Hayya entry permit – a pre-approved digital visa linked to a passport that offers free public transport around the country. 

The Hayya card allows entry into Qatar until 23 January 2023. 

Qatari citizens and residents, GCC citizens holding a Qatari identification card, holders of work entry permits and personal visas, and approved humanitarian cases will be exempt from the restrictions.


https://image.digitalinsightresearch.in/uploads/NewsArticle/10042154/main.gif
MEED Editorial
Related Articles
  • Firms announce 129MW Dubai data centre

    24 April 2026

    Dubai’s Integrated Economic Zones Authority (DIEZ) has signed a joint-venture agreement with Netherlands-headquartered data centre developer Volt to build a new artificial intelligence (AI)-ready data centre in the emirate.

    Planned for Dubai Silicon Oasis, the development will take the form of a campus covering up to 60,000 square metres.

    The project will be delivered in two phases, starting with 29MW of immediately available capacity, followed by a second phase adding a further 100MW of committed power.

    Under the arrangement, DIEZ will supply the land and essential infrastructure, while Volt will finance and develop the project, lead construction, and manage the design, leasing, implementation and day-to-day operations.

    French firm Schneider Electric, which has its regional headquarters in Dubai Silicon Oasis, will support the development by supplying advanced electrical systems, power distribution capabilities and smart data centre infrastructure.

    The GCC currently has more than 174 active data centre projects, representing over $93bn in investment, led by international players such as AWS, Google and Huawei, alongside regional developers including Khazna and Moro, supported by government-led localisation strategies.

    More than a dozen large-scale facilities valued at over $100m each are currently under tender, with further packages expected to reach the market over the next six to 12 months.

    The UAE is one of the leading data centre markets, with hyperscale campuses, sovereign cloud initiatives and edge data centre deployments underway.

    Data centre development is closely aligned with the UAE’s digital economy and AI roadmap, as well as the wider smart city programme.

    Priorities include hyperscale and colocation facilities to support cloud service providers; edge data centres to reduce latency and enable 5G and IoT use cases; energy-efficient designs using advanced cooling, modular construction and renewables; and strategic partnerships between global hyperscalers, local developers and utilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16548972/main.JPG
    Yasir Iqbal
  • Iraq signs upstream oil contract

    24 April 2026

    State-owned Iraqi Drilling Company (IDC) has signed a contract with China’s EBS Petroleum for a project to drill 17 horizontal wells in the southeastern portion of the East Baghdad field.

    Mohamed Hantoush, the general manager of IDC, said the contract signing came after a “series of successful achievements” by the company at the field.

    The achievements included the completion of a project to drill 27 horizontal wells and another project to drill 18 horizontal wells, according to a statement released by Iraq’s Ministry of Oil.

    In January, Iraq’s Midland Oil Company (MOC), in collaboration with EBS Petroleum, completed the country’s longest horizontal oil well in the southern part of the East Baghdad field.

    The well, which was called EBMK-8-1H, reached a total depth of 6,320 metres, and had a 3,535-metre horizontal section, making it the country’s largest horizontal well ever drilled.

    Senior officials from the Iraqi Oil Ministry and representatives of EBS Petroleum attended the well’s completion ceremony.

    EBS Petroleum is a subsidiary of China’s ZhenHua Oil, which is focused on Iraq.

    ZhenHua Oil is the operator of the field and is working with Iraqi partners to oversee the field’s development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16543675/main4942.jpg
    Wil Crisp
  • Jordan tenders oil and gas terminal project

    24 April 2026

     

    Jordan’s Aqaba Development Corporation (ADC) has tendered a project for the development of the facilities at the Aqaba Oil and Gas Terminal.

    The project has been divided into two packages, and a bid deadline has been set for 15 June 2026.

    The oil and gas terminal is located south of the city of Aqaba in Jordan’s Southern Industrial Zone.

    The scope of Package 1 includes:

    • Rehabilitation of petroleum product pipelines of various sizes and their accessories (such as supports, structures and valves), including rectification of painting defects
    • Inspection and repair of pipe welds
    • Rectification and overall maintenance of the product booster pump
    • Inspection, maintenance, testing and commissioning of liquefied petroleum gas (LPG) booster pumps
    • Rectification of two overhead cranes
    • Rectification and calibration of instrumentation, including pressure indicators and valves

    The scope of Package 2 includes:

    • Rehabilitation of control rooms and security rooms, replacing them with concrete control rooms, including infrastructure works and all required services
    • Removal of unused tanks and equipment previously used for exporting crude oil
    • Rehabilitation of the existing gate in order to improve safety and security with the installation of a tire killer
    • Carrying out maintenance and repairs for the oil berth dolphins and trestle with inspection
    • Maintenance, repair and reinstallation of oil berth concrete slabs
    • Removal and extension of the jetty platform
    • Installation of a lighting system at pipelines beside booster pumps
    • Installation of stripping pumps at the LPG terminal
    • Replacement of drain line path for slop tank of LPG booster pumps
    • Rehabilitation of the existing closed drain drum
    • Rectification of cone sealing issue of all truck loading arms
    • Conversion of manual valves to motor-operated valves
    • Remote operation of shut-off valves on the main pipeline alongside and near the entrance gate
    • Upgrading of the firefighting system

    The last date for questions and clarifications related to the project will be 13 May 2026.

    The Aquaba Oil and Gas Terminal was built to meet demand for petroleum products and LPG imports into Jordan.

    It is operated by state-owned Jordan Oil Terminals Company (JOTC), which was established in 2015 as a private shareholding company.

    Earlier this year, Abu Dhabi’s AD Ports Group signed an agreement with ADC to manage and operate the Aqaba multipurpose port.

    AD Ports is managing and operating the port under a 30-year concession agreement.

    Under the agreement, AD Ports and ADC will establish a joint venture to oversee port operations.

    AD Ports will hold a 70% stake in the joint venture, with the remaining 30% held by ADC.

    AD Ports Group will also invest AED141m ($38.4m) in the joint venture.

    The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16543632/main.jpg
    Wil Crisp
  • Decision imminent on Dubai sewerage tunnel contracts

    24 April 2026

     

    A final decision on the first two packages of the flagship Dubai Strategic Sewerage Tunnels (DSST) project is imminent, with two remaining bidders having submitted best and final offers. 

    The AED80bn ($22bn) public-private partnership (PPP) scheme comprises three packages: J, W and Links.

    According to a source, two consortiums led by Etihad Water & Electricity (UAE) and Vision Invest (Saudi Arabia) were recently invited to submit final bids for packages J and W, which were tendered last November.

    The winning consortium is expected to be formally confirmed in the coming weeks once the required approval process is completed, the source said.

    MEED had previously reported that three consortiums were bidding for the project, which is being procured by Dubai Municipality’s sewerage and recycled water projects department.

    These included:

    • Consortium 1: Led by Plenary Group (Australia) alongside Itochu (Japan) and Infrastructure Holding (UAE) 
    • Consortium 2: Led by Vision Invest (Saudi Arabia) alongside Suez Water Company (France)
    • Consortium 3: Led by Etihad Water & Electricity (UAE) alongside Tamasuk Holding (Saudi Arabia) and Alkhorayef Water & Power (Saudi Arabia)

    It is understood that the consortium led by Pleneray Group has since been dropped from consideration for the contract.

    As MEED previously reported, the bid packages include equity partners, an appointed operator and a construction contractor.

    Of the bidders still in contention, MEED understands that Vision Invest plans to act as operator for that consortium, while Suez will lead construction.

    In the other consortium, EtihadWE plans to take the operator role, with construction led by France’s Veolia.

    Large-scale sewerage network

    The DSST masterplan project covers the construction of two sets of deep tunnels terminating at pump stations at Warsan and Jebel Ali Sewage Treatment Plants (STPs). It also includes over 200 kilometres of sewer links.

    Construction work was previously categorised in multiple packages under the Warsan Strategic Tunnel Scheme (Package W) and the Jebel Ali Strategic Sewerage Scheme (J1 North, J2 South, J3 Jebel Ali Links).

    These packages have now been restructured and renamed.

    The bid submission deadline for the third 'Phase 2 Links' package, meanwhile, was recently extended.

    The new deadline is June 30. 

    The three packages are being procured under 30-year design, build, finance, operate and maintain concession models.

    The DSST project aims to convert Dubai’s sewerage system from a pumped network to a gravity-based system, enabling the emirate to replace existing sewage pumping stations and meet long-term capacity needs.

    The programme also marks the first time the municipality will implement In-Country Value (ICV), a local content programme that promotes economic benefits.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16536060/main.jpg
    Mark Dowdall
  • Dubai scales up its metro ambitions

    23 April 2026

     

    Dubai’s rail sector has rarely seen such a concentrated burst of procurement activity as it has in the past year.

    Within the space of a few months, Dubai’s Roads & Transport Authority (RTA) has moved simultaneously on three distinct fronts: tendering design consultancy for the Route 2020 extension that will connect the Expo 2020 metro station to Al-Maktoum International airport; inviting study-and-design bids for a 55-kilometre Airport Express Line linking Dubai International airport to Al-Maktoum International airport; and culminating in Dubai Ruler Sheikh Mohammed Bin Rashid Al-Maktoum’s approval of the AED34bn ($9.2bn) Gold Line, a 42km fully underground route that the emirate is calling the largest transportation project in its history.

    These projects form a key part of the Dubai Rail Network Plan 2032, which outlines the development of six public transportation schemes comprising a mix of metro, passenger and high-speed rail lines.

    The most prominent feature of the plan is the addition of new lines to Dubai Metro’s existing network, representing a systematic effort to support the shift of Dubai’s economic centre of gravity towards Dubai South and the vast development corridors in between.

    The city is also seeking to stay ahead of the curve by investing heavily in infrastructure. Data from regional projects tracker MEED Projects shows that the emirate has awarded over $14bn-worth of transport projects in the past two years alone, with several other multibillion-dollar schemes still moving through the planning stages.

    All of this work is being carried out in line with the Dubai 2040 Urban Master Plan, which forecasts the emirate’s population will reach 5.8 million by 2040 – a clear indication of the scale of daily movement the city must accommodate.

    Project progress

    Dubai Metro Gold Line

    On 21 April, Sheikh Mohammed officially announced the launch of the new AED34bn ($9.2bn) Gold Line project.

    The line will be a fully underground network spanning over 42 kilometres, with 18 stations.

    It will run from Al-Ghubaiba in Bur Dubai to Jumeirah Golf Estates.

    The Gold Line will connect with Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger network.

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

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

    Airport Express Line

    Procurement has started for another metro line extending from Dubai International airport (DXB) in Al-Garhoud to Al-Maktoum International airport (DWC) in Jebel Ali.

    Earlier this month, the RTA invited consultants to bid for a contract to study and design what is referred to as the Airport Express Line.

    The proposed line will stretch about 55km and include five stations that will provide passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    The new line will run from the Red Line metro station at DXB through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing on to DWC.

    There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch toward Business Bay, where another station will be built.

    Expo 2020 route extension

    Dubai is also undertaking the Route 2020 extension of its metro system, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.

    Consultants submitted their bids earlier this month for the design contract.

    The extension will run for about 3km and feature two stations.

    The existing Route 2020 metro link is a 15km line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    Dubai Metro Blue Line extension

    Construction progress on the Dubai Metro Blue Line extension is expected to reach 30% by the end of 2026, according to official accounts.

    In December 2024, the RTA awarded a AED20.5bn ($5.5bn) main contract for the construction of the project.

    The contract was awarded to a consortium of Turkiye’s Limak Holding, Mapa Group, also of Turkiye, and the Hong Kong office of China Railway Rolling Stock Corporation (CRRC).

    The Blue Line will connect the existing Red and Green lines. It will be 30km long, with 15.5km underground and 14.5km above ground.

    The line will have 14 stations, seven of which will be elevated. There will be five underground stations, including one interchange station, and two elevated transfer stations connected to the existing Centrepoint and Creek stations.

    The project is scheduled for completion in September 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16534887/main.png
    Yasir Iqbal