Neom Airlines to start operating by end of 2024
23 March 2023
Neom Airlines plans to start operating at the end of next year from the existing Neom Bay airport before operating from Neom International airport.
“The airline will be operational at the end of 2024 and will be focused on enabling travel for tourists, residents and commercial partners to and from Neom,” said Klaus Goersch, CEO of Neom Airlines, in an article published on the official Neom website.
“In the first instance out of Neom Bay Airport, which is already open with Saudia flights domestically as well as to London and Dubai, and then from the Neom International airport later in the cycle.”
Goersch is a former chief operating officer of British Airways and Air Canada.
Plans for Neom International airport are advancing. US firm Aecom confirmed on 22 March that it had been awarded a contract to provide project management consultancy (PMC) services for the new airport project.
The airport will be inland, close to the Tabuk end of the 170-kilometre-long Line development. Neom International airport is separate from the Neom Bay airport, which started receiving commercial flights in 2019.
Although not confirmed, it is understood that the first phase of the airport will have the capacity to handle 25 million passengers a year. A second phase could take the capacity up to 50 million passengers a year. There is an aspiration for the airport to become the largest in the world, with a capacity of 100 million passengers a year.
“Organically, due to the strategic geographical location and the level of economic activity here, we expect that we will have a global aviation hub on our hands as time goes on – servicing the Middle East, Europe, America, Asia and so on,” Goersch said in his article.
Neom International airport and Neom Airlines are not the only major airport and airline launch plans in the kingdom.
In November, Saudi Arabia’s Crown Prince Mohammed bin Salman bin Abdulaziz al-Saud announced the masterplan for King Salman International airport in Riyadh. If completed on time in 2030, it will become the largest airport in the world in terms of passenger capacity.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million passengers by 2050. For cargo, the goal is to process 3.5 million tonnes a year by 2050.
Then in March, the crown prince launched Riyadh Air, a new airline wholly owned by the Saudi sovereign vehicle, the Public Investment Fund (PIF). Riyadh Air is expected to serve more than 100 destinations around the world by 2030, making use of the kingdom’s location between Asia, Africa and Europe.
MEED’s April 2023 special report on Saudi Arabia includes:
> ECONOMY: Riyadh steps up the Vision 2030 tempo
> CONSTRUCTION: Saudi construction project ramp-up accelerates
> UPSTREAM: Aramco slated to escalate upstream spending
> DOWNSTREAM: Petchems ambitions define Saudi downstream
> POWER: Saudi Arabia reinvigorates power sector
> WATER: Saudi water begins next growth phase
> BANKING: Saudi banks bid to keep ahead of the pack
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Exclusive from Meed
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Abu Dhabi entities form new infrastructure platform17 April 2025
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Al-Sadawi solar IPP to reach financial close16 April 2025
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UAE’s Ewec extends Taweelah C power plant tender16 April 2025
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Abu Dhabi entities form new infrastructure platform
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Abu Dhabi-based investment entities ADQ, International Holding Company (IHC) and Modon Holding have formed a joint venture to support private and public-private partnerships in delivering infrastructure developments.
The new venture, called Gridora, will be operated by Modon Holding.
According to an official statement, "Gridora will serve as a platform for collaboration with specialist partners and capital providers, enabling the delivery of large-scale, high-impact infrastructure projects."
The statement added that the platform will leverage Modon Holding’s infrastructure and real estate development expertise to deliver major projects, both in the UAE and globally.
"It will enhance capacity for deployment, streamlining the procurement and implementation of key infrastructure contracts," it added.
Gridora will have two business lines: infrastructure projects and infrastructure investments.
It aims to create value throughout the infrastructure life cycle, from early-stage planning to operations, unlocking new opportunities for both fee-based revenues and long-term investment yields.
Abu Dhabi is investing heavily in the infrastructure sector. In February, ADQ completed the acquisition of a 49% stake in Australian infrastructure investor and developer Plenary Group.
The Abu Dhabi-based critical infrastructure-focused sovereign investor announced the planned acquisition in April last year, including all shares owned at the time by the Canadian pension fund Caisse de Depot et Placement du Quebec.
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Iraq signs export pipeline contract
17 April 2025
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Iraq has signed a contract for the construction of its third offshore pipeline as part of a push to boost the stability and flexibility of crude oil exports from its southern ports.
The pipeline project will be executed by a consortium of Italy’s Micoperi and Turkiye’s Esta, and it will have the capacity to transport 2.4 million barrels a day (b/d) of oil.
Oil Minister Hayan Abdul Ghani said that this project is a strategic initiative and aligns with the government's plan to ensure the stability and flexibility of crude oil export operations from southern Iraq's ports. The operational capacity of the pipeline will be approximately 2 million b/d.
The project has been approved by Iraq’s cabinet and its scope includes a marine pipeline with a diameter of 48 inches.
The offshore portion of the pipeline will be 61 kilometres (km) long and the onshore portion will be 9km long.
The scope of the project includes the development of two marine platforms. One of these will be located in the Basrah oil port and the second will be located in the Amiya oil port.
The project also includes an open-water floating platform, electrical systems, communication systems, as well as cathodic control and protection systems.
While this project is likely to enhance Iraq’s ability to export from the southern ports, it is struggling to improve export routes in the north of the country.
Efforts to restart oil flows via the Iraq-Turkiye Pipeline (ITP) have stalled in recent years.
Oil flows through the ITP, from Kirkuk in Iraq to Ceyhan in Turkiye, stopped in March 2023 and have yet to resume, despite several announcements by Iraqi officials stating that progress towards restarting the pipeline has been made.
The oil exports stopped after a Paris-based arbitration court ruled in favour of Baghdad against Ankara, saying the latter had breached a 1973 agreement by allowing Erbil to begin independent oil exports in 2014.
Prior to the halt of exports through the ITP in March 2023, approximately 450,000 b/d of oil were sent from Iraq via Turkiye to international markets.
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Engie submits lowest bid for Madinat Zayed power plant
16 April 2025
French utility developer Engie has submitted the lowest bid for the contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in Abu Dhabi.
Engie offered a levelised cost of electricity of 103.9544 fils (2.8 $cents) a kilowatt-hour (kWh) for the contract.
A consortium of Saudi Arabia's Aljomaih Energy & Water and a subsidiary of the local Etihad Water & Electricity submitted the second-lowest bid of 107.86846 fils/kWh.
The third bidder, a consortium of Egypt's Orascom Construction and Belgium's Besix, submitted the highest bid of 126.980 fils/kWh.
The three teams submitted their proposals for the contract on 28 March.
The Madinat Zayed independent power project is expected to begin commercial operations in Q3 2027. It will provide up to 1,500MW of backup generation, which can be operational “at very short notice”.
“Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system,” state utility and offtaker Emirates Water & Electricity Company (Ewec) said when it issued the tender for the contract in July last year.
“[This type of plant] will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources.”
Major capacity buildout
Abu Dhabi’s current electricity generation installed capacity is about 22GW, with gas-fired plants accounting for 68.7% of the total and renewable and nuclear power contributing 12% and 19%, respectively.
Construction work is under way for the 1.5GW Al-Ajban solar photovoltaic (PV) power plant and a 2.5GW combined-cycle gas turbine (CCGT) plant in Fujairah.
Six major generation projects in Abu Dhabi are expected to be awarded this year. These are the 2.5GW Taweelah C CCGT scheme, the Al-Khazna and Al-Zarraf solar PV schemes, the Al-Sila wind facility and Bess 1, in addition to the Madinat Zayed OCGT scheme.
In January, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for a 5,200MW solar PV plant with a 19 gigawatt-hour battery energy storage system (bess), which is expected to provide round-the-clock solar power.
The project is expected to reach financial close this year.
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Al-Sadawi solar IPP to reach financial close
16 April 2025
The project company developing the 2GW Al-Sadawi solar independent power project (IPP) in Saudi Arabia is expected to reach financial close for the scheme next month.
The expected timeline falls within the average six-month period in which IPPs generally reach financial close after the power-purchase agreement (PPA) is signed with the offtaker, in this case Saudi Power Procurement Company (SPPC).
A developer team that includes Abu Dhabi Future Energy Company (Masdar), South Korea’s Korea Electric Power Corporation (Kepco) and China’s GD Power Development signed the project’s PPA with SPPC in November last year.
The developer team subsequently picked China's Shanghai Electric to undertake the engineering, procurement and construction (EPC) work for the 2GW project.
The Masdar-led team offered a levelised cost of electricity of hals4.847 a kilowatt-hour ($c1.29/kWh) for the contract to develop the scheme, which is located in the Eastern Province.
The second-lowest bidder was a team that includes China’s SPIC Huanghe Hydropower Development and France’s EDF Renewables, which offered to develop the project for $c1.31/kWh.
US/India-based Synergy Consulting is providing financial advisory services to SPPC for the fifth-round tender of the National Renewable Energy Programme (NREP). Germany’s Fichtner Consulting is providing technical consultancy services.
SPPC is procuring 30% of the kingdom’s target renewable energy by 2030. Saudi sovereign wealth vehicle the Public Investment Fund (PIF) is procuring the rest through the Price Discovery Scheme. The PIF has appointed Acwa Power, which it partly owns, as principal partner for these projects.
The Saudi Energy Ministry last year said that the kingdom plans to procure 20GW of renewable energy capacity annually until 2030, subject to demand growth.
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MEED’s April 2025 report on Saudi Arabia includes:
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
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UAE’s Ewec extends Taweelah C power plant tender
16 April 2025
State utility and offtaker Emirates Water & Electricity Company (Ewec) is understood to have extended the tender closing date for the contract to develop and operate the Taweelah C combined-cycle gas turbine (CCGT) independent power project (IPP) in Abu Dhabi.
The extension was announced after Ewec received a single bid for the contract on 28 February, according to industry sources.
The Taweelah C IPP will have a generation capacity of up to 2.5GW and is expected to reach commercial operations in the third quarter of 2028.
MEED previously reported that UAE-based Etihad Water & Electricity (Etihad WE) submitted a lone bid for the contract.
The bidder, which sources say is now working with a new consortium partner, intends to resubmit a proposal by the June deadline.
At least one more prequalified utility developer is interested in bidding, according to one of the sources.
MEED understands that Ewec has reserved gas turbine units from German original equipment manufacturer Siemens Energy, which could help to attract more bidders to participate in the tender.
A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.
The project will involve the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity.
The Abu Dhabi government will indirectly hold the remaining equity.
The Taweelah C IPP project’s power-purchase agreement (PPA) is expected to expire by 2049, making it several years shorter than previous PPAs, and in line with the UAE’s plan to reach net-zero carbon emissions by 2050.
Ewec prequalified nine firms that can bid for the Taweelah C IPP contract in July last year.
In addition to Etihad WE, the following firms passed the contract's prequalification phase:
- Acwa Power (Saudi Arabia)
- International Power (Engie)
- Jera (Japan)
- Korea Electric Power Corporation (Kepco, South Korea)
- Marubeni Corporation (Japan)
- Sumitomo Corporation (Japan)
- GE Vernova (US)
- Orascom Construction (Egypt)
- Sojitz (Japan)
The Taweelah C IPP is the first CCGT project to be procured by Abu Dhabi since 2020, when Ewec awarded Japan’s Marubeni Corporation the contract to develop the Fujairah 3 (F3) IPP.
Capacity buildout
Ewec is undertaking a significant capacity buildout to support the emirate’s net-zero, energy diversification and artificial intelligence (AI) strategies.
The bid evaluation process is under way for the Madinat Zayed open-cycle gas turbine (OCGT) IPP. The power plant is expected to begin commercial operations in Q3 2027. It will provide up to 1.5GW of backup generation, which can be operational at very short notice.
Ewec and Abu Dhabi National Energy Company (Taqa) recently signed the PPA for Al-Dhafra OCGT, while the prequalification process is under way for a 3.3GW CCGT in Al-Nouf.
The tendering proceedings are under way for three renewable energy IPPs: the Al-Khazna and Al-Zarraf solar photovoltaic (PV) and Al-Sila wind facilities, and Abu Dhabi’s first independent battery energy storage system (bess) plant, Bess 1.
In addition, Ewec and Abu Dhabi Future Energy Company (Masdar) plan to build a round-the-clock solar PV plus bess project. The solar PV plant will have a capacity of 5.2GW, while the bess facility is expected to have a capacity of 19 gigawatt-hours.
MEED’s May 2025 report on the UAE includes:
> GOVERNMENT & ECONOMY: UAE looks to economic longevity
> BANKING: UAE banks dig in for new era
> UPSTREAM: Adnoc in cruise control with oil and gas targets
> DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
> POWER: AI accelerates UAE power generation projects sector
> CONSTRUCTION: Dubai construction continues to lead region
> TRANSPORT: UAE accelerates its $60bn transport pushhttps://image.digitalinsightresearch.in/uploads/NewsArticle/13703548/main2132.gif