Unlocking AI’s carbon conundrum
31 January 2025
This package also includes: Trump 2.0 targets technology
Abu Dhabi has recently launched a $6bn project that combines 5,200MW of solar and 19 gigawatt-hours (GWh) of battery energy storage capacity to deliver 1,000MW of round-the-clock renewable power capacity, a world first.
The project addresses the intermittency of renewable energy, which UAE Industry & Advanced Technology Minister Sultan Al-Jaber describes as the “moonshot challenge” of our time.
The goal is to deliver clean baseload capacity much more quickly and at a lower price than a gas or nuclear power plant.
At approximately $60 a megawatt-hour, the project aligns with the mandate of Emirates Water & Electricity Company (Ewec) to deliver the lowest-cost energy transition.
Abu Dhabi Future Energy Company (Masdar) will develop the project, which will help to boost its gross capacity, in line with expanding its renewable energy portfolio to 100GW by 2030.
Located on a land area of 90 square kilometres, the solar and battery project is due to become operational by 2027, Masdar’s chief operating officer, Abdulaziz Alobaidli, said on 14 January.
This is in addition to the 1.5GW of annual renewable capacity that Ewec intends to procure until at least the mid-2030s, in line with decarbonising the emirate’s electricity system and reaching net zero by 2050.
Following the project’s launch, Masdar announced the preferred engineering, procurement and construction and other sub-
contractors for the scheme.
AI and power link
In December, the US government reportedly approved the export of advanced artificial intelligence (AI) chips to a Microsoft-operated facility in the UAE, as part of the technology giant’s $1.5bn partnership with Mubadala-backed AI firm G42.
Three months earlier, in September, Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, met with Jake Sullivan, US national security adviser, in Washington to seal an agreement known as the Common Principles for Cooperation on AI, following a meeting between UAE President Mohamed Bin Zayed Al-Nahyan and then-US President Joe Biden.
The meeting took place a few days after US-based equity investment firm BlackRock announced a $100bn tech investment platform called Global AI Infrastructure Investment Partnership.
The fund’s partners include Mubadala-backed AI fund MGX, which aims to build $100bn in assets under management; US-based Global Infrastructure Partners; and Microsoft.
In January, MGX teamed up with US tech giant Oracle, Japan’s Softbank and ChatGPT creator Open AI to form the Stargate project, a joint venture that aims to invest $500bn in building AI infrastructure in the US over the next four years.
Abu Dhabi has not denied the link between its clean energy capacity buildout and the UAE’s national, and perhaps international, AI strategy.
A social media post on 14 January by President Mohamed Bin Zayed confirmed the 1GW solar plus battery project will directly support Abu Dhabi’s AI plans.
“The project will help power advancements in AI and emerging technologies, supporting delivery of the UAE National Strategy for Artificial Intelligence 2031 and the Net Zero by 2050 strategic initiative,” he said.
Investing in and developing AI infrastructure and applications at home and abroad is now a UAE government priority. It will create jobs and new revenues, and will boost efficiencies in every facet of governance and business.
“The UAE is well positioned [in the developing AI industry],” says Michael Liebreich, managing partner at UK firm EcoPragma Capital, noting that it has “the energy status, geographical advantage and regulatory framework”.
In light of a new US regulation made public in January that restricts access to US-made AI chips, he adds that “you don’t want to have a situation where the UAE will have to choose between one or the other”, referring to the ongoing power struggle over AI between China, an important energy and trade partner of the UAE, and the US, which is a vital political ally.
Investing in and developing AI infrastructure and applications … is now a UAE government priority
Choosing sides
It appears that this choice has been made previously, however.
In an interview in early 2024, G42 CEO Peng Xiao said that his firm is cutting ties with Chinese hardware suppliers in favour of US counterparts, adding: “We cannot work with both sides.”
In addition, in December, Axios – the US media outlet that reported the clearance of AI chip exports by the US to the Microsoft and G42 facility in Abu Dhabi – suggested that the deal is part of efforts by the US government to elbow China out of the UAE’s expanding tech industry.
In Abu Dhabi, Ewec is tasked not only with decarbonising its electricity system by integrating solar and nuclear plants into its gas-dominated power-generation fleets, but also with ensuring 24×7 clean and cheap baseload capacity gets delivered to a project that is a national priority.
An expanding AI industry will also increase the scope for environmental, social and governance (ESG) compliance.
While it is widely accepted that the use of advanced AI solutions such as large- or small-language models or agentic AI for industrial applications can enable some sectors to cut emissions, AI requires hyperscale data centres, and data centres generally are as polluting as the airline industry.
Although the high temperatures and water scarcity of the Middle East can be addressed by another ESG-sensitive industry – seawater desalination – these factors can lead data centres in the region to be more carbon positive than those in other geographies.
For this reason, Abu Dhabi’s 5.2GW/19GWh project is considered a major milestone, potentially blazing a trail that other regions can follow – assuming it is implemented on time and within budget, and despite opposing opinions on its technical and commercial feasibility.
Main image: Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, and Jake Sullivan, US national security adviser, signed a cooperation agreement on AI in September 2024. Credit: Wam
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Iraq tenders Baghdad airport PPP project
9 July 2025
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BP signs Libya oil deal
9 July 2025
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Iraq retenders two refineries worth $5bn
9 July 2025
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Iraq tenders Baghdad airport PPP project
9 July 2025
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Iraq’s Ministry of Transport and the General Company for Airport & Air Navigation Services have released a tender inviting firms to bid for a contract to develop Baghdad International airport on a public-private partnership (PPP) basis.
The notice was issued in July, and the submission deadline is in September.
According to an official statement posted on its website, Iraq’s Ministry of Transport said that 10 out of 14 international consortiums that expressed interest in the project earlier this year have been prequalified to compete for the tender.
The scope of the estimated $400m-$600m project involves rehabilitating, expanding, financing, operating and maintaining the airport. It is the first airport PPP project to be launched in Iraq.
The initial capacity of the airport is expected to be around 9 million passengers, which will be gradually increased to 15 million passengers.
The International Finance Corporation (IFC), a member of the World Bank Group, is the project’s lead transaction adviser.
Iraq is already developing the Baghdad and Najaf-Karbala metro projects using a similar PPP model.
Earlier this month, MEED reported that 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.
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Contractors prepare revised bids for Roshn stadium
9 July 2025
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Saudi gigaproject developer Roshn has invited firms to submit revised commercial proposals by 24 July for a contract to build a new stadium adjacent to the National Guard facilities to the southwest of Riyadh.
Known as the National Guard Stadium, it will be delivered on an early contractor involvement (ECI) basis. It will cover an area of over 450,000 square metres and be able to accommodate 46,000 spectators.
The scope of work also covers the construction of auxiliary facilities, including training academy offices and two hotels, as well as retail and food and beverage outlets.
The firms had initially submitted bids on 8 April for the contract.
The stadium is scheduled to host 32 Fifa World Cup tournament games in 2034.
In August last year, MEED reported that Saudi Arabia plans to build 11 new stadiums as part of its bid to host the 2034 Fifa World Cup.
Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.
The proposal outlines an additional 10 cities that will host training bases. These are Al-Baha, Jazan, Taif, Medina, Al-Ula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.
The bid proposes 134 training sites across the kingdom, including 61 existing facilities and 73 new training venues.
The kingdom was officially selected to host the 2034 Fifa World Cup through an online convention of Fifa member associations at the Fifa congress on 11 December 2024.
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Morocco begins Casablanca airport expansion works
9 July 2025
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Morocco’s Office National des Aeroports (ONDA) has broken ground on the new terminal at Morocco’s largest airport, Mohammed V International airport in Casablanca.
According to local media reports, ONDA awarded an estimated MD294m ($29m) deal for enabling works to local firm Societe de Travaux Agricoles Marocaine.
The Mohammed V International airport expansion is expected to be completed in 2029.
The tendering activity for the main works on the new terminal is also ongoing. In April, MEED reported that ONDA had issued a notice inviting firms to express interest in a contract to build the new terminal at Mohammed V International airport.
The estimated MD15bn ($1.6bn) expansion will increase the airport’s capacity to 30 million passengers a year.
In June, 28 local and international firms expressed interest in the contract to build the new terminal.
The new terminal will cover an area of about 450,000 square metres.
It is expected to be ready in time for the 2030 Fifa World Cup, which Morocco is co-hosting alongside Portugal and Spain.
In January, Morocco’s Transport & Logistics Minister, Abdessamad Kayouh, said that the study to expand the airport’s capacity was nearing completion.
The project is part of Morocco’s MD42bn ($4.3bn) plan to expand key airports in anticipation of increased passenger flow for the 2030 football World Cup.
Earlier this year, Morocco announced that it will also build a new airport in Casablanca in preparation for the tournament.
Morocco plans to upgrade several of its airports, including those in Tangier, Marrakech and Agadir, increasing their respective capacities to 7 million, 16 million and 7 million passengers annually.
There are also plans to add a new terminal at Rabat-Sale airport, raising its capacity to handle 4 million passengers, and to increase the capacity of Fez airport to 5 million passengers annually.
The new terminal at Mohammed V International airport will be connected to a high-speed train network that will link Kenitra to Marrakech.
In October last year, Morocco’s national railway operator, L’Office National des Chemins de Fer, awarded several civil works contracts for its Kenitra-Marrakech high-speed railway line.
This project is part of a $37bn strategy to connect more of Morocco’s cities, ports and airports by train. The line will stretch 375 kilometres (km) from Kenitra on the northwest coast to Marrakech in the south.
The project is divided into seven lots, each measuring between 36km and 64km. The rail link will traverse cities including Rabat, Sale, Casablanca and Marrakech.
The link will extend the Al-Boraq railway, a high-speed rail line between Tangier, Rabat and Casablanca. The line started operating in 2018 and was Africa’s first high-speed railway system.
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BP signs Libya oil deal
9 July 2025
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The London-headquartered oil and gas company BP has signed a memorandum of understanding (MoU) with Libya’s National Oil Corporation (NOC), agreeing to consider the redevelopment of two of the country’s largest oil fields and the exploration of neighbouring areas.
Under the MoU, BP and NOC will jointly conduct feasibility studies to assess the technical and commercial viability of restarting production at the Messla and Sarir oil fields, according to a statement published by BP.
The Messla and Sarir oil fields were previously among Libya’s most productive assets.
Under the terms of the MoU agreement, BP and NOC will explore the potential development of both conventional and unconventional oil and gas resources across a broad area of the Sirte Basin.
William Lin, BP’s executive vice-president for gas and low-carbon energy, said: “This agreement reflects our strong interest in deepening our partnership with NOC and supporting the future of Libya’s energy sector.
“We hope to apply BP’s experience from redeveloping and managing giant oil fields around the world to help optimise the performance of these world-class assets.”
BP also confirmed plans to reopen its office in Tripoli before the end of this year.
In its statement, BP said: “The move marks a significant step toward restoring the company’s physical presence in Libya and demonstrates a renewed confidence in the country’s operating environment.”
This announcement comes amid a wider trend of international oil companies returning to Libya. Shell, for instance, signed a separate agreement with NOC to evaluate the Atshan field. Other global players, such as Eni, OMV and Repsol, are also active in Libya once again, reversing the withdrawal that followed the 2011 revolution and subsequent civil unrest.
Libya is Africa’s second-largest oil producer and a key member of Opec.
The country’s output has recently stabilised at around 1.385 million barrels a day (b/d).
With the redevelopment of major fields and new exploration, production levels could rise significantly in the coming years.
The country’s security situation remains difficult, with frequent outbreaks of violence and clashes between militias.
In May, clashes in Tripoli involved heavy artillery and armed confrontations between rival factions.
The clashes highlighted concerns over stability within Libya’s capital and the rest of the western region, which is under the control of the Government of National Unity (GNU).
The Sarir and Messla oil fields, located in the Sirte Basin, rank among Libya’s largest. Sarir was discovered in 1961 and Messla in 1971.
BP re-entered Libya in 2007, when it signed an exploration and production sharing agreement (EPSA) covering exploration areas A and B (onshore), and area C (offshore) with Libya’s NOC.
The EPSA was later put on hold following the declaration of force majeure.
In 2022, Eni acquired a 42.5% interest and assumed exploration operatorship of the EPSA, with BP retaining a 42.5% interest and the Libyan Investment Authority holding the remaining 15%.
In 2023, Eni and BP formally lifted the force majeure, resuming exploration operations in the onshore areas.
Iraq expansion
BP is also pursuing expansion efforts in Iraq. Earlier this year, the company finalised a deal with Iraq’s Ministry of Oil to help redevelop the Kirkuk oil fields.
These projects – encompassing the Bai Hassan, Avana, Baba, Jambur and Khabbaz domes – are expected to yield more than 3 billion barrels of recoverable resources, with the potential for up to 20 billion barrels, according to BP.
The company said: “Together, these developments point to BP’s strategic push to re-enter frontier and post-conflict energy markets, combining legacy assets with fresh exploration.
“For Libya, renewed international investment offers the potential for greater economic stability and a stronger presence in the global oil market.”
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/14227432/main.png -
Iraq retenders two refineries worth $5bn
9 July 2025
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Iraq has retendered contracts to develop two refineries with a total estimated value of $5bn.
The Al-Kut investment refinery project in Wasit Governorate involves developing a facility with an oil processing capacity of 100,000 barrels a day (b/d), while the Al-Samawah investment refinery project comprises developing a facility with the capacity to process 70,000 b/d, according to documents released by the Iraqi Oil Ministry.
Both projects will be implemented using either the build-own-operate (BOO) or build-own-operate-transfer (BOOT) contract models, according to the documents.
The Al-Kut refinery will process crude oil from the fields of Maissan Governorate. The project will include a 250km pipeline to transport the crude from the source to the project site.
The Al-Samawah investment refinery will process crude oil from the Nasiriya depot.
For both projects, the relevant information package can be purchased for $30,000 from 8 July 2025 until the end of the working day on 6 August 2025.
Technical and commercial offers as well as other required documents are due to be submitted to the Oil Ministry’s Studies and Planning Directorate before the end of the working day on 5 October 2025.
Plans for both refineries were first announced by the Oil Ministry in 2016, with invitations to bid issued for the Al-Kut refinery in 2018.
After 2018, both projects stalled for several years before invitations to bid were issued for both refineries in April 2023.
The Oil Ministry has not officially confirmed why the 2003 invitation to bid did not result in contract awards.
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/14221742/main.png