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  US and Iran agree to two-week ceasefire

  8 April 2026

  The US and Iran have entered into a conditional two-week ceasefire agreement, potentially pausing a regional conflict that began on 28 February with joint US and Israeli airstrikes.

  US President Donald Trump announced the ceasefire, which was brokered by Pakistan, on social media platform Truth Social. He said the agreement is strictly predicated on the “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz”, which has been blocked by Iranian forces for several weeks.

  He also said the deal is a “double sided CEASEFIRE”, stating that he had agreed to suspend the bombing campaign for 14 days to allow for the finalisation of a long-term peace agreement.

  President Trump indicated that the decision followed the submission of a 10-point plan from Tehran. He said the plan is a “workable basis on which to negotiate”. He further stated that US military objectives under Operation Epic Fury had already been “met and exceeded” during the 38-day campaign. He also showed optimism for a peace deal, adding that “it is an Honor to have this long-term problem close to resolution”.

  In an official statement, the Israeli government confirmed its support for the suspension of strikes, provided that Iran immediately reopens the maritime corridor and ceases all aggression against the US, Israel and regional neighbours. Israel clarified that the two-week ceasefire does not include Lebanon.

  Iranian Foreign Minister Seyed Abbas Araghchi stated that Tehran would stop its military actions if attacks against Iran are halted.

  The announcement led to a significant drop in oil prices, with Brent crude falling to below $95 a barrel on morning trade.

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  Colin Foreman
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  Adnoc builds long-term oil and gas production potential

  7 April 2026

  

   

  Between 2023 and 2024, Abu Dhabi National Oil Company (Adnoc Group) spent an estimated $37bn on projects critical to achieving its upstream targets: increasing oil production capacity to 5 million barrels a day (b/d) by 2027 and attaining gas self-sufficiency by the end of the decade.

  The state energy company spent more than $22.5bn in 2023 alone, marking the highest annual oil and gas project spending on record in the UAE. The Hail and Ghasha sour gas development – accounting for approximately $17bn – remains the single-largest contract award in the country’s hydrocarbons sector.

  A slowdown in capital expenditure (capex) following two years of elevated spending is therefore in line with expectations. While engineering, procurement and construction (EPC) contract awards for upstream projects declined in 2025 and into this year, Adnoc has still committed close to $10bn over the past 15 months.

  The largest award during this period came from Adnoc Offshore, which let contracts worth $7.5bn for three EPC packages under the Lower Zakum Long-Term Development Plan (LTDP-1). Spain’s Tecnicas Reunidas and Abu Dhabi-based NMDC Energy and Target Engineering Construction Company were selected last February to execute the works.

  The Lower Zakum field, located 65 kilometres northwest of Abu Dhabi, is majority-owned by Adnoc Offshore (60%). Other stakeholders include an Indian consortium led by ONGC Videsh (10%), Japan’s Inpex (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).

  Adnoc Offshore aims to increase production capacity at Lower Zakum to 520,000 b/d by 2027 and sustain that level through 2034.

  Offshore contracts in 2026

  So far this year, Adnoc Offshore has awarded contracts for two key projects: the Satah Al-Razboot (Sarb) deep gas development and the expansion of the Nasr oil field.

  Adnoc achieved final investment decision (FID) on the Sarb project in January and awarded the main EPC contract to US-based McDermott International. The contract is estimated to be worth around $500m, sources told MEED.

  The project is expected to deliver 200 million cubic feet a day (cf/d) of gas by the end of the decade – enough to power more than 300,000 homes.

  The scope includes the EPC of an offshore wellhead tower with four gas production wells, which will be connected to Das Island for processing through Adnoc Gas facilities. Works also include the installation of pipelines and intra-field connections linking the Sarb field to Das Island.

  Also in January, Adnoc Offshore awarded McDermott a $942m contract for the Nasr-115 project, which will increase production capacity at the Nasr offshore field to 115,000 b/d. The field is located about 130km northwest of Abu Dhabi.

  McDermott’s scope covers full EPCI services for two topside structures, a new manifold tower, a jacket, a bridge, associated pipelines, subsea cables and brownfield modifications.

  Strategic projects in queue

  Over the next 12-18 months, Adnoc’s upstream spending is expected to shift from meeting near-term production targets –now largely within reach – to building longer-term capacity beyond 2030.

  Following $1.3bn in EPC awards in 2024 for the Upper Zakum expansion to 1.2 million b/d, Adnoc Offshore is advancing the next phase, which will increase capacity to 1.5 million b/d.

  Located 84km offshore, Upper Zakum is the world’s second-largest offshore oil field. Adnoc Offshore has divided the EPC scope into three packages, with contractors submitting commercial bids for the UZ1.5MMBD project in February.

  Adnoc Offshore is also progressing the Umm Shaif gas cap and surface pressure boosting project, aimed at increasing gas production by 550 million cubic feet a day (cf/d) and condensate output by 50,000 b/d. About 520 million cf/d of additional gas is expected to be fed into Adnoc’s sales gas network.

  The first phase of the project has been split into three EPC packages:

  • Offshore package 1: fabrication of a 30,000-tonne gas compression system
  • Offshore package 2: fabrication of a 30,000-tonne gas compression system
  • Onshore package: EPC of gas inlet and processing systems at Das Island

  Adnoc Offshore is currently evaluating commercial bids submitted in February for these packages.

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  Indrajit Sen
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  Contractor wins Oman housing substation contract

  7 April 2026

  Oman’s Public Authority for Social Insurance has awarded a contract for the supply, installation, execution and maintenance of a main power substation for its affordable housing project.

  The contract was awarded to Kuwait-based Al-Ahleia Switchgear Company.

  The project comprises a 400/132/11kV main substation for the Affordable Housing Project, known locally as Al-Masaken Al-Muyassara.

  The tender was announced last November, with the bid envelopes opened on 16 December 2025.

  Al-Ahleia Switchgear submitted another bid in March for a contract to build three 132/11kV main transformer stations for Kuwait’s Public Authority for Housing Welfare (PAHW).

  As reported by MEED, the company’s price of KD10.5m ($34.1m) was the lowest of two offers for the engineering, procurement and construction (EPC) contract.

  Separately, in December, Al-Ahleia Switchgear submitted the lowest bid of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s PAHW.

  The bid was marginally lower than the two other offers submitted by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.

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

  Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

  > AGENDA: Gulf economies under fire > GCC CONTRACTOR RANKING: Construction guard undergoes a shift > MARKET FOCUS: Risk accelerates Saudi spending shift > LEGAL: Redefining the region’s arbitration landscape > QATAR LNG: Qatar’s new $8bn investment heats up global LNG race > INTERVIEW: Leyla Abdimomunova, National Development Division, PIF > LEADERSHIP: Shaping the future of passenger rail in the Middle East

  To see previous issues of MEED Business Review, please click here

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  Mark Dowdall
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  UAE reviews $1.63bn fourth federal road project

  7 April 2026

  UAE authorities on 6 April unveiled details of the AED6bn ($1.63bn) fourth federal corridor scheme, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

  The project comprises a 68-kilometre corridor with 10 major interchanges, four flyovers and six to eight lanes in each direction.

  Officials provided technical updates on the corridor, including revised connection points and coordination with local authorities to finalise route alignments in line with broader development plans.

  Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure, said the programme underscores the central role of infrastructure in the UAE’s development agenda and competitiveness. He was speaking while chairing the first meeting of the UAE Infrastructure and Housing Council this year.

  The council also reviewed progress on federal infrastructure initiatives aimed at improving transport efficiency and strengthening coordination between federal and local authorities.

  Al-Mazrouei said the next phase will focus on accelerating the delivery of high-impact projects to enhance transport system performance and support the shift towards smart and sustainable mobility in line with population growth and urban expansion.

  The council also assessed progress on linking Ajman to the third and fourth federal corridors, which is expected to provide alternative routes, improve traffic flow and further enhance mobility between the emirates.

  On public transport, the council reviewed a study on transport links between Dubai, Sharjah and Ajman to address rising commuting demand.

  The proposed plan includes 10 priority routes incorporating bus rapid transit and dedicated lanes, with connections to key hubs such as the Dubai Metro and city centres.

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

  Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

  > AGENDA: Gulf economies under fire > GCC CONTRACTOR RANKING: Construction guard undergoes a shift > MARKET FOCUS: Risk accelerates Saudi spending shift > LEGAL: Redefining the region’s arbitration landscape > QATAR LNG: Qatar’s new $8bn investment heats up global LNG race > INTERVIEW: Leyla Abdimomunova, National Development Division, PIF > LEADERSHIP: Shaping the future of passenger rail in the Middle East

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16285296/main.jpg

  Yasir Iqbal
• 
  Kingdom Holding Company signs Riyadh project deal

  7 April 2026

  Saudi Arabia’s Kingdom Holding Company has signed an agreement with Sumou Real Estate Company under which Sumou will manage the development, marketing and sale of a 3-million-square-metre land plot in Riyadh.

  The scheme is expected to generate about SR4bn ($1bn) in total sales.

  In a Tadawul disclosure, Kingdom Holding Company said its subsidiaries, Kingdom Real Estate Development Company and Trade Centre Company, have appointed Sumou as the exclusive development manager for the site.

  The project is scheduled to be implemented over 36 months, starting once the masterplans are approved by the relevant authorities.

  In a separate stock exchange statement, Sumou said it will be paid 6.5% of total infrastructure development costs and 2.5% of project sales, in addition to the brokerage commission paid by buyers.

  Kingdom Holding Company said the agreement aligns with its long-term strategy for its Riyadh landbank, which originally totalled around 20 million sq m and is being developed in phases.

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

  Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

  > AGENDA: Gulf economies under fire > GCC CONTRACTOR RANKING: Construction guard undergoes a shift > MARKET FOCUS: Risk accelerates Saudi spending shift > LEGAL: Redefining the region’s arbitration landscape > QATAR LNG: Qatar’s new $8bn investment heats up global LNG race > INTERVIEW: Leyla Abdimomunova, National Development Division, PIF > LEADERSHIP: Shaping the future of passenger rail in the Middle East

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16284668/main.jpg

  Yasir Iqbal