UAE growth defies the global gloom
26 April 2023
Commentary
John Bambridge
Analysis editor
For the second year running, the UAE is headed for a robust economic growth picture against a backdrop of far gloomier global and regional average growth projections. Also for the second year, there is no telling whether the country’s growth will limit itself to the conservative estimates of global financial institutions, or whether, as in 2022, it will break those bonds.
In its April update, the Washington-based IMF raised its calculation of the UAE’s real GDP growth rate for 2022 to 7.4 per cent. This is up from a projection of just 5.1 per cent made in October last year, with just two months left on the clock. In 2023, the growth projection is 3.5 per cent, a little lower than the 4.2 per cent forecast in October, but after the UAE’s forecast-defying performance in 2022, it is anyone’s guess where this year’s growth will end up.
While a surge in oil prices last year was partially responsible for the UAE’s stellar economic performance – just as Opec+ production cuts are tied to the projected dip in growth in 2023 – the UAE is also seeing a period of non-oil sector buoyancy. This year, oil growth is, if anything, weighing on stronger non-oil growth, which is being driven by surging consumer demand in certain sectors, particularly in property and tourism. The construction sector has also re-entered hiring mode amid a returning glut of off-plan real estate projects.
The UAE is meanwhile experiencing a growth spurt in trade and investment – with foreign trade rising by 17 per cent in 2022 – and hopes to continue this trend with an ever-expansive role in global trade. Recent trade deals with India, Indonesia and Israel are all pertinent to these ambitions, and this all-business approach is why it will take more than a few ripples in the diplomatic pond to disturb the country’s relations with these economic allies.
The UAE is also working on building its global leadership role. Abu Dhabi will be pulling out all the stops this year to ensure that the Cop28 UN Climate Change Conference is an international diplomatic triumph.
The appointment of Sheikh Mohamed bin Zayed al-Nahyan’s eldest son, Sheikh Khaled bin Mohamed al-Nahyan, as crown prince, should give further voice to the next generation of leadership. As the UAE sets its sights on eye-watering economic targets, reaching in all directions for avenues of future growth, more voices can only assist its intense economic brainstorming.
This month's special report on the UAE includes:
> GOVERNMENT: Abu Dhabi strengthens its position at home
> ECONOMY: UAE economy steers clear of global woes
> BANKING: UAE lenders chart a route to growth
> UPSTREAM: Strategic Adnoc projects register notable progress
> DOWNSTREAM: Gas takes centre stage in Adnoc downstream expansion
> POWER: UAE power sector shapes up ahead of Cop28
> WATER: UAE begins massive reverse osmosis buildup
> CONSTRUCTION: Dubai construction needs major project launches
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Exclusive from Meed
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Kuwait tenders refinery contract15 July 2025
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Webuild wins $600m Diriyah Square project deal14 July 2025
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Penspen to expand workforce in Neutral Zone14 July 2025
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Eni signs $1.35bn Algerian oil and gas deal14 July 2025
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Kuwait tenders refinery contract
15 July 2025
State-owned downstream operator Kuwait National Petroleum Company (KNPC) has issued a tender covering the development of three gas recovery units at the Mina Al-Ahmadi refinery.
KNPC will host a meeting on 22 July with bidders to discuss the scope of work on the tender. It has set a deadline of 12 August for submission of bids.
The front-end engineering and design (feed) work for the project was carried out by Greece’s Asprofos Engineering.
The tender uses the engineering, procurement and construction (EPC) contract model.
The scope of the EPC contract includes developing:
- A refinery flare gas recovery unit
- A high-pressure gas plant flare gas recovery unit
- An acid gas plant flare gas recovery unit
In October last year, Kuwait Petroleum Corporation (KPC), KNPC’s parent company, announced plans to reduce volumes of flared gas in the country.
At the time, KPC said that its upstream subsidiary Kuwait Oil Company (KOC) had reduced total gas flaring to below 1% since 2020 from about 17% in 2005.
It also said that Kuwait Gulf Oil Company, which manages Kuwait’s share of production in the Neutral Zone shared with Saudi Arabia, was investing in projects to reduce gas flaring to 1% “in the medium term”.
KPC did not provide flaring data for KNPC at the time, but said that the company had installed “efficient heaters” and taken other steps to reduce emissions.
KPC has pledged to reach zero routine flaring for its domestic upstream assets by 2030, and for all of its subsidiaries by 2040.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDFUAE 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/14265537/main.png -
Webuild wins $600m Diriyah Square project deal
14 July 2025
Italian contractor Webuild has announced that it has won a $600m contract from Diriyah Company for a package for the Diriyah Square project.
The contract relates to construction works on package three of the Diriyah Square project. It involves the finishing and mechanical, electrical and plumbing works on more than 70 buildings and public spaces within Diriyah Square.
These assets cover a total area of about 365,000 square metres.
Webuild is already working on the underground multi-storey car park at Diriyah Square.
The three-floor underground car park will serve the mixed-use Diriyah Square district, which will include leisure and entertainment, hotels, retail, grade A offices, the King Salman Grand mosque and residential units designed in the traditional Najdi architectural style.
The car park has a floor area of 1 million square metres, with underground roads and tunnels below Diriyah Square, and a capacity for 10,500 cars.
The parking facility will directly connect commuters with all of Diriyah’s destinations, including Wadi Hanifah, the Western Ring Road and a national motorway. It will be a key component of the City of Riyadh Arterial Road system.
In an official statement on its website, Webuild said that the construction works on the car park are 55% completed.
MEED reported in January 2021 that Diriyah Company had selected Webuild for the super basement car park at the Diriyah project in Riyadh.
Diriyah gigaproject
The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.
The company awarded several significant contracts last year, including three contracts worth over SR21bn ($5.5bn). These included an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.
In July last year, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.
Then in December, Diriyah Company awarded an estimated SR5.8bn ($1.5bn) contract to a joint venture of local firm Nesma & Partners and the local branch of Man Enterprise for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.
Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.
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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/14259832/main.jpg -
August deadline for Diriyah Pendry superblock package
14 July 2025
Saudi gigaproject developer Diriyah Company has asked firms to submit commercial proposals by 13 August for a contract to build the Pendry superblock package in the second phase of the Diriyah Gate development (DG2).
MEED understands that the tender was issued in June, with the technical bid submission deadline set for 6 July.
The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.
The project will span an area of 75,365 square metres and is located in the northwestern district of the DG2 area.
Earlier this month, MEED exclusively reported that Diriyah Company is preparing to tender more superblock packages this quarter, following the receipt of prequalification statements from interested firms.
Notices were issued in mid-June for packages that include the Waldorf Astoria superblock and the Edition superblock, both located in DG2.
The Waldorf Astoria superblock is a mixed-use development featuring the Waldorf Astoria Residences & Hotel, commercial and residential facilities and office spaces.
The Waldorf Astoria Hotel is a 200-key property, while the Waldorf Astoria Residences will offer around 46 branded residences.
The project is located along the Grand Boulevard South and the Northern Arterial Road in the Boulevard Northwestern district at DG2.
The prequalification documents for this package were submitted on 29 June.
Prequalification documents for the Edition superblock were submitted on 2 July.
This package comprises a mix of residential, commercial and office spaces, including the 200-key Edition Hotel and 150-key Equinox Hotel.
The project is situated between King Khalid Road and the Grand Boulevard within the Boulevard East district in DG2.
Diriyah Company has also received prequalification statements from firms interested in constructing the upcoming Radisson Red superblock in DG2.
The Radisson Red superblock comprises a hotel, residential apartments, retail facilities, commercial office spaces and a park.
The project is situated in the Boulevard East district, between King Khalid Road and the Grand Boulevard in Diriyah.
Diriyah also tendered a contract in April to build the new iconic museum in the DG2 area.
Diriyah gigaproject
The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.
The company awarded several significant contracts last year, including three contracts worth over SR21bn ($5.5bn). These included an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.
In July last year, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.
Then in December, Diriyah Company awarded an estimated SR5.8bn ($1.5bn) contract to a joint venture of local firm Nesma & Partners and the local branch of Man Enterprise for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.
Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDFUAE 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/14258798/main0303.jpg -
Penspen to expand workforce in Neutral Zone
14 July 2025
UK-based engineering and project management company Penspen is expanding its headcount in the Neutral Zone, which is shared by Saudi Arabia and Kuwait, according to a senior executive.
Penspen currently has 130 employees working in the Neutral Zone, also known as the Divided Zone. The company expects to increase the headcount to 200 by the end of the year, according to Neale Carter, the company’s executive vice-president for the Middle East, Africa and Asia-Pacific.
“It’s a challenging environment, but we’re very pleased to be there,” he said.
Penspen was invited to join the tendering programme for a range of projects for state-owned Kuwait Gulf Oil Company (KGOC), which is a partner in Al-Khafji Joint Operations (KJO) alongside Saudi Arabia’s Aramco Gulf Operations Company (AGOC).
Penspen was previously the project management consultant for KJO in the Neutral Zone from 2006 until 2017, when US-based Jacobs replaced them in the role.
Penspen then went through the tendering process in 2022 and won the contract back in 2023.
The current contract is a five-year project management consultancy services contract.
The Neutral Zone has seen an uptick in oil and gas activity in the past couple of years.
In May, MEED reported that KJO has more than 20 projects currently ongoing to develop the Khafji field, which is located in the shared territory.
Additionally, KJO is currently in the tendering phase with engineering, procurement and construction (EPC) works on the Dorra gas field development project, which is also located in the Divided Zone.
KJO has divided the scope of work on the Dorra gas field development project, which is estimated to be valued at up to $10bn, into four EPC packages – three offshore and one onshore.
In May, Saudi Arabia and Kuwait announced a new oil discovery in the shared territory.
The oil was discovered in the North Wafra Wara-Burgan field, located five kilometres north of the onshore Wafra field, within Wafra Joint Operations – a 50:50 joint venture of Kuwait Gulf Oil Company and US energy company Chevron.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDFUAE 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/14254527/main.jpg -
Eni signs $1.35bn Algerian oil and gas deal
14 July 2025
Algeria’s state-owned oil and gas company Sonatrach and the Italian company Eni have signed a production-sharing hydrocarbons contract (PSC) estimated to be worth $1.35bn.
The contract covers the exploration and exploitation of the Zemoul El-Kebir concession area, located in the Berkine Basin, approximately 300 kilometres east of Hassi Messaoud, according to a statement by Sonatrach.
The deal with Eni is the latest in a string of high-profile agreements that Sonatrach has announced with international oil and gas companies.
The contract with Eni was signed under Hydrocarbons Law No 1913 and extends for a period of 30 years, with an extendable option for an additional 10 years.
It includes a seven-year exploration period, with $110m of the estimated $1.35bn investment budget expected to be used in the exploration phase.
In its statement, Sonatrach said: “The work programme associated with this contract includes the use of innovative technological methods, including the latest digital solutions related to exploitation, in addition to the use of modern technologies to improve production and recover reserves.
“It is worth noting that, within the framework of implementing this contract, preference is given to the use of local content and the use of subcontracting services from national operators.”
Expected production from the area covered by the deal has been estimated at 415 million barrels of oil equivalent, including 9.3 billion cubic metres of gas, over the contract period.
The signing of the final PSC with Eni follows a provisional deal that was signed between Sonatrach and Eni on 19 May 2024.
As well as signing the PSC relating to the Zemoul El-Kebir concession area, the two parties also signed a gas agreement aimed at defining the terms of the hydrocarbons contract relating to the marketing of dry gas quantities from the operating area, intended for export.
A framework agreement was also signed between Sonatrach and Eni Corporate University, aiming to develop the skills of Sonatrach employees and transfer knowledge through the Eni Corporate University training institution, for a period of three years.
In June, Algeria awarded five out of the six oil and gas exploration licences it offered during its 2024 bidding round, a move viewed as a success by stakeholders in the country’s energy sector.
The companies that were awarded blocks included France’s TotalEnergies, state-owned QatarEnergy, Eni and PTTEP of Thailand.
The latest licensing round was followed by meetings between Algeria’s President Abdelmadjid Tebboune and delegations from US-based oil and gas companies ExxonMobil and Chevron.
Project activity across Algeria’s energy, industrial and manufacturing sectors is steadily building as the country focuses on a vertically-integrated strategy that leverages the exploitation of its natural resources.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDFUAE 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/14254529/main.png