Qatar set for new phase of development
28 April 2022
On 21 November, the Fifa football World Cup kicks off in Qatar, marking the end of a glorious cycle of investment and the start of Qatar’s next phase of development.
Nine stadiums have been built for the tournament at a cost of about $5bn. Together they crown a $157bn programme of building and infrastructure investment in Qatar over the past 12 years that has seen the development of new airports, railways, highways and cities, in one of the most spectacular construction booms ever seen.
But with the development work now complete, the question for companies in Qatar is: What next?
Part of the answer came on 8 February 2021, when Qatargas awarded a $13bn contract for the main package of the first phase of its North Field Expansion to Japan’s Chiyoda Corporation and France-based Technip Energies. It is the biggest single EPC contract ever awarded in the region, and is redolent of the early 2000s, when investments to develop six large liquefied natural gas (LNG) trains propelled Qatar to become the world’s biggest gas exporter.
In January 2022, Saudi Arabia and Qatar relaunched a planned rail link, setting a date to begin studying the connection. This is a consequence of the improved relations between Qatar and its GCC partners and will bring fresh dynamism to the GCC rail initiative. Cooperation across borders is also expected in aviation and shipping.
Doha is stepping up efforts to draw investment through public-private partnership schemes
New projects cycle
Qatar’s projects market in the 2020s will have many similarities to the boom of the first decade of the 2000s. And the similarity goes beyond LNG. Another reminder came at the end of 2020, when Doha was selected to host the Asian Games in 2030. The Qatari capital hosted the games for the first time in 2006 and a range of major sporting and hospitality projects were completed ahead of the event.
Doha is implementing a new tourism strategy that it hopes will turn the one-off economic and political capital boost of the World Cup into a long-term driver of sports, business and leisure tourism.
This time around, Qatar’s gas projects parallel its National Vision 2030, Doha’s long-term strategy to transition away from energy. The plan includes pursuing investment in research and development to stimulate a knowledge economy.
For more information and sample pages from MEED Insight's Qatar 2022 premium intelligence report, please click here
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Dubai Municipality has extended bid submission deadlines for three tenders linked to stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.
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The new bid submission deadline is 24 September. Bids were originally due on 10 September.
The municipality’s Sewerage and Recycled Water Projects Department issued the tenders in August. Hind 3 and Hind 4 are two of four zones within Hind City. The Dubai government renamed the Al-Minhad area and surrounding areas as Hind City in 2023. The 83.9-square-kilometre area is served by Emirates Road, Dubai-Al-Ain Road and Jebel Ali-Lehbab Road.
The DS-316-C1 project covers the construction of sewer and stormwater networks in Hind 4. The stormwater network will include gravity drainage pipelines up to 1,600 millimetres (mm) in diameter, while the sewer network will include pipelines up to 800mm.
The TF-24-C1 project will connect developers’ areas in Dubailand to the stormwater network. It includes 18 kilometres (km) of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.
The TF-25-C1 project involves the construction of a 9.2km stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman. The trunk line will include gravity drainage pipelines with diameters of up to 2,800mm. It will also serve main roads along its alignment, including sections of the Dubai-Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.
The latest tenders follow a series of recent Tasreef package awards by Dubai Municipality.
In July, MEED reported that local contractor DeTech Contracting had won the estimated $100m TF-15-C1 EPC contract. The municipality has also awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting.
The wider Tasreef programme is intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.
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Saudi Arabia redirects towards AI1 September 2026
Commentary
Colin Foreman
EditorThe groundbreaking by Humain and DataVolt at Oxagon this month signals where Saudi Arabia’s project spending is heading.
Over the past year, the dominant story has been reprioritisation, following Neom’s loss of the Asian Winter Games and the cancellation of contracts at Trojena and The Line. While the negative headlines have attracted international attention, it is important to remember that spending has not stopped. Instead, it has changed course, and artificial intelligence (AI) and the new economy are increasingly where it is going.
The old economy still has a role to play. Over the next eight years, Expo 2030 and the 2034 Fifa World Cup will keep the construction market busy. Looking further ahead, however, the longer-term opportunity lies elsewhere. AI and the wider new economy could sustain a pipeline of construction work that outlasts the events – from data centres and their power supply to the industrial and digital infrastructure that surrounds them.
Saudi Arabia also has a comparative advantage. Aiman Al‑Mudaifer, Neom’s chief executive, said at Leap that the ability to secure power, land and connectivity was becoming critical to the economics of AI computing capacity. The kingdom has cheap energy, coastline, sovereign capital and, at Oxagon, subsea cables linking to Europe and Africa.
The build-out is gathering pace. Humain, the PIF-owned AI company launched in May 2025, has struck deals with US chipmakers AMD and Nvidia, attracted interest from Aramco and tendered a separate 6GW campus in east Riyadh. The Oxagon campus is planned to reach 1.5GW, with the first 100MW due in 2028. For contractors and consultants, this points to demand for power distribution, substations, cooling and connectivity rather than stadiums and mountain resorts.
Whether it pays off is far from settled. Data centre economics depend on customers, chips and reliable power, and Saudi Arabia is a late entrant to a crowded field.
For construction, the transition will be uneven, and some parts of the projects market will feel the redeployment before they feel the benefit. But for a market that has spent a year dealing with the impact of cancelled contracts and project slowdowns, a clearer sense of where the money is going next is a positive sign.
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Petrojet signs Jordan gas pipeline contract1 September 2026
Egypt’s Petrojet has signed a new contract to deliver a natural gas pipeline project in Jordan, according to a statement from the company.
The pipeline network will connect the Al-Muwaqqar Industrial Development Zone, south of Amman, to Jordan’s natural gas network.
The contract was signed by Saleh Al-Kharabsheh, Jordan’s minister of energy and mineral resources, and Walid Lotfy, the chairman of Petrojet.
The project covers the engineering, procurement, construction and installation of approximately 22 kilometres of natural gas pipelines, including connection to the Arab Gas Pipeline.
It also includes developing gas pressure reduction and metering stations, as well as a pig launcher and receiver facility.
The contract has an 18-month execution period.
In its statement, Petrojet said the project would further strengthen its international portfolio and demonstrate its engineering, construction and project-execution capabilities across regional and global markets.
The invitation to bid on the project was issued in June this year.
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Kuwait sets fresh bid deadline for $240m oil project1 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has announced a new bid deadline for the planned project to upgrade gas booster stations 140 and 150 (BS-140 and BS-150).
The new bid deadline is on 20 September 2026.
This replaces a previous bid deadline scheduled for 23 August 2026.
The project, first announced in 2014, is estimated to be worth $240m, and the invitation to bid was issued in May this year.
The scope of work on the project covers:
- Upgrade of BS-140 and BS-150
- Replacement of dehydration facilities
- Laying of pipelines
- Installation of safety system
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It was announced in 2017 that the following companies had been prequalified to bid for the project:
- Daelim Industrial (South Korea)
- Daewoo Engineering & Construction (South Korea)
- Fluor (US)
- Hyundai Heavy Industries (South Korea)
- JGC Corporation (Japan)
- Kellogg Brown & Root (US)
- Larsen & Toubro Hydrocarbon Engineering (India)
- National Petroleum Construction Company (UAE)
- Petrofac (UK)
- Saipem (Italy)
- Samsung Engineering (South Korea)
- SK E&C (South Korea)
- Kentech (UAE; formerly SNC-Lavalin)
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- Tecnicas Reunidas (Spain)
The list of prequalified companies has likely changed significantly since the previous list was published.
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The disruption is also creating significant challenges for construction projects in the oil and gas sector, which normally import equipment and materials through the Strait of Hormuz.
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Libyan company secures upstream oil project1 September 2026

Libya’s BaderOya Oilfield Services & Energy has been awarded a contract to hook up six wells to an early production facility (EPF) at the Erawin field.
Engineering contractor Petrofac previously handled the scope of this project. However, Petrofac stopped work before completing the full scope.
The outstanding work accounted for about 2%-3% of the overall project, according to industry sources.
The client for the six-well hook-up contract is Zallaf Libya Oil & Gas Exploration & Production Company, which was established in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation (NOC).
In March this year, MEED reported that Petrofac had stopped work on the EPF development project and reduced its Libyan workforce.
The scope of the original contract awarded by Zallaf to Petrofac included surface facilities at the Erawin oil field, such as well pads and flowlines. It also included a pipeline to transport crude oil about 100 kilometres (km) to the El-Sharara oil field, plus a control room, substation and telecoms system located there.
Petrofac completed several elements of the original scope, including the pipeline infrastructure, which has been in operation for more than a year, according to the company.
Zallaf awarded the Erawin EPF contract to Petrofac under an engineering, procurement, construction and commissioning model. In a 2021 statement, Petrofac said the contract was valued at more than $100m, but did not provide a precise figure. The regional project-tracking service MEED Projects has estimated the contract value at $440m.
Petrofac did not respond to a request for comment on the award of the well hook-up contract to BaderOya Oilfield Services & Energy.
Financial problems
On 27 October last year, Petrofac announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.
At the time, the total value of projects awarded to Petrofac and under construction in the region was $5.83bn, according to information recorded by MEED Projects.
Petrofac also had bids under evaluation for 15 projects in the region worth a total of $19.28bn.
Since then, key parts of the business have been sold off, and many of the company’s staff have been made redundant.
The redundancies included around 180 employees who were issued termination notices in October last year.
In December, the US-based company CB&I announced it had entered into a deal to buy Petrofac’s asset solutions business in the first quarter of 2026.
In January this year, the proposed company voluntary arrangement related to the sale of its Asset Solutions business was approved.
Also this year, Petrofac completed the sale of Petrofac Emirates, a business unit it established in Abu Dhabi in 2008.
The unit was bought by a consortium of financial investors led by the New York-headquartered hedge fund Mason Capital Management and UK-based asset management firm Pearlstone Alternative.
Project disruption
After the sale of Petrofac’s asset solutions to CB&I, the US-based company adopted responsibility for close-out works for the Erawin EPF project, according to an industry source.
This was because the project “fell within an entity that was moving as part of the CB&I sale”, the source said.
CB&I and Petrofac declined to comment on recent developments relating to the Erawin EPF project and the contract awarded to JOS.
Erawin exports
Libya shipped its first cargo of crude from the Erawin oil field in November 2023.
The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.
Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the EPF project in 2019.
The Erawin field development project is located about 800km south of Tripoli and 100km southwest of the El-Sharara field.
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