Trump’s new trial in the Middle East
31 January 2025
This package also includes: Trump 2.0 targets technology
Donald Trump’s return to the US presidency on 20 January 2025 is anticipated to have profound impacts on the Middle East, focused on two key areas: US relations with Iran, and the interrelationship between the US, Israel and other regional actors.
Nevertheless, while the broad thrust of Trump’s goals in the Middle East is clear, the way he is likely to go about achieving them is hard to anticipate, with the mercurial president liable to shift his approach on a whim.
Iranian relations
The US’ relations with Iran, where Trump’s position appears to have softened in recent months, is a case in point.
While Trump was initially expected to reinstate a “maximum pressure” campaign of sanctions against Iran, he has lately made a series of nuanced statements. In October, he said: “I would like to see Iran be very successful. The only thing is, they can’t have a nuclear weapon.”
Although the US president has previously hinted at leveraging threats of force against Iran to compel it to restrain its nuclear and military capabilities, he has also hinted at avoiding a military approach and conspicuously sidelined US neoconservatives with harder stances on Iran within his administration.
A softer stance would also fall more in line with Trump’s historic aversion to US military entanglement, as well as his preference for negotiation and deal-making.
The region is furthermore in a different place than it was in Trump’s first term. Back then, he was supported by Saudi Arabia and the UAE, but now those same Gulf allies have moderated their oppositional stances towards Iran and turned towards a more cooperative, business-oriented path forward.
There is no way to predict exactly how US relations with Iran are likely to play out over the course of Trump’s second term, but there could be significant room for manoeuvre for an Iranian government willing to put out the right signals and give the US president the symbolic wins he craves.
Israel agenda
One inevitable constant of US relations in the region is Washington’s largely unconditional backing for Israel, and Trump’s administration is expected to reaffirm his support for Israel.
The president’s first term was a triumph for pro-Israel policymakers in Washington, with Trump breaching long-standing US holding patterns of diplomatic ambiguity by recognising Jerusalem as Israel’s capital and normalising the Israeli occupation of the Syrian Golan Heights.
Trump also oversaw the signing of the Abraham Accords that normalised Israeli relations with the UAE, Bahrain, Sudan and Morocco, with the expectation that this diplomatic progress would continue.
Before the onset of the latest war in Gaza in late 2023, Washington had reportedly been on the cusp of finalising a normalisation agreement with Saudi Arabia. The threat of this pending deal with Riyadh was one of the key triggers for Palestinian militant groups in Gaza to attack Israel on 7 October.
With the inauguration of Trump, there is every indication that the US administration intends to pick up where the deal with Saudi Arabia left off, as well as to potentially shift US policy in other key areas as well, such as its stance on the legitimacy of Israel’s illegal occupation of the West Bank.
In terms of brokering an agreement with Riyadh, Washington may encounter friction. After October 2023, the Saudi negotiations team indicated that it was keen to proceed with a deal with the US, while leaving the matter of relations with Israel aside, but this may not be to Washington’s taste.
Saudi Arabia’s official position on normalisation has since hardened considerably, with Saudi Foreign Minister Faisal Bin Farhan Al-Saud repeatedly stating this past year that there can be no normalisation without the realisation of Palestinian statehood.
This firm position on Palestinian statehood could he hard for Riyadh to pull back from given the current geopolitical tensions in the region. There are nevertheless signs that the Trump administration is still eager to pursue renewed negotiations on the matter of normalisation with Saudi Arabia.
For the moment, the most pressing question for the region is whether Trump will continue to pressure Israel to abide by the terms of the ceasefire in Gaza, as well as its commitment to withdraw its troops from southern Lebanon.
The president has laid partial claim to the Gaza ceasefire and expressed his hope that it will proceed to fruition in its second and third phases.
He has also affirmed Israel’s need to withdraw from southern Lebanon – yet there the timeline has already slipped, raising the possibility that Trump, like Biden, could be soft on implementation.
There is no way to predict exactly how US relations with Iran are likely to play out
Transactional approach
More ominously, on 27 January, Trump mooted the possibility of “cleaning out” the population in Gaza by relocating 1.5 million Palestinians to Egypt and Jordan. Cairo and Amman have promptly dismissed the notion amid a storm of criticism over the unprincipled proposal.
The idea’s very suggestion by Trump points to a deeply transactional approach that jars with standing precepts of the Geneva Convention’s and international humanitarian law – which could cause problems down the road.
Looking ahead, the tenor of Trump’s engagement with the region in his second term is likely to be determined by his immediate reactions to these fast-moving geopolitical events. The Middle East presents major challenges that he will have to come to terms with in his first few months in office.
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Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:
> PROJECTS: Another bumper year for Mena projects
> GIGAPROJECTS INDEX: Gigaproject spending finds a level
> INFRASTRUCTURE: Dubai focuses on infrastructure
> US POLITICS: Donald Trump’s win presages shake-up of global politics
> REGIONAL ALLIANCES: Middle East’s evolving alliances continue to shift
> DOWNSTREAM: Regional downstream sector prepares for consolidation
> CONSTRUCTION: Bigger is better for construction
> TRANSPORT: Transport projects driven by key trends
> PROJECTS: Gulf projects index continues ascension
> CONTRACTS: Mena projects market set to break records in 2024
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Saudi and Chinese firms team up for Riyadh airport terminals
22 July 2025
Jeddah-headquartered firm Modern Building Leaders has partnered with PowerChina and Metallurgical Corporation of China to bid for a contract to develop the first phase of Terminal 6 and the Iconic Terminal at King Salman International airport (KSIA) in Riyadh.
The joint venture has appointed Beijing-headquartered China Architecture Design & Research Group as its lead consultant.
US-based firm Ghafari Associates is the constructability consultant, and French firm Artelia is the project management consultant.
UK-headquartered DG Jones & Partners is the cost management consultant, and US-based technology firm IBM is the integration consultant.
King Salman International Airport Development Company (KSIADC), which is backed by Saudi sovereign wealth vehicle the Public Investment Fund, plans to deliver the package on an early contractor involvement (ECI) basis.
The ECI process requires selected contractors to submit methodologies for the project and a design proposal.
In May, MEED reported that US firm Bechtel Corporation had been appointed as the delivery partner for the terminals at KSIA.
Bechtel will manage the delivery of three new terminals, including the terminal for commercial carriers, Terminal 6 for low-cost carriers and a new private aviation terminal with hangars.
This was followed by an announcement by another US-based firm, Parsons Corporation, confirming its appointment as the delivery partner for the airside and landside packages at KSIA.
In February, MEED exclusively reported that KSIADC had received prequalification statements from firms on 28 January for the terminal project package.
The client prequalified firms in September 2024 for the main engineering, procurement and construction packages; early and enabling works; specialist systems and integration; materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; environmental, social and governance services; local content; and other services.
The entire scheme is divided into eight assets. These are:
- Iconic Terminal
- Terminal 6
- Private aviation terminal
- Central runway and temporary apron
- Hangars
- Landside transport
- Cargo buildings
- Real estate
In August last year, KSIADC confirmed that it had signed up several architectural and design firms for the various elements of the project.
KSIADC said that UK-based Foster+Partners will design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.
US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.
The client also confirmed the appointment of UK-based engineering firm Mace for the delivery partner role on the project.
The airspace design consultancy contract was awarded to local firm Nera.
Project scale
The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.
Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
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> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14310252/main.jpg -
Firms submit bids for new QatarEnergy LNG gas project package
21 July 2025
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QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, has received technical bids from contractors for a new engineering, procurement, construction and installation (EPCI) package that is part of the second phase of its North Field Production Sustainability (NFPS) project.
Contractors submitted technical bids for the NFPS phase two COMP5 package “in late June”, sources told MEED. The value of the EPCI contract for the package could be in the “ballpark of $5bn”, the sources said.
Contractors that have submitted technical bids for the NFPS phase two COMP5 package are understood to include:
- China Offshore Oil Engineering Company
- Larsen & Toubro Energy Hydrocarbon (India)
- McDermott (US)
- Saipem (Italy)
The scope of work on the COMP5 package covers EPCI work on the following:
- Two gas compression platforms, each weighing 30,000-35,000 tonnes, plus jacket
- Two living quarter platforms, plus jacket
- Two gas flare platforms plus jacket
- Brownfield modification work at two complexes
According to sources, QatarEnergy LNG, formerly known as Qatargas, is evaluating technical bids for the COMP5 package and has yet to set a submission date for commercial bids from contractors.
NFPS scheme
QatarEnergy’s North Field liquefied natural gas (LNG) expansion programme requires the state enterprise to pump large volumes of gas from the North Field offshore reserve to feed the three phases of the estimated $40bn-plus programme.
QatarEnergy has already invested billions of dollars in engineering, procurement and construction works on the two phases of the NFPS project, which aims to maintain steady gas feedstock for the North Field LNG expansion phases.
The second NFPS phase will mainly involve building gas compression facilities to sustain and gradually increase gas production from Qatar’s offshore North Field gas reserve over the long term.
Saipem has been the most successful contractor on the second NFPS phase, securing work worth a total of $8.5bn.
QatarEnergy LNG awarded Saipem a $4.5bn order in October 2022 to build and install gas compression facilities. The main scope of work on the package, which is known as EPCI 2, covers two large gas compression complexes that will comprise decks, jackets, topsides, interconnecting bridges, flare platforms, living quarters and interface modules.
The gas compression complexes – CP65 and CP75 – will weigh 62,000 tonnes and 63,000 tonnes, respectively, and will be the largest fixed steel jacket compression platforms ever built.
Following that, Saipem won combined packages COMP3A and COMP3B of the NFPS project’s second phase in September last year.
The scope of work on the combined packages encompasses EPCI of a total of six platforms, approximately 100 kilometres (km) of corrosion resistance alloy rigid subsea pipelines of 28-inches and 24-inches diameter, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.
Separately, QatarEnergy LNG awarded McDermott the contract for the NFPS second phase package known as EPCI 1, or COMP1, in July 2023. The scope of work on the estimated $1bn-plus contract is to install a subsea gas pipeline network at the North Field gas development.
In March this year, India’s Larsen & Toubro Energy Hydrocarbon (LTEH) won the main contract for the combined 4A and 4B package, which is the fourth package of the second phase of the NFPS project and is estimated to be valued at $4bn-$5bn.
The main scope of work on the package is the EPCI of two large gas compression systems that will be known as CP8S and CP4N, each weighing 25,000-35,000 tonnes. The contract scope also includes compression platforms, flare gas platforms and other associated structures.
LTHE sub-contracted detailed engineering and design works on the combined 4A and 4B package to French contractor Technip Energies.
NFPS first phase
Saipem is also executing the EPCI works on the entire first phase of the NFPS project, which consists of two main packages.
Through the first phase of the NFPS scheme, QatarEnergy LNG aims to increase the early gas field production capacity of the North Field offshore development to 110 million tonnes a year.
QatarEnergy LNG awarded Saipem the contract for the EPCI package in February 2021. The package is the larger of the two NFPS phase one packages and has a value of $1.7bn.
Saipem’s scope of work on the EPCI package encompasses building several offshore facilities for extracting and transporting natural gas, including platforms, supporting and connecting structures, subsea cables and anti-corrosion internally clad pipelines.
The scope of work also includes decommissioning a pipeline and other significant modifications to existing offshore facilities.
In addition, in April 2021, QatarEnergy LNG awarded Saipem two options for additional work within the EPCI package, worth about $350m.
QatarEnergy LNG awarded Saipem the second package of the NFPS phase one project, estimated to be worth $1bn, in March 2021.
Saipem’s scope of work on the package, which is known as EPCL, mainly covers installing three offshore export trunklines running almost 300km from their respective offshore platforms to the QatarEnergy LNG north and south plants located in Ras Laffan Industrial City.
Saipem performed the front-end engineering and design work on the main production package of the first phase of the NFPS as part of a $20m contract that it was awarded in January 2019. This provided a competitive advantage to the Italian contractor in its bid to win the package.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
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> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye's Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14303672/main5511.jpg -
Award nears on ‘world’s largest desalination plant’
21 July 2025
The Iraqi government has approved the award of the contract to build what will be the world’s largest desalination plant, sending its decision to the project client to conclude negotiations with the selected contractor consortium.
The grouping of Power Construction Corporation of China (PowerChina) and the local Al-Rida Group has been in talks with the Basra Governorate for over a year regarding the contract, which the authorities say has an estimated capital expenditure (capex) of $3.9bn.
It is unclear when exactly the final contract will be signed, but in a public statement Prime Minister Mohammed Shia Al-Sudani said that the Council of Ministers had approved the project, and that the governorate is now “authorised to conclude the contract with the implementing company after completing all technical and administrative requirements”.
The 1 million cubic-metre-a-day reverse osmosis (RO) complex at Basra will be located in the Al-Faw Grand Port development area.
It includes a 240-kilometre transmission system that will transport potable water to nine off-take stations, which link to the municipalities.
MEED understands that a 300MW captive power plant will produce the required energy for the plant.
Austria’s ILF Consulting Engineers is the project consultant.
The massive complex is believed to be the world’s largest single-technology desalination plant ever built in one phase. Although there are larger desalination plants in Saudi Arabia and the UAE, they comprise a combination of hybrid technologies and were built in multiple stages.
The long-awaited Basra project has had a complex history, and a successful conclusion of the contract is by no means assured.
Various contracting groups have been associated with it since 2019, including the UK’s Biwater and South Korea’s Samsung C&T.
Responsibility for the project was transferred from the Ministry of Construction, Housing, Municipalities & Public Works to the Basra Governorate last year as a means of completing it.
There is a pressing need for additional desalination capacity in Iraq. More than 90% of its water needs are met by the Euphrates and Tigris rivers, and thus depend on their sources in Turkiye.
In periods of drought or low rainfall when its northern neighbour has to extract more water from the rivers than normal, Iraq suffers a severe shortage. Desalination plants on the Gulf coast will therefore alleviate any potential future water supply disturbances, particularly in the south, and are consequently considered a national strategic priority.
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> COMMENT: Iraq maintains its pace, for now
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Baghdad and Erbil sign oil supply deal
21 July 2025
The Iraqi federal government has reached an agreement with the Kurdistan Regional Government (KRG) to resolve its dispute over crude oil exports from the north of the country.
Under the terms of the deal, the KRG will immediately begin delivering all of its exports via Iraq’s state oil marketing company, Somo, according to a statement from Prime Minister Mohammed Shia Al-Sudani’s office.
In return, the Baghdad-based Finance Ministry will provide an advance payment of $16 per barrel, either in cash or in-kind, under an amendment to the national budget law.
The agreement states that the KRG must supply at least 230,000 barrels a day (b/d) to Somo, with any future increases to be determined by a joint measurement and calibration committee.
If exports are stopped for any reason, the region must deliver the full quota to the Oil Ministry in Baghdad.
The Iraqi Kurdistan region currently produces 280,000 b/d, of which 50,000 is allocated for local consumption.
As part of the deal, the KRG will provide an initial payment of ID120bn ($91.6m) for May’s non-oil revenue share that is due to the federal treasury.
Final adjustments will be made after audits are completed, according to the prime minister’s statement.
The two sides agreed to form a joint team from their respective finance ministries and audit bureaus to assess any excess in the region’s spending above budgeted allocations for 2023-25, and to develop a plan to address discrepancies.
The team is expected to submit its report to the federal Cabinet within two weeks.
The Finance Ministry will begin disbursing public sector salaries for May to KRG employees as a first step towards implementing the agreement.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14301784/main.png -
Chinese firm wins Dubai Umm Suqeim street upgrade
18 July 2025
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Beijing-headquartered China State Construction Engineering Corporation has won a contract to develop an integrated road network project in Dubai that will upgrade Umm Suqeim Street from its intersection with Jumeirah Street to Al-Khail Road.
The project is being developed by Dubai’s Roads & Transport Authority (RTA).
The project will add six intersections at Jumeirah Street, Al-Wasl Road, Sheikh Zayed Road, First Al-Khail Street, Al-Asayel Street and Al-Khail Road.
The scope of work also includes the construction of four bridges and three tunnels, with a total combined length of 4.1 kilometres.
The project will also establish a direct link between the Mall of the Emirates metro station and nearby residential communities.
The RTA announced plans to develop the project in June.
Mattar Al-Tayer, director-general and chairman of the board of executive directors of the RTA, said: “The upgrade of Umm Suqeim Street, from its intersection with Jumeirah Street to Al-Khail Road, forms part of a masterplan to develop the Umm Suqeim-Al Qudra corridor.”
He added: “The project enhances connectivity across four strategic transport corridors in Dubai – Sheikh Zayed Road, Al-Khail Road, Sheikh Mohammed Bin Zayed Road and Emirates Road. It will increase Umm Suqeim Street’s capacity to 16,000 vehicles an hour in both directions, significantly improve traffic flow and reduce travel time between Jumeirah Street and Al-Khail Road from 20 minutes to just six.”
Upgrading Strategic Dubai Corridor
We are pleased to announce the upgrade of Umm Suqeim Street as part of an integrated urban project aiming to enhance infrastructure efficiency and improve traffic flow in one of the city's key areas.
This project marks a significant milestone… pic.twitter.com/Ymm9Wxy21X
— RTA (@rta_dubai) May 31, 2025
In November last year, the RTA outlined plans to improve urban mobility and infrastructure throughout the emirate.
The estimated AED16bn ($4.3bn) 2024-27 Main Roads Development Plan involves adding 22 projects across Dubai’s road network.
The development plan includes the construction of new roads and bridges designed to alleviate traffic congestion in several key locations in Dubai.
Planning for growth
The Dubai 2040 Urban Master Plan was launched in March 2021. Its launch referenced studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.
In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan.
In addition to the road projects, the RTA’s Dubai Metro Blue Line extension also forms part of plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.
The policy aims for residents to have 80% of their daily requirements met within a 20-minute journey time, on foot or by bicycle. This goal will be achieved by developing integrated service centres with key facilities and increasing the population density around mass transit stations.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
> AGENDA: UAE-Turkiye trade gains momentum> INTERVIEW 1: Building on UAE-Turkiye trade> INTERVIEW 2: Turkiye’s Kalyon goes global> INTERVIEW 3: Strengthening UAE-Turkiye financial links> INTERVIEW 4: Turkish Airlines plans further growth> CURRENT AFFAIRS: Middle East tensions could reduce gas investments> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality> PROJECTS MARKET: GCC projects market collapses> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia> LEADERSHIP: Nuclear power makes a global comeback> LEVANT MARKET FOCUS: Levant states wrestle regional pressures> GULF PROJECTS INDEX: Gulf projects index continues climb> CONTRACT AWARDS: Mena contract award activity remains subdued> ECONOMIC DATA: Data drives regional projects> OPINION: A farcical tragedy that no one can endTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14289519/main.jpg