meed-logo

line1 line2 line3
SIGN IN / REGISTER

UAE rides high on non-oil boom

26 April 2024

Commentary
John Bambridge
Analysis editor

The UAE has demonstrated remarkable economic resilience in recent years, with its non-oil sector bouncing back relatively quickly from Covid-19 and emerging as the real driving force behind the country’s growth. 

Despite slower oil activity due to the Opec+ oil production cuts and regional turmoil, the non-oil sector has continued to go from strength to strength and is enjoying a resurgent boom in its real estate sector, with levels of activity not seen since before the 2008 global financial crash.

Among the other drivers of UAE non-oil growth are the country’s rapid expansion and rollout of free trade agreements, with it having signed comprehensive economic partnership deals with 12 countries to date. In the absence of much progress on GCC-wide trade agreements, Abu Dhabi is opening itself up to greater trade opportunities with other markets. 

Another significant recent development was the UAE’s removal from the Financial Action Task Force’s ‘grey list’ in 2024, which has bolstered investor confidence and general business sentiment.

On the projects side, there is a real estate and construction boom, with over $475bn-worth of private real estate developments and public building and housing programmes planned or under way. Transport schemes at the top of the agenda include the UAE-Oman rail scheme and a high-speed rail link connecting Abu Dhabi and Dubai.

Also in the works is the $22bn Dubai Strategic Sewerage Tunnel project. Such a network would have served the city well in mid-April, when its infrastructure fared poorly against the hardest rainfall in 75 years.

On the oil side of the economy, Abu Dhabi National Oil Company (Adnoc) remains committed to expanding its upstream operations and is expected to maintain robust spending on key projects in 2024. Close to $8bn-worth of combined midstream, downstream and petrochemicals contracts are also expected to be awarded this year.

The conflict in Gaza poses an increasingly serious challenge to the region, however. The UAE has so far remained relatively quiescent on the conflict while concentrating on humanitarian operations. The country is clearly keen to retain the economic benefits that it has been enjoying since its normalisation of ties with Israel under the Abraham Accords.

The newly kindled relationship is being tested, however, with the airstrike on the aid convoy of the World Central Kitchen drawing some of the harshest words from Abu Dhabi towards Tel Aviv to date. 

The risk of rising escalation with Iran meanwhile could quickly quench the current exuberance of the UAE’s buoyant non-oil sector.

 

MEED's April 2024 special report on the UAE includes:

> GVT & ECONOMY: Non-oil activity underpins UAE economy
> BANKING: UAE banks seize the moment
> UPSTREAM: Adnoc oil and gas project spending sees steep uptick
> DOWNSTREAM: UAE builds its downstream and chemicals potential
> POWER: UAE marks successful power project deliveries
> WATER: Dubai tunnels project dominates UAE pipeline
> DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
> ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

https://image.digitalinsightresearch.in/uploads/NewsArticle/11705846/main.gif
John Bambridge

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

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait tenders oil manifold project

    24 June 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to construct remote header manifolds and associated works in the southern and eastern regions of Kuwait.

    A meeting with prospective contractors has been scheduled for 21 July 2026, and bids are due to be submitted ahead of a deadline on 20 September 2026.

    Manifolds are devices used in the oil sector to divide the flow of liquids from a single source to several outlets, or to collect liquids, or vice versa.

    Previously, a project with a similar scope in the same region was awarded to the Kuwaiti contractor Al-Ghanim International General Trading & Contracting.

    In 2016, it signed a contract worth $435m to construct remote header manifolds and associated works in the south and east Kuwait areas.

    The scope of that contract included design, procurement, construction and commissioning of 25 remote manifold stations and associated pipelines in south and east Kuwait using multi-phase pumps to deliver liquids to gathering centres.

    Kuwait’s oil fields are connected to more than 25 gathering centres, which serve as collection points for crude oil produced by several wells connected by flowlines, providing initial treatment by separating associated gas and removing salt.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17409564/main.jpg
    Wil Crisp
  • Contractors win deals for Saudi Energy transmission projects

    23 June 2026

     

    Saudi Arabia-based Haif Company has won contracts for two separate substation projects in Saudi Arabia, according to sources.

    The first involves the construction of a 132/33/13.8kV substation for Saudi Energy, formerly Saudi Electricity Company, which will replace the existing Tabuk substation 2 in Tabuk, northwestern Saudi Arabia.

    The works include the construction of a new substation, along with GIS, transformers, switchgear, capacitor banks, MV/LV cable systems and protection infrastructure.

    Ten firms submitted bids for the project last December. The bidders included:

    • Al-Babtain Contracting (Saudi Arabia)
    • Alfanar Projects (Saudi Arabia)
    • Al-Gihaz Holding (Saudi Arabia) 
    • Al-Osais International Holding (Saudi Arabia)
    • Danway Electrical & Mechanical Engineering (UAE)
    • Haif Company (Saudi Arabia)
    • Mohammed Al-Ojaimi Group (Saudi Arabia)
    • Nesma Infrastructure & Technology (Saudi Arabia)
    • Saudi Services for Electro Mechanic Works (Saudi Arabia)
    • Tareg Al-Jaafari Contracting Est (Saudi Arabia)

    In addition to Tabuk, Saudi Energy is planning several power transmission projects in Al-Jouf, Medina and the Eastern Province as part of the kingdom’s push to upgrade its electricity transmission and distribution infrastructure

    The second Haif contract involves a 132/33kV substation project at Hail to support the integration of solar generation from the Al-Kahfah photovoltaic facility into the network. Together, the projects are valued at about $90m.

    Elsewhere, the local Trading & Development Partnership has been appointed to build a 132/33kV substation at Al-Jouf, in Al-Jouf Province.

    The facility will deliver a transmission capacity of about 168 MVA to the Al-Busitaa agricultural site, supporting the Liquid Fuel Displacement Programme, which aims to reduce reliance on diesel generators and fuel oil for power generation.

    Nine bids were submitted for the project last year.

    According to MEED Projects, Saudi Energy has almost $2.3bn-worth of projects currently under bid evaluation, including the 500kV overhead transmission line, approximately 466km long, for the Eastern Operating Area and the Central Operating Area in the Eastern Province. The main contract is expected to be awarded later in 2026.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17397346/main.jpg
    Mark Dowdall
  • Consortium wins $1bn Saudi healthcare PPP project

    23 June 2026

    Saudi Arabia’s Ministry of Health and the National Centre for Privatisation & PPP (NCP) have awarded a public-private partnership (PPP) contract for the operation and management of the Sabic Specialised Behavioural Healthcare Hospital in Riyadh.

    The contract was awarded to SEH Healthcare, a consortium comprising local firms Specialised Medical Company (SMC Healthcare) and Health Gates Complex, and Germany’s Dr Ebel Fachkliniken.

    In a stock exchange filing on the Tadawul, SMC Healthcare said the total estimated project value is about SR3.8bn ($1bn).

    “The scope of the contract includes medical and non-medical operations and maintenance, facility management, equipment management, and specialised clinical and non-clinical services in mental health and addiction treatment,” the statement added.

    The contract term is 15 years.

    The facility spans about 62,500 square metres and includes 150 beds, 19 outpatient clinics and six dedicated day-care rooms, as well as specialised services in mental health, addiction treatment, rehabilitation and aftercare.

    The project is the latest healthcare project to be procured on a PPP basis in the kingdom. In May, Saudi Arabia’s Ministry of Health, the Ministry of Defence and the NCP issued an expression of interest and request for qualification notice for the Chronic Kidney Disease Care and National Dialysis Services project.

    The NCP said the initiative supports Saudi Vision 2030 by increasing private sector participation in the healthcare sector.

    In January, Saudi Arabia launched a National Privatisation Strategy, which aims to mobilise $64bn in private sector capital by 2030.

    The strategy builds on the privatisation programme first introduced in 2018. It will focus on unlocking state-owned assets for private investment and privatising selected government services.

    In a statement, NCP said the new strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17396605/main.jpg
    Yasir Iqbal
  • Morocco approves Khalladi wind farm expansion

    23 June 2026

    Acwa Maroc, a subsidiary of Saudi developer Acwa, has secured approval to expand the Khalladi wind independent power project (IPP) in northern Morocco by 40MW.

    The extension will increase the project’s total installed capacity from 120MW to 160MW. The Khalladi wind farm is located at Djebel Sendouq, about 50 kilometres from Tangier. The existing facility comprises 40 wind turbines rated at 3MW each.

    The project operates under Morocco’s Law 13.09 renewable energy framework, which allows private renewable energy firms to develop generation assets and supply electricity directly to industrial consumers.

    According to Acwa’s website, the facility entered commercial operation in 2018 and supplies electricity to Morocco’s state-owned utility Onee and large industrial customers under a 20-year power-purchase agreement.

    Acwa holds a 51% stake in the project alongside Participation Khalladi SA (24%) and ARIF North Africa Investment SARL, an infrastructure investment fund managed by France’s Amundi (25%).

    The engineering, procurement and construction contract was executed by Denmark’s Vestas, France’s Cegelec and Morocco’s Stam and AGTT.

    Morocco is targeting renewables to account for 52% of its installed power generation capacity by 2030.

    The operational wind farm generates about 397GWh of electricity a year. It is understood that the expansion project has already entered the development phase.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17394999/main5046.jpg
    Mark Dowdall
  • Libya plans to distribute oil budget in July

    23 June 2026

     

    Libya’s National Oil Corporation (NOC) has communicated to contractors in the country that it is expecting funds from the country’s budget to be distributed to state-owned oil companies in July, according to industry sources.

    Earlier this year, the country’s rival legislative bodies approved a unified state budget for the first time in more than 13 years.

    The Central Bank of Libya confirmed on 11 April that both chambers had endorsed the budget, calling it a key step towards restoring financial stability after prolonged division.

    The total budget was valued at LD190bn ($29.95bn), and LD12bn ($1.9bn) was allocated to the country’s NOC.

    An additional LD40bn ($6.3bn) was allocated for “development projects”.

    At the time, Libya stated that a joint committee had been formed to help prioritise development projects, and the projects had been listed in the budget.

    Over the past decade, the country has had two rival governments; the last time the country operated under a single national budget was in 2013.

    The country’s two legislatures are the eastern-based House of Representatives and the Tripoli-based High Council of State.

    As a result of the US and Israel’s war with Israel, there has been significant disruption to shipping through the Strait of Hormuz, which normally transports around 20% of the world’s oil and gas exports.

    This has driven global energy prices higher, with Brent hitting more than $114 a barrel in May this year.

    The price of Brent remains 10% higher than prior to the US and Israel attacking Iran on 28 February.

    Libya is well-positioned to capitalise on the ongoing uncertainty around exports via the Strait of Hormuz, as energy-importing nations seek reliable oil and gas supplies.

    The North African country is located near Europe, with several large oil and gas export ports and a pipeline that transports gas to Italy.

    Libya has the largest oil reserves in Africa, but has struggled to implement projects to develop them over recent years due to political infighting and security problems.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17389246/main2010.jpg
    Wil Crisp