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  Local firm to develop $598m Muscat tourism project

  3 March 2026

  Oman’s Ministry of Heritage & Tourism has signed an agreement with local firm Sorouh Al-Qurm Real Estate Company to build an integrated tourism complex in the Al-Qurm area of Muscat.

  The project will be developed with a total investment estimated at RO230m ($598m).

  Planned across more than 165,000 square metres (sq m), the development will include two four-star hotels offering over 400 rooms, alongside leisure components such as an indoor games hall and trampoline attractions.

  The site will also incorporate commercial spaces and freehold residential units, among other amenities.

  The agreement was signed by Sayyid Ibrahim Bin Said Al-Busaidi, minister of heritage and tourism, and Khaled Khudair Mashaan, chairman of Al-Argan International Real Estate Company, who signed as the authorised representative for Sorouh Al-Qurm Real Estate Company.

  GlobalData forecasts that the Omani construction industry will expand at an average annual growth rate of 4.2% from 2025 to 2028.

  Growth in the country will be supported by rising government investments in renewable energy and transport infrastructure, as well as in the housing sector, as part of the Oman Vision 2040 plan.

  

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  Yasir Iqbal
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  Firms to build Jeddah Islamic port logistics zone

  3 March 2026

  The Saudi Ports Authority (Mawani) has signed an agreement with Dammam-headquartered Sultan Logistics to develop a new logistics zone at Jeddah Islamic Port’s Al-Khumra site.

  According to a statement posted by Mawani on X, the project will cover about 200,000 square metres and represents an investment of SR250m ($66m).

  #موانئ توقّع عقد تأجير مع شركة "سلطان لوجستيك" لإنشاء منطقة لوجستية بقيمة استثمارية 250 مليون ريال؛ في #ميناء_جدة_الإسلامي بمنطقة الخُمرة، بما يسهم في رفع كفاءة الحركة التجارية، وتعزيز الميزة التنافسية للميناء كمحور رئيسي للتجارة على البحر الأحمر. pic.twitter.com/sswITiFIHb

  — مـوانـئ | MAWANI (@MawaniKSA) March 2, 2026

  Planned facilities include warehouses, designated areas for storing and servicing dry and refrigerated containers, and a re-export section.

  Mawani said the development is intended to strengthen the port’s position on the Red Sea by upgrading service quality, supporting private sector participation and contributing to Saudi Arabia’s broader economic diversification goals.

  Jeddah Islamic Port currently operates 62 multipurpose berths and can handle up to 130 million tonnes a year.

  The latest agreement follows Mawani’s April 2025 signing of more than SR500m ($133m) in agreements with local firms to develop two logistics parks at King Abdulaziz Port in Dammam, as reported by MEED.

  In a statement, Mawani said that in 2024, it launched and inaugurated eight logistics parks with an estimated investment of about SR3bn ($800m).

  The firm said: “These investments are part of the broader development of over 20 logistics centres under Mawani’s supervision across Saudi ports, with total investments over SR10bn ($2.6bn).”

  GlobalData expects the Saudi construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

  The infrastructure construction sector is expected to grow at an average rate of 6% in 2025-28, supported by government investments in rail, dams and road infrastructure projects.

  

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  Yasir Iqbal
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  Daewoo pulls out of Libya upstream tender

  3 March 2026

  

   

  South Korea’s Daewoo has pulled out of the tender process for Libya’s 6J North Gialo oil field development project, increasing uncertainty over its future, according to industry sources.

  Daewoo had formed a partnership with Egypt’s Petrojet to participate in the tender process.

  The only other company to submit a bid for the project was UK-based Petrofac, which filed for administration in October last year.

  In September last year, MEED revealed that two bids had been submitted for the project and were under evaluation.

  Contractors now believe that the client on the project, Libya’s Waha Oil Company, may cancel the existing tender and retender the project due to problems with the two bidders.

  Waha is a joint venture of Libya’s National Oil Corporation (NOC), France’s TotalEnergies and US-based ConocoPhillips.

  The 6J North Gialo field development project is part of a series of tenders that are collectively expected to be worth $1bn.

  The three projects are:

  • NC98
  • Gialo 3
  • 6J North Gialo

  All three projects will develop Libyan reservoirs that have not yet been tapped.

  The 6J North Gialo project was the first to be tendered and it is expected to be followed by NC98, with the Gialo 3 project likely to be tendered last.

  Together, the projects are expected to double Waha’s production from about 300,000 barrels a day (b/d) of oil to 600,000 b/d. The Waha concession covers 13 million acres.

  

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  Wil Crisp
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  Iraq oil field stops production due to Israel-Iran conflict

  3 March 2026

  The Shaikan field in northern Iraq’s semi-autonomous Kurdistan region has stopped production due to security concerns related to the US and Israel’s conflict with Iran.

  The field is operated by London-listed Gulf Keystone Petroleum, which has said in a statement that it had “temporarily shut-in production operations and has taken measures to protect staff in light of the developing regional security environment”.

  The company also said that it was closely monitoring the situation and would provide updates as appropriate.

  Shaikan is one of Iraqi Kurdistan’s largest producing fields and produced more than 41,500 barrels a day in 2025.

  The production stoppage at Shaikan comes days after gas production was halted at Iraqi Kurdistan’s Khor Mor field on 28 February.

  UAE-based Dana Gas stopped supplying power plants from the field due to the “abnormal situation and war taking place in the area”, according to a joint statement from the Kurdistan region’s natural resources and electricity ministries.

  The gas halt is expected to cut electricity generation capacity by 2,500-3,000MW, with authorities seeking alternative supply to limit the shortfall, the ministries said.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/15836217/main.png

  Wil Crisp
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  Saudi Arabia’s private sector picks up the baton

  2 March 2026

  

   

  Ten years of ambitious construction project launches ended on 25 January 2026, when the Olympic Council of Asia and the Saudi Olympic & Paralympic Committee released a joint statement saying that they had agreed to indefinitely postpone the 2029 Asian Winter Games. In early February, it was announced that Almaty in Kazakhstan will host the event.

  The Trojena mountain resort at Neom in northwest Saudi Arabia was selected in 2022 as the venue for the games, and despite significant construction work on the project, rumours had been circulating throughout most of 2025 that the greenfield venue would not be ready by the 2029 deadline.

  Project reprioritisation

  Trojena is not the only project in the kingdom that has been subject to scrutiny. There have been reports of other projects, including The Line and the Mukaab, either being scaled back, delayed or put on hold as Riyadh reassesses its priorities. This has created an air of uncertainty over Saudi Arabia’s upcoming project pipeline.

  Speaking at the Private Sector Forum (PSF), held in Riyadh in early February, Khalid Al-Falih, then Saudi Arabia’s investment minister and now minister of state, said that much has changed since Vision 2030 was launched in 2016, and that this has naturally warranted a reprioritisation. 

  Al-Falih, who also sits on the Public Investment Fund’s (PIF’s) board of directors, said that with Saudi Arabia having been chosen to host football’s Fifa World Cup in 2034 and Expo 2030 Riyadh – and as the global economy is evolving rapidly with the rise of artificial intelligence (AI) – some projects such as The Line at Neom have slowed down. However, other projects related to the World Cup, Expo 2030, technology and AI have accelerated. 

  PIF strategy

  In his speech at the PSF, Yasir Al-Rumayyan, governor of the PIF, also alluded to changing priorities and said that this is a pivotal moment for Saudi Arabia’s economy. 

  Launched in 2016, Saudi Arabia’s Vision 2030 is described as “a transformative and ambitious blueprint to unlock the potential of its people and create a diversified, innovative and world-leading nation”. 

  The agency charged with delivering many of the objectives outlined in the strategy is the PIF. Established in 1971, it was moved from the Finance Ministry in 2015 to the Council of Economic & Development Affairs, where it was given a more active mandate. It then grew from a staff of about 50 in 2015 to almost 3,000 in 2024, according to the most recently published annual report.

  Over the past 10 years, the PIF has helped drive the development of key sectors with direct capital spending on projects. The Red Sea Project and the Qiddiya entertainment city development aim to position the kingdom as a leisure tourism destination, while Roshn’s portfolio of residential communities has helped transform the housing market.

  The PIF had $913bn of assets under management in 2024. Its activities are too varied to list, but they include developing the kingdom’s five official gigaprojects; holding investments in Saudi companies including Saudi Aramco and Maaden; owning stakes in electric vehicle manufacturers Lucid and Ceer, and gaming companies Nintendo and Electronic Arts; and owning UK Premier League football team Newcastle United.

  In 2026, the role of the PIF is changing. Speaking at the PSF, Al-Rumayyan extended an invitation to the private sector to play a bigger role in achieving the kingdom’s economic ambitions. 

  “Today, in line with the objectives of the third phase of Saudi Vision 2030 and the PIF’s strategy for the coming five years, we are moving from building sectors to integrating ecosystems, and from launching opportunities to accelerating growth – through an open invitation to the private sector to invest and partner in shaping a diversified and resilient economy,” he said.  

  Having raised the bar, PIF officials say that sectors such as tourism and real estate are now ready for the private sector to take over. They describe sectors reaching what they call ‘escape velocity’, which is the point where a sufficient level of maturity has been reached for the private sector to come in and take the lead.

  [In 2026, the PIF is] moving from building sectors to integrating ecosystems, and from launching opportunities to accelerating growth

  Financial considerations

  The decision to pass the baton to the private sector comes at a time when Saudi Arabia’s ability to finance all its project commitments directly has been questioned amid lower-than-desired oil prices. 

  Reflecting the constrained backdrop, the Ministry of Finance’s final budget statement for 2026 projects a deficit of SR165bn ($44bn), equivalent to about 3.3% of GDP. 

  The private sector has a tough act to follow. While the PIF has embarked on some of the world’s most ambitious projects in recent years, it has also introduced international standards that it hopes will lead to ways of doing business in Saudi Arabia that are more in tune with international best practices. 

  “The fund will continue to enable ecosystems and lay the foundations for growth. At the same time, the next phase requires a higher level of readiness and ambition from the private sector, alongside the ability to scale and innovate – a phase in which the role of the private sector evolves from execution to contributing to economic building and value creation,” Al-Rumayyan said. 

  Whether the private sector is ready to take over is the critical question in 2026. 

  According to PIF subsidiary development companies (devcos) that engage with private sector investors, the tide is turning. They say that five years ago, the appetite to invest was limited and devcos had to step in and deliver a greater proportion of project masterplans. As these investors complete their first projects, however, confidence is building.

   

  Deals signed

  This growing appetite could be seen at the PSF, where agreements were signed by private sector investors and devcos. 

  Rua Al-Madinah, which is responsible for Medina’s tourism and cultural development, signed a memorandum of understanding (MoU) with Indonesian sovereign wealth fund, Danantara Indonesia. It covers identifying and assessing investment opportunities in the Rua Al-Madinah and Dar Al-Hijrah projects.

  King Salman International Airport Development Company signed several MoUs with local firms to develop mixed-use projects within its airport masterplan. The agreements were signed with Sumou Holding, Mohammed Al-Habib Investment, Kinan, Ajdan, Retal, Urjuan and Osus and comprise residential, commercial, retail, hospitality, entertainment and other related projects.

  Roshn Group also signed an agreement with Kuwait’s Agility Logistics Parks to establish a joint venture that will develop a Grade A logistics hub.

  In mid-February, two further deals were signed. PIF-backed Smart Accommodation for Residential Complexes Company (Sarcc) signed an agreement with Dammam-based Tamimi Global Company to develop a 4,000-bed worker accommodation project in North Riyadh. The development is expected to cost over SR1.5bn ($400m).

  Sarcc also signed a separate agreement with Riyadh-based Mawref Company to develop another North Riyadh worker accommodation project. This deal involves building a 12,000-bed facility with a development cost of over SR669m ($178m). 

  The first phases of both projects are expected to be completed in 2029.

  While momentum continues to build and deals are signed, some private sector players remain to be convinced. In the kingdom’s real estate sector, for example, recent amendments to legislation, which include a white land tax and a rent freeze, have created a level of uncertainty that some potential investors say makes it difficult to sign off on investment commitments. 

  Much will depend on the success of the deals already signed. If these agreements result in positive outcomes, then the fear of missing out will kick in and other private sector players will be keen to invest. 

  The risk is that, should deals turn sour and fail to produce the expected results, then attracting future investments from the private sector will be challenging.

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  Main image: Yasir Al-Rumayyan, governor of the PIF, inaugurates the PSF 2026. Credit: Saudi Press Agency 

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  Colin Foreman