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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.
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  • Contractor progresses with Qatar LNG decarbonisation project

    30 October 2025

    Engineering, procurement and construction (EPC) works are progressing on an estimated $2bn to $2.5bn carbon dioxide (CO2) sequestration complex project of QatarEnergy LNG covering its liquefied natural gas (LNG) production operations in Qatar’s Ras Laffan Industrial City (RLIC).

    Once commissioned, the planned sequestration facility will be capable of capturing 4.3 million tonnes a year (t/y) of CO2 from QatarEnergy LNG’s production operations in RLIC.

    QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, awarded the main EPC contract for the CO2 sequestration project to South Korean contractor Samsung C&T, sources told MEED.

    The letter of award for the EPC contract was issued by QatarEnergy LNG to Samsung C&T on 27 May, according to a source.

    The following contractors are among those that are understood to have submitted bids in April for EPC works on the QatarEnergy LNG CO2 sequestration project:

    • Chiyoda (Japan) / Consolidated Contractors Company (Greece/Lebanon)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • Samsung C&T (South Korea)

    Based on the initial evaluation of bids, Larsen & Toubro Energy Hydrocarbon is understood to have pulled ahead in the race for the project’s contract, MEED previously reported. However, sources, at the time, added that the situation could change.

    QatarEnergy LNG awarded Australia-headquartered consultancy Worley a contract in September 2023 to execute the front-end engineering and design (feed) work on the project and to prepare the EPC scope of work.

    CO2 sequestration facility

    The planned sequestration facility will capture CO2 from seven LNG trains at the QG North complex and three LNG trains at the QG South complex.

    The CO2 captured from the trains is to be dehydrated, compressed and transferred via a new 154-kilometre pipeline, to be injected into wells at the Dukhan oil field development onshore Qatar for a related enhanced oil recovery pilot scheme.

    The pilot project is part of QatarEnergy’s long-term strategy for the redevelopment of the Dukhan fields that will contribute to the recovery of additional crude.

    The detailed EPC scope of work on the CO2 sequestration project covers the following:

    • QG North complex:
      • Installation of four new electric-driven compressors
      • New power substation for power import from Kahramaa 65MW
      • New ITR for DCS/ESD/F&G
      • Tie-ins with utility units
      • Dehydration package
      • Pig launcher
         
    • QG South complex:
      • Installation of two new electric-driven compressors
      • Integration with South injection system unit 85
      • Solvent reformulation for South trains 1/23
      • New power substation for power import from Kahramaa 35MW
      • New SIH for DCS/ESD/F&G
      • Tie-ins with utility units
      • Dehydration package
      • Chillers package
      • Pig launcher
         
    • RLIC corridors
      • Common 22-inch export pipeline stretching 18 kilometres
      • Power tie-in RLF3 with Kahramaa
      • Electric cables
      • Fiber optic cable
         
    • Lot W15
      • Six injection wells by QatarEnergy LNG subsurface
      • Six injection flowlines and metring skid
      • Six wellhead control panels
      • Power tie-in from Barzan
      • Substation
      • Pig receiver
      • Access road and fencing

    The project will directly reduce CO2 emissions because some of the CO2 injected into wells at the Dukhan oil field will remain in the reservoir after injection.

    The CO2 sequestration complex in RLIC is expected to start operations by the end of 2027.

    North Field LNG expansion

    Meanwhile, QatarEnergy LNG continues to press forward with its North Field LNG expansion programme.

    The estimated $40bn North Field LNG expansion programme aims to raise Qatar’s total LNG production capacity from 77.5 million t/y to 142 million t/y in three phases.

    QatarEnergy is understood to have spent almost $30bn on the two phases of the North Field LNG expansion programme, North Field East and North Field South, which will increase its LNG production capacity from 77.5 million t/y to 126 million t/y by 2028.

    EPC works on the two projects are making progress.

    QatarEnergy awarded the main EPC contracts in 2021 for the North Field East project, which is projected to increase LNG output to 110 million t/y by this year. The main $13bn EPC package, which covers the engineering, procurement, construction and installation of four LNG trains with capacities of 8 million t/y each, was awarded to a consortium of Japan’s Chiyoda Corporation and France’s Technip Energies in February 2021.

    QatarEnergy awarded the main EPC contract for the North Field South LNG project, worth $10bn, in May 2023. The contract covers two large LNG processing trains, each with a capacity of 7.8 million t/y, and was awarded to a consortium of Technip Energies and Lebanon-based Consolidated Contractors Company.

    When fully commissioned, the first two phases of the North Field LNG expansion programme will contribute a total supply capacity of 48 million t/y to the global LNG market.

    In February 2024, QatarEnergy announced the third phase of its North Field LNG expansion programme. To be called North Field West, the project will further increase QatarEnergy’s LNG production capacity to 142 million t/y when it is commissioned by 2030.

    The North Field West project will have an LNG production capacity of 16 million t/y, which is expected to be achieved through two 8 million t/y LNG processing trains, based on the two earlier phases of QatarEnergy’s LNG expansion programme. The new project will draw feedstock for LNG production from the western zone of Qatar’s North Field offshore gas reserve.

    The state enterprise recently started a prequalification process for the main tendering exercise for dredging works on the North Field West project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14981287/main2210.jpg
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  • New Murabba signs up consultants for project delivery

    30 October 2025

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    Saudi Arabia’s New Murabba Development Company (NMDC) has signed agreements with three US-based engineering firms to undertake design works on various assets at the New Murabba downtown project in Riyadh.

    The client signed an agreement with New York-headquartered firm Kohn Pedersen Fox (KPF) to lead early design works for the first residential community within the New Murabba development.

    The other agreements were signed with Aecom and Jacobs, who have been appointed as the lead design consultants for the Mukaab district.

    The latest agreements build on NMDC’s August signing of a memorandum of understanding (MoU) with another US-based firm, Falcons Creative Group, to develop the creative vision and immersive experiences for the Mukaab project at the New Murabba development.

    The Mukaab is a Najdi-inspired landmark that is set to become one of the largest buildings in the world, standing 400 metres high, 400 metres wide and 400 metres long.

    Internally, it will feature a tower atop a spiral base, with 2 million square metres (sq m) of floor space dedicated to hospitality. The structure will include commercial areas, cultural and tourist attractions, residential and hotel units and recreational facilities.

    This latest announcement follows other MoUs that NMDC has signed in recent months. In August, NMDC signed an MoU with Alat, a Public Investment Fund-backed company, to explore the development and integration of technologies supporting the Mukaab project.

    This MoU also covers potential future technology needs across the wider New Murabba downtown development. 

    This followed NMDC’s signing of an MoU with South Korea’s Heerim Architects & Planners in July to explore additional design work for assets within the 14-square-kilometre New Murabba downtown project.

    In July, NMDC signed an MoU with another South Korean firm, Naver Cloud Corporation, to explore technological solutions for delivering the New Murabba downtown project.

    Also in July, NMDC announced the completion of excavation works for the Mukaab, the centrepiece of the overall development.

    Downtown destination

    The New Murabba destination will have a total floor area of more than 25 million sq m and will feature more than 104,000 residential units, 9,000 hotel rooms and over 980,000 sq m of retail space.

    The scheme will include 1.4 million sq m of office space, 620,000 sq m of leisure facilities and 1.8 million sq m of space dedicated to community facilities.

    The project will be developed around the concept of sustainability and will include green spaces and walking and cycling paths to promote active lifestyles and community activities.

    The living, working and entertainment facilities will be developed within a 15-minute walking radius. The area will use an internal transport system and will be about a 20-minute drive from the airport.

    The downtown area will feature a museum; a technology and design university; an immersive, multipurpose theatre; and more than 80 entertainment and cultural venues.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14981694/main.jpg
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  • Read the November 2025 MEED Business Review

    30 October 2025

    Download / Subscribe / 14-day trial access

    The GCC is projected to add at least 80 million tonnes a year (t/y) of liquefied natural gas (LNG) capacity by 2030, placing it firmly among the world’s top three producing regions.

    With soaring global demand for the super-chilled fuel, and regional producers committing tens of billions of dollars to significantly ramp up output, MEED’s latest issue focuses on the outlook for the Gulf’s LNG sector as it enters a new, prolific phase. 

    Beyond the Gulf, MEED finds other regional countries also investing in building LNG import infrastructure, driven by a need to increase the share of gas in their energy mixes.

    This month’s market focus covers the UAE, where physical and digital infrastructure projects are building a connected economy of the future. The UAE is demonstrating, once again, that strategic investment remains the cornerstone of its national progress.

    MEED’s latest issue also includes a report on the Gulf's project finance market, which is continuing to attract strong interest from local and international lenders. Iraq, meanwhile, is revealed as the leader in non-GCC project finance activity.

    This issue is bursting with analysis. The team looks at Abu Dhabi’s latest move to position itself at the forefront of the global transition to low-carbon heavy industry; examines the way in which Riyadh-based Digital Cooperation Organisation is using data to define and measure the digital economy; and asks if Saudi Arabia’s housing boom is leaving its citizens behind.  

    MEED and Saudi Arabia’s National Centre for Privatisation & PPP also showcase the scale and variety of opportunities available in the kingdom’s $190bn pipeline of public‑private partnership projects.

    We hope our valued subscribers enjoy the November 2025 issue of MEED Business Review. 

     

    Must-read sections in the November 2025 issue of MEED Business Review include:

    > AGENDA: 
    > Gulf LNG sector enters a new prolific phase
    > Mena LNG infrastructure spending rises

    INDUSTRY REPORT:
    PROJECT FINANCE
    > Region sees evolving project finance demand
    > Iraq leads non-GCC project finance activity

    > PPPs: NCP showcases private sector project opportunities in Saudi Arabia

    > GREEN STEEL: Abu Dhabi takes the lead in green steel transition

    > DIGITISATION: Riyadh-based organisation drives digital growth

    > LEADERSHIP: Saudi Arabia’s housing boom risks leaving citizens behind

    > UAE MARKET REPORT: 
    > COMMENT: Investment shapes UAE growth story
    > GOVERNMENT: Public spending ties the UAE closer together
    > ECONOMY: UAE growth expansion beats expectations
    > BANKING: Stability is the watchword for UAE lenders
    > OIL & GAS: Adnoc strives to build long-term upstream potential
    > PETROCHEMICALS: Taziz fulfils Abu Dhabi’s chemical ambitions at pace
    > POWER: UAE power sector hits record $8.9bn in contracts
    > WATER: Tunnel projects set pace for UAE water sector
    > CONSTRUCTION: UAE construction faces delivery pressures
    > TRANSPORT: $70bn infrastructure schemes underpin UAE economic expansion
    > DATABANK:     UAE growth exceeds predictions

    > MEED COMMENTS: 
    >     Neom omitted from Saudi pre-budget statement
    > Qiddiya high-speed rail PPP is a bold but risky move
    > Wood leadership change holds promise for future
    > Power market reshapes contractor landscape

    > GULF PROJECTS INDEX: Gulf projects market leaders return to fore

    > SEPTEMBER 2025 CONTRACTS: Qatar leads awards as regional activity slows

    > ECONOMIC DATA: October 2025: Data drives regional projects

    > OPINION: Peace mission impossible

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
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    MEED Editorial
  • Contractors submit UAE high-speed rail bids

    30 October 2025

     

    The UAE’s Etihad Rail received bids on 29 October from contractors for the tender to design and build the civil works and station packages for the high-speed railway (HSR) line connecting Abu Dhabi and Dubai.

    Earlier in October, MEED exclusively reported that contractors were forming joint ventures to bid for upcoming design-and-build work packages for the UAE’s high-speed railway project.

    MEED understands that the group formations for the civil works packages are as follows:

    • Limak / Dogus / Ozkar (Turkiye) – Dubai section
    • NPC / Trojan Tunnelling / Kalyon / China State (UAE/UAE/Turkiye/China) – Dubai and Abu Dhabi section
    • WeBuild / Tristar (Italy/UAE) – Abu Dhabi section
    • L&T / China Harbour / Hilalco / Wade Adams (India/China/local/local) – Dubai and Abu Dhabi
    • China Civil Engineering Construction Corporation (China) – Dubai and Abu Dhabi
    • China Railway Engineering Corporation (China) – Dubai section
    • China Railway Engineering Corporation / WBG (China/local) – Abu Dhabi

    French engineering firm Systra is the designer for the Limak-led consortium.

    US-based Jacobs is the designer for the NPC group.

    A joint venture of Systra and US-based Aecom is the designer for the WeBuild group.

    French engineering firm Egis and Singapore’s Surbana Jurong are the designers for the L&T-led consortium.

    Switzerland’s ARX is working with China Civil Engineering Construction Corporation as its designer.

    Chinese firm China Railway Eryuan Engineering Group is working with China Railway Engineering Corporation as its lead designer for both sections of the project.

    Teams are also forming for the systems package. These are:

    • Siemens / Rowad / Salcef (Germany/Egypt/Italy)
    • Hitachi / Orascom (Japan/Egypt)
    • Alstom / L&T (France/India)
    • CRRC (China)
    • Hyundai Rotem / Posco (South Korea)
    • Talgo / Hassan Allam (Spain/Egypt)
    • CAF (Spain)

    The design speed of the trains running on the UAE’s HSR network will be 350 kilometres an hour (km/h) and the operating speed will be 320km/h, as MEED reported last year.

    The proposed HSR programme will be constructed in four phases, gradually adding further connectivity to other areas within the UAE.

    The first phase involves constructing a railway line connecting Abu Dhabi and Dubai, which is expected to be operational by 2030.

    The second phase will develop an inner‑city railway network with 10 stations within the city of Abu Dhabi.

    The third phase of the railway network involves constructing a connection between Abu Dhabi and Al-Ain.

    The fourth phase involves developing an inter-emirate connection between Dubai and Sharjah.

    The 150km first phase of the HSR will stretch from the Al-Zahiyah area of Abu Dhabi to Al-Jaddaf in Dubai.

    The project’s civil works have been split into two packages – Abu Dhabi and Dubai – comprising four sections. The scope of these sections includes:

    • Phase 1A: Al-Zahiyah to Yas Island (23.5km) 
    • Phase 1B: Yas Island to the border of Abu Dhabi/Dubai (64.2km)
    • Phase 1C: Abu Dhabi/Dubai border to Al-Jaddaf (52.1km)
    • Phase 1D: Abu Dhabi airport delta junction and connection with Abu Dhabi airport station (9.2km)

    The rail line will have five stations: Al-Zahiyah (ADT), Saadiyat Island (ADS), Yas Island (YAS), Abu Dhabi International Airport (AUH) and Al-Jaddaf (DJD).

    The ADT, AUH and DJD stations will be underground, while ADS will be elevated and YAS will be at grade.

    The overall construction package also includes provisions for rolling stock, railway systems and two maintenance depots.

    The high-speed project will slash journey times between the UAE’s two largest cities and economic centres. The journey time between the YAS and DJD stations will be 30 minutes.

    Preliminary site testing works have begun. Dubai-based Matcon Testing Laboratory and Abu Dhabi’s Engineering & Research International are conducting drilling tests to ascertain the ground conditions in areas through which the HSR will pass. 

    Spanish engineering firms Sener and Ineco are the project’s engineering consultants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14979930/main.jpg
    Yasir Iqbal
  • Kuwait Oil Company seeks approval to increase budgets

    30 October 2025

     

    State-owned upstream operator Kuwait Oil Company (KOC) is seeking approval from Kuwait Petroleum Corporation (KPC) to increase budgets for key projects, according to industry sources.

    Approvals are currently being sought for three upstream projects, which saw bids submitted significantly over budget.

    The first project, with a low bid of $2.47bn, involves the development of two facilities: Separation Gathering Centre 1 (SGC-1) and Water Injection Plant 1 (WIP-1).

    The second project, with a low bid of $2.48bn, focuses on developing SGC‑3 and WIP‑3.

    The third project, which involves the development of effluent water disposal plants for injector wells, had a low bid of $1.3bn.

    If approval is given by KPC, then final approval will be sought from the country’s Ministry of Finance, industry sources said.

    Already cancelled

    One Kuwaiti oil project tender that received bids significantly above budget has already been cancelled.

    On 7 October, MEED reported that the tender for the SGC-2 oil project – focused on the installation of a separation gathering centre – was cancelled by Kuwait’s Central Agency for Public Tenders.

    In May, MEED reported that UK-based engineering firm Petrofac submitted a bid more than double the project’s proposed budget.

    Petrofac’s bid was KD422.45m ($1.37bn), while the provisional budget stood at KD207m ($670.2m).

    This contract is expected to be retendered, but there is significant uncertainty over when a new invitation to bid will be issued and how the scope may be changed.

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    Wil Crisp