meed-logo

line1 line2 line3
SIGN IN / REGISTER

Oil and gas project boom promotes recruitment

23 November 2023

 

Click here for MEED's 2023 EPC contractor ranking

The oil and gas industry has been one of the biggest employment generators in the Middle East and North Africa (Mena) region for decades, and specifically in the Gulf states. The sector has attracted skilled, semi-skilled and unskilled workers from around the globe and is a prominent employer for the local labour force.

However, with the industry tethered to oil price cycles and its association with geopolitical stability, or lack thereof, it has gone through boom and bust periods throughout its existence. As a result, employment in the sector has been cyclical in nature.

Moreover, the Gulf hydrocarbons industry’s over-reliance on foreign workers – particularly those from the Indian sub-continent – makes most of the jobs temporary.

The regional industry is in the middle of a prolific period at present, as producers and operators invest in large-scale projects to maximise oil and gas output and expand petrochemicals capacities. This projects boom has created a pressing need for additional manpower, particularly among contractors.

“What we are witnessing today is a supercharged and extremely busy projects market. The clients [project operators] are spending billions on projects, and all contractors – big and small – are winning work,” says a regional industry analyst.

However, executing engineering, procurement and construction (EPC) work on these projects in line with the tight schedules laid out by the clients is “a big ask from contractors”, the analyst continues. 

“Hence, we are experiencing a sort of frenzy among contractors to urgently hire people to beef up their project execution capabilities.”

Project spending

There can be little doubt that this is the best year on record for contract awards in the Mena oil and gas industry. More than $82bn-worth of EPC contracts have been awarded in the region so far in 2023 for upstream, midstream and downstream oil and gas projects and in the petrochemicals and chemicals sector.

The level of projects spending this year easily surpasses that of 2021, despite that  year having seen the award of the largest-ever EPC contract in the Mena hydrocarbons sector: a $13bn deal for the main package of QatarEnergy’s North Field East liquefied natural gas (LNG) programme, which was won by a consortium of Japan’s Chiyoda Corporation and French contractor Technip Energies.

Abu Dhabi National Oil Company (Adnoc) leads capital expenditure (capex) on Mena oil and gas EPC projects this year, largely due to its $17bn spending on the Hail and Ghasha offshore sour gas development project.

Saudi Aramco is the second-largest spender in the region, on the back of the estimated $10bn-worth of EPC contracts it has awarded for the second expansion phase of its Jafurah unconventional gas development. This is in addition to its $11bn capex on the Amiral greenfield petrochemicals scheme in a joint venture with France’s TotalEnergies.

Aramco has also maintained a robust level of spending on offshore oil and gas field upgrade works this year, having awarded approximately $5.3bn-worth of engineering, procurement, construction and installation contracts to its Long-Term Agreement pool of contractors.

In its efforts to consolidate its position as the largest producer and supplier of LNG in the long term, QatarEnergy awarded a $10bn EPC contract in June for two further LNG trains that form the main package of the North Field South project. This has helped the Qatari state enterprise to become the third-largest regional spender in 2023.

Hiring across the board

While big-ticket projects in Saudi Arabia, the UAE and Qatar have created thousands of jobs in those markets, there is also steady manpower demand in other regional countries, according to executives at energy sector recruitment agencies.

“Saudi Arabia, Abu Dhabi, Dubai, Fujairah and Qatar are the hot hiring locations currently,” says one recruitment agency official. “It is also interesting to note that numerous job opportunities have opened up in markets like Kuwait, Iraq and Algeria.”

Another recruiter adds: “Contractors have come under considerable strain due to the large volume of contracts that have been awarded in the past 12-18 months.

“From news about rampant job cuts [by both operators and contractors] just about two years ago, we have now entered a period when companies have gone on a hiring spree,” the recruiter says.

While contractors are hiring for various project functions, there is an acute need for them to fill engineering positions, given the technical complexities of the projects on which they are deployed, industry players observe.

“You need engineers throughout the entire life cycle of an oil and gas project – from the concept study and the front-end engineering and design stage, to the bidding, proposal and estimation stage, on to the detailed engineering upon the award of the EPC contract, and even beyond,” says a business development manager working for a prominent contractor.

“Engineers are key to the success of any project. Hence, there is a rush on hirings for engineering functions,” the official says. 

“To meet short-term demand, contractors are engaging engineering centres outside the region, but they have to employ engineers on payroll to be able to effectively execute awarded projects, as well as to take on new work.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/11321861/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • UAE rail momentum grows as trade routes face strain

    6 April 2026

     

    Rail has shifted from a long-term diversification play to an immediate strategic imperative for the UAE. The regional conflict and its ripple effects on risk premiums, insurance costs and schedule reliability have highlighted the vulnerability of traditional logistics routes and maritime chokepoints.

    Against this backdrop, the country’s infrastructure pipeline – particularly rail – now serves as both an economic enabler and a resilience strategy. On the freight side, Abu Dhabi’s Hafeet Rail and the expanding Etihad Rail network are laying the groundwork for higher-capacity, lower-volatility overland transport, reducing reliance on sea-based supply chains.

    Inland connectivity is already being prioritised to counter supply chain disruption, including the recent opening of a green corridor with Oman to accelerate cross-border flows.

    The importance of the programme is equally evident in passenger mobility. Projects such as the Etihad high-speed rail and Dubai Metro’s Blue Line signal a parallel effort to reshape commuting patterns, strengthen labour-market connectivity and support transit-oriented development.

    Network integration

    The next step is to transform these corridors into a fully integrated system. This includes linking rail and road networks with industrial zones, logistics parks and inland terminals, while strengthening redundancy through connections to strategic gateways such as Fujairah Port, which, due to its east coast location, provides an alternative route that reduces exposure to disruption around the Strait of Hormuz.

    Together, freight and passenger rail – combined with planned investments in airports and road network upgrades – are becoming the backbone of the UAE’s next infrastructure cycle. This integrated system not only expands capacity but also strengthens economic resilience, helping to keep trade and urban movement functioning during periods of disruption.

    Pipeline outlook

    According to data from regional projects tracker MEED Projects, the UAE has an infrastructure pipeline valued at about $63bn, covering airports, railways and road schemes.

    In November last year, the UAE’s Minister of Energy and Infrastructure, Suhail Al-Mazrouei, announced a AED170bn ($46bn) package of national transport and road projects to be delivered by 2030.

    Speaking at the UAE Government Annual Meetings in Abu Dhabi on 5 November, Al-Mazrouei said the projects form part of a national strategy to ease congestion and enhance mobility. Initiatives include road expansions, public transport upgrades, and the development of high-speed and light rail systems.

    Key road projects include adding six lanes (three in each direction) to Etihad Road, increasing capacity by 60% to a total of 12 lanes. Emirates Road will be expanded to 10 lanes along its full length, boosting capacity by 65% and reducing travel time by 45%. Sheikh Mohammed Bin Zayed Road will also be widened to 10 lanes, increasing capacity by 45%.

    The plan also includes a study for a fourth federal highway, extending 120 kilometres with 12 lanes and a capacity of up to 360,000 trips a day.

    Work has already begun on the AED750m Emirates Road upgrade, which is expected to be completed within two years.

    Rail progress

    Etihad Rail remains on track to launch passenger services by 2026 and has awarded multibillion-dollar design-and-build contracts for the civil works and station packages of the high-speed rail (HSR) line connecting Abu Dhabi and Dubai.

    Trains on the UAE’s HSR network are designed for speeds of up to 350km/h, with an operating speed of 320km/h. The programme will be delivered in four phases, gradually extending connectivity across the country.

    Procurement is also progressing for the Abu Dhabi Tram Line 4 project. The first phase, announced by Abu Dhabi Transport Company in October last year, will connect Zayed International airport with nearby areas including Yas Island, Al-Raha Beach and Khalifa City. Prequalification has been completed, and the tender is expected to be issued soon.

    In Dubai, the most significant infrastructure project is the first-phase expansion of Al Maktoum International airport. Dubai Aviation Engineering Projects received contractor proposals on 31 March for three superstructure packages. A contractor was selected last year for the substructure works.

    Dubai is also planning to connect Al-Maktoum International airport to the metro network. In March, consultants submitted proposals for the design of the Route 2020 extension, which will link the Expo 2020 station to the airport’s West Terminal.

    Another major project is the Dubai Metro Gold Line. In October last year, Dubai’s Roads & Transport Authority appointed US-based engineering firm Aecom to provide consultancy services for the scheme.

    War casts shadow over UAE construction boom

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16267919/main.gif
    Yasir Iqbal
  • War casts shadow over UAE construction boom

    6 April 2026

     

    The UAE’s construction sector entered the year in a position of strength. According to regional projects tracker MEED Projects, contract awards reached $59bn in 2025, a record that surpassed the $53bn awarded in 2024.

    With market conditions expected to remain buoyant, 2026 was forecast to be another strong year. However, the Iran conflict that began on 28 February is set to change that narrative.

    In the short term, the construction sector proved resilient during the first weeks of the conflict. With the exception of a few sites in high-risk zones, construction activity across the UAE has largely continued uninterrupted.

    Cost pressures

    Despite continued activity on the ground, the industry is bracing for cost escalation. Brent crude prices have risen well above the $100-a-barrel mark. For the construction sector, the impact was felt most acutely on 1 April, when the UAE adjusted its domestic fuel prices.

    Diesel surged to AED4.69 a litre, up sharply from AED2.72 in March. This nearly 72% increase has immediate and far-reaching implications for project overheads, affecting heavy machinery operations, site power generation, and the transport of bulk materials such as sand, steel and cement.

    For projects signed under fixed-price contracts during the lower-inflation environment of 2024 and 2025, these increases pose a significant threat to contractor margins and potentially to overall project viability.

    Supply disruption

    These inflationary pressures are compounded by logistical challenges stemming from instability in the Strait of Hormuz. As a critical artery for regional imports, any disruption has ripple effects across the construction supply chain – particularly for long-lead items such as specialised façade systems, high-end finishing materials and key MEP components.

    While the UAE has leveraged overland routes to mitigate some of these bottlenecks, the shift is unlikely to be cost-neutral or time-neutral.

    Insurance gaps

    Legal and contractual frameworks governing projects are now under increased scrutiny. A key concern is the limitation of standard insurance policies. Many contractor all-risk and logistics policies exclude coverage for losses arising from active conflict, creating a significant gap for goods in transit.

    As freight is rerouted to alternative ports and transported over longer distances by road, insurers are becoming increasingly reluctant to provide cover for these extended journeys.

    Contractors are being advised to adopt a more disciplined approach. To recover costs linked to these disruptions, the industry is being urged to move away from the broad claims that have historically characterised regional disputes.

    Employers are unlikely to accept claims that do not clearly distinguish conflict-related impacts from pre-existing project delays. Instead, contractors must precisely document separate heads of claim, including supply chain cost increases, on-site stoppages, and new health and safety requirements.

    Market outlook

    In the longer term, the sector is in a wait-and-see phase. The market’s trajectory will depend heavily on the government’s ability to manage public finances following a period of significant, unforeseen expenditure.

    The cost of defence, combined with reduced tourism revenue, lower oil exports and weaker consumer spending, has created a complex and as yet undetermined fiscal challenge.

    Although construction is likely to be used as a tool for economic stimulus once the conflict subsides, the availability of capital for major new projects remains unknown. Government spending priorities will likely shift towards resilience, including accelerated infrastructure development on the UAE’s east coast.

    Fujairah and the Sharjah enclave of Khor Fakkan – both located outside the Strait of Hormuz – are expected to play an increasingly central role in strategic infrastructure planning. Over the next decade, investment may focus on strengthening the logistics and industrial capacity of these ports to better shield the federation from future geopolitical shocks.

    For the private real estate sector, the outlook depends on whether the attacks that began on 28 February have permanently altered the UAE’s reputation as a secure, low-tax safe haven. While the conflict is testing investor confidence, the country’s operational resilience may still compare favourably with challenges in other global markets.

    If the risks are viewed as manageable, investment could rebound quickly. However, prolonged uncertainty would result in a slower recovery. By early April, warning signs had already emerged, with some developers facing cashflow pressures due to slowing sales.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16267286/main.gif
    Colin Foreman
  • Firms win $932m Saudi canine training PPP project

    6 April 2026

     

    A consortium led by Bahrain-headquartered firm Lamar Holding has been selected for an estimated SR3.5bn ($932m) contract to develop canine training facilities in Jeddah and Dammam, known as the K9 Training Centre and Point of Entry (PoE) project.

    The other members of the consortium are Saudi Arabia’s Safari Holding and US-based firm MSA.

    US-based firm Synergy Consulting is the project’s financial advisor.

    The scheme is being developed through a public-private partnership (PPP) model by Saudi Arabia’s Zakat, Tax & Customs Authority (Zatca), in collaboration with the National Centre for Privatisation & PPP (NCP).

    The firms submitted the bids for the project on 14 July last year, as MEED reported.

    The project will be developed on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 21.5 years, including the construction period.

    The scheme involves the development and operation of the National K9 Training Centre, including new facilities at King Abdullah Port in King Abdullah Economic City, Rabigh governorate, and at King Abdulaziz Port in Dammam.

    The scheme also includes the expansion of existing facilities at Jeddah Islamic Port and facilities maintenance services for all three sites.

    According to the official notice, the contract also covers dog training and other services, such as food, equipment, veterinary care and accommodation.

    The services will be provided at 34 PoEs in the kingdom, 26 of which are currently operational. Eight new facilities are expected to be completed by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16267287/main.jpg
    Yasir Iqbal
  • Acwa solar plants face power output restrictions

    6 April 2026

    Acwa has announced that two of its solar independent power producer (IPP) plants in Saudi Arabia have been subject to temporary power dispatch limitations following instructions from the grid operator.

    According to the developer, the grid operator cited alleged reactive power fluctuations affecting grid stability. Acwa said both project companies deny the allegations.

    The affected assets are the 1,425MW Al-Kahfah solar photovoltaic (PV) IPP and the 2,000MW Ar Rass 2 solar PV IPP.

    Saudi Arabia’s Water & Electricity Holding Company (Badeel) and Acwa, formerly Acwa Power, signed power-purchase agreements with Saudi Power Procurement Company (SPPC) for the development and operation of the plants in 2023.

    Ishaa Energy Renewable Company and Nawwar Renewable Energy Company are the project companies specially set up to manage the Al-Kahfah and Ar Rass 2 projects, respectively. Both were set up as joint ventures between Acwa and Badeel.

    Al-Kahfah received its commercial operation certificate in November 2025. The plant has been under dispatch limitation since 12 December 2025, with partial dispatch permitted since 11 February 2026.

    The accumulated estimated revenue challenged by the principal buyer at Al-Kahfah up to the end of March is approximately SR95m ($25.3m).

    Ar Rass 2 received its initial commercial operation certificate in September 2025. It has been under dispatch limitation since 16 January 2026, with partial dispatch permitted since 8 March 2026.

    The accumulated estimated revenue challenged by the principal buyer at Ar Rass 2 up to the end of March is approximately SR73m ($19.7m).

    Acwa said both project companies have challenged the matter and are conducting detailed technical assessments, including independent third-party analysis. The company said it is also coordinating with the relevant authorities to enable the full restoration of plant operations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16267226/main.jpg
    Mark Dowdall
  • Kuwait reports attacks on power and water plants

    6 April 2026

    Two power generation and water desalination plants in Kuwait were damaged in a drone attack on 5 April, according to the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    In an official statement, the ministry said the facilities were targeted by “hostile drones as part of the Iranian aggression”,  forcing the shutdown of two electricity generation units due to “significant material damage”.

    No injuries were reported.

    The ministry said technical and emergency teams began work immediately in line with approved contingency plans. 

    It added that coordination was under way with the relevant authorities to ensure the safety and stability of Kuwait’s electricity and water systems, which it said remained a top priority.

    The announcement came amid a broader series of reported attacks on key infrastructure in Kuwait on the same day.

    Kuwait Petroleum Corporation separately said fires broke out at operating units following a drone strike, causing “severe material damage”, although no injuries were reported. 

    MEWRE had previously confirmed that a service building at one of the country’s power generation and water desalination plants was damaged in an attack on the evening of 29 March.

    The incident led to the death of one worker of Indian nationality and caused significant material damage to the building.

    In a separate statement over the weekend, the ministry said it had restored operations at the main transformer station serving the Jahra area after a technical fault caused a temporary power outage.

    Electricity supply was restored to all affected customers following the completion of emergency works, the ministry said.

    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:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16267204/main.jpg
    Mark Dowdall