meed-logo

line1 line2 line3
SIGN IN / REGISTER

Tech takes centre stage

6 February 2025

Commentary
Colin Foreman
Editor

Read the February MEED Business Review

An incoming US president always presents new challenges for the region as leaders adjust to shifting policies emanating from Washington.

In 2025, the situation is different. It is the first time since Grover Cleveland in 1893 that a former US president has returned to office after a period away from the White House. In theory, this means that although the presidency has changed, it is a president the region has worked with before and should be familiar with.

In practice, Donald Trump proved unpredictable during his first term, with significant challenges emerging for the region. During his 2017-20 presidency, the Gulf diplomatic dispute with Qatar began, the nuclear deal with Iran was scrapped and the Abraham Accords were signed.

Trump also proved to be transactional and pro-business. During the early days of Trump 2.0, there have been clear signals that the new administration will have a different approach when dealing with big tech and the ever-expanding role of China in the global economy.

The Gulf has already identified that the tech sector plays to the region’s strengths and promises to solve many of its structural economic challenges. The region is rich in energy and capital and has begun to invest heavily in the expensive business of developing artificial intelligence (AI) and power-hungry data centres.

Both have already aligned with Trump 2.0, with Damac founder and chairman Hussain Sajwani committing $20bn to data centres across the US and Abu Dhabi-backed Stargate announcing $500bn of investment in AI in what Trump calls the largest AI deal in history by far.

The speed with which these deals were announced shows that the pragmatic business and political leaders in the Gulf have already responded to the change in administration at the White House. The challenge now shifts to maintaining the positive momentum with a president who is notoriously difficult to predict.

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
https://image.digitalinsightresearch.in/uploads/NewsArticle/13369338/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Bankability remains hydrogen’s unbreakable challenge

    6 February 2025

    There is some indication that green hydrogen as an industry has arrived at the valley of disillusionment if the Gartner hype cycle is anything to go by.

    This is evident with the dwindling number of attendees and the noticeable absence of offtakers, global commodity trading companies that are expected to buy premium green hydrogen and derivative products, in what used to be well-attended green hydrogen summits in major cities in the Gulf.

    Following frenzied announcements of multibillion-dollar integrated green hydrogen and ammonia plants in the Middle East & North Africa region, particularly Egypt, Morocco, Oman and the UAE, between 2021 and 2023, it appears that key stakeholders have started coming to grips with reality.

    Of the close to 80 green hydrogen projects that MEED and MEED Projects track, only three have so far signed an offtake agreement, and only one managed to reach financial close.

    The $8.4bn Neom green hydrogen project in Saudi Arabia reached financial close in March 2023, nearly two years since it was announced.

    The project, the largest of its kind requiring over 4GW of renewable energy and 2GW of electrolyser capacity, managed to reach financial close based on one of the three co-developers, the US' Air Products, assuming the full offtake and construction risks for the project, notes some experts.

    The bankability of a project ultimately relies on the presence of suitable stakeholders taking on the risks for every aspect of the project from construction to operations.

    Currently, the risks or threats include evolving global regulations related to consumption and carbon emissions pricing; lack of technology maturity; supply and demand uncertainty; and the lack of mainstream demand, according to Wael Almazeedi, chief executive at Abu Dhabi-based International Renewable Energy Certification (I-rec) certified firm Avance Energy.

    Almazeedi said these risks "need to be mitigated to the satisfaction of project lenders" if the planned green hydrogen projects in the region were to secure financing and reach the construction phase.

    The current challenges do not necessarily mean all projects will fail, however.

    Similar to its predecessors like solar and electrification technologies, the hope is for the planned green hydrogen projects to eventually emerge out of the realm of disillusionment and reach the so-called enlightenment slope and ultimately plateaus of productivity, using Gartner's hype cycle model.

    Government support in terms of regulatory frameworks inevitably including some form of subsidies to bridge the so-called green premium, as well as global certification standards, are a top agenda among suppliers.

    Across the key Mena aspiring clean hydrogen hubs like the UAE in particular, clearer regulatory frameworks have started to emerge, which can encourage more cohesive cooperation to enable projects to get off the ground.

    Key EU countries also appear to remain committed to clean and green hydrogen imports as part of the green deal, while at least one power plant in Japan has completed a three-month trial of co-firing green ammonia with coal "with positive results".  

    But until all these come together to ensure an unencumbered global supply chain, offtakers and project financing deals will likely remain elusive. 

    Related reads:

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13370135/main.gif
    Jennifer Aguinaldo
  • Morocco explores salt caverns for hydrogen storage

    6 February 2025

     

    A feasibility study is under way for a project to explore underground salt cavern sites for green hydrogen storage in Morocco.

    According to Samir Rachidi, director-general at Iresen, the underground salt caverns are located near the capital Casablanca.

    “There is already an existing cavity used to store natural gas,” Rachidi told MEED.

    It is understood the same process or principle will be used to store green hydrogen in salt caverns.

    The potential storage capacity of the salt caverns for green hydrogen can only be determined once the feasibility study is completed.  

    Photo credit: Shutterstock

    Underground salt caverns offer an option for the bulk storage of very large amounts of gaseous hydrogen.

    According to Ireland-headquartered chemicals firm Linde, which operates the world’s first commercial hydrogen high-purity cavern in Texas, the gas has to be purified and compressed before it can be injected into a cavern.

    It added that hydrogen-filled cavities can act as a backup for a pipeline network.

    First green ammonia project

    Rachidi also said that Moroccan phosphate specialist OCP is in the advanced stages of studying a project to produce 1 million tonnes of green ammonia annually by 2027.

    The planned facility, which will cater to export markets, will include a 200,000 tonne-a-year (t/y) green hydrogen production plant and 4,000MW of renewable energy plants.

    It will also include an electrolyser plant with a capacity of 2,000MW.

    At least seven other green hydrogen or ammonia projects are under study or in the pre-front-end engineering and design stage in the North African state.

    In April 2023, a team led by China Energy International Construction Group signed a memorandum of cooperation to develop a green hydrogen project in a coastal area in southern Morocco.

    A year earlier, Serbia-headquartered renewables developer and investor CWP Global appointed US firm Bechtel to support the development of large-scale green hydrogen and ammonia facilities in Morocco and Mauritania.

    The Amun green hydrogen project, which CWP Global plans to develop in Morocco, is understood to require 15GW of renewable energy and has an estimated budget of between $18bn and $20bn.

    Morocco established a National Hydrogen Commission in 2019 and published a green hydrogen roadmap in 2021. 

    The roadmap entails the production of green hydrogen for local ammonia production and export between 2020 and 2030; the production and export of green hydrogen, green ammonia and synthetic fuels between 2030 and 2040; and the global trade of these products between 2040 and 2050.   

    Main photo: For illustrative purposes only (Adnoc)

    READ THE FEBRUARY MEED BUSINESS REVIEW

    Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

    Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

    > WATER & WASTEWATER: Water projects require innovation
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13369568/main.jpg
    Jennifer Aguinaldo
  • Qatar maintains stable growth heading

    6 February 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13369431/main.gif
    MEED Editorial
  • SWPC and Acwa Power sign Ras Mohaisen contract

    6 February 2025

    State utility offtaker Saudi Water Partnership Company (SWPC) has awarded a contract to develop the Ras Mohaisen independent water project (IWP) in Saudi Arabia to a consortium led by Riyadh-headquartered utility developer Acwa Power.

    The state water offtaker received two bids for the contract in April last year.

    Spain’s Acciona was the only other company that submitted a proposal for the contract.

    The Ras Mohaisen IWP will be able to treat 300,000 cubic metres of seawater a day (cm/d) using reverse osmosis technology.

    It will also include storage tanks with a capacity of 600,000 cubic metres, equivalent to two operating days, and an electrical substation.

    The build, own and operate project is expected to reach commercial operation by the second quarter of 2028.

    The developer consortium includes local firms Hajj Abdullah Ali Reza & Partners and Al-Kifah Holding Company. 

    The plant will be located in Al-Qunfudhah Governorate, about 300 kilometres south of Mecca, on the Red Sea coast in Saudi Arabia’s Western Region.

    Netherlands-headquartered KPMG acted as SWPC’s financial adviser, with UK-based Eversheds Sutherland acting as the legal adviser for the project.

    Prince Hussam Bin Saud Bin Abdulaziz, emir of the Al-Baha region, and Abdulrahman Bin Abdulmohsen AlFadley, minister of environment, water and agriculture and chairman of the SWPC board of directors, signed the Ras Mohaisen IWP project agreements.

    AlFadley said the project will enhance water supply chains and is intended to serve the Mecca and Al-Baha regions.

    READ THE FEBRUARY MEED BUSINESS REVIEW

    Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

    Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

    > WATER & WASTEWATER: Water projects require innovation
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13369351/main.jpg
    Jennifer Aguinaldo
  • Liquidity constraints force corporate banking shift

    5 February 2025

    Corporate lenders face a liquidity crunch as businesses struggle to maintain cash flow amid rising costs and tighter credit conditions. Credit constraints have worsened, with 5% of middle-market borrowers now heavily leveraged and unable to refinance, according to credit rating firm KBRA. At the same time, rising fraud and outdated payment infrastructures are compounding the liquidity challenge.

    Payment fraud losses are expected to reach $26.4bn by 2028, according to GlobalData, making cash flow forecasting even more unpredictable. Increasing cyber threats, unauthorised fund transfers and fraudulent transactions directly impact liquidity buffers, forcing businesses to enhance treasury functions.

    Slow settlement cycles and outdated infrastructure continue to choke liquidity, restricting businesses’ ability to manage cash flow. To stay competitive, lenders must rethink their support for corporate clients by ensuring faster access to funds, smarter risk controls and seamless financial integration.

    The pressure to deliver faster, more secure and smarter financial solutions is increasing. Innovations such as real-time payments (RTPs), artificial intelligence (AI)-driven risk models and embedded finance address these needs by enhancing liquidity management, improving credit allocation and streamlining cross-border transactions. Lenders that fail to adapt risk losing corporate clients to more agile competitors.

    ENTRIES CLOSING SOON: MENA Banking Excellence Awards 2025: Corporate & Investment

    AI reshapes liquidity strategy

    AI is transforming liquidity management, shifting from a compliance and fraud detection tool to a key driver of treasury optimisation. Lenders are using AI-powered forecasting to improve treasury operations, helping businesses anticipate cash flow needs, automate funding decisions and optimise capital allocation.

    HSBC’s AI-driven treasury solutions have improved forecasting accuracy by 92%, reducing liquidity risk for businesses operating across multiple markets. JP Morgan has also adopted AI-driven liquidity forecasting, enabling clients to optimise cash reserves and enhance working capital efficiency.

    AI optimises liquidity management while strengthening security, helping lenders counter fraud and financial crime in an increasingly digital landscape. Lenders are leveraging AI’s predictive power to detect anomalies and security threats before they escalate.

    Fraud detection remains a key priority as financial crime becomes more sophisticated. Many lenders are deploying AI to enhance fraud detection and risk mitigation. For instance, Mastercard and Stripe use AI-driven risk models, analysing over 1,000 transaction data points per second to detect fraud in real time.

    Integrating AI into treasury services not only enhances operational efficiency but also positions lenders as strategic partners, offering data-driven insights that strengthen corporate client relationships.

    Real-time payments drive liquidity optimisation

    RTPs are now central to working capital strategies, not just a speed upgrade. Corporate clients increasingly expect instant settlements and real-time liquidity visibility as standard banking features.

    The global RTP market is projected to surpass $700tn by 2028, according to GlobalData, as demand grows for seamless cross-border transactions, reduced credit dependency and faster cash conversion cycles. This shift is critical for treasury and finance teams, which require greater control over cash positions to navigate fluctuating market conditions.

    Payment infrastructure providers such as Swift GPI and Visa B2B Connect have already streamlined high-value international transactions, reducing settlement times from days to minutes. These advancements are reshaping corporate banking priorities, with lenders expected to embed real-time payment capabilities within their broader treasury services.

    ENTRIES CLOSING SOON: MENA Banking Excellence Awards 2025: Corporate & Investment

    Embed finance or lose relevance

    Corporate banking is shifting away from traditional, bank-led services as embedded finance transforms how businesses access payments, liquidity and credit directly within their operational platforms. By integrating financial products within enterprise platforms and enterprise resource planning (ERP) software, companies reduce dependence on external bank portals.

    GlobalData forecasts that corporate embedded finance will exceed $7tn by 2030, driven by demand for frictionless cash flow management, instant access to financing and automated treasury functions. Businesses are embedding banking services within their digital ecosystems, integrating payments, lending and cash management into their core platforms.

    Major banks are already adapting. Goldman Sachs and Citi have developed embedded lending and treasury tools that integrate directly into ERP systems, enabling businesses to initiate payments, access credit and manage liquidity without switching platforms.

    Banks that fail to embed financial solutions risk losing visibility over corporate transactions. Institutions that successfully integrate embedded finance into their offerings will strengthen corporate relationships and secure long-term revenue streams. Conversely, delaying digital integration may result in businesses managing financial operations independently within their own platforms, reducing banks’ role in liquidity management.

    How lenders must adapt to the liquidity shift

    The future of corporate banking is being shaped by AI-driven treasury solutions, real-time payments and embedded finance—all of which are rapidly transitioning from competitive advantages to industry standards.

    For banking leaders, this shift demands immediate action.

    Corporate clients are no longer just looking for lenders – they need strategic partners who can provide seamless liquidity management, intelligent forecasting and embedded financial solutions.

    Banks that embrace these innovations will strengthen corporate relationships, drive new revenue models and maintain relevance in a shifting financial landscape. Those that hesitate risk being replaced by more agile, tech-driven competitors offering faster, smarter and more integrated financial services.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13365421/main0951.jpg
    Sarah Rizvi