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
  • Jordan allows phosphate rail line bidders more time

    30 January 2026

     

    Abu Dhabi’s National Infrastructure Construction Company (NICC), a subsidiary of Etihad Rail, has allowed contractors until 15 February to submit their proposals for a contract to build the second section of the phosphate railway line that will run from Ghor Al-Safi to Aqaba in Jordan.

    The tender was issued on 27 December, with an initial bid submission deadline of the end of January.

    The scope of work for the railway includes civil engineering, tunnel construction, and mechanical, electrical and plumbing (MEP) works.

    Tendering is also ongoing for the first section of the line. NICC is preparing to award the contract for the first section of the railway line, stretching from Al-Shidiya to Aqaba.

    MEED understands that the evaluation is in its final stages and that the contract will be awarded soon.

    In April last year, a French-Swiss joint venture of Egis and Arx was awarded the design consultancy contract for the project.

    Etihad Rail announced in September 2024 that it had signed a memorandum of understanding (MoU) worth $2.3bn with Jordan’s Transport Ministry and local companies to develop the phosphate railway line.

    In an official statement, Etihad Rail said it had signed an agreement with Jordan to build, operate and maintain the project.

    The statement added that additional MoUs were signed with Jordan Phosphate Mines Company and Arab Potash Company to transport 16 million tonnes a year of phosphate and potash from mining sites to the Port of Aqaba via the Jordanian railway network.

    The MoUs also cover the manufacture and supply of rolling stock; the construction of terminals in Aqaba, Ghor Al-Safi and Shidiya; and the maintenance, repair and operation of the railway line. 

    Project history

    In 2015, Jordan’s Transport Ministry tendered a contract to construct the Shidiya rail link, intended to transport 6 million tonnes a year of phosphate from mines in Shidiya to Wadi Al-Yutum, near Aqaba.

    In November of that year, a joint venture of China Communications Construction Company and the local contractor Masar United was confirmed as the lowest bidder. It was awaiting the formal award to build the 21-kilometre spur line.

    The project was subsequently put on hold due to funding issues.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15541534/main.jpg
    Yasir Iqbal
  • Acwa Power to develop $200m solar plant in Philippines

    30 January 2026

    Saudi Arabia’s Acwa Power is investing $200m to build a large-scale solar photovoltaic (PV) plant in the Philippines.

    The renewables developer finalised the agreement with the Philippine government-owned Bases Conversion & Development Authority (BCDA) on the sidelines of the World Economic Forum in Davos last week.

    Under the reservation agreement, a 500-hectare site has been selected within the New Clark City Special Economic Zone in Tarlac province, north of Manila.

    The project must undergo a pre-feasibility study, technical assessments and regulatory approvals before any final investment decision is made.

    The collaboration will also explore “potential battery energy storage system (Bess) integration,” Acwa Power said in a statement. 

    No details were provided on the project’s potential power generation capacity.

    The reservation agreement follows a memorandum of understanding (MoU) signed between Acwa Power and BCDA in Riyadh last November.

    Since then, the partners have evaluated multiple locations in New Clark City and shortlisted the 500-hectare site for further technical and commercial evaluation.

    Acwa Power said it is targeting a threefold increase in its global assets under management to $250bn by 2030.

    The company currently has a global renewables portfolio of 52GW, accounting for 56% of its total power capacity, and plans to deploy 5.6GWh of battery energy storage capacity.

    As part of its foreign investment plans, the company also recently signed major agreements for large-scale renewable energy projects in Uzbekistan.

    This comprised $1.8bn in financing for the Samarkand solar and battery energy storage project, Uzbekistan’s biggest solar development.

    The project is being developed in partnership with Japan’s Sumitomo Corporation, Chubu Electric Power and Shikoku Electric Power.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15541146/main.jpg
    Mark Dowdall
  • Algeria plans Constantine tramway extension

    30 January 2026

     

    Algeria is planning another extension of its Constantine tramway network, which currently runs from Ben Abdelmalek Stadium in the city centre to the Ali Mendjeli area.

    The project client, Algiers Metro Company (EMA), received bids on 14 December last year from consultants for a tender to undertake feasibility and detailed preliminary design studies for the project.

    The client had tendered the contract in October.

    The current tramway network spans approximately 19.3 kilometres (km).

    The tramway is owned by EMA and operated by Societe d’Exploitation des Tramways (Setram), a joint venture of EMA and French firm RATP Group.

    The first route of the tramway, with a length of 9km, was commissioned in July 2013, according to GlobalData’s sister company, Railway Technology.

    The expansion phase began in July 2015 and was completed in June 2019, increasing total ridership to over 30,000 passengers a day.

    The initial 9km-long section of the Constantine tramway system runs from the Zouaghi terminal to the Ben-Abdelmalek Stadium station through the old town and the university area.

    The route includes 11 stations, three of which are multimodal, two viaducts measuring 465m and 114m long, and an underpass.

    A 65,000-square-metre ground-level depot serves the fleet for maintenance and train parking.

    The Ben-Abdelmalek Stadium was renovated as part of the project to accommodate the line's passage.

    Contractors involved 

    EMA awarded a contract for the tramway line extension to France’s Alstom and the local firm Cosider Travaux Publics consortium in July 2015.

    Spanish firm Idom was awarded the detailed design and construction works management, while US-based engineering firm Aecom was responsible for civil engineering and urban planning.

    Cital, a joint venture of EMA, Spain’s Ferrovial and Alstom, delivered 24 trainsets to open the first phase of the extension in 2019.

    The company also maintains 51 trainsets and the infrastructure of the Constantine tramway.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15540773/main.jpg
    Yasir Iqbal
  • Dewa desalination plans offer timely boost

    30 January 2026

    Commentary
    Mark Dowdall
    Power & water editor

    Dubai Electricity & Water Authority (Dewa) is taking early steps towards procuring its second independent water producer (IWP) project, a signal that the utility may be further expanding its role from service provider to long-term utility asset developer.

    Consultancy bids were received this week for a pre-feasibility study that will assess capacity and location requirements for a planned seawater reverse osmosis (SWRO) desalination plant.

    The project, being pursued with Etihad Water & Electricity (EtihadWE), would build on the 180-million-imperial-gallons-a-day Hassyan IWP, awarded to Saudi Arabia’s Acwa Power in 2024.

    It would also align with Dewa’s wider objective to lift Dubai’s desalination capacity to 750 million imperial gallons a day by 2030, from around 495 million today. Achieving that target may require a further pipeline of privately developed water assets between now and then.

    A useful point of comparison lies in Saudi Arabia’s power sector. Saudi Electricity Company has increasingly relied on independent power producers over the past decade to accelerate capacity expansion, ease pressure on public capital spending and deepen the project finance ecosystem.

    For regional developers, competition in Saudi Arabia’s water market continues to intensify. In December, Saudi Water Partnership Company (SWPC) prequalified 50 developers to bid for five upcoming IWPs and 63 developers for independent sewage treatment plant (ISTP) projects.

    Unlike Saudi Arabia, the UAE entered 2026 with limited visible momentum in desalination. EtihadWE’s $400m Fujairah SWRO IWP is the only large desalination plant expected to be tendered this year.

    In a crowded market, increased activity by Dubai’s utility would provide a welcome boost.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15540724/main.jpg
    Mark Dowdall
  • Projects show resilience in 2026

    30 January 2026

     

    While priorities may have shifted over the past two years, the region’s projects market continues to display resilience and will offer opportunities in 2026 in areas including Saudi Arabia’s gigaprojects progamme, regional rail schemes and other strategic sectors.

    Despite much having been written over the past two years about the reprioritisation of Saudi Arabia’s gigaprojects, work is continuing. 

    “They are still going, all the gigaprojects,” says Pierre Santoni, president – infrastructure for Europe, Middle East and Africa (Emea) at US-based Parsons. 

    “Even Neom, where the slowdown has been widely publicised, we still have people there working on Oxagon, and we still have people on the Line. All the other ones are still ongoing,” he adds. “We just signed a contract to design all the infrastructure around the Mukaab for New Murabba. We have live tenders and are designing the public realm for Diriyah Gate 2. We are on Sports Boulevard, King Salman Park and the expansion of King Abdullah Financial District. All of those are ongoing.”

    Another focus for the region is rail. Parsons led the Riyadh Metro Transit Consultants joint venture that project managed the first six lines of Riyadh Metro, which opened in late 2024. 

    “Riyadh Metro was a great success for Parsons and our partners, and all the people involved. That was the original gigaproject. At one point, there were 50,000 workers on Riyadh Metro every day,” says Santoni.

    The success of this project, and of earlier schemes such as Dubai Metro and Doha Metro, combined with high-level governmental backing, have given the rail sector in the region unprecedented momentum. 

    “Rail is a major market in the region at the moment,” says Santoni. “The UAE is a good example – you have the freight railway and the opening of passenger traffic. The high-speed rail project has also started. In Abu Dhabi, the tram on Yas Island was launched last year. In Dubai, the Blue Line is in full construction mode with delivery firmly scheduled for 2029. It is a major undertaking, and the intention of the Roads & Transport Authority is to continue with further extensions, which is much needed given the growth in population.”

    Roads and airports are two other areas of focus for Parsons. The company continues to work as the lead consultant for major road schemes in the UAE, and it secured delivery partner roles in 2025 for the airside and landside infrastructure at Riyadh’s King Salman International airport.

    Operations and maintenance 

    The infrastructure market is not just about building new projects. As the region’s infrastructure ages, operations and maintenance (O&M) has become a central pillar of Parsons’ strategy, Santoni notes.

    “The game is not just about building new infrastructure; it’s about making existing infrastructure perform better,” he says. 

    “A lot of O&M considerations are coming to the forefront. We are deploying technology like iNET, which is Parsons’ proprietary intelligent traffic management system. We did the initial feasibility study last year and managed to improve transit times through 320 intersections in Riyadh. We just signed a contract to fully deploy the system. 

    The game is not just about building new infrastructure; it’s about making existing infrastructure perform better

    “It’s not just physical infrastructure; it’s the management of all that through technology-enabled tools.” 

    Santoni says this technological “brain” is also being applied to the King Salman Park project, which involves developing the world’s largest urban park and requires a highly complex O&M system to manage it effectively. Automated management of soil and water for hundreds of plant species will remove the need for a vast on-site workforce.

    Traditionally known for core engineering and transport, Parsons is increasingly recognised for work in other sectors, including hospitality and defence. The firm is currently managing over 30,000 luxury hotel keys in the region, a surge driven by Saudi Arabia’s tourism goals.

    “We became recognised, sort of unknowingly, for these complex, niche-type hospitality projects where it’s about preserving heritage and respecting culture, but doing so in the most modern and technologically advanced way possible. This is going to be a very nice market for us in the future,” Santoni says. 

    “We also signed two major contracts last year for confidential defence clients in Saudi Arabia to deliver infrastructure.”

    Capacity crunch

    As the industry faces a talent shortage, Santoni highlights Parsons’ internal mobility as a competitive advantage. While competitors have struggled with project transitions, Parsons has focused on relocating staff to sustain its growth.

    “We did see a lot of people either exiting Saudi Arabia or relocating within,” Santoni says. “We have been very good at relocating people. This is one of our strengths. When projects changed pace, we made a conscious effort to relocate people, give them options and extend them on the job until something else came up. Last year alone, about 350 people were relocated internally within the region. We are still in hiring mode.”

    Being a multidisciplinary firm present in several countries gives flexibility. “In Saudi Arabia, most of Parsons’ work has traditionally been project management consultancy (PMC), although we have had for a number of years now a growing design office in Riyadh with an offshoot in Dammam and one in Jeddah. 

    “We currently have almost 300 people in our design office in Saudi Arabia, which is slightly less than 10% of our workforce in the kingdom. The rest are doing PMC work. In Dubai, Abu Dhabi, Doha, it’s mostly the more traditional model of design and construction supervision work with some PMC,” says Santoni. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15527825/main.jpg
    Colin Foreman