meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

Mena power rides high into 2024

https://image.digitalinsightresearch.in/uploads/NewsArticle/11339767/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Uncertainty increases for Shell’s $3.9bn gas project in Iraq

    11 June 2026

     

    Uncertainty is increasing for phase two of the Basra Gas Company (BGC) expansion project in Iraq amid fallout from the ongoing regional conflict that started when the US and Israel bombed Iran on 28 February.

    BGC is a joint venture of the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), London-headquartered Shell (44%) and Japan’s Mitsubishi Corporation (5%).

    In September last year, the World Bank’s International Finance Corporation (IFC) signed a $500m investment deal with BGC for the phase two project.

    The entire phase two project is estimated to be worth $3.9bn, according to the IFC, which says the money will be spent between 2025 and 2030.

    Of the $500m deal that was signed in September, $300m will be provided directly by the IFC, and this was approved by the IFC’s board on 14 January this year, less than two months before the US and Israel attacked Iran.

    The subsequent conflict and the disruption to shipping through the Strait of Hormuz have created major obstacles for the project, according to industry sources.

    One source said: “Many Western workers that were specialists in the oil and gas sector have now left the country due to security concerns.

    “On top of this, it was originally assumed that required equipment for the project could be brought in through the Strait of Hormuz and that operational cash flows could be relied upon to help fund the project.”

    Due to the major disruption to shipping crude exports through the Strait of Hormuz, Iraq has had to dramatically reduce oil production in the Basra region, and, as a result, associated gas production has declined as well.

    One source said: “Right now, the state-owned oil companies in Iraq are in the midst of a financial crisis and it is unlikely that they will be able to contribute to this project in the way that was originally envisioned.”

    The main focus of the BGC phase two expansion project is a new liquefied petroleum gas (LPG) refrigeration train to increase the overall capacity of the upstream facility, where LPG and condensate are obtained through processing of the associated natural gas.

    The scope of the project also includes the construction of a new 22-kilometre-long, 132kV overhead transmission line, which will help to meet the energy demand associated with the project.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17178691/main.png
    Wil Crisp
  • PIF to work with Egypt’s TMG on Saudi real estate schemes

    11 June 2026

    Saudi Arabia’s Public Investment Fund (PIF) and Egyptian real estate conglomerate Talaat Moustafa Group (TMG) have signed a memorandum of understanding (MoU) to explore collaboration on mixed-use real estate projects across PIF-owned developments in Saudi Arabia.

    The non-binding agreement covers potential cooperation across the residential, commercial, hospitality and retail sectors, as well as integrated urban environments. PIF said the partnership would accelerate project delivery and value creation across its portfolio.

    TMG, which has nearly 55 years of experience developing large-scale integrated cities, communities and hospitality projects across Egypt, brings technical and managerial capacity to the collaboration. The company previously signed an agreement with Saudi Arabia’s National Housing Company (NHC) in early 2024 to develop more than 27,000 residential units at the Banan City project in Riyadh’s Al-Fursan suburb.

    The MoU also establishes a framework to attract additional investors to future project phases and is intended to expand private sector participation as investors, partners and suppliers.

    PIF said the agreement forms part of its broader strategy to diversify Saudi Arabia’s economy and develop its urban development and livability ecosystem – one of six strategic ecosystems under its 2026-30 strategy. That ecosystem spans housing, retail, office and community spaces and essential services.

    The MoU is subject to the satisfaction of certain conditions precedent and receipt of all necessary regulatory and internal approvals.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17181887/main.png
    Colin Foreman
  • Egypt signs $420m Gabal El-Zeit wind agreements

    10 June 2026

    Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.

    Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.

    The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.

    Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.

    The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.

    The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.

    The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.

    According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.

    The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor. 

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg
    Mark Dowdall
  • Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC

    10 June 2026

    Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).

    The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.

    The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.

    In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.

    In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg
    Colin Foreman
  • Saudi Arabia and Turkiye sign railway agreements

    10 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.

    Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.

    Agreement scope

    The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.

    More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.

    The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.

    Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.

    Turkish projects

    Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.

    The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17169958/main.gif
    Colin Foreman