Related Articles

• 
  Kuwait awards oil services contract

  16 June 2026

  National Petroleum Services Company (Napesco) has secured a contract worth KD11.94m ($38.8m) to provide cementing and associated services for drilling and workover operations on unconventional wells in Kuwait.

  The contract has been awarded by the state-owned upstream operator Kuwait Oil Company (KOC) and has a five-year term, according to a statement from Napesco.

  Under the agreement, Napesco will provide integrated cementing solutions designed to support well integrity, optimise drilling performance, and enhance operational efficiency across the client’s unconventional exploration and production programme.

  Kuwait’s oil and gas sector is currently in the midst of a major crisis as disruption to shipping through the Strait of Hormuz has dramatically reduced the volume of exported crude oil.

  The disruption to shipping is also creating significant challenges to construction projects in the oil and gas sector, which normally import equipment and materials through the Strait of Hormuz.

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  Wil Crisp
• 
  HKN Energy starts to operate Syria’s Rmeilan oil fields

  16 June 2026

  

   

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  US-based HKN Energy is starting operations on the ground at Syria’s Rmeilan fields in Al-Hasakah Governorate, according to industry sources.

  The development comes as Syria is trying to fast-track the conversion of memorandums of understanding (MoUs) signed with oil companies to concrete contracts.

  Speaking at a conference in Washington on 9 June, the chief executive of state-owned Syria Petroleum Company (SPC), Youssef Qablawi, said that HKN had recently converted an MoU into a finalised deal and was preparing to start operations in Syria.

  Qablawi did not mention which assets HKN would be operating in Syria, but sources say it is starting operations on the ground at the Rmeilan fields.

  Some work related to the company’s activities in Syria is currently being carried out in HKN’s office in Erbil, in the Kurdish region of Iraq, sources said.

  The Syrian government took control of the Rmeilan oil fields earlier this year after a military operation.

  The group of fields is considered to be one of Syria’s largest oil assets and contains more than 1,300 oil wells.

  The field is said to have produced up to 120,000 barrels a day (b/d) before civil war broke out in Syria in 2011.

  Output later fell by nearly 85% after hundreds of wells went offline, either due to war damage or lack of maintenance.

  Prior to the military operation by Syria’s army earlier this year, the field was held and administered by the Kurdish-led Syrian Democratic Forces (SDF).

  Foreign interest in Syria’s oil and gas sector is growing as the government moves to revive the industry and elevated global energy prices improve the economics of new developments.

  A series of agreements signed in recent months has attracted some of the world’s largest energy companies, raising expectations that investment and production could accelerate.

  New deals

  Speaking at the conference in Washington earlier this month, Qablawi said he was planning to sign a contract with ConocoPhillips today, 16 June.

  He said it would be the largest contract signed by SPC since its establishment in October last year.

  Qablawi also said he hoped to convert an MoU with the US-based oil company Chevron into a signed contract before the end of July.

  Qablawi said the country was forecasting increases in both oil and gas production and predicted it would produce 1 million b/d by 2030.

  The chief executive said that previously unexplored blocks in the country held “huge” reserves that could be developed.

  Chevron is interested in making investments in onshore production in the country, according to Qablawi.

  Downstream projects

  Syria is planning several downstream projects.

  Under current plans, the country’s Baniyas refinery will be shut down for major maintenance in July.

  The maintenance will dramatically increase the refinery’s capacity to 130,000 b/d, according to Qablawi.

  Currently, it is operating at a rate of 90,000-95,000 b/d.

  The refinery is expected to be brought back online in October this year.

  Syria is also planning to develop a new refinery, which will produce more than 200,000 b/d, and is expected by SPC to come online within four years.

  Under current plans, the front-end engineering and design (feed) for the new refinery will start in the fourth quarter of this year.

  “Syria will be exporting refined products within three years [of starting the feed],” Qablawi said. “After we have finished the construction of the new refinery.”

  Gas development

  In April, SPC signed a formal contract with Saudi Arabia’s ADES to increase gas production in central Syria.

  The contract is focused on developing five central gas fields:

  • Abu Rabah
  • Qamqam
  • North Al-Faydh
  • Al-Tiyas
  • Zumlat Al-Mahar

  The deal aims to increase Syria’s domestic gas production by up to 50% within a year.

  Speaking on 9 June, Qablawi said that ADES was mobilising for that project.

  Pipeline planning

  Syria is involved in several major pipeline projects, including plans to restore the pipeline from Kirkuk in Iraq to Baniyas in Syria.

  Qablawi said that under current plans, the contracts for this pipeline would be tendered using the build-operate-transfer (BOT) contract model.

  “We are going to pick the best company for Syria to construct this pipeline,” he said.

  Syria has awarded an engineering, procurement and construction contract for an extension to the existing Arab Gas Pipeline.

  The new section extends 185 kilometres from Aleppo to Homs and is being fully funded by SPC.

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  Wil Crisp
• 
  Caution governs Jordanian bank lending

  12 June 2026

  

   

  In a region where geopolitical turbulence has amplified by an order of magnitude, Jordan is managing to stand out as a beacon of relative stability, with the Hashemite kingdom’s banking sector acting as a case in point.

  Lending has grown in recent years, with credit up by an average 4.9% between 2020 and 2025, according to the Central Bank of Jordan (CBJ) – a faster rate than average nominal GDP growth of 2.3% over the same period.

  The IMF took care to note an increase in credit to the private sector in its latest Article IV assessment of Jordan, standing at 80.1% of GDP at end-2024, compared to just 66.6% 10 years earlier.

  Banks in the kingdom ended 2025 in a liquid state, but caution remains the watchword for local lenders. The loan-to-deposit relationship bears that out. For that year, deposits ended up 7.1% to JD50bn ($70.5bn), while credit facilities were up just 3.7% to JD36.1bn ($50.9bn).

  Analysts see this as a case of Jordanian banks being prudent, given the tricky operating environment and limited lending opportunities, rather than banks being excessively defensive. 

  According to Christos Theofilou, an analyst at Moody’s Investors Service, it is cautious lending in fraught macroeconomic conditions.

  “On the one hand, we’ve seen a structurally strong and stable deposit base that has been growing more compared to lending. That indicates a certain degree of limited risk appetite, but also the fact that, given the challenging operating conditions, there were limited business opportunities in the market,” says Theofilou.

  Liquidity banked

  Jordan’s banks look able to withstand further shocks, given solid capital positions and relatively strong earnings performances. Arab Bank, the largest lender, saw net profits grow 12% last year to $1.13bn, despite a highly charged geopolitical situation across Jordan and the neighbouring Palestinian territories.

  As Moody’s notes, Jordanian banks’ funding base remains stable, with banks mainly deposit-funded – with deposits at 67% of total assets as of December 2025 – mostly comprising well-diversified retail deposits. The ratings agency noted that banks retain the capacity to increase lending without relying on more volatile and costly external funding, as indicated by the 72% loan-to-deposit ratio.

  The earnings outlook in Jordan may be better than other banking sectors in the immediate region, but this does not translate into a picture of booming profits going forward.

  “Profits should remain resilient, but we’re not expecting any significant improvement,” says Theofilou. “We have the challenging operating conditions, and the lower interest rates that have come down over the past few years. On the other hand, banks have had lower provisioning in the past 12 to 18 months compared to the period prior to that.”

  Asset quality remains a strong point, despite some weakening over recent years. Moody’s sees non-performing loans (NPLs) falling below 5.5% this year from 5.8% in June 2025.

  However, the continuing Iran conflict and its deleterious regional impacts – including on the West Bank, where about 9% of Jordanian banks’ loans are located – suggest that bank exposures to troubled sectors will require focus.

  Concentration bites

  Another challenge is the banks’ high credit concentration among large corporates, with a noted high exposure to real estate.

  Commercial and residential real estate loans accounted for 17.4% of total credit facilities as of year-end 2024, while residential mortgages accounted for 40.9% of household credit. Regulatory oversight may limit the impacts – the CBJ caps loans for real estate at 20% of local currency customer deposits.

  The real estate exposures are meaningful, but Moody’s views overall concentration risk as more material rather than real estate risk per se.

  “So, on the one hand, Jordanian banks have real estate loans, both commercial and residential, slightly below a fifth of the total credit facilities,” says Theofilou. “Banks also face challenges in quickly disposing of properties, but within the context of a relatively lengthy foreclosure process. On the flipside, we see Jordanian banks having fairly high collateralisation, so they do hold a lot of collateral against the real estate exposures.”

  The CBJ has earned plaudits for its regulatory oversight, with the IMF lauding its strengthening of the Financial Stability Committee, while refocusing its role on macroprudential policies and systemic risks. 

  Jordanian banks’ brisk uptake of digital technologies has also been a positive.

  Last year, digital payment systems in Jordan recorded over 184 million digital transactions, exceeding $38bn in value. The CBJ has introduced an AI regulatory framework for the sector and the authorities are now working to burnish the country’s credentials as a fintech hub, based on a 90% plus internet penetration. 

  In the year ahead, Jordanian banks will be looking to find exposures to new lending opportunities, given the past risk aversion that has prevented them from building stronger growth avenues.

  Projects beckon

  Big new infrastructure projects could yet come to the fore as bankable opportunities for local players. For example, the National Water Carrier Project, costed at $5.8bn and aiming to increase water supply by 40%, is looking to achieve financial close this summer. It is the type of project that could prove significant in helping diversify local lenders’ exposure away from real estate towards infrastructure.

  “If we see a lot of these infrastructure projects requiring financing coming to the market, then we could see a bit of a pickup in lending growth as well,” says Theofilou.

  New lending opportunities will come from large corporates and infrastructure-related lending. Those will play the key role in any significant pickup in credit growth, says the Moody’s analyst, in contrast to the small- and medium-enterprise (SME) sector, which poses a different challenge for banks.

  “The SME segment does represent a potential growth opportunity and it’s supported by policy focus, however its expansion is constrained by the operating environment. The sector is exposed to high overall credit risks, and when conditions are challenging, banks tend to be more cautious in lending to the SME markets,” says Theofilou.

  So long as the regional conflict persists, banks will be inclined more towards caution than exuberance in their lending approaches. And yet that strong and stable inclination may be what serves them best in a notably turbulent year in the Middle East’s recent history.

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  James Gavin
• 
  Oman tenders environmental survey consultancy contract

  12 June 2026

  Nama Power & Water Procurement Company (Nama PWP) has issued a tender seeking consultancy firms to provide environmental and seawater quality surveys under an ad hoc services contract.

  The selected consultants will be appointed for a four-year period and engaged on an as-needed basis to undertake environmental survey work.

  According to the tender notice, the scope of work includes environmental surveys, vertical profiling of seawater quality, seawater sampling and testing, environmental and social baseline studies, and bird and bat surveys.

  Bids are due by 1 July.

  Environmental and seawater studies are typically undertaken during the early development stages of power generation, desalination and other water infrastructure projects.

  Oman’s project pipeline includes a series of large-scale independent power projects (IPPs) scheduled for delivery between 2027 and 2031, according to the seven-year plan released by Nama PWP in March.

  Earlier in June, Nama PWP issued a supervisory consultancy tender for the 280MW Marsa solar IPP project in North Al-Batinah Governorate.

  The project is scheduled to enter commercial operation in the first quarter of 2028.

  The company is seeking project management and supervisory consultancy services during the construction, commissioning and testing phases of the project.

  The bid submission deadline is 26 July.

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  > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

  

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  Mark Dowdall
• 
  Emirates to offer passengers insurance amid travel warnings

  12 June 2026

  Dubai-based airline Emirates is to offer its own insurance product to passengers flying to or through Dubai, as it seeks to reassure travellers deterred by government advisories against travel to the region.

  The airline’s president, Tim Clark, confirmed the move in an interview with the London-based Financial Times. He said Emirates was working with insurance companies to introduce a “reasonably priced” product that would guarantee passengers could get home regardless of whether they returned on Emirates or another carrier.

  The move is designed to address concerns that travellers could become stranded if the conflict were to restart. More than three months after fighting began, several countries continue to maintain no-fly recommendations covering Gulf routes, leaving passengers unable to obtain conventional insurance for trips to or through the region.

  “I think one of the big concerns is that if they get caught overseas and they can’t get back,” Clark said. The group was working with insurance companies “to do the right thing”, he added.

  Emirates has played a leading role in supporting Dubai’s tourism sector since Iran began targeting the UAE with missiles and drones on 28 February.

  In early June, the Department of Economy and Tourism told stakeholders attending its bi-annual City Briefing that the emirate worked closely with airports and aviation partners, including Emirates and FlyDubai, to ensure continued connectivity for travellers.

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

  GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

  Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:

  > AGENDA: Gulf races to reroute trade > EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity > CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends > MARKET FOCUS: Iraq’s reform window narrows  > MEED TOP 100: Middle East stocks recover unevenly > OIL & GAS: Insurers will only cover a fraction of war damage to oil and gas facilities > LEADERSHIP: Building the infrastructure that makes net zero possible > LEGAL:  Saudi Arabia’s foreign property ownership milestone > TRADE DEAL: UK-GCC trade deal talks conclude

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

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