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
  • SLB passes evaluation for Kuwait upstream project

    12 December 2025

    The US-based oilfield services company SLB, formerly Schlumberger, has passed the technical bid evaluation for a major project to develop Kuwait’s Mutriba oil field.

    The Houston-headquartered company was the only bidder to pass the technical evaluation for the Mutriba integrated project management (IPM) contract.

    The minimum passing technical evaluation score was 75%.

    The full list of bidders was:

    • SLB (US): 97%
    • Halliburton (US): 72%
    • Weatherford (US): 61.5%

    The decision was finalised at a meeting of the Higher Purchase Committee (HPC) of state-owned Kuwait Petroleum Corporation (KPC) on 20 November 2025.

    According to a document published earlier this year by KOC, the IPM tender for the Mutriba field aims to “accelerate production through a comprehensive study that includes economic feasibility evaluation, well planning and long-term sustainability strategies”.

    The field was originally discovered in 2009.

    Commercial production from the Mutriba field started earlier this year, on 15 June, after several wells were connected to production facilities.

    The field is located in a relatively undeveloped area in northwest Kuwait and spans more than 230 square kilometres.

    The oil at the Mutriba field has unusually high hydrogen sulfide content, which can be as much as 40%.

    This presents operational challenges requiring specialised technologies and safety measures.

    In order to start producing oil at the field, KOC deployed multiphase pumps to increase hydrocarbon pressure and enable transportation to the nearest Jurassic production facilities in north Kuwait.

    The company also built long-distance pipelines stretching 50 to 70 kilometres, using high-grade corrosion-resistant materials engineered to withstand the high hydrogen sulfide levels and ensure long-term reliability.

    KOC also commissioned the Mutriba long-term testing facility in northwest Kuwait, with a nameplate capacity of around 5,000 barrels of oil a day (b/d) and 5 million standard cubic feet of gas a day (mmscf/d).

    Once this facility was commissioned, production stabilised at 5,000 b/d and 7 mmscf/d.

    In documents published earlier this year, KOC said that starting production from the field had “laid a solid foundation” for the IPM contract by generating essential reservoir and surface data that will guide future development.

    Future output from the field is expected to range between 80,000 and 120,000 b/d, in addition to approximately 150 mmscf/d of gas.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15235579/main.png
    Wil Crisp
  • Dana Gas makes onshore discovery in Egypt

    12 December 2025

    Register for MEED’s 14-day trial access 

    UAE-based Dana Gas has made an onshore gas discovery in Egypt’s Nile Delta area, according to a statement from the company.

    The discovery was made by the drilling of the North El-Basant 1 exploratory well, and initial well results indicate estimated reserves of 15-25 billion cubic feet of gas.

    Production from the reserve is expected to exceed 8 million cubic feet a day (cf/d) once the well is connected to the national network.

    The North El-Basant 1 exploratory well was the fourth well in a campaign of 11 development and exploration wells.

    The campaign is being executed as part of the company’s $100m investment programme to support domestic gas production, increase reserves and meet growing energy demand.

    Earlier this year, Dana Gas completed the drilling of three wells, adding 10 million cf/d.

    The programme is expected to increase long-term production and add approximately 80 billion cubic feet of recoverable gas reserves, according to Dana Gas.

    Dana Gas expects to start drilling the fifth well in the programme, the Daffodil exploration well, in the first week of January 2026.

    Richard Hall, the chief executive of Dana Gas, said: “The latest drilling success reinforces the value of our investment programme in Egypt and highlights the significant remaining potential within the Nile Delta.”

    He added: “By increasing local gas production, the programme will help reduce Egypt’s reliance on imported liquefied natural gas (LNG) and fuel oil and is expected to generate more than $1bn in savings for the national economy over time.”

    Previously, Dana Gas signed an agreement with state-owned Egyptian Natural Gas Holding Company (EGas) to secure additional acreage under improved fiscal terms, and to accelerate drilling activity.

    Hall said: “We appreciate the strong cooperation from EGas and the ministry, and we remain committed to delivering the majority of our planned programme next year.

    “Regular and timely payments from our partners are crucial to sustaining our investment programme in Egypt."

    In November, a new gas discovery was made in Egypt’s Western Desert region by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation and US-headquartered Apache Corporation.

    Egypt also started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid.

    The country is currently pushing to increase gas production in order to meet domestic demand and reduce its import bill.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15235552/main.png
    Wil Crisp
  • SAR to tender new phosphate rail track section in January

    12 December 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian Railways (SAR) is expected to float another multibillion-riyal tender to double the tracks on the existing phosphate railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.

    MEED understands that the new tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – will be issued in January.

    The new tender follows SAR’s issuance of the tender for the project's first phase in November, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.

    The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

    The scope also covers support for signalling and telecommunications systems.

    The tender notice was issued in late November, with a bid submission deadline of 20 January 2026.

    Switzerland-based engineering firm ARX is the project consultant.

    MEED understands that these two packages are the first of four that SAR is expected to tender for the phosphate railway line.

    The other packages expected to be tendered shortly include the depot and the systems package.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15229624/main.jpg
    Yasir Iqbal
  • Dar Global to develop $4.2bn Oman mixed-use project

    10 December 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia-headquartered real estate developer Dar Global has announced that it will develop a mixed-use project in Muscat at an estimated investment of RO1.6bn ($4.2bn).

    Dar Global will co-develop the Muscat Marine, Art & Digital District project with Oman's Art District Real Estate Development Company.

    The project will cover an area of over 1.5 million square metres (sq m) and will be developed in several phases over 12 years.

    The development will comprise a mix of residential communities, cultural venues, marinas, retail spaces, finance and business parks and hotels.

    Dar Global, a subsidiary of Dar Al-Arkan, was one of the first Saudi brands to list on the London Stock Exchange.

    Dar Al-Arkan established Dar Global in 2017 to focus on developing projects in the Middle East and Europe, including in Dubai, Qatar, Oman, London and the Costa del Sol in southern Spain.

    Dar Global has $12bn-worth of projects under development in six countries: the UAE, Oman, Qatar, Saudi Arabia, the UK and Spain.

    It completed three developments – the Urban Oasis and Da Vinci towers in Dubai and the Sidra gated community in Bosnia – in 2023.

    The company collaborates with global brands including Missoni, W Hotels, Versace, Elie Saab, Automobili Pagani and Automobili Lamborghini.

    In Oman, Dar Global is also developing the Aida project. In May, it awarded a contract to develop the villas and apartments as part of the project.

    According to an official statement, the construction works are expected to start immediately and the project is slated for completion in 2026.

    The main contract was awarded to local firm Al-Adrak Trading & Contracting.

    The latest announcement follows the awarding of contracts in June last year for the development of the first phase of the Aida project.

    The Aida project is being developed as a joint venture with Omran Group and the first phase is expected to be completed in 2027.

    UK analytics firm GlobalData forecasts that the Omani construction industry will expand at an annual average growth rate of 4.2% in 2025-28. Growth in the country will be supported by rising government investments in renewable energy, the transport infrastructure and the housing sector, all as part of Oman's Vision 2040 strategy.

    Growth during the forecast period will also be supported by increasing hospitality sector investments, with the government planning to invest RO11.9bn ($31bn) in tourism development projects by 2040 and supporting the construction of several hospitality projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15222694/main.jpg
    Yasir Iqbal
  • Contract award nears for Saudi Defence Ministry headquarters

    10 December 2025

     

    Saudi Arabia’s Defence Ministry (MoD) is preparing to award the contract to build a new headquarters building, as part of its P-563 programme in Riyadh.

    MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.

    The MoD issued the tender in April. The commercial bids were submitted in September, as MEED reported.

    Located to the northwest of Riyadh, the P-563 programme includes the development of facilities and infrastructure to support the MoD’s broader initiatives under the kingdom’s Vision 2030 strategy.

    It covers the construction of:

    • A new military city featuring the MoD headquarters, support and logistics facilities, a residential and commercial community and space for future command centres
    • A National Defence University with a library, conference centre and academic buildings
    • A self-sustaining Joint Forces Command compound located approximately 50 kilometres from the military city

    The budget for the entire programme is expected to be $10bn-$12bn.

    In September 2023, MEED reported that Spain-headquartered Typsa had won two contracts for the project.

    The first contract, worth $11.4m, included data management, geographic information systems management, geotechnical reporting and the preparation of the phase one final traffic report. The contract duration was 270 days from the notice to proceed.

    The second contract, valued at $10.8m, involved preparing four conceptual masterplans for the P-563 site. It was set to last 255 days from the notice to proceed.

    These followed a $290m consultancy contract awarded to Typsa in March of the same year. The single-award task order covered a three-year base period, with an optional two-year extension.

    Typsa’s scope of work included programme management planning, communications, change and quality management and cost and schedule tracking.

    It also included design requirements, codes, standards and submission requirements, programme guidance, study integration, risk analysis and management, design reviews and a programme-of-work breakdown plan.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15222401/main.gif
    Yasir Iqbal