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  World Bank and atomic agency formalise partnership

  26 June 2025

  The World Bank Group and the International Atomic Energy Agency (IAEA) have formalised a partnership aimed at supporting the safe and responsible use of nuclear energy in developing countries.

  The agreement, signed by World Bank Group president Ajay Banga and IAEA director-general Rafael Mariano Grossi, marks a significant reengagement with nuclear power for the World Bank after decades of limited involvement.

  READ MORE: World Bank’s nuclear U-turn is an opportunity for Middle East projects

  The partnership reflects a new approach by the World Bank Group to meet global demands for baseload power while managing emissions.

  With electricity demand in developing nations expected to more than double by 2035, nuclear energy is recognised for its ability to provide continuous baseload power, which is crucial for sectors such as infrastructure, healthcare and manufacturing.

  It not only enhances grid stability but also creates high-skilled jobs and stimulates broader economic investment. Additionally, nuclear power can adapt to fluctuations in electricity demand, facilitating the integration of renewable energy sources.

  The memorandum outlines three key areas of collaboration: enhancing knowledge in nuclear safety and technology; extending the lifespan of existing nuclear plants; and advancing the development of small modular reactors.

  Currently, 31 countries operate nuclear power plants, contributing approximately 9% of global electricity and nearly a quarter of low-carbon power.

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  Colin Foreman
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  Turkiye’s Kalyon goes global

  26 June 2025

  

   

  Construction firms in Turkiye have developed their resources and capabilities over the past two decades as they deliver major projects such as Istanbul Grand airport, which is one of the world’s largest and most technically advanced airports. 

  Contractors are now using that expertise to export their services to international markets, including the Middle East and GCC. 

  One of the companies leading the push is Kalyon Holding, which has interests operating in the construction, infrastructure, real estate and energy sectors. 

  “We have put international growth at the top of our agenda,” says Kalyon Holding’s CEO Mustafa Kocar. 

  “It’s both a short-term and long-term strategy. We were a local company just a few years ago, but now we’re positioning ourselves as a global player.”

  Kalyon, a diversified conglomerate with origins in contracting, has evolved over the past 15 years into a major investor in energy, transportation and infrastructure. Among its assets is a 55% stake in Istanbul airport, which is “the biggest airport in Europe and the region”, says Kocar.

  This operational expertise, he says, is the foundation of Kalyon’s global expansion strategy. 

  “We tested our capabilities on megaprojects. Now, we want to leverage that know-how in other markets.”

  Exploring expansion

  While Turkiye remains the central hub, the group is scouting opportunities across the Middle East, North Africa, Eastern Europe and the US. 

  “We’ve already studied projects in Algeria, Libya, Morocco, Romania and Poland. In the US, many project opportunities have been offered to us.”

  Despite this global outlook, Kocar emphasises Kalyon’s independence. “We don’t need anyone to deliver these projects,” he says. “We have the technical expertise, the equity, the financing network – everything in-house. But if a strategic partnership adds value, we’re open to that.”

  In the GCC, Kalyon is eyeing opportunities in Saudi Arabia, where it is “getting prepared” for upcoming projects such as King Salman International airport, where the company hopes to leverage the experience it gained on the Istanbul airport scheme. Kocar adds that the firm is also forming consortiums for infrastructure projects. 

  “We’re selective. We don’t bid on everything. We focus on our core areas,” he says.

  Kalyon is also watching the development of public-private partnership models in Saudi Arabia. “It’s a big market … and everyone can get a piece. But you have to differentiate yourself with technical expertise and execution capability.”

  In the UAE, the company has prequalified for the high-speed rail project between Dubai and Abu Dhabi in partnership with a local and a Chinese firm.

  Kalyon is also undertaking post-war reconstruction in Syria. The group is part of a consortium that signed a memorandum of understanding in May to invest $7bn in energy infrastructure, including a combined-cycle gas turbine (CCGT) plant and solar projects.

  “The need [in Syria] is clear, and we believe the international commitment is there,” Kocar says. “Of course, it’s a challenge under current conditions, but we believe things will improve. We’re just at the beginning of the process.”

  The solar project could be operational within two years, while the CCGT plant may be completed three years after financial closure.

  We were a local company just a few years ago, but now we’re positioning ourselves as a global player

  Diverse expertise

  The work in Syria will lean on the group’s renewables experience. Kocar says Kalyon Energy is Turkiye’s biggest investor in renewables, with more than 2GW in operation and a target to more than double that to 5GW in the next five years.

  “Turkiye has great potential, especially in solar and wind,” he says. 

  “Our projects are already receiving strong support from European governments and financial institutions. We’ve worked with UK Export Finance, and one of our solar plants received the largest green financing ever from them, globally.”

  Kalyon Energy is a 50:50 joint venture with Abu Dhabi’s International Holding Company, through its subsidiaries. “It’s currently focused on renewables – solar and wind,” Kocar says. “There’s a view to go into other areas, but there’s no contractual arrangement yet.”

  Vertical integration is another  of Kalyon’s strengths. The group owns one of the world’s only fully integrated solar panel factories, producing everything from ingots to modules. 

  It also owns a floating storage regasification unit vessel – one of only two in Turkiye – and operates hydropower plants, as well as over 400 kilometres of toll roads under build, operate and transfer models.

  Kalyon has also entered the real estate market with the country’s first luxury designer outlet near Istanbul airport, and runs a private university in Gaziantep, providing scholarships to 40% of its 10,000 students through the Kalyon Foundation.

  While Kalyon has strong equity backing, it relies on project finance to optimise costs and competitiveness. 

  “The cost of equity is much higher than the cost of debt,” Kocar says. “The name of the game is leverage.”

  The group has worked with at least eight European export credit agencies and international banks such as JP Morgan and Standard Chartered. 

  “Once you build that expertise and network, it carries you to other markets,” Kocar says. “But this was always a planned strategy, not opportunistic.”

  UAE-Turkiye trade gains momentum 

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  Colin Foreman
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  UAE-Turkiye trade gains momentum

  26 June 2025

  

   

  The UAE and Turkiye signed a Comprehensive Economic Partnership Agreement (Cepa) on 3 March 2023, ending a period of complex relations and ushering in a new era of greater trade and development between the two countries. 

  The agreement, which came into effect in September 2023, has already exceeded expectations. Non-oil trade between the UAE and Turkiye grew by 11.5% in 2024, reaching $40.5bn. The figure surpassed a major target three years earlier than planned and means Turkiye is now the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021.

  Defence has been a key driver of business relations between Turkiye and the UAE. Turkish drones are highly sought after, and the UAE is a major customer of the unmanned aerial vehicles manufactured by Turkish company Baykar. These orders helped the UAE become the largest export market for Turkiye’s defence industry between 2020 and 2024. 

  Other companies are seeking to emulate Baykar’s success and establish long-lasting relations with the UAE. Saha Istanbul is working to achieve this goal. The defence and aviation cluster represents about 80% of Turkiye’s defence manufacturers and holds a biannual defence exhibition in Istanbul to promote their capabilities and attract foreign buyers. 

  “We want to cooperate and share our expertise,” says Ali Baran, Saha International board member and general manager of communications technology company Yongatek. “The UAE is not a market or a customer for us. We want to work together.”

  Strategic locations

  Away from defence, it is easy to see why there is an affinity between the UAE and Turkiye. Istanbul, in particular, has much in common with Dubai. Both are internationally focused cities that are not national capitals and feature major hub airports with similar sales pitches. 

  Dubai Airports, which operates Dubai International, says Dubai is within a four-hour flight of one-third of the world’s population and within eight hours of two-thirds, while Turkiye’s Transport & Infrastructure Ministry says that, from Turkiye, passengers can reach 1.4 billion people in 67 countries within just a four-hour flight.

  The strategic locations of the UAE and Turkiye have allowed them to develop as centres for trade and finance. The Istanbul Financial Centre, which opened in 2023, is a modern financial centre that in many ways resembles Dubai International Financial Centre, with its new tower buildings, connecting infrastructure, and a goal to attract global investment and promote economic development. 

  The UAE is an active player in Turkiye’s financial sector. In 2019, Dubai-based bank Emirates NBD acquired Turkiye’s Denizbank. In the other direction, Turkish fintech company DG Pays, together with Bahrain’s Arcapita acquired a majority stake for AED385m in the Neopay payments service from Dubai-based bank Mashreq. 

  Logistics is another key area of cooperation. Dubai-based DP World is the operator of two ports, Yarimca and Korfez. The two ports combined have five deep water berths and the capacity to handle over 2 million 20-foot equivalent units a year and 1.1 million tonnes of liquid bulk a year. 

  The ports, which are located to the south of Istanbul, are key assets for DP World in the growing Turkish market and positions it for further growth in Eastern Europe. 

  “Turkiye is a very good market to play in,” says Kris Adams, executive vice-president for Eastern Europe, DP World. “DP World sees a lot of potential to grow. Not just ports, but also warehousing, freight forwarding and growth into other markets.”

  Another Dubai brand that has invested in Turkiye is property developer Emaar. Established in 2005, Emaar Turkey has developed the Tuscan Villas project, and also the Land of Legends theme park resort in Anatloya with local hotel operator and developer Rixos. In Istanbul, Emaar Turkey has developed Emaar Square, which includes a high-end shopping mall,
  apartment blocks and three high-rise towers.

  In the energy sector, Abu Dhabi’s International Holding Company purchased a 50% interest in Turkey’s Kalyon Enerji for AED1.8bn ($490m) in 2022. The deal encompasses solar energy initiatives in the Karapınar and Gaziantep regions of Turkiye, as well as a wind energy project located in Ankara.

  Turkiye is now the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021

  Project awards

  Construction is another key area of business, with Turkish contractors playing a leading role on some of the UAE’s largest projects. In late 2024, a consortium that includes Turkish companies Limak Holding and Mapa Group was awarded a AED20.5bn contract to build the Dubai Metro’s Blue Line.

  Another Turkish contractor that secured a major order in the UAE last year was Dogus, which secured package 1A of Abu Dhabi’s Mid Island Parkway project in a joint venture with Abu Dhabi-based Gulf Contractors Company.

  The investments into Turkiye from the UAE, together with the contracts secured by Turkish firms in the UAE, demonstrate the opportunities that the two countries offer one another. Their continued success will depend on their ability to navigate regional challenges together. In the past, this has proven at times to be problematic. With greater levels of shared interests, the expectation is that these testing geopolitical times will remain in the past.

  Main image: Turkiye’s Yarimca port, operated by Dubai-based DP World 

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  Colin Foreman
• Dubai tenders Al-Maktoum airport substructure

  26 June 2025

  

   

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  Dubai Aviation Engineering Projects (DAEP) has tendered five packages covering substructure works for the first phase of the expansion of Al-Maktoum International airport.

  MEED understands that the tender was issued in mid-June and the closing date is 4 August.

  The prospective bidders are expected to include:

  • Al-Naboodah Construction (UAE)
  • Alec (UAE)
  • Aviation Industry Corporation of China (China)
  • Besix (Belgium)
  • China Harbour Engineering Company (China)
  • China National Aero-Technology International Engineering Corporation (China)
  • China State Construction Engineering Corporation (China)
  • Dutco Construction (UAE)
  • Innovo (UAE)
  • Limak Holding (Turkiye)
  • PowerChina (China)
  • Tristar E&C (UAE)
  • Vinci (France)
  • Webuild (Italy)

  According to the official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000 square-metre (sq m) facility with an annual capacity of 45 million passengers. It will be the second of three terminals at Al-Maktoum International airport, linking to the airside with a 14-station automated people mover (APM) system.

  Earlier this week, MEED exclusively reported that DAEP has asked firms to submit their bids by 15 July to build the APM at Al-Maktoum airport. 

  The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of multiple tracks, taking passengers from the terminals to the concourses.

  Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

  The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres south of Dubai and have five parallel runways, five terminal buildings and 400 aircraft gates.

  It will be five times the size of the existing Dubai International airport and have the world’s largest passenger handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

  Construction progress

  Construction on the first phase has already begun. In May, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to the local firm Binladin Contracting Group to construct the second runway at the airport.

  The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based firm Tristar E&C.

  While speaking to the press on the sidelines of the Airport Show in May, Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation, said that Dubai will award more packages this year, including the automated people mover and baggage handling system.

  “Several other packages are expected to be tendered this year, including the terminal substructure, 132kV substations and district cooling plants,” Al-Zaffin added.

  The construction works on the project’s first phase are expected to be completed by 2032.

  Dubai approved the updated designs and timelines for its largest construction project in April last year.

  The government of Dubai said that the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International airport within 10 years.

  The government statement added that the project will create housing demand for 1 million people around the airport.

  In September last year, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead master planning and design consultants on the expansion of Dubai’s Al-Maktoum International airport.

  Project history

  The expansion of Al-Maktoum International airport is a long-standing project. Also known as Dubai World Central (DWC), it was officially launched in 2014, with a different design from the one approved in April 2024. Back then, it involved building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

  An initial phase, due to be completed in 2030, involved increasing the airport’s capacity to 130 million passengers a year. The development was to cover an area of 56 square kilometres.

  Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.

  ---

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

  Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

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

  > AGENDA 1: Data centres churn investments > AGENDA 2: Gulf seizes AI opportunities > SYRIA: US announces lifting of Syria sanctions > MEED TOP 100: Middle East stocks defy lower oil prices > TOURISM: Abu Dhabi hopes bigger is better with Disney theme park > TRADE: Emerging Gulf-Asia corridor grows despite headwinds  > SAUDI ARABIA: Riyadh confirms capital expenditure cuts > INTERVIEW: Mena crucial to Veolia’s growth plan > IRAQ REPORT:  Iraq maintains its pace, for now > GULF PROJECTS INDEX: Gulf projects index leaps 4.3% > CONTRACT AWARDS: Region sees third month of weak awards activity > ECONOMIC DATA: Data drives regional projects > OPINION: Dealmaking trumps the Truman Doctrine

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

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  Yasir Iqbal
• 
  IMF reports decline in Libya’s GDP growth

  26 June 2025

  The Washington-based IMF has concluded its Article IV consultation with Libya and has reported a decline in real GDP growth.

  Growth was about 2% in 2024, down from 10% in 2023. In a statement, the IMF said the drop is mainly due to a contraction in the hydrocarbon sector, although non-hydrocarbon growth has remained robust, bolstered by sustained government spending.

  The IMF's assessment indicates that both the current and fiscal accounts have shifted from a surplus in 2023 to a deficit in 2024. Despite these challenges, reported inflation remains low.

  Looking ahead, the IMF projects a rebound in real GDP growth in 2025 as oil production increases. Over the medium term, growth is expected to moderate to about 2%. Non-hydrocarbon growth is anticipated to remain between 5% and 6%, supported by ongoing government expenditure.

  The current account is expected to post a small surplus of 0.7% of GDP in 2025 before transitioning to a small deficit in the medium term, largely due to subdued oil prices.

  The IMF outlined several risks to Libya's economic outlook, particularly domestic political instability that could escalate into conflict, disrupting oil production and hindering necessary economic reforms.

  The economy’s heavy reliance on oil exports and a significant import bill further expose it to global economic vulnerabilities.

  To mitigate these risks, the IMF emphasises the need for Libya to accelerate reforms aimed at reducing fiscal spending and diversifying the economy away from oil dependence.

  Key recommendations include establishing a unified budget to enhance fiscal transparency, implementing a well-defined monetary policy framework, and reinforcing the banking sector’s role in economic activity.

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  Colin Foreman