meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi nuclear move has geopolitical significance

28 February 2023

Commentary

Jennifer Aguinaldo

Energy & technology editor

Saudi Arabia's Finance Ministry’s disclosure that it received bids late last year for the contract to build the kingdom's first nuclear power plant is major energy news with potential widespread geopolitical significance.

The bids came in weeks before Foreign Affairs Minister Prince Faisal bin Farhan al-Saud told a security conference in Munich that he could not rule out a regional nuclear arms race.

“If one state gets nuclear weapons, especially one that has expressed aggression towards its neighbours, I think everyone will start thinking about how to protect themselves,” Prince Faisal said in reference to Iran’s programme and the need for negotiations between Tehran and world powers to resume.

READ: Top nuclear projects to watch this year

Assuming the bids are for the large-scale nuclear power plant that Riyadh has been planning for since 2016, the list of companies that submitted a bid for the contract is tightly guarded.

Five companies were understood to have requested information on the project from King Abdullah City for Atomic & Renewable Energy (KA-Care) in 2017, including the US firm Westinghouse, France’s EDF and Russia’s Rosatom. South Korea’s Kepco and China National Nuclear Corporation also responded to the request for qualifications for the main contract. 

More recent, unconfirmed developments suggest that Westinghouse and possibly EDF may no longer be in the race, leaving three companies at the table.

Washington worried

Washington is wary of the contract being awarded to Chinese or Russian contractors. This would weaken or render irrelevant its demands for Riyadh to abandon its nuclear fuel cycle ambitions before signing any bilateral nuclear cooperation agreement (NCA), otherwise known in Washington as a 123 agreement.

According to an Energy Intelligence report, the stalemate centres around Washington’s demands for Saudi Arabia to make a commitment to the NCA not to pursue a domestic uranium enrichment or reprocessing programme. The US also wants the kingdom to sign and ratify the International Atomic Energy Agency’s Additional Protocol (IAEA AP), allowing nuclear inspectors fuller access to Saudi's nuclear programme.

The report alludes to the US supporting Kepco’s bid, not only to keep Riyadh away from its geopolitical adversaries but because it provides Washington with a final lever for pressuring Riyadh to accept its conditions for the 123 agreement and/or the IAEA protocol.

The topic was understood to be a key item on US President Joe Biden’s agenda during his trip to Riyadh in July, which yielded unclear results.

Crucially, Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud announced in January last year that Saudi Arabia has uranium resources that it wants to exploit transparently through partnerships.

UAE role

Some say that the UAE – whose Barakah nuclear power plant was built by Kepco and which has signed a 123 agreement with the US – is backing the South Korean firm’s bid.

Tellingly in November, the US and UAE governments signed the $100bn Partnership for Accelerating Clean Energy (Pace) programme. Analysts say this could shift the two countries’ energy cooperation more towards nuclear energy, with the UAE aiming to position itself as an investor in regional and developing economies’ nuclear power.

Then in January, the UAE pledged to invest $30bn in South Korea’s nuclear power, defence, hydrogen and solar energy industries. They also announced plans to deepen their nuclear cooperation with Korea Hydro & Nuclear Power (KHNP) and Emirates Nuclear Energy Corporation (Enec) signing a deal to “expand practical cooperation in the field of developing export markets for nuclear power plants in third countries and joint procurement of business finance”.

As industry insiders speculate on what will happen next, all eyes will be on Riyadh to see if it makes an official announcement to award the contract, which a Saudi-based expert says can only be made by the highest levels of the country’s leadership.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10635817/main.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Arada awards $408m W Residences Dubai Harbour contract

    23 February 2026

    Register for MEED’s 14-day trial access 

    Sharjah-based real estate developer Arada has awarded a AED1.5bn ($408m) contract for the main construction works on its W Residences project at Dubai Harbour.

    The contract was awarded to the local Engineering Contracting Company.

    The development comprises 490 branded residences across three towers.

    The project's enabling works, including excavation and piling, have begun and are being carried out by another local firm, APCC Piling & Marine Contracting.

     Arada has awarded APCC a separate AED51m ($14m) contract to undertake the enabling works.

    The development will consist of residential, retail and leisure facilities and will be operated by US-based Marriott International.

    Arada launched the project in October 2024, as MEED reported.

    The latest contract award follows Arada's award of two contracts, worth AED2.7bn ($735m), for construction work on all four phases of the Masaar 2 residential community in the Rowdat district of Sharjah.

    Arada awarded Sharjah-based Intermass Contracting a contract for the construction of phases one, three and four.

    Abu Dhabi-based contractor Pivot Engineering & General Contracting won a contract to build the second phase of the project.

    The overall scheme encompasses the construction of 1,997 residential units across all four phases.

    Construction is expected to begin shortly, and the project is slated for completion by 2028.

    Arada is the developer behind three masterplanned residential communities in Sharjah. The Aljada, Masaar and Nasma Residences communities are valued at a combined AED33bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15717440/main.jpg
    Yasir Iqbal
  • Seven companies show interest in $3.3bn Kuwait gas project

    23 February 2026

     

    At least seven companies have shown interest in participating in the planned tender for a Kuwait Gulf Oil Company (KGOC) project to develop an onshore gas plant, according to industry sources.

    The project budget is estimated to be $3.3bn and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

    Previous meetings with contractors took place at the offices of Technip Energies in Abu Dhabi.

    Contractors that have sent representatives to the meetings include:

    • Samsung E&A (South Korea)
    • Larsen & Toubro (India)
    • Tecnicas Reunidas (Spain)
    • Saipem (Italy)
    • Hyundai Engineering & Construction (South Korea)
    • Hyundai Engineering Company (South Korea)
    • JGC (Japan)

    At the last meeting, contractors were told that the invitation to bid is currently scheduled to be issued at the end of March.

    It was also confirmed that Kuwait’s Central Agency for Public Tenders (Capt) will not be involved in the tender process.

    Capt is supposed to review technical and commercial evaluations of bids and verify that bidding is competitive.

    It is understood that not requiring Capt to approve this tender will speed up the tender process.

    The plant will have the capacity to process up to 632 million cubic feet a day of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

    France-based Technip Energies completed the contract for the front-end engineering and design.

    The facility will be developed next to Kuwait’s Al-Zour refinery.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15717358/main.png
    Wil Crisp
  • Egypt tenders 500MW solar IPP

    19 February 2026

    Register for MEED’s 14-day trial access 

    Egyptian Electricity Transmission Company (EETC) has issued a request for qualifications for a 500MW solar photovoltaic (PV) independent power producer project in Egypt’s West of Nile area.

    The bid submission deadline is 11 May.

    The project is being supported by the European Bank for Reconstruction & Development and will be developed under a build-own-operate model.

    Developers will be responsible for designing, financing, constructing, owning and operating the plant, with EETC acting as the offtaker for generated electricity.

    US/India-based Synergy Consulting is acting as lead, financial and commercial advisor for this transaction.

    The project forms part of Egypt’s strategy to strengthen long-term electricity supply and increase renewable generation capacity.

    Egypt is targeting 42% renewable energy in its power mix by 2030. The country aims to raise this share to 65% by 2040.

    EETC previously had plans to build a 200MW solar plant in a west Nile area but cancelled the tender for the project in 2020.

    Egypt's power sector had its strongest year in over a decade last year, accounting for $4.2bn of total contract awards.

    Despite dipping from the previous year, solar accounted for about $1bn of total awards. 

    In November, a consortium of local firms Hassan Allam Utilities and Infinity Power won contracts to develop two solar PV projects with a combined capacity of 1,200MW, supported by 720 megawatt-hours (MWh) of battery storage.

    The UAE’s Amea Power and Japan’s Kyuden International Corporation also recently reached financial close on a $700m project comprising a 1,000MW solar plant and 600MWh battery system in Aswan.

    The scheme is backed by a $570m debt package led by the International Finance Corporation and is expected to become Africa’s largest single-asset solar and storage facility when it enters operation later this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15701778/main.jpg
    Mark Dowdall
  • Local contractor wins $143m Jeddah sewage contracts

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has awarded two sewage network contracts worth a combined SR536.3m ($143m) to local contractor Civil Works Company.

    The projects will be implemented over 32 months from site handover and will serve northern Jeddah districts.

    The first contract, valued at SR278.5m ($74.3m), covers incomplete main lines and secondary sewage networks serving parts of the Al-Bashair, Al-Asala and Al-Falah neighbourhoods.

    The scope includes pipelines ranging from 200mm to 800mm in diameter with a total length of about 54.8 kilometres (km).

    The package also includes sewage tunnels with diameters ranging from 600mm to 1,800mm and a total length of approximately 6.5km. Works will also serve the Taybah, Abhar Al-Shamaliyah and Al-Hamdaniyah districts.

    The second contract is valued at SR257.8m ($68.8m). It covers the implementation of main lines and sub-networks to serve part of the Al-Hamdaniya neighbourhood.

    The works include pipelines ranging from 200mm to 1,500mm in diameter with a total length of about 78.5km. The scope also includes horizontal drilling works for sewage tunnels with diameters from 1,200mm to 1,400mm and a total length of approximately 205 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699620/main.jpg
    Mark Dowdall
  • Saudi Arabia prequalifies firms for gas transmission grids

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Energy Ministry has prequalified companies to develop natural gas distribution networks in five industrial cities in the kingdom on a build-own-operate (BOO) basis.

    The industrial zones earmarked are Al-Kharj Industrial City; Sudair City for Industry and Business; and the First, Second and Third Industrial Cities in Jeddah, the Energy Ministry said in a statement.

    The contractors prequalified to bid for the natural gas transmission grids BOO scheme include eight standalone firms and seven consortiums:

    • East Gas (Egypt)
    • Natural Gas Distribution Company (Saudi Arabia)
    • Egyptian Kuwaiti Advanced Operation and Maintenance (Saudi Arabia)
    • Modern Gas (Egypt)
    • Saab Energy Solutions (Saudi Arabia)
    • Sergas Contracting (Saudi Arabia)
    • Bharat Petroleum Corporation (India)
    • UniGas Arabia (Saudi Arabia)
    • Best Gas Carrier / Khazeen / Mubadra (Saudi Arabia)
    • Al Sharif Contracting (Saudi Arabia) / Anton Oilfield Services Group (China) China Oil and Gas Group
    • Hulul (owned by Saudi Arabia’s National Gas and Industrialization Company) /Al-Fanar Gas Group (UAE)
    • Indraprastha Gas (India) / Masah Contracting (Saudi Arabia)
    • Expertise Contracting / PGL Pipelines (UK)
    • National Gas Company (Egypt) / Egypt Gas (Egypt)
    • Taqa Arabia (Egypt) / Taqa Group (UAE)

    The Energy Ministry has set a deadline of 23 April for these prequalified contractors to submit technical bids.

    The ministry added in its statement that it has identified a total of 36 industrial cities in Saudi Arabia for gas infrastructure development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699582/main0334.png
    Indrajit Sen