meed-logo

line1 line2 line3
SIGN IN / REGISTER

Contractors vie for schemes worth $270bn

21 December 2023

Following one of the best years for project contract awards in the Middle East and North Africa (Mena) region in a decade, 2024 has a lot to live up to if it is to generate a similar amount of project activity. 

By mid-December, the value of contract awards in 2023 had exceeded $230bn and was just $10bn shy of the $240bn-worth of regional contract awards let in 2014 – the best year on record to date. It was also on track to exceed that record year, with $36bn of projects in bid evaluation and expected for award by year’s end.

Nevertheless, 2024 has the potential to be an even better year for the Mena projects markets than 2023, with more than $270bn-worth of projects in the bidding phase and either overdue, due for award in the final weeks of 2023 – at the mid-December mark – or set for award at some point during 2024.

On top of this significant value of projects in the bidding stage, the region also has an estimated $250bn-worth of work in the design phase, with project trajectories that could quite reasonably see the schemes proceed through the prequalification, tendering and main contract award phases within the next 12 months.

Of the $270bn of value in the bidding stage, $126bn is in bid evaluation, with the main contract imminently due for award. A further $67bn is at the bid submission stage and $77bn is at the prequalification stage.

Imminent awards

Among the projects that are in the bidding phase and due for award in 2024 are six projects worth $4bn or more – all of which are in the GCC, with three in the UAE and one in each of Kuwait, Qatar and Saudi Arabia. They include three oil and gas projects, two power plants and one transport scheme.

The largest project contract in both the bidding phase, and specifically bid evaluation, is the estimated $7bn scheme for the development of surface facilities as part of the UZ1000 expansion programme by the offshore arm of Abu Dhabi National Oil Company (Adnoc Offshore) at the UAE’s Upper Zakum oil field. 

Bids for the project have been submitted by the UK’s Petrofac, the local Target Engineering Construction Company and Spain’s Tecnicas Reunidas.

The next largest project in the bidding phase is the $6bn first package of the Duwaiheen nuclear power plant project, which entails the construction of two 2,800MW nuclear reactors on behalf of the Saudi special purpose vehicle Duwaiheen Nuclear Energy Company. Expected bidders include France’s EDF, China National Nuclear Corporation, Korea Electric Power Corporation and Russia’s Rosatom.

The third largest scheme, and one that is at the prequalification stage, is the estimated $4.8bn Blue Line for the Dubai Metro, tendered by the Roads & Transport Authority after the project was greenlit in November 2023. Expressions of interest for the 12-station line are being sought from three consortiums.

Close behind this is the $4.5bn Ruwais liquefied natural gas terminal, which is being tendered by Adnoc Gas Processing, and for which more than half a dozen companies have submitted bids.

In Kuwait, the $4bn combined phases two and three of Al-Zour North independent water and power project are being tendered by the Ministry of Electricity & Water via the Kuwait Authority for Partnership Projects. Five bidders have submitted prequalification documents for the scheme. 

Pending in Qatar, there is the $4bn phase two, scope D of works on the North Field production sustainability project, for which submissions to QatarEnergy LNG are due by the end of December.

Top markets

The country with the highest value of project work in the bidding phase – and more than double that of the next most active projects market – is Saudi Arabia, which alone has schemes worth $107bn. This includes $46.5bn-worth of work in bid evaluation, $34.3bn in bid submission and $26.4bn at the prequalification stage.

The work in Saudi Arabia is concentrated in the hands of several large clients, led by Saudi Aramco, which has $22bn-worth of work under bid, and Neom, which has $19bn of associated projects under bid. 

There is a further $8.6bn-worth of work associated with the four other official gigaprojects: Diriyah Gate, Qiddiya, the Red Sea Project and Roshn. There is also $7.7bn-worth of work in the bidding phase as part of the Saudi Power Procurement Company’s renewable energy programme.

The projects market with the second-largest value of imminently pending work is the UAE, with $51.5bn-worth of work under bid, including schemes worth about $30bn in bid evaluation. This work is led by the oil and gas sector, with $22.6bn of work being tendered by Adnoc Group. 

Elsewhere in the GCC, Kuwait, Oman and Qatar have, respectively, $19.8bn, $17.9bn and $15.7bn of projects under bid. Overall, the GCC markets account for $216bn or 80 per cent of the $270bn total of work under bid, with Saudi Arabia and the UAE alone accounting for $159bn-worth of work, or 59 per cent of the total.

Close behind these markets is Algeria, which has $15.3bn-worth of schemes in the bidding phase, alongside lesser values in Egypt and Iraq, at $10.7bn and $7.7bn, respectively. There is then a further $24bn-worth of work under bid spread across the other countries in the Mena region.

Strongest sector

Segregated by industry, of the $270bn-worth of work in the bidding stage, there are: projects in the construction and transport sector worth a combined $97.7bn; schemes worth $97.6bn in the power, water and utilities sector; and programmes worth $74.8bn in energy industry.

This breaks down further into $53.1bn of transport projects, $44.6bn of construction projects, $59.7bn of power projects, $37.8bn of water projects, $32.9bn of gas projects, $29.2bn of oil projects, and $12.6bn of chemicals and other industrial schemes.

Top clients

The top 10 project clients in the region by value of projects currently in the bid stage account for $103bn or 38 per cent of the $270bn of total project value under bid. Out of this group of regional heavyweight project owners, five are Saudi entities: Saudi Aramco, Neom, Saudi Power Procurement Company (SPPC), Duwaiheen Nuclear Energy Company (DNEC) and Saudi Electricity Company (SEC).

The top project client outside of Saudi Arabia is the UAE’s Adnoc, which comes second only to Saudi Aramco in terms of the value of projects in the bidding stage. Adnoc is accompanied in its representation of the UAE in the ranking by Dubai’s Road & Transport Authority (RTA). 

The list is then rounded out by Algeria’s Sonelgaz and two Kuwaiti entities: Kuwait Authority for Partnership Projects (Kapp) and Kuwait Oil Company (KOC).

Both Saudi Aramco and Adnoc have more than $20bn-worth of projects under bid, followed closely by Neom, which has $17.6bn-worth of projects across its constituent masterplans, led by Oxagon, Trojena and The Line. 

The three Saudi utilities sector clients, SPPC, DNEC and SEC, then have $7.3bn, $6.5bn and $6.3bn under bid, respectively. Sonelgaz is close behind, with $6.2bn under bid, followed by Kapp, the RTA and KOC, with $6bn, $5.4bn and $4.9bn, respectively, under bid.

The line-up reflects the broader pattern of a strong concentration of project activity in the Mena region within the GCC, and especially within Saudi Arabia and the UAE, as the pre-eminent GCC projects markets. 

 Top pending projects in 2024 (to be published on 27 Dec 2023)

https://image.digitalinsightresearch.in/uploads/NewsArticle/11381712/main.gif
John Bambridge

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

Click here to register
Exclusive from Meed
Related Articles
  • Twenty-eight firms interested in $1.5bn Morocco airport

    4 June 2025

    Twenty-eight local and international firms have expressed interest in a contract to build a new terminal at Morocco’s largest airport, Mohammed V International airport in Casablanca.

    The estimated MD15bn ($1.6bn) expansion will increase the airport’s capacity to 30 million passengers a year.

    The new terminal will span an area of about 450,000 square metres.

    Morocco’s Office National Des Aeroports (ONDA) issued the expression of interest notice in mid-April, with a submission deadline of 16 May.

    The firms that have expressed interest include:

    • TAV Airports Holding (Turkiye)
    • Makyol Insaat (Turkiye)
    • Sinohydro Corporation (China)
    • Jet Contractors (local)
    • China Civil Engineering Construction Corporation (China)
    • China State Construction Engineering Corporation (China)
    • China International Water & Electric (China)
    • Acciona (Spain)
    • Shandong High-Speed Group Company (China)
    • China Railway 20 Bureau Group Corporation (China)
    • China Railway Construction Corporation (China)
    • Orascom Construction (Egypt)
    • Limak Insaat (Turkiye)
    • IC Ictas (Turkiye)
    • China Gezhouba Group (China)
    • Serka Taahut Insaat (Turkiye)
    • China Harbour Engineering Corporation (China)
    • Sichuan Road & Bridge Group (China)
    • China Road & Bridge Corporation (China)
    • Kalpataru Projects International (India)
    • China Overseas Engineering Group (China)
    • Bymaro (local)
    • Consolidated Contractors Company (Greece)
    • Societe Generale des Travaux du Maroc / Travaux Generaux de Construction de Casablanca (local/local)
    • Beijing Urban Construction Group (China)
    • Sogea Maroc (local)
    • Mabetex Group / Mabco (local/local)

    The terminal is expected to be ready in time for the 2030 Fifa World Cup, which Morocco is co-hosting alongside Portugal and Spain.

    In May, MEED reported that ONDA had awarded an estimated MD294m ($29m) deal for enabling works on the new terminal.

    According to local media reports, the contract was awarded to local firm Societe de Travaux Agricoles Marocaine.

    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.

    In April, Morocco announced that it will also build a new airport in Casablanca in preparation for the tournament. 

    Morocco plans to upgrade several 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.

     

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14011602/main.jpg
    Yasir Iqbal
  • Read the June 2025 MEED Business Review

    4 June 2025

    Download / Subscribe / 14-day trial access

    The GCC states are playing an increasingly important role in developing future technologies. Governments are accelerating their artificial intelligence (AI) and data centre strategies and the region now boasts a compelling combination of low-cost energy, advanced infrastructure and decisive policy support, positioning it as a hub for data-driven innovation.

    The region is rapidly scaling up its data centre capacity. As of May, there were more than $78bn-worth of planned data centre construction projects, according to regional projects tracker MEED Projects, with a further $680m in active bids and $6.5bn already under construction. 

    With digital infrastructure investments hitting an all-time high, Saudi Arabia and the UAE are overhauling their electricity systems in line with their energy diversification, economic expansion and net-zero targets, as they strive to secure national competitiveness in the AI economy.

    The June edition of MEED Business Review explores the implications of this rapid growth in data centre investment, and what it means for the long-term technological leadership of the Gulf states in the fields of digital innovation and AI.

    MEED's latest issue also includes a 13-page market report on Iraq, which is facing economic challenges as lower oil prices threaten Baghdad's spending plans. While the country's oil, gas and chemicals project market has surged to its highest value in a decade and the revival of a Syrian oil export route could provide a large economic boost, Baghdad is spending heavily on housing and infrastructure construction projects, and on its efforts to address the country's significant power deficit. The hope is that the strong projects activity will set the country on a more positive growth trajectory.

    In addition, this month's issue features a report on the region's banking sector, where structural evolution is taking place in the areas of retail, digital and small and medium-sized enterprise banking. Through a series of case studies, we look at the financial institutions that are leading the way when it comes to innovation in these domains.

    Meanwhile, this month's ranking of the Top 100 regional listed companies reveals that although the valuations of regional listed oil sector companies has fallen, other sectors are holding up well despite volatile global conditions and lower oil prices. Despite the oil sector weighing on the overall performance of MEED's top 100, a total of 54 initial public offerings in the Middle East and North Africa (Mena) region raised $12.6bn in 2024. 

    This issue, the team also assesses the potential impact of the snap decision by US President Donald Trump to lift sanctions on Syria; looks at how the planned Disney theme park on Yas Island is a major boost to Abu Dhabi's tourism offering; and examines how the uptick in investment activity throughout the Middle East-Asia corridor is set to continue alongside the recently announced multibillion-dollar Gulf-US investments in sectors such as defence, energy and AI.

    In the June issue, we also examine what Saudi Arabia's 19% first-quarter 2025 cut in government capital expenditure – and the coinciding drop in contract awards – means for the kingdom; and speak exclusively to Estelle Brachlianoff, Veolia Group CEO, about the French water and waste-treatment firm's plans for expansion in the Mena region.

    We hope our valued subscribers enjoy the June 2025 issue of MEED Business Review. 

     

    Must-read sections in the June 2025 issue of MEED Business Review include:

    > AGENDA: 
    > Data centres churn investments
    > Gulf seizes AI opportunities

    > CURRENT AFFAIRS:
    > US announces lifting of Syria sanctions

    INDUSTRY REPORT:
    2025 Top 100 Listed Companies 
    > Middle East stocks defy lower oil prices

    > TOURISM: Abu Dhabi hopes bigger is better with Disney theme park

    > TRADE: Emerging Gulf-Asia corridor grows despite headwinds

    > SAUDI ARABIA: Riyadh confirms capital expenditure cuts

    > INTERVIEW:
    > Mena crucial to Veolia’s growth plan

    > IRAQ MARKET REPORT: 
    > COMMENT: Iraq maintains its pace, for now
    > GOVERNMENT & ECONOMY: Iraq’s economy faces brewing storm
    > OIL & GAS: Iraqi energy project value hits decade-high level
    > PIPELINES: Revival of Syrian oil export route could benefit Iraq
    > POWER: Iraq power sector turns a page
    > CONSTRUCTION: Iraq pours billions into housing and infrastructure projects
    > DATABANK: Iraq forecast dips on lower oil prices

    > MEED COMMENTS: 
    >     Adnoc takes a leap forward in becoming a chemicals giant
    > Timing is ripe for Aramco to enter India
    > US-Gulf AI deals usher in new era
    > Saudi construction needs more clarity

    > GULF PROJECTS INDEX: Gulf projects index leaps 4.3%

    > APRIL 2025 CONTRACTS: Region sees $8bn of project signings in third straight month of weaker awards activity

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: Dealmaking trumps the Truman Doctrine

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14001235/main.gif
    MEED Editorial
  • Dubai plans Al-Wasl Road overhaul

    4 June 2025

    Dubai’s Roads & Transport Authority (RTA) has announced plans to upgrade Al-Wasl Road.

    The Al-Wasl Road development project will span 15 kilometres, stretching from the intersection with Umm Suqeim Street in the south to the junction with 2nd December Street in the north.

    Key features of the project include the upgrade of six intersections and the construction of five tunnels, totalling 3,850 metres.

    The road will be widened from two to three lanes in each direction, with the project expected to reduce travel times by 50% and increase capacity from 8,000 to 12,000 vehicles per hour in both directions.

    The six intersections that will be upgraded are at Al-Thanya, Al-Manara, Umm Al-Sheif, Umm Amara, Al-Orouba and Al-Safa streets.

    The intersection with Al-Manara Street involves the construction of a unidirectional tunnel with a capacity of 4,500 vehicles an hour, branching into two routes leading to Jumeirah Street and Umm Suqeim Street.

    The Al-Wasl Road project announcement followed recently launched plans for the enhancement of Umm Suqeim Street. That project involves building six intersections and constructing four bridges and three tunnels.

    Dubai focuses on infrastructure

    MEED’s May 2025 report on the UAE includes:

    > COMMENT: UAE is poised to weather the storm
    > GOVERNMENT & ECONOMY: UAE looks to economic longevity
    > BANKING: UAE banks dig in for new era
    > UPSTREAM: Adnoc in cruise control with oil and gas targets
    > DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
    > POWER: AI accelerates UAE power generation projects sector
    > CONSTRUCTION: Dubai construction continues to lead region
    > TRANSPORT: UAE accelerates its $60bn transport push
    > DATABANK: UAE growth prospects head north

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14010655/main.jpg
    Colin Foreman
  • NMDC LTS completes majority acquisition of Emdad

    4 June 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi government-owned industrial conglomerate NMDC Group has announced that its newly-created subsidiary NMDC LTS has completed the acquisition of a majority 70% stake in local oil and gas services firm Emdad.

    The transaction was financed through debt and equity, Abu Dhabi Securities Exchange-listed NMDC Group said in a statement on 4 June.

    NMDC Group first announced the expansion of its business portfolio through the creation of NMDC LTS, along with the transaction to acquire a 70% equity stake in Emdad, in December.

    The acquisition enables NMDC Group to provide services such as operations and maintenance and complement its existing offerings in engineering, procurement, construction and installation services.

    NMDC LTS will own and/or operate NMDC Group’s pool of marine support craft, technical capabilities, plant and equipment to enable the expansion of its services beyond the construction and industrial sectors.

    “This strategic acquisition enables NMDC Group to expand into the operational excellence segment of recurring revenues in the oil field services [sector], further diversifying its portfolio and strengthening its competitive advantage,” NMDC Group said in its statement.

    “In parallel, this acquisition will provide NMDC Group with a broader range of services and additional avenues for revenue growth, with Emdad’s offering spanning over an array of different services, including well intervention, waste management, shutdown/ turnaround, coil tubing, valves, among other services,” it added.

    A&O Shearman and PricewaterhouseCoopers (PwC) acted as the legal counsel and financial adviser, respectively, to NMDC Group on the transaction.

    On Emdad’s side, Clyde & Co. provided legal counsel, while KPMG Lower Gulf was the financial adviser.

    Emdad business

    Emdad reported revenues of more than $163m in 2024, and its equity stood at approximately $60m.

    Emdad’s clientele includes Adnoc, Borouge and Emirates Global Aluminum. The company delivers support across the oil and gas value chain – from well intervention and waste management to asset integrity management.

    Emdad’s operations are “further strengthened by its subsidiaries”, which provide specialised services in areas such as well construction, plant maintenance, catalyst handling and facility management.

    Key divisions include Emjel, specialising in coiled tubing and cementing; Emdad Services, focused on operational maintenance; and IGC, which handles civil and electrical facility management.

    ALSO READ: NMDC signs local manufacturing agreements
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14010154/main2304.jpeg
    Indrajit Sen
  • Lukoil acquires OMV’s stake in Ghasha concession for $594m

    4 June 2025

    Register for MEED’s 14-day trial access 

    Russia’s Lukoil has signed an agreement with Austrian energy company OMV to acquire its 5% stake in the Ghasha offshore sour gas concession in Abu Dhabi waters. The value of the deal is $594m, minus a $100m transaction fee.

    Following the acquisition of OMV’s stake in the Ghasha concession, Lukoil’s interest in the offshore sour gas asset has doubled to 10%.

    Abu Dhabi National Oil Company (Adnoc Group) owns and operates the Ghasha concession, holding the majority 55% stake. Apart from Lukoil, the other stakeholders in the asset are Italian energy major Eni with a 25% stake, and Thailand’s PTTEP Holding, which holds a 10% interest.

    The Ghasha concession consists of the Hail and Ghasha fields, along with the Hair Dalma, Satah al-Razboot (Sarb), Bu Haseer, Nasr, Shuwaihat and Mubarraz fields.

    Adnoc expects total gas production from the concession to ramp up to more than 1.5 billion cubic feet a day (cf/d) before the end of the decade. This target will mainly be achieved through the Hail and Ghasha sour gas development project.

    ALSO READ: Adnoc and OMV agree $60bn Borouge-Borealis merger deal

    In October 2023, Adnoc and its partners awarded $16.94bn of engineering, procurement and construction (EPC) contracts for its Hail and Ghasha project – the biggest capital expenditure made by the Abu Dhabi energy company on a single project in its history.

    Adnoc awarded the onshore EPC package to Italian contractor Tecnimont, while the offshore EPC package was awarded to a consortium of Abu Dhabi’s NMDC Energy and Italian contractor Saipem.

    The $8.2bn contract relates to EPC work on offshore facilities, including facilities on artificial islands and subsea pipelines.

    The Hail and Ghasha development will also feature a plant that will capture and purify carbon dioxide (CO2) emissions for sequestration (CCS), in line with Adnoc’s committed investment for a carbon capture capacity of almost 4 million tonnes a year (t/y). The CO2 recovery plant will have a total capacity to capture and store 1.5 million t/y of emissions from the Hail and Ghasha scheme.

    Prior to reaching the final investment decision on the Hail and Ghasha project in 2023, the Ghasha concession partners, led by Adnoc, awarded two EPC contracts worth $1.46bn in November 2021 to execute offshore and onshore EPC works on the Dalma gas development project.

    ALSO READ: Adnoc marks steel cutting on Umm Shaif oil field project

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14010077/main.jpg
    Indrajit Sen