meed-logo

line1 line2 line3
SIGN IN / REGISTER

PPP activity eases back but remains strong

25 October 2024

 

This package also includes: Region remains global project finance hotspot

Public-private partnership (PPP) activity appears to be easing back in the Middle East and North Africa (Mena) region in 2024, with the total value of contract awards in the first nine months of the year coming in at $24bn, according to regional projects tracker MEED Projects.

This is 6.5% lower than the $25.6bn recorded in the same period a year earlier. The full-year total for 2023 then ended up at $41.3bn after a surge of activity in the final three months of the year.

While there are plenty of contract awards pencilled in for the final quarter of this year, too – including several large power and water projects in the Levant and the Gulf – at this stage, it appears unlikely that the gap to the record 2023 total will be bridged.

Among the projects with main contract awards due to be made before 31 December are a 10GW battery energy storage system (bess) in Saudi Arabia and the 3.7GW fifth round of the country’s renewable energy programme, both planned by Saudi Power Procurement Company.

Other major projects at a similar stage include a 10GW solar power project planned by the Renewable Energy & Energy Efficiency Organisation in Iran; the $4.3bn Aqaba-Amman water desalination and conveyance scheme backed by Jordan’s Water & Irrigation Ministry; and the $3bn, 2.3GW Facility E independent water and power project by Qatar General Electricity & Water Corporation (Kahramaa).

In total, 72 main contract awards are due to be made by the end of 2024 – almost as many as were handed out in the whole of 2023. However, there can be no certainty as to which ones will get over the line before the year’s end and which ones might suffer delays or cancellations.

Even without such projects, though, the number and value of contracts finalised in the first nine months of this year means 2024 is set to be one of the most active for PPP deal-making so far this century.

Other than last year’s record-setting run, the combined value of deals has not been this high since 2009, when a total of $29.6bn-worth of contracts were awarded. In terms of the number of awards, this year has also been among the most active. 

The 45 contracts handed out between January and the end of September is already above the annual average of 44 contracts a year over the past decade. It puts the year firmly on track to be among the top performing years in terms of the number of PPP contracts awarded. The surge in the past three years highlights the popularity that PPP deals are enjoying among Mena governments at present.

The average size of contract awards is also running well above the long-term figure, with the typical deal being worth $533m in 2024. This is down from the $574m figure of last year, but well ahead of any other performance in the past decade save the $556m figure in 2014.

Iraq, Saudi Arabia and the UAE lead

In terms of geography, the standout markets this year have been Iraq, with $11bn of PPP awards, followed by Saudi Arabia with $5.4bn and the UAE with $3bn. Between them, these three countries accounted for a total of 34 contract awards, or 75% of the figure for the whole of the Mena region in the opening nine months of the year.

Key contracts signed in these markets have included the $8bn Al-Faw refinery and petrochemicals complex in Iraq’s southern Basra province, which is being developed by the Southern Refineries Company; and a series of contracts
awarded by the National Investment Commission on seven lines of the $2.5bn Baghdad Metro.

In Saudi Arabia, there have been 15 awards across the transport, power and water sectors, including the 2GW Haden solar photovoltaic (PV) power plant, the 600MW Al-Ghat independent power producer (IPP) wind project, and expansion work at Prince Mohammad Bin Abdulaziz International airport in Medina.

In the UAE, the contract activity has been more varied, with awards in the power, water, transport, construction and industrial sectors. Among the biggest awards so far this year were a $1.5bn contract awarded by Emirates Water & Electricity Company for the 1.5GW Al-Ajban solar IPP in Abu Dhabi and a $682m contract awarded by Sharjah Electricity & Water Authority to Acwa Power for the Hamriyah seawater reverse osmosis independent water project.

Another market with high levels of activity this year is Egypt, where there has been $3.7bn-worth of contract awards, including a $2.2bn strategic warehousing scheme. The Damietta Port Authority also signed a $665m deal to deliver a second container terminal and a $500m award for the 1GW Benban solar PV power plant and 600 megawatt-hour bess in Aswan Governorate.

Bahrain, Oman, Qatar and Tunisia have each seen one or two awards apiece, with the individual awards being generally more modest in value.

Sectoral and contractual shift

On a sectoral basis, this year has seen an even broader spread of awards across different industries compared to last year.

In 2023, the power sector accounted for 55% of the total awards by value, with the water and transport sectors accounting for a further 39% between them.

This year, power has again been the main focus of activity, but its share of the total awards value has fallen to 30%, while the transport sector fell to 15%.

The chemicals and oil industries then inched ahead, with 17% each, split across the planned $8bn combined value of the Al-Faw refinery and petrochemicals complex in Iraq.

The water sector has meanwhile seen a sharp drop-off in awards, with deals in the first nine months of the year accounting for just 6.6% of the total.

These changes have contributed to another significant shift, with the type of contracts proving most popular also undergoing a change this year.

In 2023, most of the awards were either for build, own and operate or build-operate-transfer (BOT) contracts, which accounted for 34% and 32% of the total value of awards handed out, respectively. 

This was followed by build and operate and build-own-operate-transfer (BOOT) awards, worth a further 14% each.

This year, the activity has been led by BOOT contracts, which have totalled $9.2bn, or 38% of the total for the first nine months. This was driven again by the $8bn-worth of contract value accounted for by the Al-Faw Refinery in Iraq.

Following behind are BOT contracts with a total value of $5.4bn, representing 22% of the total, most of which has
been awarded in the power sector. Design-build-finance-operate-transfer contracts worth $5bn accounted for 21% of the total with the value split across the transport and industrial sectors.

The picture could yet change in the final quarter of the year. In recent years, the last three months have been the busiest period for contract signings. In 2021, 38% of the year’s awards were made in Q4, with this figure increasing to 66% in 2022, before receding again to 38% in 2023 – but yet again with more than a third of all awards being made in the last quarter.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12694682/main.gif
Dominic Dudley

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

Click here to register
Exclusive from Meed
Related Articles
  • Construction advances on Riyadh King Salman airport

    19 May 2026

    King Salman International Airport (KSIA) is advancing airside infrastructure works under its long-term expansion programme in Riyadh, including the delivery of a third runway and new private aviation facilities.

    Construction activity on the central runway programme is progressing across several operational zones, with works covering excavation, grading, site preparation and taxiway-enabling infrastructure to support upcoming phases.

    The third runway is intended to increase airfield capacity and cater to the airport’s future operational requirements.

    In a separate development, KSIA has completed initial landside works for the private aviation apron, marking a milestone in the rollout of its executive aviation infrastructure.

    The completed scope includes pavement markings, waterproofing systems, firefighting infrastructure chambers and final operational inspections to support readiness for the next stages.

    KSIA has also secured General Authority of Civil Aviation (GACA) approval for phase one airside works, which includes the planned connection of Taxiway Alpha to the private aviation facilities, strengthening operational integration between executive aviation assets and airfield movement areas.

    The packages form part of the wider KSIA masterplan, which covers about 57 square kilometres and supports Saudi Arabia’s objective of positioning Riyadh as a global aviation and logistics hub.

    The airport aims to accommodate up to 100 million passengers by 2030.

    Saudi Arabia plans to invest $100bn in its aviation sector. The Saudi Aviation Strategy, announced by GACA, aims to triple annual passenger traffic to 330 million travellers by 2030. It also targets air cargo growth to 4.5 million tonnes and an increase in total air connections to more than 250 destinations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16906496/main.jpeg
    Yasir Iqbal
  • Aldar launches Al-Ghadeer Gardens project

    19 May 2026

    Abu Dhabi-based real estate developer Aldar Properties has launched the Al-Ghadeer Gardens project, located on the Abu Dhabi-Dubai border.

    The new residential development will feature 437 villas and townhouses, offering two-, three- and four-bedroom homes.

    Al-Ghadeer Gardens will include more than 30,000 square metres of landscaped open space, supporting a pedestrian-friendly layout and outdoor-focused living.

    As part of its sustainability and wellbeing approach, the project is targeting Estidama Pearl 2 and Fitwel 2-star certifications.

    Earlier this month, Aldar announced its Q1 financial results, reporting a 20% year-on-year increase in net profit after tax to AED2.3bn ($626m).

    Aldar Development recorded a 14% year-on-year rise in revenue to $1.7bn, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 23% to $599m.

    UAE revenue backlog rose to $17bn at the end of March from $16.6bn at the end of December, with an average duration of 29 months.

    The group attributed its performance to revenue from its development backlog and steady income from its investment properties.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16906154/main.jpg
    Yasir Iqbal
  • Iraq trucks oil from the south to Kurdish pipeline

    19 May 2026

     

    Iraq is trucking crude from Basra to the north of the country to be exported via the Iraq-Turkiye Pipeline (ITP), according to industry sources.

    The oil is being loaded into trucks at fields in Basra before being driven to the north, where it is injected into the pipeline network at Khurmala Dome, in the northern section of the Kirkuk field.

    Once it has entered the network at Khurmala Dome, it is transported to the main ITP export pipeline and eventually to the port of Ceyhan in Turkiye, where it can be loaded onto ships.

    The volumes of crude being transported using trucks have surged in Iraq since the US and Israel attacked Iran on 28 February, starting a regional conflict that has disrupted shipping through the Strait of Hormuz.

    One source said: “Most of the crude that is being trucked out of Iraqi oil fields at the moment is going to Syria, but some is being trucked to the north where it is being funnelled through the pipeline.”

    Even with the additional volumes being trucked from the south, Iraq is struggling to boost exports using the ITP.

    At the end of March, Amer Khalil, the director-general of Iraq’s state-run North Oil Company, said that Iraq was exporting 200,000 barrels a day (b/d) through the ITP.

    At the time, he said that the pipeline, which runs from Kirkuk in Iraqi Kurdistan to the port of Ceyhan in Turkiye, was expected to start transporting 300,000 b/d “in the near future”.

    As of early May, the pipeline was still exporting about 200,000 b/d, despite having a nameplate capacity of 1.4 million b/d.

    One of the factors said to be stopping increased volumes from being shipped through the pipeline is that several key oil fields in northern Iraq evacuated staff and stopped production after the US and Israel started their war with Iran.

    Another factor is that Iraq has not invested in domestic pipeline infrastructure to pipe production from Basra to Kurdistan, where it could be exported via the Kurdish ITP route.

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

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16902345/main1824.jpg
    Wil Crisp
  • Kuwaiti oil services company secures credit facility

    19 May 2026

    The Kuwaiti drilling and oilfield services provider Action Energy Company (AEC) has secured a new credit facility and renewed and expanded an existing facility in order to support the company’s rig fleet expansion.

    The new facility and the expansion were obtained from two Kuwaiti banks and had a combined value of KD40.9m ($132.8m).

    In its statement, AEC said that the facilities support the financing and deployment of new rigs linked to contract awards previously announced with the state-owned upstream operator Kuwait Oil Company (KOC).

    The company added: “They further reinforce AEC’s financing structure and strengthen its ability to execute its contracted fleet expansion plan through 2026 and beyond, while maintaining a disciplined approach to capital allocation.”

    The new credit facility was obtained from Kuwait International Bank (KIB).

    It is worth KD7.3m ($23.7m) and will finance two new 750-horsepower (HP) rigs.

    The renewal and expansion of the existing facility is worth KD33.6m ($109.1m) and was obtained from Commercial Bank of Kuwait (CBK) to finance four new 1,500 HP rigs and one 1,000 HP rig, in addition to the renewal of the existing facilities.

    AEC announced its financial and operational performance for the first quarter earlier this month.

    The company reported a net profit of KD2.2m ($7.1m).

    The company’s revenue grew by 69.2% year-on-year, primarily driven by the expansion of the operating rig fleet from 13 rigs in the first quarter of 2025 to 20 rigs in the first quarter of 2026, including the full-quarter contribution of 10 new rigs deployed during 2025.

    The company is benefitting from a substantial multi-year contracted backlog with KOC.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16902234/main.jpg
    Wil Crisp
  • Emirates awards $5bn engineering complex deal

    18 May 2026

    Register for MEED’s 14-day trial access 

    Emirates Airline has awarded a AED19bn ($5bn) contract to build one of the world's largest engineering complexes in Dubai South.

    The contract was awarded to Beijing-headquartered China Railway Construction Corporation (CRCC).

    CRCC is being supported by French firm Artelia, as the project consultant.

    The complex will cover over 1 million square metres (sq m).

    It will comprise 77,000 sq m of dedicated workshop space for maintenance and repairs, 380,000 sq m of storage and logistics capacity, a 50,000 sq m administrative building for Emirates Engineering and 15,000 sq m of training facilities.

    It will be the world's only complex with a capacity to service 28 wide-body aircraft simultaneously.

    The airline officially broke ground on the project on 18 May. 

    The groundbreaking ceremony was attended by Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and CEO of Emirates Group; Tim Clark, president of Emirates Airline; Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South; and Dai Hegen, chairman of CRCC.

    The facility will enable large-scale retrofits, cabin redesigns and structural modifications to be performed in-house, thereby reducing turnaround times.

    The engineering complex is scheduled for completion in 2030 and will be located at Al-Maktoum International airport.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16895218/main.jpg
    Yasir Iqbal