meed-logo

line1 line2 line3
SIGN IN / REGISTER

UAE food producers struggle with global challenges

29 November 2022

Local food and beverage (F&B) producers in the UAE say the sector is being severely constrained by rising input costs and unprecedented challenges caused by the Russia-Ukraine conflict.

The impact of the war, which began in February this year, has reverberated across the globe, creating uncertainty and insecurity in global food supply chains. 

The food industry is among the vital focus industrial sectors of the UAE’s Ministry of Industry & Advanced Technology’s (MoIAT) Operation 300bn plan, not only to enhance its contribution to GDP but also to support long-term food security and self-sufficiency by facilitating local production.

Food security strategy

For industry stakeholders gathered at the MEED-Mashreq Manufacturing Business Leaders Forum, the Covid-19 crisis and conflict in Ukraine have only further underlined the importance of pursuing a food security strategy.

“The UAE F&B industry has more than 550 manufacturing units and employs more than 80,000 workers with a value of production of over AED35bn and exports of more than AED15bn,” said Ahmed Bayoumi, CEO of Global Food Industries (GFI) and board member of the UAE Food & Beverage Manufacturers Group.

“The Ministry of Climate Change and the Ministry of Industry are jointly spearheading efforts to increase the domestic supply of food products and to make the UAE one of the most food-secure countries in the world,” explained Bayoumi. 

“The two strategies, food security and Operation 300bn, both have many programmes to support the industry. We also really appreciate the new free trade agreements and the building of new trade routes with India, Indonesia and Israel.”

Import dependence

The UAE and other Gulf nations – considered food-secure due to their economic and political stability – have not faced food shortages since the pandemic outbreak. But food security and limiting vulnerability to import disruptions remains a key strategic long-term goal for the UAE government, as it lacks control over its sources.

GCC countries, including the UAE, typically import nearly 85 per cent of their food.

Compounding the situation is the harsh climate, with the expansion of local food production limited due to the scarcity of natural resources such as water and arable land.

According to the World Resources Institute, the Middle East and North Africa is the most water-stressed region globally, with the World Bank forecasting that the region will experience the highest economic losses from climate-related water scarcity compared with other global regions, at about six to 14 per cent of their GDP by 2050.

Conflict stress

Closed-off access to the lower-priced Black Sea grain since the outbreak of the war has induced commodity shortages and exacerbated inflationary pressures for purchasers already struggling with still fragile pandemic-disrupted supply chains, high import costs and spikes in energy costs.

“Because of the Ukraine war, sunflower oil and flour prices are up by almost 60 per cent,” a local food manufacturer said during the forum.

“Additionally, the Indian government has banned wheat exports from India. This has created an increase in commodity prices in the local market. It directly impacts me because almost all my products use wheat. Wheat flour is 60 per cent of my raw material.” 

The challenge, he said, is further compounded because commodity suppliers have been demanding advance payments as they capitalise on the shortages. 

But in the credit-driven UAE market, manufacturers are still bound by 90 to 120-day payment cycles.

“At the same time, I am restricted from increasing my prices,” the manufacturer said. “It is not healthy for the industry. There must be some intervention from the ministry to address this.”

Almost 99 per cent of food products in the UAE are no longer regulated in terms of pricing. This is due to the dialogue between the Ministry of Economy and the industry – credit where credit is due

Ahmed Bayoumi, Global Food Industries

Countering inflation

Inflation has risen to historic levels in many markets worldwide, significantly impacting consumers and businesses. 

In the UAE, the IMF forecasted that inflation will be at 5.2 per cent this year.

One local manufacturer at the forum said businesses have “no other way” to protect their finances and margins than to raise the prices of their goods.

“The government does not like to disturb consumers with price increases, but this is a very big challenge for manufacturers,” he said. “If manufacturers don’t increase prices, they will lose money.”

A 2022 Grant Thornton survey of 5,000 mid-market businesses across 28 countries, including the UAE, revealed that 87 per cent of businesses in the UAE have opted to pass the cost of surging inflation to consumers in a bid to protect their margins by increasing their prices, “at the same level or above our cost increases”.

According to the study, businesses have seen increases of 18 per cent in their energy and utility bills, 17 per cent in raw materials costs and 14 per cent in salaries or staff compensation. Businesses also saw a 16 per cent increase in outgoings related to equipment, as well as bank, interest and taxes.

The UAE government typically caps prices of staple food items to keep inflation in check and ensure shopping remains affordable for families. In April 2022, however, the Ministry of Economy said it was monitoring 300 frequently bought essential food items to identify products whose prices could be raised in line with rising import costs, subject to approvals.

“Almost 99 per cent of food products in the UAE are no longer regulated in terms of pricing,” said GFI’s Bayoumi. “This is due to the dialogue between the Ministry of Economy and the industry – credit where credit is due.

“There are only some basic staples that are regulated, and this was a major breakthrough after almost 20 years of everything being regulated.”

Achieving self-sufficiency

The long-term vision of the UAE’s food security strategy is to achieve self-sufficiency, creating an optimum balance between domestic production and securing food production channels overseas.

Ongoing challenges, however, are impacting the speed with which this vision can be achieved. 

“Producers who perhaps enjoy more subsidies or, due to currency fluctuations, can access the UAE market at low cost. This tends to come at the cost of demand for local manufacturers,” said Bayoumi.

The strong dollar, meanwhile, has been a “double-edged sword”.

“On the one side, it helps you with your imports from everywhere in the world. So, imports are cheaper in terms of raw materials or equipment. But, on the other hand, in terms of exports, nations using the Euro, for example, are screaming that they can’t buy our product anymore because they have appreciated by 20 per cent.”

“I think the UAE has to think to have some kind of ownership of lands abroad,” a manufacturer at the forum said. “This might open a big door for the UAE. That will secure our raw materials in terms of availability and prices.”

The UAE is already taking steps in this area, with efforts spearheaded by its investment vehicles. 

In 2020, Abu Dhabi’s International Holdings Company (IHC) said it would invest over $225m to develop and cultivate over 100,000 acres of farmland in Sudan to help secure high-quality agricultural output. 

Earlier this year, Abu Dhabi holding company ADQ bought a majority stake in Cyprus-headquartered agriculture company Unifrutti. The firm produces, trades and distributes more than 100 varieties of fresh produce, and sells 560,000 tonnes of fresh fruit a year. It has 14,000 hectares of farms across four continents and customers in 50 countries.

ADQ previously acquired a 45 per cent stake in French firm Louis Dreyfus, and has stakes in local companies, including fresh produce and agri-tech group Silal; forage and agribusiness group Al-Dhahra Holding; and food and beverage group Agthia.

Equal opportunities

Bayoumi noted that overall, demand within the UAE is recovering “very strongly” after the pandemic.

“Especially with visitor numbers growing, we see market demand growing, and we anticipate that this growth will continue going forward,” he said. 

“But also, competition is intensifying. More players are seeing the Gulf as one of the most attractive markets globally over the next three to five years, more players are coming into the market, and more players are vying for a piece of the cake.”

Medium-sized enterprises are at a further disadvantage when compared to regional giants.

“One of the things being discussed and under study is how medium-sized enterprises can be provided with access to centres of excellence that would pool resources in areas such as research and technology, which an individual entity might not be able to afford otherwise. That would make them more competitive over the long term versus the big players,” he said.

“The concentration of retail power also needs to be addressed. In the past, there were thousands of places to sell your product and hardly pay anything. Now two or three major retailers have 50 to 60 per cent of the market. They impose demands and if you do not comply, you could end up delisted or chucked off shelves.”

By Megha Merani

https://image.digitalinsightresearch.in/uploads/NewsArticle/10391937/main.gif
MEED Editorial

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

Click here to register
Exclusive from Meed
Related Articles
  • Abu Dhabi receives four bids for Al-Nouf IPP

    30 March 2026

    State utility Emirates Water & Electricity Company (Ewec) has announced it has received four bids for the development of the 3.3GW Al-Nouf independent power producer (IPP) project in Abu Dhabi.

    Located within the newly established Al-Nouf complex, the facility will be the largest single-site, carbon-capture-ready, combined-cycle gas turbine plant in the UAE. 

    Ewec issued a request for proposals for the project last August. It received statements of qualifications for the contract in April 2025.

    Earlier this month, MEED exclusively revealed that Aljomaih Energy & Water (Saudi Arabia) and Sumitomo (Japan) were among the bidders for the project.

    The groups that submitted bids include the following three consortiums and one individual company:

    • Aljomaih Energy & Water (Saudi Arabia) / Sembcorp Industries (Singapore) / EDF Power Solutions (France)
    • Engie (France) / Korea Overseas Infrastructure & Urban Development Corporation (Kind) / Korea Western Power Company (Kowepo)
    • Korea Electric Power Corporation (Kepco) / Etihad Water & Electricity (EtihadWE)
    • Sumitomo (Japan) 

    As MEED previously reported, the project will follow the model of Abu Dhabi’s IPP programme, in which developers enter into a long-term agreement with Ewec as the sole procurer. 

    This involves the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity. The remaining equity will be held indirectly by the Abu Dhabi government.

    The project site was selected for its ability to accommodate both seawater-cooled power generation and reverse osmosis desalination technologies.

    The plant will have the capacity to support several utility-scale energy and desalination projects in the future.

    The facility is scheduled to begin commercial operations in the third quarter of 2029.

    Taweelah C IPP

    Last year, the Taweelah C IPP became the first gas-fired power plant project to be procured by Abu Dhabi since 2020, when Ewec awarded Japan’s Marubeni Corporation the contract to develop the Fujairah 3 IPP.

    Ewec is procuring the 2,500MW gas-fired IPP, which will be located in the Al-Taweelah power and desalination complex, approximately 50 kilometres to the northeast of Abu Dhabi.

    It is understood that three groups have submitted bids for the developer contract. These are:

    • Sumitomo (Japan) / Korean Midland Power / Korea Overseas Infrastructure & Urban Development Corporation 
    • Aljomaih Energy & Water (Saudi Arabia)  / Sembcorp (Singapore)
    • Etihad Water & Electricity (UAE) / Korea Western Power (Kowepo) / Kyuden (Japan)

    A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.

    The power purchase agreement for the project was previously expected to be signed by the end of 2025, with the project scheduled to begin commercial operations in the fourth quarter of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16185238/main.jpg
    Mark Dowdall
  • Neom cancels major desalination project

    30 March 2026

     

    Saudi gigaproject developer Neom has cancelled plans to build a major seawater reverse osmosis (SWRO) desalination plant, according to industry sources.

    The plant, due to have a capacity of 150,000 cubic metres a day (cm/d), had been tendered in 2024.

    In October that year, MEED reported that Enowa, the Neom utility subsidiary, had received four bids from companies for a contract to build the plant.

    These included:

    • Alfanar Company (local) / Abengoa (Spain)
    • China Machinery Engineering Corporation (CMEC)
    • Orascom (Egypt) / Wetico (local)
    • VA Tech Wabag (India) 

    In 2025, the project failed to reach the contract award stage. It has since been cancelled as part of a “complete restructure for Neom”, a source told MEED. 

    Neom did not respond to a request for comment. However, it is understood that the desalination project will not be retendered under a new scope. 

    The SWRO plant, previously known as the Moonlight desalination plant, was due to be built adjacent to the 125,000 cm/d desalination plant at Duba on Saudi Arabia’s Red Sea coast. It was expected to take 12 months to complete.

    Previously, in May 2024, Enowa confirmed the cancellation of another project to develop a renewable-energy-powered advanced SWRO project with zero liquid discharge in Oxagon, Neom’s industrial cluster.

    The scope of the cancelled project’s first phase, to be developed by a team of Japan’s Itochu Corporation and France’s Veolia, included a desalination plant with a production capacity of 500,000 cm/d of desalinated water.  

    In recent months, Saudi Arabia’s construction sector has been pivoting away from prestige-driven capital expenditure towards more deliverable priorities.

    In March, MEED exclusively revealed that Neom had cancelled the contracts related to the construction of the tunnel sections of The Line in northwest Saudi Arabia.

    The tunnels formed part of the infrastructure backbone of Neom’s 170-kilometre The Line development, launched in January 2021.

    Separately, it was also announced that a contract between Neom and Malaysian contractor Eversendai Corporation had been terminated for the steel structural works on the Ski Village Trojena project.

    According to media reports, the shift away from large-scale gigaprojects includes a pivot towards repositioning what remains of Neom as an industrial and data centre hub.

    Such plans would leverage the Red Sea coastline’s access to seawater cooling for artificial intelligence (AI) infrastructure.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16141326/main.jpg
    Mark Dowdall
  • Construction guard undergoes a shift

    30 March 2026

     

    The 2026 GCC Construction Contractor Ranking reflects two key trends. One is a growing trend that has been steadily rising across the region for more than a decade, while the other is a more recent development, which is now followed by the added uncertainty of a war with Iran.

    The long-running trend is the rise of Chinese contractors. After years of Saudi-based dominance, Beijing’s China State Construction Engineering Corporation has claimed the top spot as the region’s most active contractor, with $10.399bn of work currently at the execution stage. This represents a notable rise for the firm, which was ranked second in 2025.

    China State is not the only Chinese contractor in the top three. China Harbour Engineering Company ranks third, with $8.64bn of work under execution. Both firms are among China’s largest construction companies and have a longstanding presence in the region. In recent years, their success has encouraged other Chinese contractors to enter the market and win work. This trend is reflected in the national rankings, where other Chinese players feature prominently and may follow China State and China Harbour in rising to the top of the regional rankings.

    Saudi reprioritisation

    The other more recent trend affecting the 2026 ranking is the reprioritisation of projects in Saudi Arabia. The reassessment of the kingdom’s capital expenditure commitments led to a sharp decrease in contract awards during 2025. Combined with contractors completing work on projects secured immediately after the Covid-19 pandemic in 2021 and 2022, this has resulted in an overall decline in the value of work at the execution stage.”

    This trend is reflected in China State’s figures. Although it moved up the rankings in 2026, the total value of work at the execution stage declined from $13.5bn to $10.4bn – a drop of about 30%.

    The decline was even more pronounced for Saudi Arabia-based Nesma & Partners, which, unlike China State, does not have extensive operations in other GCC markets. Nesma moved to second place with $8.844bn of work under execution.

    Despite the slowdown in activity in the kingdom, Saudi contractors continue to hold four of the top 10 positions, down from six in the 2025 ranking. El-Seif Engineering Contracting, Al-Bawani and Shibh Al-Jazira dropped out of the rankings, while Modern Building Leaders entered the top 10.

    The other newcomer to the list is London-headquartered Innovo, which has rapidly become one of the most active building contractors in the UAE, with projects in Dubai and Abu Dhabi.

    Bahrain

    The Bahraini market remains dominated by large-scale social infrastructure and residential developments. In 2026, the ranking shows that contractors that have maintained a steady amount of work at the execution stage have risen up the ranking as other contractors complete projects and drop down the listing.

    China Machinery Engineering Company maintains its position at the top of the ranking, with $689m of work under execution. Its primary focus continues to be the East Sitra housing scheme, a multi-phase project for the Ministry of Housing & Urban Planning that has involved the construction of thousands of housing units since 2019.

    Nass Contracting has climbed back to second position with $639m. The local contractor was ranked fourth in 2025. Its portfolio is bolstered by significant infrastructure wins, including the Busaiteen Link scheme and the expansion of the RCSI Bahrain campus. Al-Hamad Building Contracting follows in third place with $610m, continuing its work on major Manama-based projects such as the Villamar residential complex.

    In fourth position is the local Saleh Abdulla Kameshki & Sons, with $237m of work at the execution stage, followed by the local Kooheji Contractors in fifth place, with $230m of work at the execution stage. Kooheji was the seventh-ranked contractor in 2025.

    Another local contractor that has risen up the ranking is Cebarco, which now sits in sixth place up from eighth, with $218m of work under execution. The local Almoayyed Contracting Group now sits in seventh place, down from sixth last year.

    The other companies were not in the top 10 in 2025. They are CCT Constructor Group, Dar Al-Binaa Construction and Haji Hassan Group.

    Kuwait

    Turkiye’s Limak remains the top-ranked contractor in Kuwait, with $6.052bn of projects at the execution stage. The firm’s ranking reflects its work on the multibillion-dollar expansion of Kuwait International airport Terminal 2 and various road maintenance contracts for the Ministry of Public Works.

    Chinese contractors have significantly increased their footprint in the country. China signed a series of agreements in 2023 that covered the delivery of some of Kuwait’s immediate development goals between 2024 and 2028. These agreements positioned Chinese companies to play a leading role in the Fourth Kuwait Master Plan 2040, and this is now shown in the contractor ranking for 2026.

    China Communications Construction Company (CCCC) takes the second spot with $3.625bn, while China Gezhouba Group Construction holds third with $1.670bn.

    In December last year, CCCC signed a $4bn agreement to develop the next phases of Kuwait’s Grand Mubarak Port on Boubyan Island. In March 2025, China Gezhouba won two contracts worth over $557m from the Public Authority for Housing Welfare for the South Saad Al-Abdullah residential project in Al-Jahra Governorate.

    While Chinese contractors are playing a growing role, local players continue to manage substantial orderbooks, including Al-Ahmadiah with $1.071bn of work under execution, Khalid Ali Kharafi & Sons with $1.017bn of work, and Mohamed Abdulmohsin Al-Kharafi & Sons with $992m.

    Oman

    The Omani construction sector has changed at the top as the value of projects that contractors have at the execution stage has declined. Al-Adrak Trading & Contracting Company has moved into first place with $1.423bn of work. The top-ranked contractor in 2025 had $2.4bn of projects at the execution stage.

    Al-Adrak was the eighth-ranked contractor in 2025, with $700m of projects at the execution stage.

    The local contractor’s recent success has been anchored by securing work on Oman’s new generation of real estate projects. In May 2025, it secured a contract with Saudi developer Dar Global to build the villas and apartments at the Aida project.

    Last year’s top-ranked contractor, Galfar Engineering & Contracting, is now in second place with $1.392bn. Galfar’s portfolio is headlined by the $1.5bn Hafeet Railway project connecting Oman and the UAE.

    Sarooj Construction Company follows closely in third with $1.372bn, while India’s Larsen & Toubro maintains a strong presence in fourth with $906m. Overall, the market shows further softening in 2026, with contractors across the rest of the ranking holding less work than in 2025, when the 10th-ranked contractor, PowerChina, had $500m of projects under construction. In 2026, it has $250m.

    Qatar

    Qatar’s market is transitioning into a post-World Cup phase, focusing on social infrastructure and utility projects. Midmac Contracting Company has moved to the top spot with $2.082bn, nearly doubling the value of projects held by the second-ranked UCC Holding, which has $1.05bn.

    Midmac’s return to the top 10 and the top of the ranking is largely due to it recently securing the $2bn Amiri flight facilities project at Hamad International airport, while UCC’s work remains centred on public-private partnership school schemes and road infrastructure for Ashghal.

    The contracting joint venture of Qatari Diar and Saudi Binladin Group, QD-SBG Construction, is in third position with $843m. Its largest ongoing project is Al-Rafidain Mall for Abraaj Al-Mustaqbal RealEstate.

    As the Qatari market transitions, four other contractors have moved into the top 10 in 2026. They are Badr Contracting & Trading with $534m of projects under execution, Al-Masaken Trading & Contracting Company with $400m, Marbu Contracting Company with $395m and Al-Mohannadi Group with $369m. As these contractors join the ranking, Consolidated Contractors Company (CCC), Shelter Contracting, InfraRoad Trading & Contracting Company, Changda Construction and American International Contractors Incorporated have moved out of the top 10.

    Saudi Arabia

    Much is changing in Saudi construction, but one constant is Nesma & Partners’ position at the top of the kingdom’s contractor ranking. While its position remains the same, the value of construction work that Nesma has under execution has decreased significantly when compared to 2025. This year, the contractor tops the Saudi ranking with nearly $9bn of work; last year it led with nearly $14bn of work.

    Nesma is not the only contractor that has experienced a reduction. Second-placed Almabani has $6.5bn of projects under construction this year compared with $8.5bn in 2025. Third-placed contractor Saudi Binladin Group has maintained a total of about $6.5bn over 2025 and 2026, and this has allowed the Jeddah-based contractor to jump up from seventh position last year. The company is working on several high-profile projects in the kingdom, including the world’s tallest tower in Jeddah, which will be over 1,000 metres tall.

    All the other contractors in the top 10 have similar declines in the value of their projects under execution. The exception is the local Building Contracting Company, which joins the top 10 in 10th position with $3.2bn of work. The 10th-ranked contractor in 2025 was China Harbour Engineering Corporation with $5.9bn of work, a total that in 2025 would have meant it would be the fourth-ranked contractor in 2026.

    The reduction in work volumes reflects the ongoing reprioritisation of projects in Saudi Arabia. Government officials have said that while some projects, such as The Line at Neom, have slowed down, other projects, such as those for Expo 2030 Riyadh and the Fifa World Cup in 2034, will be accelerated.

    UAE

    Contractors in the UAE are benefitting from high levels of spending across public infrastructure and real estate. Following on from 2025, Trojan General Contracting continues to lead the UAE ranking. In 2026, it has $7.59bn of projects under execution, up slightly from the $7.2bn recorded in 2025. The Abu Dhabi-based contractor has work on public infrastructure schemes for Abu Dhabi-based government agencies, and this base is supplemented by work on real estate projects across the UAE.

    China State Construction is in second position with $5.618bn under execution. The Beijing-based contractor has risen up the rankings from seventh position last year when it had $4bn of work under execution thanks to a series of deals for the construction of real estate and roads.

    In third position is London-headquartered Innovo with $5.443bn of work at the execution stage. Innovo is working on major real estate developments in Abu Dhabi and Dubai and has quickly grown in recent years to become one of the key players in the UAE’s construction sector.

    Sobha Constructions, the construction arm of property developer Sobha, is in fourth position with just over $5bn of work under execution. It is the main contractor for Sobha’s projects, which include the $763m Sobha Reserve and the $400m Skyvue Towers at Sobha Hartland 2.

    The local Dutco, with $4.43bn of work under execution, has joined the top 10 in fifth position. The contractor has picked up a wide range of work on Dubai real estate projects over the past two years. Three other contractors in the ranking, Ginco, Unec and Arabian Construction Company, also work extensively on real estate projects in Dubai and Abu Dhabi. The local Alec is active in the real estate sector too. Additionally, it is working on a large data centre project in Abu Dhabi as well as the Wynn resort in Ras Al-Khaimah.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16184074/main.gif
    Colin Foreman
  • Contractors submit bids for Aramco-backed logistics hub

    30 March 2026

     

    Contractors submitted bids on 18 March for a contract to build a logistics complex at King Salman Energy Park (Spark).

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, tendered the estimated SR804m ($214m) contract on 7 December.

    The logistics hub will span more than 100,700 square metres at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    Last month, Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings to deliver the project at King Salman Energy Park (Spark).

    Last month, Asmo signed an agreement with Bahrain-headquartered Arcapita Group Holdings to deliver the project.

    The project will feature a 43,000 sq m temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemical storage; and an open yard spanning about 1.2 million sq m.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar (photovoltaic) readiness, electric-vehicle charging infrastructure and a target of LEED Gold certification.

    The development is aimed at supporting the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16183461/main.gif
    Yasir Iqbal
  • Attack damages Kuwait power and desalination plant

    30 March 2026

    Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE) has confirmed that a service building at one of the country’s power generation and water desalination plants was damaged in an attack on the evening of 29 March.

    According to the ministry, the incident resulted from what it described as the ongoing Iranian aggression against Kuwait.

    The attack led to the death of one worker of Indian nationality and caused significant material damage to the building.

    The ministry said technical teams and emergency response units began work immediately in line with approved emergency plans.

    It said efforts are under way to deal with the impact of the incident and ensure continuity of operations. The ministry added that work is being carried out in full coordination with security authorities and relevant agencies to secure the affected site.

    The ministry said the safety and stability of the electricity and water system remains its highest priority. It added that all technical teams are working around the clock to respond to any emergency and ensure the continuity of vital services.

    The incident followed missile and drone strikes over the weekend on major aluminium plants in both Bahrain and the UAE.

    In a statement carried by Iranian state broadcaster IRIB, Iran’s Revolutionary Guards said they hit an aluminium facility in the UAE and Aluminium Bahrain’s main plant, calling both sites “industries affiliated with and connected to the US military and aerospace sectors in the region”.

    Aluminium Bahrain, one of the world’s largest aluminium producers, said two employees were wounded in an Iranian strike targeting its facility on Saturday. The company, also known as Alba, said the workers suffered minor injuries.

    UAE-based Emirates Global Aluminium (EGA) also confirmed on 28 March that its Al-Taweelah production base at Khalifa Economic Zone in Abu Dhabi had sustained “significant damage” during missile and drone attacks.

    “A number of EGA employees were injured [but] none of the injuries are life-threatening,” the company said in a statement.

    Previously, US President Donald Trump had announced a 10-day extension to the pause on military strikes targeting Iranian energy infrastructure.

    The decision, which delayed potential strikes until 6 April, followed what Trump described as a diplomatic gesture from Tehran involving the movement of oil tankers through the Strait of Hormuz.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16184064/main.jpg
    Mark Dowdall