Sustainability drives water investments
29 December 2023

Growing water scarcity that could imperil long-term economic expansion plans in much of the Middle East and North Africa region continues to drive investments in improving the sector’s capacity and efficiency.
This spending covers projects to increase water desalination and water treatment capacity to meet growing demand more sustainably, as well as water transmission pipeline projects to reduce water loss and improve sanitation.
Other projects, such as reservoirs and district cooling, are also picking up as national and municipal governments work to improve water security and reduce the carbon footprint of buildings.
Across the five sub-sectors, an estimated $22bn-worth of contracts were awarded between January and November 2023. This is nearly twice the previous year’s figure, according to data from regional projects tracker MEED Projects.
Saudi Arabia accounted for 43 per cent of the total contracts awarded, followed by the UAE at 23 per cent.
Key awards
Recent months have seen the award of several pioneering projects.
Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company (Taqa) awarded a 30-year build-own-operate-transfer (BOOT) contract for the first phase of Project Wave to a team of Egypt’s Orascom Construction and Metito in May this year. The scheme will replace the current aquifer water injection systems used to maintain reservoir pressure in all onshore oil fields in Abu Dhabi. It is expected to reduce the water injection-related energy consumption of the oil fields by up to 30 per cent.
The same month, a consortium including the local Alkhorayef Water & Power Technologies Company won a contract worth SR7.78bn ($2bn) to develop and operate the first independent water transmission pipeline (IWTP) project in Saudi Arabia. The Rayis-Rabigh scheme will be 150 kilometres (km) long and transmit 500,000 cubic metres a day (cm/d) of drinking water between the two municipalities.
Morocco’s National Office of Electricity & Drinking Water (Onee) also awarded a contract to develop and operate the first phase of a seawater reverse osmosis (SWRO) desalination plant in Grand Casablanca – the first major independent water producer (IWP) scheme in the country. A team of Spain’s Acciona and the local Afriquia Gaz and Green of Africa won the 30-year build-operate-transfer contract for the scheme, which will require a total investment of $875m.
State utility Dubai Electricity & Water Authority (Dewa) awarded the contract for its first IWP to Saudi-based utility developer Acwa Power. The Hassyan 1 IWP, which has a capacity of 180 million imperial gallons a day (MIGD), will require an investment of AED3.36bn ($914m).
Neom and its subsidiary Enowa have also awarded over $900m-worth of water utility contracts in the first 11 months of 2023, while Saudi Aramco awarded the $750m Jafurah water desalination project to a local consortium of Al-Bawani, Mowah Company and Lamar Holding.
While the majority of the contracts awarded in 2023 were procured on an engineering, procurement and construction (EPC) basis, the largest individual contracts are schemes that are being implemented using the public-private partnership (PPP) model.
Saudi Arabia accounted for 43 per cent of the total water contracts awarded, followed by the UAE at 23 per cent
Future projects
Data from MEED Projects shows that close to $75bn of projects are in the pre-execution phase, with a third of this total already in the bidding stage.
Water transmission and pipeline projects account for about 35 per cent of the planned and unawarded projects, followed by water desalination and water treatment plants, which each have a share of approximately 25 per cent.
With its population expected to reach 50 million by 2030, Saudi Arabia accounted for more than 43 per cent of the planned and unawarded water projects in the Mena region.
Water offtaker Saudi Water Partnership Company (SWPC) plans to procure 50 independent water infrastructure projects, according to its latest Seven-Year Statement covering the years 2022-28.
In terms of water desalination capacity, SWPC plans to procure 3.5 million cm/d of capacity based on its 2022-28 plan, exclusive of the Ras Mohaisen IWP which is under bid. The Saline Water Conversion Corporation (SWCC) has also initiated several SWRO projects that are being procured using an EPC model.
Together, SWCC and SWPC, in addition to the National Water Company and its spin-off Water Transmission & Technologies Company, account for a projects pipeline of more than $20bn, or more than a quarter of the total.
Neom and Enowa are emerging as major water project clients, with each having planned projects valued at about $3bn. Enowa is the client for the planned zero liquid discharge SWRO plant in Neom, which will be developed by a team of Japan’s Itochu and France’s Veolia. The project has an estimated budget of $1.5bn.
Going forward, the largest potential client is Dubai Municipality, which has restarted a major project known as the Deep Tunnels Portfolio. The estimated $22bn scheme will be developed as a public-private partnership (PPP) initiative and will involve developing assets across the city of Dubai and Hatta.
The scheme involves the construction of two sets of deep tunnels terminating at two terminal pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta. The scheme also includes recycled water distribution systems connected to the STPs.
Qatar is also expected to resume projects activity in 2024. In addition to the water desalination component of the Facility E independent water and power project, Qatar’s Public Works Authority (Ashghal) is expected to issue the request for proposals for four contracts that make up the South of Wakrah and New District of Doha pumping station and outfall scheme in the first quarter of 2024.
In the UAE, Adnoc and Taqa are also expected to start the procurement process for the second phase of Project Wave in 2024. As with the Mirfa seawater treatment plant, the Al-Nouf facility will be developed and maintained as a BOOT project.
Egypt’s plan to procure renewable energy-powered water desalination plants will provide investors and local contractors with opportunities in the coming months or years. In May, the Sovereign Fund of Egypt disclosed that 17 teams and companies had been qualified to bid for the contracts to develop up to 8.85 million cm/d of renewable energy-powered desalination capacity in the country. The tender for the first phase of these projects is expected to be issued soon.
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WEBINAR: End-of-Year Mena Market Review13 November 2026
Webinar: The big questions shaping the Gulf market. You decide what gets debated.
Tuesday 24 November 2026 | 11:00 AM GST | Register now
What makes this session particularly interesting is that the audience gets to decide the agenda. Registrants can vote for the topics they’d like Ed and Colin to debate, with the most popular questions forming the final shortlist for the live session.
Topics in the ballot:
- Is the Gulf trying to build too much, too quickly?
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The session will also feature live audience polling and Q&A, giving attendees an opportunity to share their views.
Hosted by:
Edward James, head of content and analysis at MEED
A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today, he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region.
Colin Foreman, editor of MEED
Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.https://image.digitalinsightresearch.in/uploads/NewsArticle/21380319/main.gif -
Syntys breaks ground on 20MW Qatar data centre13 November 2026
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Qatari data centre developer Syntys has broken ground on a 20MW facility to support hyperscale, cloud, artificial intelligence (AI) and advanced computing deployments.
The groundbreaking ceremony took place on 12 November. It was attended by Qatar’s Communications & Information Technology Minister, Mohammed bin Ali bin Mohammed Al-Mannai, along with representatives from Ooredoo Group, Microsoft, Google, Kahramaa, the National Cyber Security Agency, Qatar Free Zones Authority and local banks.
Syntys said the facility is being developed on an existing company campus, where power, fibre connectivity and an operational team are already in place. The company has yet to disclose the project value or planned completion date.
The facility is designed to meet Tier 3 requirements and accommodate a range of rack densities, including higher-density configurations for graphics processing unit (GPU)-based AI and high-performance computing workloads.
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The company also designs and operates the facilities supporting Ooredoo’s sovereign AI cloud, which uses Nvidia Hopper GPUs.
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The data centre is expected to support the growth of in-country digital services and enable sensitive workloads to remain within Qatar’s national borders.
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Jereh wins $392m Bu Hasa oil field facilities project13 November 2026
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The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has awarded China’s Jereh Group a contract valued at AED1.44bn ($392.1m) for the engineering, procurement and construction (EPC) of wellhead surface facilities and flowlines at the Bu Hasa cluster of oil fields in Abu Dhabi.
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The framework agreement awarded by Adnoc Onshore on a call-off basis has a duration of 36 months, with an extendable option of 24 months, Jereh said in a filing with China’s Shenzhen Stock Exchange, where it is listed.
Adnoc Onshore is Adnoc Group’s largest production subsidiary, accounting for about 2 million barrels a day (b/d) of crude and about 7 billion cubic feet a day of associated gas from four primary onshore asset clusters: Bab, Bu Hasa, North East Bab and South East.
Maintaining and enhancing oil output levels at the Bu Hasa asset is critical to Adnoc Onshore’s contribution to parent company Adnoc Group’s target of expanding crude oil production capacity to 5 million b/d by 2027, an initiative known as Accelerated Integrated Programme 5. The state energy company’s total production capacity currently stands at approximately 4.85 million b/d.
Prior to this contract, Adnoc Onshore selected Jereh Oil & Gas Engineering Company in 2024 for a project to digitally connect 2,443 wells at the Bab, Bu Hasa and South East cluster of onshore oil fields in Abu Dhabi for remote operations. The contract, formally awarded in 2025, was valued at $920m.
Abu Dhabi contracts
The contract for the Bu Hasa wellhead facilities and flowlines is among a trio of projects totalling approximately $2.7bn that has been awarded by Adnoc Group in recent weeks, Jereh announced in its stock market filing.
The largest of the three contracts, valued at $1.7bn, is for the Ruwais Diyab unconventional gas development in Abu Dhabi. Awarded to Jereh on a design, build and operate model, the contract has a duration of 29 months for construction works and 60 months of operations, with up to two five-year extensions available.
Adnoc achieved final investment decision on the Ruwais Diyab unconventional gas development project on 2 November, during the Abu Dhabi International Petroleum Exhibition and Conference 2026.
The project will deliver 345 million standard cubic feet a day (scf/d) of raw gas from 2029 over a 25-year period, with the potential to reach up to 1 billion scf/d in the future.
The scope of work on the Ruwais Diyab project covers:
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The plant will treat the raw gas and recover the liquids produced with it. It will also treat produced water, which is the water that comes up from the wells with the gas, and recover sulphur. Finished products will be delivered to designated receiving facilities.
When the operation period ends, Jereh will either hand the facilities over to Adnoc or decommission them and restore the site, as the contract and the owner require.
The third contract covers Adnoc Onshore’s Bab and North East Bab 1 tie-in project, where the main scope of work involves tying in new oil producer wells and removing and modifying surface facilities at existing producer wells.
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MEED previously reported that Adnoc Onshore had divided the scope of work on the Bab and North East Bab 1 tie-in project into 18 EPC packages. Along with Jereh, Adnoc Onshore has picked Abu Dhabi-based Robt Stone Middle East for a portion of work on the project.
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PDO awards contract for Al-Ghubar oil field project12 November 2026

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Petroleum Development Oman (PDO) has awarded the main contract for a project to build a facility to handle additional oil production from the Al-Ghubar field in the sultanate.
The Al-Ghubar field is located in the Ghaba Salt Basin at Qarn Alam, within majority state-owned PDO’s Block 6 concession area.
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China-based Jereh Group has won the contract for the Al-Ghubar GOGD facility project, sources told MEED.
A project kick-off meeting between PDO and Jereh has also recently taken place, the sources said.
MEED previously reported that Jereh had emerged as the lowest bidder for the project.
The following contractors, among others, are understood to have been bidding for the Al-Ghubar GOGD facility project:
- Engineering for the Petroleum & Process Industries (Egypt) / Petrojet (Egypt)
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- Larsen & Toubro Energy Hydrocarbon (India)
PDO floated the tender for the Al-Ghubar GOGD facility project in March, setting an initial bid submission deadline of 4 May, MEED previously reported.
PDO later extended the deadlines for the submission of technical and commercial bids to 26 July and 7 August, respectively. Contractors submitted technical proposals by the revised deadline, according to sources.
After receiving the technical bids for the project in July, PDO granted contractors until 16 August to submit commercial bids. It eventually extended the deadline to 1 September, with contractors submitting commercial proposals by that date, as MEED reported.
The scope of work on the Al-Ghubar GOGD project covers the engineering, procurement and construction (EPC) of the following:
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PDO previously intended to tender the Al-Ghubar GOGD project under its framework structure with selected EPC contractors, but ultimately tendered it separately.
PDO is the operator of Oman’s Block 6 hydrocarbons concession, the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields. PDO produces approximately 680,000 barrels a day of oil and condensates from the fields.
The Omani government holds a 60% stake in PDO through Energy Development Oman. The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).
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Laing O’Rourke joins the international exit list12 November 2026
Commentary
Colin Foreman
EditorRegister for MEED’s 14-day trial access
Laing O’Rourke’s decision to seek a buyer for its Middle East business marks the end of an era for UAE construction.
In the early 2000s, the contractor was among the leading names in the market. Its work at Dubai International airport, the Atlantis hotel on the Palm Jumeirah and the ski slope at Mall of the Emirates made it arguably the UAE’s most prominent contractor during the pre-global financial crisis construction boom.
Its activities were not limited to Dubai. A partnering agreement with Aldar for Al-Raha Beach then made it the most active contractor in Abu Dhabi almost overnight.
The global financial crisis changed its fortunes. The Aldar Laing O’Rourke joint venture ended. Unsettled by payment problems and wider stress in the industry, the company took a more cautious approach to clients and projects in the region. One executive at the time told MEED: “You might see lots of tower cranes, but none of them are doing work that we would want to do.”
The contractor’s appetite partially returned in the late 2010s, when it won Al-Wasl Plaza at the Expo 2020 site in Dubai. It also became a leading player in the growing data centre market, delivering facilities for repeat clients, including Khazna and Equinix.
Data centres have since been its focus. These are significant projects, but they lack the public profile of the airport, Atlantis and Al-Wasl Plaza. As its profile faded, the company sold its UAE joinery arm to Dubai-based Arco Turnkey Solutions in 2025.
Laing O’Rourke now looks set to follow other international contractors that have, for various reasons, left the region, including Murray & Roberts, Balfour Beatty, Multiplex, Carillion and Bam. With a record £17.2bn order book anchored by UK and Australian infrastructure, the group’s priorities clearly lie elsewhere.
Whoever buys the business will inherit strong data centre credentials. For much of the market, however, Laing O’Rourke will be remembered for the landmark projects that defined the UAE’s boom years.
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