Small reactors top nuclear agenda
25 August 2023
This package also includes: Mena pushes for nuclear future

Small modular reactor (SMR) solutions could offset concerns about capital expenditure, construction delays and spent-fuel reprocessing that large-scale nuclear power plants present.
SMRs are advanced nuclear reactors that have a power capacity of up to 300MW a unit, which is about one-third of the generating capacity of traditional nuclear power reactors, according to the International Atomic Energy Agency.
They can be factory-assembled, transported and installed in locations not suitable for larger nuclear power plants, such as industrial zones or remote areas with limited grid capacity. This makes them more affordable and easier to build than large reactors.
So far, there are only two advanced SMR installations globally, one in China and the other in Russia. The US’ NuScale is also working towards deploying its first modules in Idaho.
Saudi Arabia and Jordan have been considering deploying SMR solutions as part of their nuclear power programmes.
In 2020, King Abdullah City for Atomic & Renewable Energy (KA-Care) and South Korea’s Science & ICT (Information & Communication Technology) Ministry set up a joint venture to undertake the commercialisation and construction of South Korea’s system-integrated modular advanced reactor technology in the kingdom with the help of Korea Hydro & Nuclear Power.
Nuclear energy is having a revival moment as a recognised part of climate mitigation
Karen Young, Centre on Global Energy Policy, Columbia University
Seeking partners
Jordan, for its part, signed an agreement with Russia for the construction of two 1,000MW reactors in 2015, but the project was cancelled three years later.
Jordan is now considering small nuclear reactors and is talking to potential partners including Russia, South Korea, France and the UK to determine the optimal technical specifications and how to adapt the reactors to the Jordanian environment, Khaled Toukan, chairman of the Jordan Atomic Energy Commission, said in April.
Jordan hopes to use small nuclear reactors for water desalination and power production.
“We have done all the studies,” Toukan said at the time. “The infrastructure is in place, and studies on site selection and the provision of cooling water are in place. Now, we are comparing technologies and we want to get the go-ahead from the government.”
According to Karen Young, a senior research scholar at the Centre on Global Energy Policy at Columbia University in the US, “nuclear energy is having a revival moment as a recognised part of climate mitigation”.
She says: “We simply do not have other ways of ramping up non-carbon energy production as easily. Technology innovations in SMRs, among others, make this look like a more viable option.”
However, SMRs are as yet unproven, points out Paddy Padmanathan, co-founder and vice-chairman of green hydrogen firm Zhero. He adds that solar and wind projects with battery energy storage systems cost significantly less, despite the subsidies some governments allocate to nuclear power plant projects.
We simply do not have other ways of ramping up non-carbon energy production as easily
Spent fuel
Regardless of a nuclear plant’s size, the storage or reprocessing of the resulting highly radioactive solid waste is a key safety and environmental concern.
Nuclear reactors require ceramic pellets of low-enriched uranium oxide. These are stacked vertically and encased in metallic cladding to form a fuel rod. The fuel rods are bundled into fuel assemblies that are placed into the reactor.
The fuel pellets remain in the reactors for five or six years of operation, or until the fission process uses up the uranium fuel.
The US, which generates about 2,000 tonnes of spent fuel a year, stores the solid waste across 70 reactor sites in the country. Research and development into how to recycle spent fuel, or to design advanced reactors that could consume it, is also under way.
With 58 nuclear power plants generating over 70 per cent of its electricity, France produces nearly 1,150 tonnes of spent fuel a year. Unlike the US, France recycles spent fuel through a process that converts spent plutonium – formed in nuclear power reactors as a by-product of burning uranium fuel – and uranium into a mixed oxide that can be reused in nuclear plants to produce more electricity.
In Iran, meanwhile, the policy at the 1,000MW Bushehr reactor entails cooling down spent fuel in an onsite pool, a process that takes at least five years. It is then transported in steel cylinders that are welded closed to a central storage location in the country’s Anarak region.
UAE policy
The UAE government is developing a long-term storage policy for spent fuel from its Barakah nuclear power plant, the first reactor of which began producing electricity in 2021. The current plan involves placing the fuel assemblies in concrete and steel-lined cooling pools located at the Barakah plant, after which they will be stored in dry casks either on site or at a long-term storage facility.
According to Emirates Nuclear Energy Corporation, the UAE still has plenty of time to make decisions about spent-fuel management, as the first batch of nuclear fuel will be stored for 20-30 years in the spent-fuel pool.
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Navigating financial markets amid geopolitical fragmentation28 December 2025

As we move towards 2026, geopolitical fragmentation is no longer a background risk that occasionally disrupts markets.
It has become a defining feature of the global financial landscape. Shifting alliances, persistent regional tensions, sanctions and the reconfiguration of supply chains are reshaping how capital flows, how liquidity behaves and how confidence is formed.
For firms operating in the Middle East, this does not simply mean preparing for more volatility. It means operating in a system where the underlying rules are evolving.
For much of the past three decades, businesses and investors worked within a broadly convergent global framework. Trade expanded, financial markets deepened and policy coordination – while imperfect – created a sense of predictability. That environment has changed.
Today, economic decisions are increasingly influenced by strategic alignment, security considerations and political resilience. Markets still function, but they do so in a more fragmented and less forgiving way.
Shifting landscape
One of the most important consequences of this shift is that risk no longer travels along familiar paths. In the past, geopolitical events were often treated as temporary shocks layered onto an otherwise stable system.
Today, they shape the system itself. Trade flows are influenced as much by political compatibility as by cost efficiency. Supply chains, once optimised for speed and scale, are reorganising into regional or allied clusters. Financial markets respond not only to data, but to narratives about stability, alignment and long-term credibility.
This change places greater pressure on firms that rely on historical relationships to guide decisions. Models built on past correlations – between interest rates and equity markets, or between energy prices and regional growth – are less reliable when markets move between different regimes. The challenge is not simply higher volatility, but the fact that correlations themselves can shift quickly.
Monetary policy adds a second layer of complexity. Major central banks are no longer moving in step. The US, Europe and parts of Asia face different inflation dynamics and political constraints, leading to diverging interest-rate paths.
For the GCC, where currencies are largely pegged to the US dollar, this divergence has direct consequences. Local financial conditions are closely tied to decisions taken by the Federal Reserve, even when regional economic conditions follow a different cycle.
This matters because funding costs, liquidity availability and hedging conditions are shaped by global rather than local forces. When US policy remains tight, dollar liquidity becomes more selective. When expectations shift abruptly, market depth can disappear quickly.
For firms with international exposure, long-term investment plans, or reliance on external financing, these dynamics require careful management. They cannot be treated as secondary macro considerations.
Energy markets further complicate the picture. The Middle East remains central to global energy supply, which means geopolitical events often interact with oil prices and financial conditions at the same time.
When shifts in energy expectations coincide with changes in global interest-rate sentiment, liquidity conditions can tighten rapidly. This interaction is well known in academic research on fixed exchange-rate systems, but its practical implications are often underestimated in corporate planning.
Expanding vulnerabilities
These dynamics expose clear vulnerabilities. Concentrated supply chains are more susceptible to disruption. Financing structures dependent on continuous market access are more exposed to sudden repricing. Risk management approaches that assume stable relationships between assets are more likely to disappoint. Operational risks – particularly in technology and data – are increasingly shaped by geopolitical considerations rather than purely technical ones.
At the same time, the region enters 2026 from a position of relative strength. GCC economies benefit from fiscal buffers, long-term investment programmes and a growing perception of stability compared to other parts of the world. In an environment where uncertainty is widespread, predictability itself becomes valuable. Capital increasingly seeks jurisdictions that combine economic ambition with institutional credibility.
The question, therefore, is not whether opportunities exist, but whether firms are prepared to capture them responsibly. This requires a shift in how future risks are assessed and embedded into decision-making. Linear forecasts and static plans are insufficient when the environment itself can change state. Scenario thinking must evolve beyond optimistic and pessimistic cases to reflect different combinations of geopolitical alignment, monetary conditions, and supply-chain stability. These scenarios should inform capital allocation, not sit in strategy documents.
Liquidity and risk management discipline also become central. In both trading and corporate finance, experience shows that many failures stem not from being wrong on direction, but from being overexposed when conditions change. Scaling risk to market conditions, maintaining funding flexibility and understanding how quickly liquidity can evaporate are essential practices. This is as true for corporate balance sheets as it is for trading books.
Operational resilience must be viewed through the same lens. Supply-chain redundancy, cybersecurity preparedness and data governance are no longer purely operational concerns. They influence financial stability, investor confidence and regulatory trust. In a fragmented world, operational disruptions can quickly translate into financial and reputational damage.
Facing the future
As we approach 2026, leadership in the Middle East faces a clear test. The global environment is unlikely to become simpler or more predictable. Firms that continue to rely on assumptions shaped by a different era will find themselves reacting rather than positioning. Those that invest in disciplined risk management, flexible planning and operational resilience will be better placed to navigate uncertainty and to turn volatility into strategic advantage.
In this environment, risk management is not an obstacle to growth. It is the framework that makes sustainable growth possible.
Ultimately – and this is an often overlooked critical point – none of these adjustments, whether in scenario planning, liquidity discipline, or operational resilience, can be effective without the right human capital in place.
Geopolitical fragmentation and financial volatility are not risks that can be fully addressed through models or policies alone. They require informed judgement, institutional memory and the ability to interpret weak signals before they become material threats or missed opportunities.
Firms that succeed in this environment will be those that deliberately invest in corporate knowledge: building internal capabilities where possible and complementing them with external expertise where necessary. This means involving professionals with the right background, cross-market experience and a proven, proactive approach to risk awareness and governance.
In a fragmented world, competitive advantage increasingly depends not only on capital or strategy, but on the quality of people entrusted with understanding risk, challenging assumptions and guiding decision-making under uncertainty.
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Local firm bids lowest for Kuwait substation deal22 December 2025
The local Al-Ahleia Switchgear Company has submitted the lowest price of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s Public Authority for Housing Welfare (PAHW).
The bid was marginally lower than the two other offers of KD35.1m and KD35.5m submitted respectively by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.
PAHW is expected to take about three months to evaluate the prices before selecting the successful contractor.
The project is one of several transmission and distribution projects either out to bid or recently awarded by Kuwait’s main affordable housing client.
This year alone, it has awarded two contracts worth more than $100m for cable works at its 1Z, 2Z, 3Z and 4Z 400kV substations at Al-Istiqlal City, and two deals totalling just under $280m for the construction of seven 132/11kV substations in the same township.
Most recently, it has tendered two contracts to build seven 132/11kV main substations at its affordable housing project, west of Kuwait City. The bid deadline for the two deals covering the MS-01 through to MS-08 substations is 8 January.
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Saudi-Dutch JV awards ‘supercentre’ metals reclamation project22 December 2025
The local Advanced Circular Materials Company (ACMC), a joint venture of the Netherlands-based Shell & AMG Recycling BV (SARBV) and local firm United Company for Industry (UCI), has awarded the engineering, procurement and construction (EPC) contract for the first phase of its $500m-plus metals reclamation complex in Jubail.
The contract, estimated to be worth in excess of $200m, was won by China TianChen Engineering Corporation (TCC), a subsidiary of China National Chemical Engineering Company (CNCEC), following the issue of the tender in July 2024.
Under the terms of the deal, TCC will process gasification ash generated at Saudi Aramco’s Jizan refining complex on the Red Sea coast to produce battery-grade vanadium oxide and vanadium electrolyte for vanadium redox flow batteries. AMG will provide the licensed technology required for the production process.
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Photo credit: SARBV
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