OMAN, QATAR and KUWAIT are on a path to empower local government agencies and private sector players to develop a number of PPP projects, along with international partnerships and financing modalities. Sovereign wealth funds and local commercial banks are needed to derisk some of the initial infrastructure projects which are being developed first time across various sectors such as renewable energy, transport and urban infra.
Read the key developments in Infrastructure and PPPs in key GCC countries in our latest insight of the Q4 2024 series.
OMAN
EDF-LED TEAM MOVES ON OMAN HYDROGEN PROJECT
A consortium planning to develop an integrated green ammonia production facility in Oman’s Salalah region recently conducted a site visit in preparation for launching detailed site studies and a renewable energy measurement campaign. The consortium comprises France’s EDF Group and its subsidiary EDF Renewables, London-based Yamna and Japan’s Electric Power Development Company (J-Power).
Hydrogen Oman (Hydrom), a subsidiary of Energy Development Oman, awarded the consortium a land block in Q3 of 2024 to develop a large-scale green ammonia project in Oman. The team signed a project development agreement with Hydrom, which grants the consortium the exclusive right to develop, build, own, operate and maintain the project for 47 years. Located in Oman’s Dhofar Governorate, the land block measures over 341 square kilometers. The consortium intends to install approximately 4,500MW of wind and solar capacity coupled with battery storage and about 2,500MW of electrolyzer capacity.
The produced hydrogen will then be supplied to an ammonia plant to be built in the Salalah Free Zone. The Hydrom received at least two bids for the second round of Oman’s land auction for integrated green hydrogen projects. The land offered for auction covers an area of 960 sq km in the Dhofar region.
FUTURE FUND OMAN ANNOUNCES USD 2 BN PROJECTS
Future Fund Oman (FFO), the latest investment initiative under Oman Investment Authority (OIA), has announced its first batch of approved investment projects. With a combined value exceeding USD 2 Bn, these projects include USD 1.6 Bn committed by foreign investors and USD 571 Mn contributed by FFO. The investments are expected to create more than 1,600 direct employment opportunities, marking a significant step forward in Oman’s economic diversification and development strategy.
The approved projects span ten key sectors: technology, manufacturing, tourism, renewable energy, and electric vehicles. In addition, small and medium enterprises (SMEs) and startups will play a prominent role, with investments targeting food, health, financial technology, e-commerce, and more. This comprehensive approach reflects FFO’s commitment to fostering innovation and growth across various industries, ensuring that both large-scale ventures and emerging businesses contribute to Oman’s economic progress.
FFO was established in collaboration with the Ministry of Finance with a capital of USD 5.2 Bn, allocated over five years from 2024 to 2028. The Fund strategically excludes investments in oil, gas, and real estate, focusing on growth-oriented sectors aligned with Oman’s Vision 2040.
GALFAR WINS RO 118 MN (USD 306 MN) ROAD CONSTRUCTION CONTRACT
Galfar Engineering and Contracting Company has secured a major contract for the construction of the Dualisation of Adam-Thumrait Road – Part 4, valued at approximately RO 118 Mn (USD 306 Mn).
The Ministry of Transport, Communications, and Information Technology (MTCIT) awarded the contract to Galfar. The project covers a span of 135 kilometers, starting from the Wilayat of Maqshin, passing through Qatabit, and extending to Duka. The total duration for mobilization and execution of the contract is set for 39 months, with the work set to begin after the completion of contractual procedures.
This contract is part of the broader Adam-Thumrait dual-carriageway road project, which is being implemented in multiple phases. In November 2024, Oman’s Tender Board, on behalf of MTCIT, awarded contracts for three sections of the highway:
Part 3 was awarded for RO 70 Mn (USD 181 Mn)
Part 4 for RO 118 Mn (USD 306 Mn).
Part 5 for RO 69 Mn (USD 179 Mn)
Construction on the Adam-Thumrait dual-carriageway is expected to begin in early 2025, once contractual procedures are completed. Upon completion, the project will be one of the longest infrastructure projects undertaken by the ministry.
EWPARTNERS INVESTS IN UNITED SOLAR’S USD 1.5 BN POLYSILICON PLANT IN OMAN
EwPartners has made a significant move into the energy transition sector with a multi- million-dollar investment in United Solar’s USD 1.5 Bn polysilicon plant located in the Sohar Port Free Zone, Oman. This investment is a part of EwPartners strategy to expand its focus to include energy transition and related supply chains, following its success in industries like digital infrastructure and logistics.
The United Solar project, with a production capacity of 100,000 tonnes, is set to play a pivotal role in Oman’s renewable energy landscape. This investment marks the second commitment from EwPartners Technology Innovation Fund II, following a USD 50 Mn investment in Lenovo’s supply chain business, Leshines.
OMAN LAUNCHES A QUALIFICATION PROCESS FOR A 280 MW SOLAR PROJECT IN AL KAMIL WAL WAFI
The Sultanate of Oman, through Nama Power and Water Procurement (PWP), has announced the opening of the qualification process for the Al Kamil Wal Wafi photovoltaic solar project (Al Kamil Solar IPP). This initiative aligns with the national strategy to diversify energy sources and achieve carbon neutrality by 2050.
This marks the country’s fourth photovoltaic solar project. Located in Al Kamil Wal Wafi, the project will have an installed capacity of 280 megawatts (MW). PWP, responsible for managing water and electricity procurement in the Sultanate, will oversee all project stages, including tender management and contracts with private sector partners.
OMAN AND BELGIUM ANNOUNCE STRATEGIC GREEN HYDROGEN AGREEMENT TO SHAPE GLOBAL ENERGY LANDSCAPE
Oman and Belgium have signed a new agreement to strengthen their partnership in green hydrogen. This Memorandum of Understanding (MoU) aims to enhance cooperation in the hydrogen industry. The agreement, between Hydrogen Oman (Hydrom) and the Belgian Hydrogen Council (BHC), will focus on hydrogen production, infrastructure, transportation, and utilization.
The MoU highlights the commitment of both countries to advancing the global hydrogen economy. Oman, with its renewable energy resources, is poised to become a hub for green hydrogen, while Belgium is positioned as a key hydrogen industrial hub for Europe. Together, they aim to improve energy security and create a seamless global hydrogen supply chain. This agreement builds on decades of strong relations between Oman and Belgium, including previous milestones in green energy. The first step under the MoU will involve knowledge sharing, technology development, and planning for hydrogen production and shipping infrastructure.
TOTALENERGIES AND OQAE TO DEVELOP 300 MW RENEWABLE ENERGY PROJECTS IN OMAN
TotalEnergies, in collaboration with its partner OQ Alternative Energy (OQAE), has signed landmark agreements to develop 300 MW of renewable energy projects in Oman, aligning with its multi-energy strategy in the Sultanate. The renewable electricity generated will be supplied to Petroleum Development Oman (PDO), the country’s leading exploration and production company, under long-term Power Purchase Agreements (PPA).
The projects include North Solar, a 100 MW solar facility in Saih Nihaydah in northern Oman, and Riyah-1 and Riyah-2, two 100 MW wind farms located in Amin and West Nimr fields in the south. TotalEnergies and OQAE will hold 49% and 51% stakes, respectively. Construction is set to begin in early 2025, with electricity production expected by late 2026, delivering over 1.4 TWh of renewable energy annually.
These agreements further reinforce steadfast commitment to achieving Net Zero emissions by 2050 in line with the objectives of Oman Vision 2040, mainly the diversification of energy sources to ensure sustainable energy security. PDO’s journey towards sustainability was firmly established with previous groundbreaking initiatives, including the Amin Solar IPP Power Plant and the Rima Water Treatment Project
QATAR
QATAR ELECTRICITY AND WATER COMPANY PLANS TO BUILD 500 MW POWER PROJECT
Qatar Electricity and Water Company (QEWC), in cooperation and Qatar General Electricity and Water Corporation (KAHRAMAA), is exploring the development of a project to build, own and operate peak units with a production capacity of 500 megawatts (±5%) in the Ras Abu Fontas, a coastal industrial area in Doha. The objective of this project is, meeting the growing electricity demands of Qatar. The technical and commercial offers for the project are being evaluated currently. Upon completion of the evaluations, the main contractor for the project will be selected. The contractor will undertake the construction and operation of the selected power units.
A full proposal on the project will be submitted to KAHRAMAA in detail including plans concerning the construction, ownership, and operation of peak power units in order to ensure that the project aligns with the general strategy concerning energy in Qatar. This joint effort by QEWC and KAHRAMAA is a component of Qatar’s efforts to improve the energy infrastructure of the country. The project designed for Ras Abu Fontas provides a stable electric supply, especially at peak hours. With increased electricity production, the country can meet the goals set by it to advance while proceeding at a stable pace with an efficient power grid.
SUMITOMO CONSORTIUM LANDS 2400 MW QATAR PLANT CONTRACT
Sumitomo Corporation and Shikoku Electric Power Co., Inc, alongside Korea Southern Power Co., Ltd and Korea Overseas Infrastructure & Urban Development Corporation have jointly won the rights to the Facility E independent water and power project through an international tender organized by Qatar General Electricity and Water Corporation (“Kahramaa”). Sumitomo Corporation, representing the four companies, has signed a long-term power and water sale agreement with Kahramaa. The four companies will jointly establish a project company with Qatar Electricity and Water Company (QEWC) and Qatar Energy.
The project involves the construction and operation of a natural gas-fired power plant (2,400 MW) and a seawater desalination facility (110 MIGD*2 (495,000 tons/day)) on the site of an old power plant located approximately 25 kilometers south of Doha, Qatar’s capital, in the Ras Abu Fontas area. Compared to existing gas-fired power plants, the new plant will employ high-efficiency gas turbines that consume less gas and emit lower levels of CO2 and other pollutants, contributing to stable energy supplies and decarbonization efforts in Qatar. In the future, the Government of Qatar and the project company will explore new plans for Carbon Capture and Storage (CCS) to further reduce CO2 emissions.
QATARENERGY BREAKS GROUND ON USD 1.2 BN AMMONIA PROJECT
QatarEnergy held the groundbreaking ceremony for the blue ammonia project in Mesaieed Industrial City. The plant will be built in Mesaieed Industrial City, which offers a strategic location, integrated infrastructure, ideal capabilities, and a port that is considered one of the largest petrochemical export facilities in the Middle East. The investment is about QAR 4.4 Bn (USD 1.2 Bn).
The facility will consist of an ammonia production unit with a capacity of 1.2 mtpa and an additional unit for CO2 injection and storage, with a capacity of 1.5 mtpa. QatarEnergy plans to provide the new plant with more than 35 MW of electricity from the solar power plant currently being built in Mesaieed Industrial City. The plant is expected to start production in the second quarter of 2026. The consortium implementing the project consists of ThyssenKrupp and CCC.
This will be carried out in cooperation between QatarEnergy and Qatar Fertiliser Company – QAFCO. The blue ammonia plant joins a list of QatarEnergy’s large and ambitious expansion projects in Qatar and around the world covering LNG, oil and gas exploration and production, petrochemicals, fertilizers, solar power, and more.
KUWAIT
KUWAIT PLANS 35 INFRASTRUCTURE PROJECTS WORTH USD 51 BN
OPEC oil producer Kuwait has approved 35 projects with a combined value of around KWD 15.6 Bn (USD 51 Bn) to be carried out within nine years to develop its infrastructure and other facilities. The 29 projects worth nearly KWD 7.6 Bn (USD 25 Bn) are expected to be completed by 2030.
The report included:
Construction of around 9,800 houses with a value of about KWD 1 Bn (USD 3.3 Bn)
Road development at a cost of nearly KWD 417 Mn (USD 1.4 Bn).
Construction of 111-km rail line to connect with the planned rail network in the six-nation Gulf Cooperation Council.
One of the largest projects in this plan is the Mubarak Al-Kabeer Port, which is scheduled to be completed within four years. It is expected to cost nearly KWD 990 Mn (USD 3.2 Bn).
KUWAIT PLANS SOLAR POWER PROJECT WITH CHINESE PARTNERSHIP
Kuwait is planning to build solar power plants in partnership with Chinese companies at a cost of more than USD 800 Mn. The IPP (Independent Power Producer) project involves Shagaya 3 and 4 solar power plants and will be a joint venture between the Kuwaiti and Chinese governments as well as a company listed on Kuwait’s bourse.
The plants will be developed through a joint venture between the government of Kuwait and China, alongside a local Kuwaiti company listed on the stock exchange. Kuwait Investment Authority (KIA), the country’s sovereign wealth fund, has prepared a comprehensive report on the project. Ownership will be shared, with Kuwait and China each holding 42.5% and the local company owning the remaining 15%. The joint venture will handle financing, construction, operations, and maintenance of the facilities.
The Shagaya project, located approximately 100 kilometers west of Kuwait spans an area of over 84 square kilometers. This ambitious project underscores Kuwait’s commitment to diversifying its energy portfolio and adopting sustainable practices. The collaboration with China highlights the Gulf nation's increasing focus on leveraging international partnerships to achieve its renewable energy goals.
KUWAIT STARTS USING SOLAR ENERGY IN SCHOOLS
The Ministry of Education in Kuwait has started using solar energy in its schools as part of its efforts to promote sustainable development and reduce energy consumption. The project includes the installation of a solar power station at the school. This station uses photovoltaic panels to convert sunlight into electricity, reducing the need for traditional energy sources and helping to lower electricity consumption. A total of 474 photovoltaic panels were installed, with each panel having a capacity of 660 watts.
The system is designed to continuously transmit electricity from the solar panels to three inverter units. Each inverter has a capacity of 110 kilowatts. This setup ensures a stable supply of electricity generated by solar energy. The system is also equipped with an automatic cleaning mechanism that helps maintain the panels’ efficiency. The cleaning system is programmed to operate at specific times, based on data inputs that determine the best days for cleaning the panels. The installation of the solar power system not only helps in conserving energy but also contributes to environmental sustainability by reducing the reliance on non-renewable energy sources.
EGYPT EYES KUWAITI INVESTMENTS, IMPLEMENTING INFRASTRUCTURE PROJECTS IN KUWAIT
Egypt is seeking to boost Kuwaiti investments in key sectors such as food industries, oil and gas, and petrochemicals, while also enhancing trade between the two countries. The importance of expanding the role of the Egypt-Kuwait Business Council and exploring cooperation opportunities in Africa. The potential for Egyptian companies to participate in development and modernization projects in Kuwait, leveraging their experience from implementing national projects in Africa.
The various aspects of economic, commercial, and investment cooperation between Egypt and Kuwait, noting the significant progress in their bilateral relations. The government also outlined the steps Egypt has taken toward comprehensive economic reform, highlighting ambitious plans to attract direct investments as part of a strategic vision aimed at sustainable development.
The government focus on enhancing Kuwaiti investments in Egypt, particularly in the area of food security, and offering the necessary facilities to encourage Kuwaiti involvement in this sector. The potential for Egyptian companies to contribute to Kuwait’s development and modernization projects, drawing on the experience they have gained through large-scale national projects in Egypt and their involvement in Africa.
INDIA, KUWAIT TO STRENGTHEN ENERGY TIES, EXPLORE RENEWABLE COOPERATION
The two nations agreeing to elevate their bilateral relationship to a “Strategic Partnership.” The move aims to deepen cooperation in trade, defense, energy, and people-to-people ties. The two sides signed a Memorandum of Understanding (MoU) in defence to facilitate joint military exercises, training, and the development of defense technology. The discussions also covered transforming energy ties from a buyer-seller dynamic to a comprehensive partnership, including collaborations in oil, gas, and renewable energy.
Both nations agreed to expedite negotiations on the Bilateral Investment Treaty to enhance trade and attract investments in technology, healthcare, and logistics. The establishment of a Joint Commission on Cooperation (JCC) and additional Joint Working Groups (JWGs) was announced to oversee progress in areas such as education. The visit marks a significant step in India-GCC relations, with Kuwait, as the current Chair of the GCC, pledging full support for India’s engagement with the bloc. Both sides also discussed expediting the India-GCC Free Trade Agreement.
List of key transactions - Oman, Qatar and Kuwait Q4 2024
Source: YOG INFRA analysis
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