Related Articles

• 
  UAE maintains positive economic heading

  30 April 2024

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  Sources: IMF (April 2024), MEED Projects, MEED

  ---

  MEED’s May 2024 special report on the UAE also includes:

  > COMMENT: Non-oil activity underpins UAE economy
  > GVT & ECONOMY: Non-oil activity underpins UAE economy
  > BANKING: UAE banks seize the moment
  > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
  > DOWNSTREAM: UAE builds its downstream and chemical sectors
  > POWER: UAE marks successful power project deliveries
  > WATER: Dubai tunnels project dominates UAE pipeline
  > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
  > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

  ---

  

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  MEED Editorial
• 
  Read the May 2024 MEED Business Review

  30 April 2024

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  The rising importance of natural gas as an energy transition fuel has led to strong growth in its demand worldwide.

  Global liquefied natural gas (LNG) demand is expected to leap by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China and countries in south and southeast Asia use more LNG to support their economic growth.

  Gulf players are keen to cater to this growing demand and dominate the global supply market, fuelling a wave of investment in large-scale production-boosting projects and terminal construction schemes worth billions of dollars each.

  The best example is the $7.7bn of engineering, procurement and construction contracts awarded by Saudi Aramco in early April to expand the Fadhili gas plant.

  In the latest issue of MEED Business Review, MEED's oil and gas editor Indrajit Sen discusses the steps the region is taking to cement its position as the world’s largest LNG supplier.

  We also look at how regional LNG producers are safeguarding their project investments by winning deals with international customers.

  Meanwhile, this month's exclusive 17-page market report highlights the UAE, where resilient non-oil growth is outshining oil sector weakness and regional troubles – for now.

  MEED's latest issue is packed with insight and analysis. The team considers the worldwide impact of the Iranian attack on Israel; examines the setbacks in Algeria's oil sector; looks at the overdue progress on oil mergers in Kuwait; and brings readers up to date on Iraq's projects market. We also discuss why negative growth at home is expected to fuel South Korean contractors’ appetite for work in Saudi Arabia.

  This month's industry report features MEED's GCC construction contractor ranking for 2024. Using data from regional projects tracker MEED Projects, the ranking – which is topped by Nesma & Partners with $14.7bn of work at the execution stage – reveals a major change in construction activity in the GCC over the past year. 

  The May issue includes an interview with Omar Abduljabbar, CEO of Hail Region Development Authority, in which he reveals why Saudi Arabia's northwestern region of Hail is expected to become a key destination for tourism and investment in the coming years. We also talk to Etihad Water & Electricity chief executive Yusuf Al Ali about providing water and power with the lowest carbon possible in the UAE's northern emirates.

  We hope our valued subscribers enjoy the May 2024 issue of MEED Business Review. 

  

   

  Must-read sections in the May 2024 issue of MEED Business Review include:

  > AGENDA: Region boosts LNG spending; Gulf players secure future of LNG projects

  > CURRENT AFFAIRS: ​Algerian downstream sector faces setback; Progress on Kuwait oil mergers is overdue; Iranian attack on Israel rattles globe

  INDUSTRY REPORT: MEED’s GCC Contractor Rankings for 2024  > Construction step change boosts order books

  > SOUTH KOREA: South Korean appetite for Saudi projects grows

  > IRAQ: Iraq remains tough to sell

  > INTERVIEWS: Saudi Arabia's Hail capitalises on heritage; Northern emirates’ energy transition gathers pace

  > GAS SPENDING: Aramco in hot pursuit of 2030 gas production goal

  > UAE MARKET REPORT:

  > COMMENT: Non-oil activity underpins UAE economy
  > GVT & ECONOMY: Non-oil activity underpins UAE economy
  > BANKING: UAE banks seize the moment
  > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
  > DOWNSTREAM: UAE builds its downstream and chemical sectors
  > POWER: UAE marks successful power project deliveries
  > WATER: Dubai tunnels project dominates UAE pipeline
  > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
  > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

  > MEED COMMENTS: 
  > Gulf of Aqaba moves beyond Instagram
  > Net zero steps need recalibration
  > Flooding spotlights Dubai construction
  > Funding impacts Saudi projects

  > GULF PROJECTS INDEX: Saudi market returns to growth

  > MARCH 2024 CONTRACTS: Iran gas contract boosts value of deals signed

  > MARKET SNAPSHOT: Mena data centre projects

  > OPINION: Rainmaking in the world economy

  > 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
• 
  Abu Dhabi holds Taweelah C roadshow

  30 April 2024

  Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) conducted an investor roadshow last week for its upcoming combined-cycle gas turbine (CCGT) independent power project (IPP).

  Ewec met with at least six utility developers separately, according to sources familiar with the scheme.

  MEED previously reported that Ewec is considering issuing a tender in the next few weeks for its first gas-fired IPP since 2020.

  It is understood that the planned Taweelah C IPP is expected to have a generation capacity of roughly 2,700MW.

  The power-purchase agreement (PPA) for Taweelah C is expected to expire by 2049, which is several years shorter than previous PPAs and in line with the UAE's plan to reach net-zero carbon emissions by 2050.

  A team of UK-based Alderbrook Finance and US-based Sargent & Lundy are providing financial and technical advisory services to Ewec for the Taweelah C IPP.

  The greenfield IPP is planned to reach commercial operation by 2027, according to a recent Ewec capacity procurement statement.

  Andy Biffen, executive director of asset development at Ewec, told the recent World Future Energy Summit in Abu Dhabi that the request for proposals (RFPs) for its next CCGT plant will explicitly require the developers or developer consortiums to accommodate the installation of carbon-capture facilities once these solutions are commercially viable.

  The state utility is considering new gas-fired capacity in light of expiring capacity from several independent water and power producer (IWPP) facilities.

  The plants that will reach the end of their existing contracts during the 2025-29 planning period include:

  •  Shuweihat S1 (1,615MW, 101 million imperial gallons a day (MIGD)): expires in June 2025
  •  Sas Al Nakhl (1,670MW, 95MIGD): expires in July 2027
  •  Taweelah B (2,220MW, 160MIGD): expires in October 2028
  •  Taweelah A1 (1,671MW, 85MIGD): expires in July 2029

  Ewec and the developers and operators of these plants are expected to discuss whether a contract extension is possible before the expiry of the contracts. Unsuccessful negotiations will result in the dismantling of the assets at the end of the contract period.

  In 2022, MEED reported that Abu Dhabi had wound down the operation of Taweelah A2, the region's first independent water and power project. The power and water purchase agreement supporting the project expired in September 2021 and was not extended.

  Ewec awarded its last CCGT IPP nearly four years ago. Japan's Marubeni Corporation won the contract to develop the Fujairah F3 IPP in 2020.

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  Jennifer Aguinaldo
• 
  Region puts its priorities first

  30 April 2024

  Commentary
  Colin Foreman
  Editor

  Read the May 2024 issue of MEED Business Review

  Contractors enjoyed a record year in 2023. In the GCC, there were $205bn of deals signed. The best total on record was achieved largely due to high levels of activity across all major markets.

  At the start of this year, hopes were high that new records would be set again in 2024. Those aspirations look like they may be realised. According to regional projects tracker MEED Projects, by the end of the first quarter of this year there had been $47bn of awards in the GCC, some $10bn more than the $37bn of awards during the same period of 2023.

  The strong start to the year comes despite some tempering of project ambitions, most notably in the region’s largest market, Saudi Arabia. In January, the kingdom’s Energy Ministry instructed Saudi Aramco to halt plans to increase its production capacity to 13 million barrels of crude oil a day.

  The negative impact of that decision on the projects market, will be offset by gas projects. Gas is considered a vital transition fuel, and strong global demand growth is allowing Gulf producers to develop new projects worth billions of dollars each and consolidate their position as the world’s leading gas exporter. The best example is the $7.7bn of engineering, procurement and construction contracts awarded by Saudi Aramco in early April to expand the Fadhili gas plant.

  For the construction sector, there has been a prioritisation of construction work for Saudi Arabia’s gigaprojects. As construction work in the kingdom ramps up, developers are focusing efforts on delivering the components of their projects that they consider to be a strategic priority, and are scaling back work on other elements.

  Developers are also more proactively seeking external investment to help ease the spending burden of their vast projects.

  As we move deeper into 2024, the key question will be whether these priority projects will be sufficient to achieve another record year. Unlike 2023, not everything is moving ahead, but very large projects are still proceeding.

  ---

  Must-read sections in the May 2024 issue of MEED Business Review include:

  > AGENDA: Region boosts LNG spending; Gulf players secure future of LNG projects

  > CURRENT AFFAIRS: ​Algerian downstream sector faces setback; Progress on Kuwait oil mergers is overdue; Iranian attack on Israel rattles globe

  INDUSTRY REPORT: MEED’s GCC Contractor Rankings for 2024  > Construction step change boosts order books

  > SOUTH KOREA: South Korean appetite for Saudi projects grows

  > IRAQ: Iraq remains tough to sell

  > INTERVIEWS: Saudi Arabia's Hail capitalises on heritage; Northern emirates’ energy transition gathers pace

  > GAS SPENDING: Aramco in hot pursuit of 2030 gas production goal

  > UAE MARKET REPORT:

  > COMMENT: Non-oil activity underpins UAE economy
  > GVT & ECONOMY: Non-oil activity underpins UAE economy
  > BANKING: UAE banks seize the moment
  > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
  > DOWNSTREAM: UAE builds its downstream and chemical sectors
  > POWER: UAE marks successful power project deliveries
  > WATER: Dubai tunnels project dominates UAE pipeline
  > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
  > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

  > MEED COMMENTS: 
  > Gulf of Aqaba moves beyond Instagram
  > Net zero steps need recalibration
  > Flooding spotlights Dubai construction
  > Funding impacts Saudi projects

  > GULF PROJECTS INDEX: Saudi market returns to growth

  > MARCH 2024 CONTRACTS: Iran gas contract boosts value of deals signed

  > MARKET SNAPSHOT: Mena data centre projects

  > OPINION: Rainmaking in the world economy

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

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11725549/main.gif

  Colin Foreman
• 
  Retal signs Roshn Sedra building construction deal

  30 April 2024

  Register for MEED's guest programme 

  Saudi Arabia’s Retal Urban Development Company (Retal) has awarded a SR240m ($64m) contract to its subsidiary Building Construction Company.

  The contract covers constructing eight residential buildings in Roshn’s Sedra housing community in Riyadh.

  The contract duration is 26 months.

  In November last year, Saudi Arabia’s Public Investment Fund (PIF)-backed gigaproject developer Roshn signed a SR374.76m ($100m) real estate development deal with Retal.

  The agreement covers the purchase of land and the development of 363 housing units in Sedra.

  The contract duration is three years, according to the official statement issued on Saudi Arabia’s stock exchange Tadawaul.

  Retal was established in 2012 by the local Al Fozan Holding Company to develop real estate projects in the kingdom.

  Created in 2018, Roshn aims to increase homeownership rates among Saudi citizens to 7%.

  The company plans to develop more than 395,000 residential units in cities within Riyadh, Mecca, Asir and the Eastern Region.

  Roshn is developing the Sedra community in northeast Riyadh. It is masterplanned to include 30,000 homes across eight phases.

  ---

  MEED's April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11721631/main.jpg

  Yasir Iqbal