UAE pledges $30bn to climate investment vehicle
1 December 2023
The Cop28 summit host country has announced a $30bn commitment to the newly launched climate vehicle known as Alterra.
The climate fund aims to mobilise $250bn globally by 2030, making it the world’s largest private investment vehicle for climate change action.
In a statement, the Cop28 presidency said Alterra will “drive forward international efforts to create a fairer climate finance system, with an emphasis on improving access to funding for the Global South”.
Global South refers to poorer or developing countries needing urgent financial support to implement climate change adaptation measures.
Alterra aims “to steer private markets towards climate investments and focus on transforming emerging markets and developing economies, where traditional investment has been lacking due to the higher perceived risks across those geographies”.
The statement noted: “Finance for climate action is not currently available, accessible or affordable enough where it is needed.
“By 2030, emerging markets and developing economies will require $2.4tn every year to address climate change. That is why Cop28 made fixing climate finance a key pillar of its Action Agenda and has worked to deliver ambitious solutions, including mobilising private markets at scale.”
Lunate, an independent global investment manager domiciled in Abu Dhabi Global Market, established Alterra.
Cop28 president Sultan al-Jaber will chair Alterra’s board. Cop28 director-general Majid al-Suwaidi will serve as CEO.
Two-part structure
Alterra will have a two-part structure. The $25bn Alterra Acceleration will steer institutional capital towards climate investments at scale. It will serve as an anchor investor and co-investor in climate strategies, allocating capital both directly and through fund partnerships to maximise its global impact.
Alterra Transformation, a $5bn arm, will provide risk mitigation capital to incentivise investment flows into the Global South, directly addressing the challenges that currently limit climate investment and access to affordable capital. It will also create opportunities to leverage concessional finance to further attract climate investment to Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
The climate finance initiative announced on 1 December builds on the $400m of pledges made to operationalise the Loss and Damage Fund announced on 30 November, when the Cop28 summit opened at Expo City Dubai.
Food declaration
In addition to the climate finance declaration on 1 December, the Cop28 presidency also announced that 134 world leaders have signed up to its landmark agriculture, food and climate action declaration.
This is accompanied by the mobilisation of more than $2.5bn in funding to support food security while combatting climate change and a new partnership between the UAE and the Bill and Melinda Gates Foundation for food systems innovation to tackle climate change.
The declaration was announced at a special session of the World Climate Action Summit (WCAS) by Indonesia President Joko Widodo, Italy’s Prime Minister Giorgia Meloni, Samoa’s Prime Minister Fiame Naomi Mataafa and the US secretary of state Anthony J. Blinken.
The declaration addresses global emissions while protecting the lives and livelihoods of farmers on the frontlines of climate change.
“There is no path to achieving the goals of the Paris Climate Agreement and keeping 1.5C within reach that does not urgently address the interactions between food systems, agriculture and climate,” said UAE Minister of Climate Change and Environment and Cop28 Food Systems Lead Mariam bint Mohammed Almheiri.
King Charles
The UK’s King Charles (pictured with UAE President Mohammed bin Zayed) delivered a keynote speech at the opening session of Cop28 in Dubai on 1 December.
The British monarch urged world leaders to prioritise five areas that he felt needed urgent attention. These include:
- strengthening multilateral organisations
- ensuring finance for developments needed for a sustainable future
- accelerating the development of clean technology and renewable energy
- bringing together solutions for a long-term, multinational approach
- creating a shared, ambitious view for the next 100 years
King Charles has delivered keynote speeches at three previous Cops: Copenhagen in 2009, Paris in 2015 and Glasgow in 2021.
Photo: Wam
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Slow year for Maghreb power and water awards
7 July 2025
The Maghreb region has experienced a slow 2025 in terms of power and water project contract awards. Hopes for the year now rely on a strong second half if the sector is to match the performance of previous years.
As of early July, the total value of power project contract awards had reached $663m, according to regional projects tracker MEED Projects. This means that by the end of the year, the market is expected to fall significantly short of the peaks of $3.8bn in 2023 and $4.5bn in 2024.
Libya’s recovery was a major driver in 2023, accounting for $2.9bn of the total for that year, while Algeria contributed $430m and Morocco $210m. There are no recorded power contract awards for Algeria or Libya in 2025. Morocco and Tunisia contributed $353m and $310m, respectively.
The total value of contract awards for water projects has also declined significantly. For the first six months of 2025, the total reached $189m, which is tracking behind the $815m of water project contract awards recorded in 2024.
Both 2025 and 2024 are far behind the peak of $3.6bn registered in 2022, when Algeria alone accounted for $1.8bn of contract awards, followed closely by Morocco with $1.6bn.
For upcoming power and water contract awards, there are over $6bn of contracts in the bid or prequalification stage that are expected to be awarded within the next year.
In the water sector, Libya leads with $210m of soon-to-be-awarded contracts, followed closely by Tunisia at $260m. In the power sector, Morocco stands out with an impressive projected contract value of $5.3bn, while in Tunisia, there are $300m of upcoming power contract awards.
Xlinks disappointment
There have been some notable project developments in the power and water sectors across the Maghreb region over the past year. Most recently, at the end of June, the UK government withdrew its support for the Xlinks Morocco-UK power project.
The UK Department for Energy Security and Net Zero decided not to consider a contract for difference for this large-scale renewable energy initiative, which aimed to deliver 3,600MW of renewable energy from Morocco to the UK via a 4,000-kilometre high-voltage direct current cable system.
Sir Dave Lewis, chair of Xlinks, expressed disappointment, emphasising the project’s potential to significantly lower wholesale electricity prices in the UK.
Power progress
Other projects in Morocco are proceeding. The Ministry of Energy Transition & Sustainable Development has issued an invitation for expressions of interest for a major liquefied natural gas (LNG) infrastructure project at Nador West Med Port. This project includes an LNG import terminal, pipelines and a gas power station with a capacity of approximately 1,200MW. The project aims to enhance Morocco’s energy security and diversify its energy sources.
Additionally, Morocco’s National Office for Electricity and Drinking Water has invited firms to submit expressions of interest for contracts to build three gas-fired power stations with a total capacity of between 300MW and 450MW. These plants are expected to be commissioned by the summer of 2026, further contributing to the country’s energy infrastructure.
Water advancements
In the water sector, Algeria has inaugurated the El-Tarf desalination plant, which has a production capacity of 300,000 cubic metres a day. This facility is part of Algeria’s broader desalination programme, which aims to address water scarcity issues exacerbated by climate change. The Algerian government has allocated $3bn for the second phase of its desalination capacity expansion, with plans to build six new plants by 2030.
Morocco is also advancing its water infrastructure, with Veolia undertaking the detailed design for a new seawater reverse osmosis plant near Rabat. This facility is expected to treat up to 822,000 cubic metres of seawater daily and will cater to regions particularly affected by drought.
Policy focus
For policy, governments have been manoeuvring as they respond to the global challenge of climate change.
Morocco is progressing with its green hydrogen initiatives, which are closely linked to its water projects. The country has set ambitious targets to produce 52% of its energy from clean sources by 2030, with plans to develop large-scale green hydrogen projects. These projects will require significant water resources for electrolysis, further intertwining the power and water sectors.
Morocco also aims to increase its renewable capacity to 10,000MW by 2030, with a focus on solar, wind and hydroelectric power. Despite the recent Xlinks setback, the country is also exploring opportunities for exporting electricity to Europe, which could significantly enhance its energy market.
Algeria is pursuing other avenues in its quest to diversify its energy sources. In April, Algerian Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, met with Wang Yongge, president of the China National Nuclear Corporation (CNNC), in Algiers. The two reviewed the ongoing cooperation between Algeria’s Commissariat for Atomic Energy (Comena) and CNNC, focusing on the peaceful use of nuclear energy, its medical applications and prospects for future development.
The Algerian government also plans to invest heavily in desalination projects to ensure a sustainable water supply, with desalinated water expected to account for 60% of drinking water by 2030.
Main image: Noor electric power station close to Ouarzazate, Morocco
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Iraq to retender Baghdad Metro PPP project contract
7 July 2025
Iraq intends to retender the contract to develop and operate the Baghdad Metro project, following the award of the estimated $2.5bn contract last year.
According to local media reports, Nasser Al-Assadi, adviser to Prime Minister Mohammed Sudani, stated that the previous developers had overestimated the project budget; therefore, the government will relaunch the entire process to implement the project.
Iraq’s National Investment Commission (NIC) awarded an estimated $2.5bn contract to develop and operate the Baghdad Metro project in July last year.
The contract was awarded to a consortium comprising France’s Systra, Societe Nationale des Chemins de fer Francais (SNCF) and Alstom; Spain’s Talgo and Sener; and Turkish contractors.
Germany’s Deutsche Bank was the project finance adviser.
The project will be developed as a public-private partnership (PPP) scheme using a design, build, operate, maintain, finance and transfer model.
Malaysian consulting firms ConsultantHSS and HSS Engineering were working on the project.
Project scope
The Baghdad Metro project is one of the largest infrastructure schemes in Iraq.
It will comprise seven main lines totalling 150 kilometres (km), 64 metro stations, four workshops and depots for trains, two metro train control and management centres and power generation stations.
The Green Line will extend 19km and run from the Al-Alawi terminal to the Doura terminal. The Red Line will be 27.7km long and will run from the Al-Alwai terminal to Maisaloun Square.
The Blue Line will run 22km from the Al-Shaab terminal to Al-Zafaraniya. The Purple Line will be 14.5km long and will connect Al-Tayaran Square to Al-Shaab.
The Yellow Line will extend 30km from Al-Baladiyat to Adan Square. The White Line will be 23km long and will run from Al-Kadhimiya to Al-Bayaa, while the Airport Line will run 12km from Baghdad airport to Al-Qadisiya.
Each line will comprise a total of eight stations.
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Ibri 3 construction deal implies Masdar win
7 July 2025
A Chinese consortium of China Energy Engineering International Corporation (CEEC), China Power Construction Group East China Survey & Design Institute Company (East China Institute) and China Energy Construction Group Hunan Thermal Power Construction Company (Hunan Thermal Power) says it has won an early works contract to build the Ibri 3 solar independent power plant (IPP) in Oman.
The engineering, procurement and construction (EPC) contract was awarded by Abu Dhabi Future Energy Company (Masdar), implying it has won the IPP’s development concession.
Masdar, alongside Korea Midland Power (Komipo) and the local Al-Khadra Partners, was one of four groups to bid for the contract to finance, construct and operate the IPP in February.
Under the terms of the EPC contract, the CEEC consortium will build the 500MW solar photovoltaic (PV) power plant together with an associated 150MWh battery energy storage unit.
It will also install a 400kV substation and two 400kV overhead transmission lines as part of the deal, it says.
The client, Nama Power & Water Procurement Company (Nama PWP), received prequalification applications for the Ibri 3 solar PV IPP contract in March last year.
Previous projects
The sultanate’s first 500MW solar IPP scheme, Ibri 2, came onstream in September 2021 and was officially inaugurated in January 2022.
The Manah 1 and Manah 2 solar IPP projects, each with a capacity of 500MW, were recently inaugurated.
A team comprising France’s EDF and South Korea’s Korea Western Power Company (Kowepo) won the contract to develop the Manah 1 solar PV IPP project.
A team of Singapore’s Sembcorp Industries and China-headquartered Jinko Power Technology was awarded the second 500MW solar PV IPP contract.
In September last year, Nama PWP tendered the contracts to develop two wind IPPs.
The Jalan Bani Bu Ali wind IPP will cater to Oman’s Main Interconnection System (MIS), while the Dhofar 2 wind IPP will cater to the smaller Dhofar Power System (DPS).
Three other wind IPPs are expected to be tendered separately. They are:
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- Mahoot wind 1 IPP: Located in Mahoot in the Al-Wusta Governate, the wind farm will have a capacity of 342MW-400MW, with a commercial operation target of Q4 2027
- Sadah wind IPP: Located in Sadah in the Dhofar Governorate, it will have a capacity of 81MW-99MW and is due for commercial operation in Q4 2027
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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/14211645/main.gif -
Kuwait tenders renewables substation job
7 July 2025
Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE) has tendered a contract for the construction of the Shagaya Z 400/132/11kV substation to serve the Shagaya solar power complex.
Interested prequalified firms have until 5 August to bid for the contract, which has an estimated value of $120m. A date of 20 July has been set for the pre-bid meeting.
MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), issued a request for proposals in June for the contract to develop the state’s first utility-scale solar photovoltaic plant at Shagaya.
Prequalified developers have until 14 September to submit technical and commercial bids for the Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP), which will have a total power generating capacity of 1,100MW.
Kapp issued the request for qualifications for the developer concession in January 2024, with six prequalified companies and consortiums announced the following August.
Unlike the solar project, the Shagaya Z substation is being procured on an engineering, procurement and construction (EPC) basis directly by the ministry. Associated transmission and distribution work often form part of the developers’ scope of work, but will not be the case in this instance.
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/14211467/main.gif -
Riyadh tenders first Expo 2030 construction work
7 July 2025
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Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Riyadh Expo 2030 venue, has tendered a contract to build the site offices required for the initial construction works at the project site in Riyadh.
MEED understands that the contract was tendered on 29 May, with bids due in the first week of July.
The announcement follows the establishment of ERC as a wholly owned subsidiary of the Public Investment Fund (PIF) that will build and operate facilities for Expo 2030 in June.
In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”
The masterplan for Expo 2030 Riyadh encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo. Situated to the north of the city, the expo site will be located near the future King Salman International airport, providing direct access to various landmarks within the Saudi capital.
Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions, contributing to the event’s legacy. This initiative is expected to create opportunities for business and investment growth in the region.
The expo is projected to attract over 40 million visitors. After the event concludes, ERC plans to convert the expo’s secured area into a global village, to serve as a multicultural centre for retail and dining. This development will also feature an international residential community with a range of amenities, with a focus on sustainable tourism practices.
Expo 2030 Riyadh will run from 1 October 2030 to 31 March 2031.
Last month, MEED reported that the PIF had named Talal Al-Marri as the CEO of ERC.
Al-Marri has previously held several senior executive roles at Saudi Aramco, including president and CEO of Aramco Europe, senior vice-president of community services and senior vice-president of industrial services.
In May, MEED exclusively reported that Riyadh had begun talks with stakeholders in preparation for the commencement of construction work for the event.
The discussions were understood to have been held with the Royal Commission for Riyadh City and the PIF.
German architectural firm Lava Architects and US-based engineering firm Jacobs are assisting with the project masterplan and the design of infrastructure for the site.
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/14211012/main.jpg