Table of content:
- BOARD REPORT Iran says nuclear deal incumbent on US accepting all terms; Opec and non- Opec partners to raise oil production; Iraq struggles to form government; Saudi economy to grow at fastest pace in a decade
- NATIONAL CHAMPIONS The region forms national champions to guarantee the delivery of its most strategic projects
- OPINION Geopolitics takes over oil agenda; Iraq oil dispute needs political fix; World waits for Iran nuclear deal
- BIG INTERVIEW Saeed Ghumran al-Remeithi, group CEO, Emirates Steel Arkan
- INTERVIEW Kevin Lee, Samsung Engineering’s UAE managing director
- LIBYA OIL Security worsens in Libya after oil major reshuffle
- MEED INDEX MEED’s Climate Resilience Index
- DOWNSTREAM OIL & GAS Chemicals spending shows Mena resolve; Momentum builds for integrated complexes; Stretching the chemical value chain
- INTERVIEW Gulf Keystone presses ahead with Iraq field development plans worth over $800m
- LEGAL Dubai reforms arbitration rules
- LEADERSHIP Middle East looks to advanced manufacturing
- KUWAIT IN FOCUS Political impasse holds Kuwait’s economy back
- BUSINESS OUTLOOK News from the Gulf region’s major business sectors
- THE GREEN DREAM Bold projects are in place across the region to deliver the reality of a green economy
- GULF PROJECTS INDEX Downward budget revisions drive substantial index decline
- CONTRACT AWARDS $3.8bn of deals let in July
From the Editor:
The region’s construction industry is undergoing a shift that will transform how it operates over the coming years. For decades, the region has relied on large family-owned construction companies to deliver its infrastructure projects.
Over the past decade, many of these firms have struggled with financial difficulties. Although the void that this created has been a concern for several years, it has developed into a major problem as the region gears up for another period of intense project activity. For the energy sector, state producers are responding by increasing output, which requires new infrastructure. Saudi Aramco plans to spend $40-50bn on capital expenditure projects in 2022, and Abu Dhabi National Oil Company (Adnoc) has said it will spend $127bn on projects over the next five years.
The contractor void is most apparent in Saudi Arabia, where construction work is starting on a raft of gigaprojects that are intended to transform the kingdom’s economy. Although still in the early stages of construction, the executives running these schemes are already warning that securing the services of sufficient well-qualified contractors has become a challenge. The answer will be multifaceted.
One solution that has already been turned to is project owners entering into framework agreements with contractors to lock in the resources they require at an early
stage of the project. Another solution is for government actors to create national champions. While the prospect of state-controlled contractors would at first appear to rail against the region’s drive for privatisation, it is a problem that could be solved if those firms are listed on the local bourses.
Colin Foreman is editor of MEED and has 20 years of experience reporting on projects and business in the Middle East and North Africa.
Editor – Colin Foreman
Features & Analysis Editor – John Bambridge
Energy & Technology Editor – Jennifer Aguinaldo
Oil & Gas Editor – Indrajit Sen
Oil & Gas Reporter – Wil Crisp
Commercial Content Editor – Mehak Srivastava
Commercial Content Editor – Sarah Rizvi
Tenders Writer – Jane Bishop
Head of Production – Marianne Makdisi
Sub Editor – Sneha Abraham
Graphic Designer – Rey Delante