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  Oman signs PPA for 125MW Dhofar 2 wind project

  12 November 2025

  Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) have won a contract to develop the 125MW Dhofar 2 wind independent power project in Oman.

  The contract was awarded by state offtaker Nama Power & Water Procurement Company (Nama PWP) under a 20-year power purchase agreement (PPA).

  Under the PPA, Sembcorp and OQAE will form a joint venture to build, own and operate the wind farm, which will supply power to Nama PWP once operational.

  The equity split will give Sembcorp 75% and OQAE 25%, a source close to the project told MEED.

  Nama PWP said that it will allocate a portion of contracted works for the Dhofar 2 project to Omani small and medium-sized enterprises under its in-country value programme.

  The project is expected to begin commercial operations in the third quarter of 2027.

  The facility, valued at about OR43m ($112m), will be located on a 12-square-kilometre site in Dhofar Governorate.

  The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid via a 400kV substation.

  The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

  It is also expected to generate about 396,754 megawatt-hours and free up around 76 million cubic metres of natural gas annually.

  Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

  According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

  Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies".

  This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

  Oman aims to have 30% of its electricity generation from renewable sources by the same year.

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

  Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

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

  > AGENDA 1: Gulf LNG sector enters a new prolific phase > AGENDA 2:  Mena LNG infrastructure spending rises > INDUSTRY REPORT 1: Region sees evolving project finance demand > INDUSTRY REPORT 2: Iraq leads non-GCC project finance activity > PPPs: NCP showcases private sector project opportunities in Saudi Arabia > GREEN STEEL: Abu Dhabi takes the lead in green steel transition > DIGITISATION: Riyadh-based organisation drives digital growth > LEADERSHIP: Saudi Arabia’s housing boom risks leaving citizens behind  > UAE MARKET FOCUS: Investment shapes UAE growth story

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

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  Mark Dowdall
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  Hitachi wins Alexandria Raml tram systems deal

  12 November 2025

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  Hitachi Rail has announced that it has won a contract related to the modernisation and upgrade of the Alexandria Raml tram network in Egypt.

  Hitachi Rail said it will deliver advanced signalling and communications systems, an operational control centre and supervisory control and data acquisition, security systems with CCTV cameras and access control, passenger information and on-board equipment.

  The contract was awarded by a joint venture of Hassan Allam and Arab Contractors.

  The project scope includes rehabilitating a 13.2-kilometre tram line, constructing a maintenance depot, developing elevated viaducts and upgrading 24 stations.

  The project will reduce journey times from 60 to 35 minutes by increasing the operational speed on the line from 11 kilometres an hour (km/h) to 21km/h. The project will also increase the hourly capacity from 4,700 to 13,800 passengers in each direction. 

  UK analytics firm GlobalData expects the Egyptian construction industry to grow by 6.5% in real terms in 2025, supported by investments in oil and gas, industrial and housing construction projects. According to the Central Bank of Egypt, the country’s average construction production index grew by 5.8% year-on-year in the first 10 months of 2024.

  GlobalData says the construction industry's output is expected to register an annual average growth rate of 8% in 2026-29, supported by investments in commercial, renewable energy and transport infrastructure projects, coupled with the government’s target of developing 10GW of renewable energy projects by 2028 under the Nexus of Water, Food and Energy Programme.

  The infrastructure construction sector is expected to expand by 4.4% in real terms in 2025 and record an annual average growth rate of 7% in 2026-29, supported by government plans to continue its spending on transport infrastructure, ports and terminals.

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  Yasir Iqbal
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  Contract award nears for Al-Ula tram works

  12 November 2025

  

   

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  Saudi Arabia’s Royal Commission for Al-Ula (RCU) is preparing to award the contract to build infrastructure for the tramway at the Al-Ula development.

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

  Contractors submitted revised bids for the scheme in August, as MEED reported.

  It is understood that consortiums were asked to propose self-funded financing arrangements for the project.

  The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions.

  The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.

  In June, MEED exclusively reported that the RCU had asked firms to submit their final offers for a contract to build tramway infrastructure at the Al-Ula development.

  The RCU issued a request for proposals in June last year and received commercial bids for the project on 10 November.

  France’s Systra is the consultant.

  In October 2023, the RCU announced that France’s Alstom will supply rolling stock and systems for the Al-Ula tram scheme.

  The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.

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  Yasir Iqbal
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  Contractors submit bids for $1.4bn Kuwait oil pipeline

  12 November 2025

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  A low bid of KD419m ($1.4bn) has been submitted on an oil pipeline project in Kuwait, according to figures published by the country’s Central Agency for Public Tenders (Capt).

  The bid was submitted by local contractor Alghanim International General Trading & Contracting.

  The contract was tendered by state-owned upstream operator Kuwait Oil Company (KOC) and covers the construction of crude oil pipelines and associated works.

  The full list of bidders and prices is:

  • Alghanim International General Trading & Contracting – KD419m ($1.4bn)
  • Mechanical Engineering & Construction Company – KD422.5m
  • Al-Dar Engineering & Construction Company – KD425.7m
  • Combined Group Contracting Company – KD502m
  • Heisco – KD506.1m
  • Sayed Hameed Behbehani & Sons – KD674m

  Kuwait is trying to boost project activity in its upstream sector.

  The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

  In August, Kuwait announced that it was producing 3.2 million b/d.

  Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

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  Wil Crisp
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  Energy Development Oman and Sumitomo form joint venture

  11 November 2025

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  State-owned Energy Development Oman (EDO) has entered into a joint venture with Japan’s to establish a supply chain management entity in the sultanate.

  The company will be the first of its kind in Oman and will be based in Duqm, located in Al-Wusta Governorate on the sultanate’s geopolitically strategic Indian Ocean coast.

  The new company aims to provide supply chain management services to the energy sector in Oman, starting with the oil country tubular goods (OCTG) supply chain, with other energy-related products and services to be added, not least for the hydrocarbons value chain but also for renewables and other types of energy development.

  “This strategic partnership marks a key step in strengthening the national energy ecosystem through investment in local content development, the advancement of industrial value chains and the growth of Omani talent, while positioning Duqm as a central hub for logistics and energy-related industries,” .

  “Anchored in Duqm’s strategic location at the crossroads of Asia, Africa and the Middle East, the partnership will elevate the role of supply chains from a supporting function to a driver of economic growth, connecting investment, industry and innovation under one integrated framework,” EDO said.

  ALSO READ: EDO signs agreement with Chinese firm

  EDO was established by the Omani government in December 2020 through Royal Decree 128/2020.

  The decree allowed EDO to assume control of the Omani government’s share in Petroleum Development Oman, which has exclusive oil and gas exploration and production rights in Block 6 – the largest hydrocarbons concession in the sultanate.

  EDO owns the majority 60% equity stake in Block 6, 100% of the Block 6 non-associated gas concession and 100% of Hydrogen Oman.

  Sumitomo said in a statement: “For over 20 years, Sumitomo Corporation has supplied OCTG used in oil and gas extraction to Petroleum Development Oman, a subsidiary of EDO and the largest national oil company in Oman. Through supply chain management services such as inventory management, maintenance and just-in-time delivery on behalf of its customers, Sumitomo Corporation has realised an efficient and stable supply system.

  “This venture symbolises the deepening strategic partnership between Oman and Japan in the energy sector. It underscores both organisations’ mutual commitment to enhancing the resilience of Oman’s energy infrastructure and fostering long-term, sustainable growth,” Sumitomo added.

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  Indrajit Sen