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  • Kuwait shows tentative signs of economic development Administrator

    7 August 2026

     

    Kuwait was one of the chief targets of Iranian drone and missile strikes during July, but against the backdrop of regional instability, the Kuwaiti authorities also managed to conclude a series of significant deals during the month. That suggests that, if the US and Iran can come to some sort of agreement to end their conflict, there is the potential for the Kuwaiti economy to diversify and expand in a way that it has, until now, struggled to do.

    The sense of nascent progress was bolstered in early August, when a survey of local businesses found that the non-oil sector had returned to growth at the start of the third quarter, having been in a slump since the start of the war. However, the risk of renewed fighting means most observers remain deeply cautious about whether the latest purchasing managers index (PMI) is just a blip, or the start of a longer trend.

    Debt deals

    The first big deal came on 22 July, when the government sold $6bn-worth of bonds. It was the second debt issuance by the authorities since a long-awaited public debt law was passed by decree last year. The latest package included debt with tenors of three, five and 10 years. In a sign of the turbulent geopolitical environment, the bonds were priced at 70-85 basis points over US Treasuries. Notably higher than the 40-50 basis point spread the government achieved in its bond sale late last year.

    The second significant development came just a few days later, with Kuwait Oil Company (KOC) unveiling a $16bn deal with international investors Blackstone, Brookfield and KKR for its crude oil pipeline network. In a similar structure to deals struck in the past by Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco, KOC will lease the country’s domestic and export pipelines to a new joint venture it has set up with the trio of international partners. The Kuwaiti energy company will then lease back the pipelines on an exclusive basis, in return for a volume-based tariff.

    KOC will have a 51% stake in the joint venture and – in line with Kuwaiti law – will retain full ownership and operational control of the 320-kilometre network.

    It was the largest energy infrastructure deal ever agreed in Kuwait and, according to KOC, the largest foreign direct investment made in the country. The $7.85bn that the three international partners will invest upfront will be used to support KOC parent company Kuwait Petroleum Corporation’s wider capital expenditure plans.

    The fact that the country was able to secure the deal at a time when its only existing export route – through the Strait of Hormuz – has been effectively closed off is an important vote of confidence by investors in the country’s longer-term prospects. According to energy consultancy Wood Mackenzie, Kuwait’s crude export volumes had fallen from 1.2 million barrels a day before the year to zero in April.

    It was the largest energy infrastructure deal ever agreed in Kuwait and, according to KOC, the largest foreign direct investment made in the country

    UK-based Oxford Economics noted that the bond issue and the pipeline deal came at a time when Kuwait “faces elevated fiscal funding needs and remains one of the GCC’s most exposed oil exporters to any disruption in the Strait of Hormuz given its limited alternative export infrastructure”.

    Blackstone said it also plans to open an office in Kuwait this year. There was a further show of investor interest in early August, when the Kuwait Investment Authority (KIA) reportedly agreed a $4.25bn, three-year loan from a group of 14 banks. The facility will be used for general corporate purposes, according to Bloomberg.

    In a further notable development, Kuwait’s Ministry of Public Works also handed a contract in late July to China State Construction Engineering Corporation (CSCEC) to build the country’s largest wastewater treatment plant. The North Kabd plant will have a capacity of up to 1 million cubic metres a day (cm/d). Kuwaiti water desalination plants have been hit on several occasions by Iranian drones during this year’s war, causing fires and other damage.

    Policy reforms

    On a smaller level, some notable reforms have been rolled out to try to shape the direction of the non-oil economy too. In late July, the Ministry of Commerce & Industry stopped issuing any more sole-trader or freelance business licences, while a review is carried out into the sector and official oversight is tightened.

    The authorities went a step further on 2 August, when a decree was issued to stop businesses offering goods and services without the right sort of licence. Anyone found to be working without the required permit could now face a prison term of up to three years and a fine of up to KD100,000 ($323,000) – or a sum equivalent to the profits generated by the unlicensed activity, whichever is greater.

    Some steps have been taken to ease restrictions in other areas. In early August, a change to the visa system was announced that will allow some foreign nationals to convert a visit visa into a regular residency permit in return for a fee of KD150. The measure proved immediately popular, but many applicants had failed to read the small print and, according to local media reports, several hundred were rejected. The scheme is primarily aimed at those seeking to bring their wives or children to Kuwait, as well as humanitarian cases and others with exceptional circumstances.

    Economic recovery

    The wider economy is showing tentative signs of improvement. The latest PMI survey delivered an unexpectedly strong result, showing that the non-oil private sector returned to growth in July for the first time since the war began.

    S&P Global Market Intelligence, which compiles the index, said the resumption of flights at Kuwait International airport had helped to support a rise in output and new orders – the first for five months. That in turn supported greater purchasing and hiring activity by local businesses and took the index up to 50.8 points – just above the 50-point threshold that separates growth from contraction.

    Even so, S&P warned that market conditions remain “challenging” while local bank NBK Capital warned in early August that “it remains to be seen how much of this improvement [in the PMI] will be sustained … following the reescalation in US-Iran tensions in the past weeks”.

    If the Kuwaiti economy is to make the most of its potential, the country needs the war between Iran and the US to come to a definitive end.

    MEED’s September 2026 report on Kuwait also includes:

    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > CONSTRUCTION: Kuwait construction holds up despite regional strife

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    Dominic Dudley
  • Contractors submit bids for Adnoc Onshore field facilities project Administrator

    7 August 2026

     

    Contractors have submitted technical bids to Abu Dhabi National Oil Company’s onshore business (Adnoc Onshore) for a key project to build on-plot and off-plot facilities at the Rumaitha and Shanayel fields, part of the Northeast Bab cluster of oil fields in Abu Dhabi.

    The project aims to enhance and sustain oil production at the Rumaitha and Shanayel fields at a rate of 45,000 barrels a day (b/d). It forms part of Adnoc Onshore’s contribution to parent company Adnoc Group’s broader objective of increasing oil production capacity to 5 million b/d by 2027 through its Accelerated Integrated Programme 5 (AiP5). Adnoc Group currently has a production capacity of 4.85 million b/d.

    Contractors submitted technical bids for the project by the final deadline of 5 August set by Adnoc Onshore, according to sources.

    Adnoc Onshore issued the main tender for the engineering, procurement and construction (EPC) works package for the Rumaitha and Shanayel on-plot and off-plot facilities project on 19 June, MEED previously reported.

    Prior to that, Adnoc Onshore issued an expression of interest for the Rumaitha and Shanayel on-plot and off-plot facilities project in early December, with contractors submitting their responses later that month, MEED previously reported.

    The prequalification and ongoing tendering process is understood to result from Adnoc Onshore revising its strategy for executing EPC works on an earlier, larger project covering the Northeast Bab cluster, which comprises the Al-Nouf, Rumaitha and Shanayel fields.

    MEED reported in December that Adnoc Onshore cancelled an engineering, procurement and construction management (EPCm) phase it launched in 2024 for the Northeast Bab on-plot and off-plot facilities project, in favour of executing the scheme under a conventional EPC model.

    The operator awarded a contract to state-owned China Petroleum Engineering & Construction Corporation (CPECC) to carry out EPCm services for the Northeast Bab off-plot facilities package in October 2024. However, the contract was subsequently cancelled.

    Separately, Adnoc Onshore received bids during the second quarter of 2025 for the EPCm tender covering the Northeast Bab on-plot facilities package, but that procurement process was also later cancelled.

    Project scope of work

    The detailed scope of work on the Rumaitha and Shanayel on-plot and off-plot facilities project is as follows:

    On-plot facilities:

    • Oil train: One new oil train with slug catcher, two-stage separation, desalting, exchangers for crude heating and stabilisation, and all associated interconnections, utilities and civil/structural works, etc.
    • Produced water treatment (PWT): New produced water treatment package to enable 100% produced water reinjection (PWRI), including chemical dosing, tanks, pumps, all associated controls and blending with aquifer water, etc.
    • Water injection system: New water injection system, including surface water injection pumps, necessary connections and controls from produced water systems, headers, chemical dosing, power and controls, etc.
    • Gas handling and export:
      • Low-pressure gas compression system
      • Medium-pressure gas compression system
      • Gas dehydration and regeneration system
      • Export gas compression system
    • Utilities and offsites: Plant air and instrument air systems, nitrogen generation system, potable water system, vapour recovery system (liquid ejector package), fuel gas import and distribution, closed and open drain systems, hot oil heater, snuffing nitrogen package, enclosed ground flare systems (high-pressure and tank flares), etc.
    • Modifications in existing systems, including, but not limited to, installation of a slug catcher at phase-I, connectivity of gas systems, water systems, existing high-pressure compressors modifications, etc
    • Electrical, instrumentation and control, and safety: Electrical systems, instrumentation and control system (ICSS, F&G system, field instrumentation, HIPPS, etc.), substation and ITR room building, fire water system, etc.
    • Overhead line (220 kV): Installation and extension of overhead lines and 220 KV GIS compound or equivalent power distribution solutions to the central processing plant and other designated areas, as necessary.

    Off-plot facilities:

    • New gas-lifted oil producers and water injectors installation with necessary piping, controls, etc. and their connections to the new or existing clusters and pipeline networks
    • New clusters with facilities such as control panels, ITR, production and test manifolds, headers, chemical injection skids, multiphase flow meters, closed drain systems, HIPPS valves, WHCPs, pig traps, ICSS/telecom extensions, etc.
    • Modifications in existing clusters, including the addition or extension of manifolds, headers, additional pipelines with pig traps, ICSS/telecom extensions, chemical injection kids, etc.
    • Gathering and injection networks: Construction of new and modified oil gathering and water injection trunklines/laterals, pigging facilities (launchers/receivers), valve stations, block valves, corrosion protection and monitoring, and all associated equipment, etc.
    • Export gas pipelines and Adnoc Gas interface: Provision for export gas pipeline and facilities from Rumaitha central processing plant to new manifold station and from NMS to Adnoc Gas, including isolation/blowdown, etc.
    • Overhead line: Installation and extension of 33kV overhead lines to clusters, etc., as required.

    The tendering exercise for the Rumaitha and Shanayel on-plot and off-plot facilities project is taking place as Adnoc Onshore continues to make progress with EPC works on another, similar project to build off-plot facilities at the Southeast cluster of oil fields in Abu Dhabi, which is also integral to Adnoc Group’s AiP5 campaign.

    The Southeast cluster comprises the Asab, Mender, Qusahwira, Sahil and Shah fields and accounts for approximately a third of Adnoc Onshore’s oil production capacity.

    MEED previously reported that Adnoc Onshore had awarded EPC works on the Southeast off-plot facilities project to state-owned China Petroleum Engineering & Construction Corporation (CPECC), with the value of the contract estimated to be around $1.2bn.

    The overall scope of work on the Southeast off-plot facilities project includes tying in more than 150 wells across the area’s fields, upgrading remote and central degassing stations, laying more than 270 kilometres of flowlines, digitising wells for remote monitoring, and implementing artificial intelligence-driven telemetry technologies.

    MEED also recently reported that CPECC awarded subcontracts on the Southeast off-plot facilities project, in its capacity as the main EPC contractor.

    The off-plot facilities project is a component of the overall $2bn-$3bn Southeast AIP5 development, with the on-plot facilities project forming the other part of the programme.

    CPECC is also performing EPC works on the Southeast on-plot facilities project in a consortium with Greece-headquartered Archirodon. Adnoc Onshore awarded an estimated $1.5bn contract for that project to the consortium in December 2024, with EPC works scheduled for completion in 2027.

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    Indrajit Sen
  • Consultant progresses work on Petro Rabigh project Administrator

    7 August 2026

     

    Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) is overseeing progress on a project to build additional units at its integrated refining and petrochemical complex in Rabigh, on the kingdom’s Red Sea coast.

    Petro Rabigh, which is majority-owned by Saudi Aramco, appointed Australia-headquartered Worley to provide engineering and project management consultancy (PMC) services for the project in the first quarter of this year, sources told MEED.

    The overall scope of work on the project covers the construction of the following units:

    • Light naphtha isomerisation unit
    • De-asphalting and dewaxing unit
    • Ebullated bed configuration
    • Sulphur block (SRU/ARU/SWS/SFU)
    • Sales gas allocation and pipeline construction
    • Utilities unit outside battery limit
    • Auxiliary piping modifications
    • Utility and hydrocarbon tie-ins.

    Under the contract, the consultant will perform engineering studies and PMC functions, and assist the client in developing cost estimates and project-specific execution and technical procedures, based on Aramco guidelines for both the design basis scoping paper (DBSP) stage and, subsequently, the front-end engineering and design (feed) stage.

    Petro Rabigh will draw on the consultant’s advice on design, procurement and the development of new processing technologies, including for light naphtha isomerisation; vacuum residue processing technologies such as de-asphalting and dewaxing; an ebullated-bed configuration integrated with the diesel hydrotreating section; and unconverted oil hydrotreatment.

    According to sources, Petro Rabigh issued the tender for engineering and PMC services for the additional units project on 30 May last year.

    It set an initial bid submission deadline of 29 June last year, which it then extended to 17 July and again to 24 July, with engineering firms submitting their proposals by that date, sources said.

    Following months of evaluation, discussions and negotiations with bidders, Petro Rabigh selected Worley for the contract.

    Red Sea downstream complex

    Petro Rabigh was originally established in 1989 as a basic topping refinery with crude oil processing facilities in Rabigh, along Saudi Arabia’s Red Sea coastline, about 165 kilometres to the north of Jeddah in Mecca Province.

    Saudi Aramco and Japan’s Sumitomo Chemical Company formed an equal joint venture in 2005 to transform the Petro Rabigh crude oil refining complex into an integrated refinery and petrochemicals complex, with the strategic objective of expanding Saudi Arabia’s annual production capacity of refined products and petrochemicals.

    Three years after the creation of the Petro Rabigh joint venture, the partners floated 25% of its shares in an initial public offering on the Saudi Stock Exchange (Tadawul) in 2008, following which Aramco and Sumitomo Chemical each held 37.5% shares in Petro Rabigh, with the remaining shares listing on the Tadawul.

    In October last year, however, Aramco completed the acquisition of an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical. Following the completion of the transaction, valued at $702m or SR7 a share, Aramco became the majority shareholder in Petro Rabigh, with an equity stake of 60%, while Sumitomo retains an interest of 15%. The remaining 25% shares of Petro Rabigh continue to trade on the Tadawul.

    ALSO READ: Petro Rabigh and Indian firm to study joint project investment

    Following the formation of the Petro Rabigh joint venture in 2005, Aramco and Sumitomo Chemical launched the expansion of the refining facility into an integrated refining and petrochemicals complex in 2006, investing $9.8bn in the project, 60% of which was secured through external financing. Engineering, procurement and construction works on phase one were completed in 2009, with the integrated downstream complex entering operations in November of that year.

    The Petro Rabigh downstream complex consists of a topping refinery that has a 340,000 barrel-a-day (b/d) crude distillation unit, a 47,000 b/d hydrotreater, a 12 million cubic-feet-a-day hydrogen plant, a 75,000 b/d naphtha merox unit and a 60,000 b/d kerosene merox unit, along with supporting utilities, product tankage and a marine terminal.

    Aramco and Sumitomo Chemical initiated Petro Rabigh’s phase two expansion project, valued at $8bn, in 2014. The second expansion phase was commissioned in 2018 and added 15 chemicals plants to the Petro Rabigh complex, raising the facility’s total production capacity to 18.4 million tonnes a year (t/y) of petroleum-based products.  

    The expansion also increased Petro Rabigh’s capacity to process an additional 30 million cubic feet a year of ethane into 2.4 million t/y of ethylene and propylene-based derivatives, and achieved a naphtha output of 3 million t/y.

    Expansion of the main existing chemicals plant and the establishment of a clean fuels complex comprising polyether polyols, naphtha treating and sulphur recovery units were also part of the phase two project.

    In addition to awarding Worley the engineering and PMC services contract this year, Petro Rabigh awarded US-based KBR a 10-year contract in February this year to provide maintenance services covering the company’s polymer plants in Rabigh, on the kingdom’s Red Sea coast.

    Work on the operations and maintenance contract will be executed by KBR’s  business line, which operates under the Houston-headquartered firm’s Technology Solutions portfolio, sources told MEED.

    Prior to this contract, in March 2024, Petro Rabigh awarded KBR a similar five-year asset condition monitoring programme contract. As part of that job, KBR is to provide predictive maintenance services at Petro Rabigh’s main plant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18197902/main3022.jpg
    Indrajit Sen
  • Bahrain opens Northern Link Road prices Administrator

    7 August 2026

    Three international consultancy firms have opened price bids for a contract to provide transaction advisory services on the Bahrain Northern Link Road (BNLR), a highway the government intends to deliver on a public-private partnership (PPP) basis.

    The Bahrain Tender Board opened the financial proposals on 6 August. Local units of KPMG, PriceWaterhouseCoopers (PwC) and Ernst & Young (EY) submitted bids, all of which were accepted.

    PwC Bahrain submitted the lowest price at BD1.92m ($5.1m), followed by EY Consulting at BD2.26m ($6m) and KPMG Advisory at BD3.89m ($10.3m).

    The selected adviser will provide financial, technical and legal advisory services, including feasibility studies, project structuring and bid documentation, along with support through tendering, evaluation and negotiation, and assistance up to financial close.

    The 29.5-kilometre highway will run from North Manama Causeway Bridge to Suhaila Island and onwards to King Hamad Causeway. The project is intended to serve as a parallel east-west corridor to Sheikh Isa Bin Salman Highway and to support traffic flow between Khalifa Bin Salman Port and Saudi Arabia.

    Causeway connection

    The BNLR will connect to the planned King Hamad Causeway. Earlier project plans, drawn up in 2016, included an arterial road with six or eight lanes that could run alongside a light rail or rapid bus transit system.

    In October 2019, King Fahd Causeway Authority appointed a consortium to provide transaction advisory services for King Hamad Causeway. The $8.9m consultancy agreement was signed with a consortium of Netherlands-headquartered KPMG, US-based Aecom and UK-based CMS. The plan was for the project to be funded by tolls, as with the existing King Fahd Causeway.

    The King Fahd Causeway opened in 1986 and extends for 25km. The bridge cost an estimated $1.2bn to construct and serves about 45,000 vehicles a day on average, rising to about 60,000 at weekends. It has been undergoing an expansion to ease severe congestion during peak periods.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18198641/main.jpg
    Colin Foreman
  • Seven opens entertainment complex in Abha Administrator

    7 August 2026

    Saudi Entertainment Ventures (Seven) has opened its integrated recreational complex in Abha, the first of 14 entertainment destinations the company plans to develop across the kingdom.

    Local contractor Modern Building Leaders (MBL) built the complex under an estimated SR950m ($253m) contract awarded in December 2022. The scheme has a built-up area of more than 70,000 square metres and features go-karting, edutainment, bowling and indoor golf facilities.

    Seven is a wholly owned subsidiary of Qiddiya Investment Company. The Abha complex is the first Seven project to be completed, and supports the Public Investment Fund’s strategy to develop the entertainment and sports sector in line with Saudi Vision 2030.

    The destination is located within the Abha International airport cluster and connects the airport with the region’s cultural, tourism and entertainment sites. Entertainment experiences at the complex include Formula E Karting alongside Seven-developed concepts such as Kawaken, GolFi, Cyber Bowling and Scene Cinema.

    Consultants on the project include Dar Engineering and Lebanon’s Khatib & Alami, with the UK’s Mace International as project management consultant, according to regional projects tracker MEED Projects.

    Seven plans to invest SR50bn ($13.3bn) in developing 21 integrated entertainment destinations across 14 cities in the kingdom as Riyadh pursues its strategy to diversify away from hydrocarbons, create jobs and improve quality of life.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18196472/main.jpg
    Colin Foreman
  • Nine contractors submit bids for Oman flood protection dam Administrator

    7 August 2026

     

    Oman’s Ministry of Agricultural, Fisheries Wealth & Water Resources has received bids from nine contractors for the construction of the Wadi Rijma flood protection dam in Liwa, North Batinah Governorate.

    The Wadi Rijma dam project is one of four flood protection dams being planned in the sultanate to intercept floodwaters flowing from the northern Omani mountain range into the coastal plain.

    The bids include seven local contractors, one from Turkiye and one from China. The lowest offer of $50.6m was made by Strabag Oman.

    The full list of bidders includes: 

    • Strabag Oman ($50.6m)
    • Detonator Engineering ($53.0m)
    • AZ Engineers & Partners ($54.3m)
    • Eksen Project Construction Tourism & Trade (Turkiye, $58.4m)
    • Galfar Engineering & Contracting ($58.7m)
    • The Arab Contractors Oman ($59.3m)
    • Premier International Projects ($59.4m)
    • China International Water & Electric Corporation (China, $60.0m)
    • Khimji Ramdas Construction ($62.4m)

    MEED reported in March that the ministry had issued the tender for the project, which aims to protect flood-prone areas, reduce risks to life and property, and support groundwater recharge where possible.

    The proposed Wadi Rijma dam (R2A) is located between the mountain range to the south and west and the Gulf of Oman to the north and east. The area is characterised by wadis that cut deep valleys before spreading into multiple channels across alluvial fans.

    In June 2025, MEED reported that the Islamic Development Bank (ISDB) had extended a $632m loan to the ministry to fund the construction of four major flood protection dams in the sultanate.

    The four projects are:

    • Wadi Al-Khoud Flood Protection Dam (AK01) in Seeb
    • Wadi Rijma Flood Protection Dam (R2A) in Liwa
    • Wadi Majlas Flood Protection Dam in Qurayat
    • Wadi Ahin Flood Protection Dam in Saham North

    In June, the ministry invited contractors to bid for the construction of the Wadi Al-Khoudh flood protection dam in Wilayat Al-Seeb, Muscat Governorate.

    The contract is being tendered under ISDB’s Climate-Resilient Flood Protection Dams Project.

    The tender marks the revival of a project that has been on hold since 2019. The project was originally planned by the former Ministry of Regional Municipalities & Water Resources and was previously estimated to be worth about $159m.

    The bid submission deadline is 9 August.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18193497/main.jpg
    Mark Dowdall
  • Syria signs 760MW solar power purchase agreements Administrator

    7 August 2026

    The Syrian Electricity Company (Sec) has signed power purchase agreements (PPAs) with Saudi Arabia’s Mohammed Ahmed Al-Harfi Company for three solar power projects with a combined generation capacity of 760MW.

    The projects will be supported by battery energy storage systems (bess) with a total storage capacity of 1,077MWh and will be located in the Widyan Al-Rabie area of Rif Dimashq.

    The PPAs were signed in Damascus on 5 August under the supervision of Saudi Arabia’s Ministry of Energy. According to the ministry, the agreements range from 20 to 25 years and cover the provision of electricity at tariffs starting from $0.03/kWh.

    Alongside the PPAs, Al-Harfi signed two technical cooperation agreements. 

    Saudi Electricity Project Development Company (PDC) will provide engineering and advisory services to support the management and implementation of the solar projects. Germany’s Siemens Energy will provide technical cooperation and expertise covering substations, power generation and bess.

    The latest agreements build on a memorandum of understanding signed in February between Syria’s former General Establishment for Electricity Transmission and Distribution and Al-Harfi to develop a 210MW solar project supported by an 827MWh bess.

    The projects are among the first major investments signed by Sec since it was established in April following a restructuring of Syria’s electricity sector. The new state-owned utility replaced the former Public Establishment for Generation and the Public Establishment for Transmission and Distribution of Electricity and assumed their assets, contracts and obligations.

    Separately, in a LinkedIn post published on 6 August, Acwa vice-chairman and managing director Raad Al-Saady said he had accompanied the Saudi Ministry of Energy on a visit to Damascus to sign agreements and discuss existing and potential energy projects in Syria.

    He said he represented Acwa and the infrastructure committee of the Saudi Syrian Business Council during the visit.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18192007/main1207.jpg
    Mark Dowdall
  • Lowest bidder emerges for Dewa Solar Park phase seven Administrator

    7 August 2026

     

    Abu Dhabi Future Energy Company (Masdar) is likely to be awarded the contract to develop the seventh phase of the Mohammed Bin Rashid Al-Maktoum Solar Park after submitting the lowest bid for the project, sources have told MEED.

    Dubai Electricity & Water Authority (Dewa) received bids on 1 July, as previously reported by MEED.

    According to a source, China’s BYD will act as battery energy storage system (bess) supplier for the project, while another Chinese firm, Gotion, is also understood to be in the running to supply battery storage technology.

    Phase seven will add 2,000MW from photovoltaic (PV) solar panels and include a 1,400MW bess with a six-hour capacity, providing a total storage capacity of 8,400 megawatt-hours. 

    Technical and financial offers were opened last month after developers including Saudi Arabia’s Acwa, the UAE’s Etihad Water & Electricity and Masdar submitted bids for the project.

    Dewa completed the prequalification process for the latest phase of the world’s largest single-site solar park in 2025. 

    As previously reported, 47 firms submitted their responses to Dewa’s expression of interest request for the contract in March 2025. The main tender was issued last November.

    The transaction advisory team for the project comprises UK-headquartered Deloitte and US-based CMS and Sargent & Lundy as financial, legal and technical advisers, with Deloitte acting as lead adviser. 

    Dewa phase six

    Masdar is also expected to commission the 1,800MW sixth phase of the MBR Solar Park in the third quarter of this year.

    The $1.5bn facility is being implemented by Shuaa Energy 4, a special purpose vehicle jointly owned by Masdar (40%) and Dewa (60%). It is understood that the winning bidder for Dewa 7 will enter into a similar partnership.

    The companies reached financial close on the sixth phase in 2024.

    India’s Larsen & Toubro (L&T) has been working as the main engineering, procurement and construction (EPC) contractor. The firm is also working with Masdar on Abu Dhabi’s round-the-clock 5.2GW solar PV plus bess project that reached financial close last month. 

    Also in July, a Masdar-led consortium emerged as the frontrunner for a contract to develop Kuwait’s first utility-scale solar PV plant.

    Once completed, the sixth phase will increase the solar park’s total production capacity to 4,660MW. Dewa increased its flagship solar project’s 2030 installed capacity target last year by 45%, from 5,000MW to 7,260MW. This comprises a total investment of AED50bn ($13.6bn).

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18189204/main5104.jpg
    Mark Dowdall
  • US Army awards Kuwait air defence work Administrator

    7 August 2026

    Register for MEED’s 14-day trial access 

    The US Army Corps of Engineers (USACE) Middle East District has awarded an architect-engineer design task order to a joint venture of US companies Aecom and Black & Veatch for the design of Kuwait’s air defence infrastructure.

    The contract covers the design of multiple National Advanced Surface-to-Air Missile System (Nasams) tactical sites and communication tower infrastructure for the Kuwait Ministry of Defence.

    The award represents a bilateral initiative aimed at strengthening Kuwait’s sovereign air defence capabilities. It was issued under an indefinite delivery/indefinite quantity (IDIQ) contract.

    The task order is the latest in a series of US-backed defence awards in Kuwait this year. In May, the Middle East District awarded a $9.1m firm fixed price contract to local firm Combined Group Contracting Company to build an engine shop and an airframes shop, along with pavement works. The scope includes an option to construct a squadron operational facility.

    In February, the district awarded a $31.4m firm fixed price contract to Kuwait’s Al-Ghanim Combined Group to construct a quick reaction area and combat aircraft loading area. The scope covers four parking shelters, five aircraft sunshades and airfield pavement, together housing 13 aircraft separated by reinforced barricades.

    Air defence focus

    Air defences across the GCC have been in the spotlight this year following a series of attacks originating from Iran. Kuwait has felt a significant impact, with strikes reported on its international airport, oil and gas infrastructure, and US military installations hosted in the country. The disruption has sharpened regional demand for advanced surface-to-air systems and driven renewed investment in protective infrastructure.

    Regional awards

    The USACE’s Middle East District has remained active across the wider region in 2026. In March, it said it had awarded a $48m IDIQ contract to Al-Rawabet Commercial Services Contracting Company for operations and maintenance support at the Falcon 5/F-15QA facilities at Al-Udeid Air Base in Qatar. USACE turned over the $500m facilities associated with that programme in spring 2025.

    The same month, the district awarded a $14.6m firm fixed price contract, with a further $5m in options, to the US’ Pearlson Shiplift Corporation for the refurbishment of the ship lift system at King Abdulaziz Naval Base in Jubail, Saudi Arabia. The work will upgrade vessel-handling infrastructure used by the Royal Saudi Naval Forces.

    In Egypt, the district has awarded a contract to build a maintenance hangar for four CH-47F aircraft, with an apron extension providing five parking spots, an aircraft wash rack and a new access road.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
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    Colin Foreman
  • Necessity is the mother of invention for Kuwaiti lenders Administrator

    6 August 2026

     

    If 2025 was marked by the advent of reform in the shape of public debt and mortgage laws, 2026 has been a year of resilience in the face of sharp shifts in the operating environment.

    Like their peers across the GCC, Kuwait’s banks have stood out this year for their crisis preparedness. With Kuwait facing sustained attacks from Iran – testing a hydrocarbons-based economy that is uniquely vulnerable to such shocks – banks are focusing on maintaining durability under especially challenging conditions.

    The sector entered 2026 in a relatively strong position. As of March 2026 – one month into the US-Israeli campaign against Iran – the non-performing loan (NPL) ratio stood at a creditable 1.7%. A capital adequacy ratio of 17.5% in Q1 is another sign of resilience, underscoring banks’ capacity to absorb unexpected losses.

    Kuwaiti banks’ reserve coverage stands at 223% of problem loans, one of the highest levels of loan-loss allowance coverage for Stage 3 exposures in the region. This is in large part due to the Central Bank of Kuwait’s (CBK’s) strict regulatory requirements.

    Overall, banks have strong capitalisation, solid liquidity, high loan loss-absorption buffers and sound asset quality. That mix provides confidence that the banking sector can continue to support the economy in difficult circumstances.

    Kuwait has retained significant sovereign financial strength. There are large fiscal buffers, there is the existential hydrocarbon wealth, and there is a long track record of supporting the banking sector when required
    Abdulla Al-Hammadi, Moody’s

    Bank dominance

    Banks also remain central to Kuwait’s economy. As the Washington-based IMF has noted, financial intermediation is overwhelmingly bank-based, with domestic currency bond and equity markets underdeveloped by emerging-market standards.

    “Kuwait has retained significant sovereign financial strength. There are large fiscal buffers, there is the existential hydrocarbon wealth, and there is a long track record of supporting the banking sector when required,” says Abdulla Al-Hammadi, an analyst at Moody’s.

    Bank assets reached 250% of GDP in 2024 – among the highest in the GCC, according to the IMF. This is supported by strong balance sheets, high liquidity and a large Islamic finance segment. Kuwait Finance House, Boubyan Bank, Kuwait International Bank and Warba Bank – the four main Islamic lenders – together account for KD53bn ($172bn), or 51% of total banking sector assets.

    Early 2026 performance metrics show a solid rise in assets at listed Kuwaiti banks, growing by 12.5% year-on-year to KD130.82bn ($366.4bn) in Q1. Net profits increased by a smaller margin, 1.1%, to KD382.96m ($1.07bn) in the same quarter, according to KPMG.

    National Bank of Kuwait (NBK), the largest bank by assets, reported net profit of KD324.8m ($1.06bn) for the first half of 2026, a 3% year-on-year increase. Despite the impact of the conflict, the second quarter saw profits rise 4.5% to KD181.2m ($588.4m).

    Ratings support

    Ratings agencies have retained their confidence in Kuwaiti banks. In a rating action announced on 18 June, Moody’s affirmed the long-term deposit ratings of eight Kuwaiti banks, reflecting their resilient credit profiles supported by strong capital, provisioning reserves and liquidity buffers.

    Under Moody’s central scenario – which assumes a prolonged disruption to the Strait of Hormuz through autumn and persistently high and volatile energy prices – the expected deterioration in operating conditions remains within the absorption capacity of these banks’ baseline credit assessments.

    Kuwait’s strong sovereign ratings and high level of system support provide additional comfort. Government financial assets are estimated at more than 475% of GDP, while the debt burden was around 19% of GDP as of March 2026 – factors that underpin the government’s capacity to support the banking system in the event of stress.

    Nor is Kuwait at particular risk of external funding outflows. According to S&P Global, Kuwait has a comfortable net external asset position that mitigates such risks.

    “Depositor confidence has remained stable. The banks continue to access international interbank markets,” says Al-Hammadi. “Their liquidity buffers will support their ability to continue lending and absorb any potential shock.”

    Regulatory response

    Regulatory supervision is another core strength. The CBK has a reputation for hands-on oversight of the banking sector. In March, it rolled out a stimulus package to encourage banks to lend as the Iran conflict buffeted the region. The measures included a temporary easing of macroprudential requirements, with the minimum liquidity coverage ratio and net stable funding ratio reduced from 100% to 80%. The minimum regulatory ratio was cut from 18% to 15%.

    These measures appear to have had the intended effect. According to NBK’s research arm, domestic credit growth picked up in May, rising by half a percentage point over the previous month to 6.7% in year-on-year terms. Signs of stronger business lending, with gains across services, trade and real estate, will have been particularly welcome.

    “Many Kuwaiti banks have concentrated their lending activity around the Kuwait economy,” says Al-Hammadi. “Overall GDP is under pressure given recent developments in the hydrocarbon sector. It’s still an oil-driven economy, but if you look at non-oil activity, it has continued to benefit from government investment.”

    Credit growth will be supported by improving economic sentiment, so long as deposit growth keeps pace. However, lending is unlikely to match previous years’ levels.

    “Our expectation is that lending growth will drop, given what is happening in the macroeconomic environment. Growth could be a bit slower compared to previous years,” says Al-Hammadi.

    The CBK has urged local banks to be flexible towards customers, although anecdotal evidence suggests greater caution, including tighter personal loan limits.

    Reforms, including the mortgage and housing law, provide an additional opportunity for Kuwaiti banks to support broader growth. The Real Estate Financing Law permits banks to offer supported loans under which the state covers interest payments via the Kuwait Credit Bank, while borrowers repay only the principal.

    Although hydrocarbon-sector growth will be negatively impacted by events in the Gulf this year, banks should be able to secure growth by focusing on the non-hydrocarbon economy.

    “We see growth driven by the non-oil economy and some of the project finance opportunities, which will benefit from the banking sector’s capital and liquidity position. It places the banks in the right place to grab this opportunity,” says Al-Hammadi.

    MEED’s September 2026 report on Kuwait also includes:

    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > CONSTRUCTION: Kuwait construction holds up despite regional strife

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    James Gavin