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Infrastructure & PPPs in Oman, Qatar and Kuwait - Q1 2025

  • corefinance
  • Apr 25
  • 17 min read

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. Among the three, Oman is the most active market with a number of clean energy, urban and social infra projects annouced recently.

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 Q1 2025 series.

OMAN

THE GOVERNMENTS OF OMAN, SOUTH KOREA AND THAILAND PARTNER FOR GREEN AMMONIA PRODUCTION

A tripartite agreement between the governments of Oman, South Korea, and Thailand has launched a groundbreaking green ammonia project. LUPro, a Korea-based green energy company, will collaborate with Oman’s Muscat House and Thailand’s MA Corporation to construct a 1-Mn-ton green ammonia production facility in the Duhok Economic Free Zone, Oman. Construction begins in late 2025, with operations starting in 2027. The project will produce 5 Mn tons of green ammonia over five years, primarily for Thailand, with plans to expand to other Southeast Asian markets.

This initiative leverages Oman’s abundant solar and wind resources to achieve low production costs, making green ammonia economically viable. This collaboration is heralded as a milestone in global energy transition, aiming to reduce reliance on fossil fuels and support carbon neutrality goals in Thailand and beyond.

 

OMAN INAUGURATES 1 GW SOLAR PROJECT

Oman has inaugurated its largest solar power project, the Manah 1 and Manah 2 solar plants, with a total production capacity of 1 GW. The project, located in the Wilayat of Manah in the Al Dakhiliyah Governorate, was inaugurated by royal family member Sayyid Bilarab bin Haitham Al Said.

Spanning an area of 14.5 million m2, the plants feature over 2 million bifacial photovoltaic (PV) solar panels and employ 1800 automated dry-cleaning robots to minimise water usage. The project will increase Oman’s renewable energy share from 6.6 % to 11 % and could reduce CO2 emissions by 1.4 Mn tonnes annually.

The project was developed through a Public-Private Partnership (PPP) model with the Nama Power and Water Procurement Company (OPWP) serving as the tendering entity and sole procurer. Manah 1 was implemented in collaboration with local firm Wadi Noor Solar Energy, France’s EDF Renewables, and South Korea’s Korea Western Power Co. Manah 2 was executed in partnership with Sembcorp Jinko Shine, Singapore’s Sembcorp Industries, and China’s Jinko Power.

 

INTERNATIONAL BANK GROUP BACKS OMAN’S LARGEST DESAL PLANT

The Ghubrah III Independent Water Project (IWP) in Oman has achieved financial close, paving the way for its development and implementation. A consortium led by a global player in the water services sector, along with partners specializing in utility and infrastructure projects and operations and maintenance, is developing Ghubrah III under a concession awarded by Nama Power & Water Procurement Company (PWP), the single buyer of power and water in Oman.

Under the concession, the partnership will design, build, operate, and maintain the desalination plant for 20 years. With a desalination capacity of 300,000 cubic meters per day, the project is slated for commercial launch in Q1 2027.

A group of international and local banks, including the Export-Import Bank of Korea (KEXIM), Standard Chartered, and Bank Dhofar, has pledged USD 370 Mn in funding for the project. The lead partner is overseeing design and construction as the EPC contractor, while an engineering consultant has been commissioned to undertake detailed engineering, including the design of the Gravity Filters building.

The facility will house 32 gravity filtration cells, each designed with layers of anthracite, sand, and gravel, capable of removing over 85 % of total suspended solids (TSS) from incoming water. This is a key measure to protect the reverse osmosis membranes and optimize operational efficiency.

As one of the most strategic developments in Oman's water sector, this project underscores a commitment to advancing innovative and sustainable solutions that support long-term development goals. The plant is expected to set a new benchmark for excellence in water infrastructure.


OMAN SPORTS CITY PROJECT PICK UP STEAM

Oman has opened financial bids for project management consultancy services for its Integrated Sports City project, marking a major step in its development.

Key Highlights:

  • Visionary Sports Infrastructure: The project includes a 25,000-seat football stadium designed to meet FIFA and International Association of Athletics Federations (IAAF) standards, along with facilities for regional and international events.

  • Economic Impact: The development aims to boost Oman’s economy through sports tourism and community engagement, aligning with national goals to host world-class events.

  • Global Reach: The project reinforces Oman’s strategic intent to enhance its global presence and commitment to sustainable, inclusive growth.

Oman is advancing its sports infrastructure with a state-of-the-art development in Musannah, designed to support athletic excellence, tourism, and international collaboration. The project is expected to serve as a hub for major sporting events and training activities, reinforcing Oman’s position on the global sports map.

The Integrated Sports City project in Musannah, South Batinah, is progressing, with the bidding process for project management consultancy in its final stages. The project, spread over 1 mn sqm, was announced in 2023 under the Royal Directives.


OMAN BREAKS GROUND ON USD 186 MN MASIRAH ISLAND GRID PROJECT

Oman Electricity Transmission Company (OETC) has begun work on the Masirah Island Grid Project, a first-of-its-kind initiative aimed at enhancing efficiency and reliability in the country’s electricity transmission sector.

The project includes:

  • A 132/33 kV Masirah Island Grid Station

  • A 132 kV subsea cable spanning 25 km

  • A 132 kV underground cable running 9 km

  • 132 kV overhead transmission lines extending 60 km to connect the 400/132 kV Mahout Grid Station with Masirah Island

With an investment of RO 72 Mn (USD 186 Mn), the project integrates modern and complex technologies to improve service quality, enhance public utilities, and support local communities. It is also expected to attract future investments by ensuring a reliable energy supply.

OETC has reaffirmed its commitment to strengthening Oman’s electricity transmission network, ensuring its alignment with global standards. The project plays a strategic role in Oman’s energy transformation objectives while adhering to internationally approved frameworks.

The Masirah Island Grid Project is a key component of OETC’s long-term sustainability strategy and contributes significantly to Oman’s Net-Zero emissions goal by 2050. The project is projected to reduce carbon emissions by over 80,000 tonnes annually, supporting the country’s transition to a cleaner and more sustainable energy future.

 

INVESTMENT SOUGHT FOR OMAN’S FIRST AGRI-SOLAR PROJECT

Invest Oman, the investment facilitation arm of the Omani government, is promoting an Agri-Solar project aimed at enhancing food security while producing green energy. The commercial-scale agri-solar farming project is planned on 300 acres of land with an investment of RO 61.5 Mn (USD 160 Mn). Technology for the project will be provided by a Singapore-based circular agriculture solutions provider, specializing in smart and sustainable vertical aquaponics farming.

The Agri-Solar Project is a unique investment opportunity that supports food and economic sustainability with significant growth potential. Oman’s food security sector is shifting towards sustainability and self-sufficiency, opening new investment avenues. The project scales up an urban aquaponics farming system to a commercial farming level, integrating agriculture and solar energy. It will contribute to Oman’s food and energy security goals, drive economic diversification, and create job opportunities in the agriculture and aquaculture sectors.

Agri-solar (or agri-voltaics) is a dual-use land system, allowing farming and clean energy generation to coexist. This approach optimizes land use, enabling crop cultivation, livestock farming, or aquaponics alongside solar panels. Oman has already begun integrating renewable energy into agriculture.

 

PACT INKED FOR OMAN’S BIGGEST SOLAR ROOFTOP PROJECT

Oman National Engineering & Investment Co (ONEIC), a publicly traded electrical and renewable energy contractor, has signed a contract to implement Oman’s largest solar rooftop project to date. The 3.5 MW solar rooftop system will be installed at the seafood canning plant of International Sea Food Company SAOC (Simak), located in Duqm SEZ, Al Wusta Governorate. The project is being executed on a Design, Build, Operate, and Transfer (DBOT) basis, ensuring a long-term renewable energy supply for the facility.

Simak, a subsidiary of Fisheries Development Oman (FDO) under the Oman Investment Authority (OIA), is among the largest fish processing plants in the Gulf region, with a processing capacity of 30,000 tonnes per year and the ability to produce 100 million cans of seafood annually (equivalent to 16,000 tonnes of premium-grade products).

The DBOT model allows large industrial consumers to switch to renewable energy without upfront capital investment. Instead, the initial cost is covered by an Energy Services Company (ESCO)—in this case, ONEIC, which designs, finances, builds, and operates the system over a typical 15–20-year period. The industrial consumer pays a monthly fee, which remains competitive compared to Cost Reflective Tariffs (CRT) for large consumers while enhancing sustainability efforts.

ONEIC will manage operations for 25 years, ensuring a consistent and reliable energy supply for Simak. The company will oversee design, engineering, and construction, adhering to high standards of efficiency and sustainability.

 

GCCIA & QDF SIGN AGREEMENT FOR OMAN DIRECT INTERCONNECTION PROJECT

The Gulf Cooperation Council Interconnection Authority (GCCIA) and the Qatar Development Fund (QDF) have signed a landmark financing agreement to establish a direct grid connection between the GCCIA network and the Sultanate of Oman. The agreement was signed in Muscat, marking a major advancement in regional energy integration and collaboration.

The interconnection project will involve the construction of two 400 kV overhead transmission lines spanning 530 kilometers, linking GCCIA’s Al Sila station in the UAE to a new Ibri station in Oman. Additionally, two 400 kV substations will be built—one in Ibri and another in Al Baynunah—equipped with advanced control, protection, and communication systems. A dynamic compensator station will also be included to ensure grid stability and enhance transmission capacity. The system will have a total transmission capacity of 1,700 MW and a net transfer capacity of 1,200 MW.

This initiative represents a strategic milestone in the integration of Gulf power grids. It is expected to strengthen the reliability, flexibility, and sustainability of the region’s electricity networks. By enabling more efficient electricity exchange, the project will reduce the need for new power plants, lower operational costs, and support environmental goals through reduced carbon emissions.

The interconnection will provide significant benefits for both Oman and other GCC countries. It supports increased energy security, improved grid stability, and enhanced economic efficiency across the region. The project also aligns with global goals for sustainable infrastructure development and renewable energy integration.

Construction is scheduled to begin in the second half of 2025, with commissioning planned for the first half of 2027. The new infrastructure will help handle growing energy demands and support the integration of renewable sources such as solar and wind, in line with the GCC’s environmental vision.

This agreement also builds on previous collaborative efforts, including the South Iraq connection project. Three additional major interconnection projects—with Kuwait, the UAE, and Oman—are currently underway, representing a combined investment exceeding USD 1 Bn. 

 

OMAN’S OQAE HAS 7 GW OF CLEAN ENERGY PROJECTS UNDER DEVELOPMENT

OQ Alternative Energy (OQAE), designated as a National Champion by Oman’s Ministry of Energy and Minerals, is currently developing a clean energy project portfolio exceeding 7 GW in capacity across the Sultanate. These projects span solar, wind, and storage technologies, aimed at supporting Oman’s energy transition and industrial decarbonization.

Company’s initiatives are aligned with efforts to electrify industries and reduce emissions, making them more competitive globally. Oman’s liberalized energy market framework allows direct power sales, positioning OQAE uniquely in the region.

As a utility-scale renewable energy developer, OQAE not only focuses on project development but also promotes local content and international investment. Through partnerships for design, grid impact studies, and energy storage, the company aims to deliver comprehensive and cost-effective energy solutions to existing and new industrial offtakers in Oman.

 

OMAN LAUNCHES FIVE WIND POWER PROJECTS FOR AN AMBITIOUS ENERGY TRANSITION

Oman is accelerating its energy transition by shortlisting twelve developers for five wind power projects as part of its broader strategy to diversify energy sources and boost renewable capacity. These projects align with Oman Vision 2040 and the national goal of achieving net zero emissions by 2050.

Wind Projects Overview

  • Jalan Bani Bu Ali Wind IPP (South Sharqiyah): Capacity of 91–105 MW, commercial operation in Q1 2027.

  • Duqm Wind IPP (Duqm): Capacity of 234–270 MW, commissioning in Q4 2027.

  • Mahoot I Wind IPP (Al Wusta): Capacity of 342–400 MW, investment of RO 187 Mn (USD 486 Mn), commissioning in Q4 2027.

  • Dhofar II Wind IPP (Dhofar): Capacity of 114–132 MW, commercial operation in Q2 2027.

  • Sadah Wind IPP (Dhofar): Capacity of 81–99 MW, commercial operation in Q4 2027.

Shortlisted developers include ACWA Power, Sembcorp, Sumitomo, TotalEnergies, Masdar, and EDF Renewables, chosen for their expertise and competitive renewable energy solutions.

The total investment is estimated at RO 500 Mn (USD 1.2 Bn), with a combined generation capacity exceeding 1 GW. These projects are expected to reduce carbon emissions by over 978,000 tonnes annually and support Oman’s target of sourcing 30 % of energy from renewables by 2030.

Beyond expanding energy capacity, these wind projects will:

  • Enhance Oman’s global renewable energy profile.

  • Drive innovation and skill development in the local sector.

  • Strengthen economic resilience and environmental sustainability.

As global demand for clean energy rises, Oman’s proactive approach positions it as a regional leader in the energy transition.

 

OMAN ADVANCES RENEWABLE ENERGY LEADERSHIP WITH GREEN HYDROGEN EXPANSION

Oman is strengthening its position as a regional leader in renewable energy through major investments in green hydrogen production, capitalizing on its rich solar and wind resources. As global decarbonization accelerates, the country is expanding its clean energy initiatives to support a sustainable energy transition.

Oman hosts five of the ten largest active and upcoming low-carbon hydrogen projects in the Middle East. These renewable-powered projects are vital to enhancing the country’s clean energy infrastructure and advancing its long-term sustainability goals.

Key projects include:

  • ACME Duqm Hydrogen Project Phase 2: Set to begin operations in 2028, with a production capacity of 497 kilotonnes per annum (ktpa) using solar energy.

  • POSCO Consortium Duqm Hydrogen Project: Expected to produce 220 ktpa of green hydrogen by 2030 using a mix of solar and wind energy.

  • Amnah Consortium Duqm Hydrogen Plant: Scheduled for 2028, with a capacity of 215 ktpa.

  • Fortescue Future Industries Oman Hydrogen Project: A joint venture between Actis Corp and Fortescue Future Industries, targeting 200 ktpa by 2030 using renewables.

  • EDF Oman Hydrogen Project: Aiming to produce 178 ktpa, further solidifying Oman’s clean energy push.

These projects align with Oman’s national strategy to reduce carbon emissions, strengthen energy security, and establish itself as a leading clean energy exporter. By integrating large-scale solar and wind power with hydrogen production, Oman is positioning itself at the forefront of the global hydrogen economy and the regional energy transition.

 

OMAN TO CONSTRUCT MAJOR WATER PURIFICATION PLANT AT WADI DAYQAH DAM

Nama Water Services signed an agreement with the private sector to construct a water purification plant at Wadi Dayqah Dam in the Wilayat of Qurayyat. The project, valued at over OMR 55 Mn (USD 143 Mn), is being developed under a 20-year Public-Private Partnership (PPP) model using a Build, Own, Operate (BOO) model.

The plant aims to strengthen water security and ensure a steady supply of potable water, particularly during emergencies and extreme weather events. It will support agricultural development by supplying 30,000 cubic meters per day of treated water to farms in Qurayyat, in coordination with the Ministry of Agriculture, Fisheries and Water Resources. An additional 35,000 cubic meters per day will be fed into Nama’s main water distribution network.

Construction is scheduled for completion in 22 months. The facility will include a treatment plant, a seven-kilometer transmission line, a pumping station, and a 20,000-cubic-meter collection tank. The project will also connect with the main transmission network, improving supply reliability across the Muscat Governorate and surrounding areas.

Using surface water from the dam—lower in salinity than seawater—will reduce energy use and operational costs compared to desalination. The project is part of Nama’s broader strategy to diversify water sources, enhance food and water security, and align with Oman Vision 2040. It also contributes to carbon emissions reduction and supports the company’s net-zero goals by 2050.


QATAR

QATAR COMMITS USD 2.5 BN GREEN BOND FUND TO RENEWABLE ENERGY, LOW-CARBON REAL ESTATE

Qatar is advancing its commitment to sustainable development with a QR 9.10 Bn (USD 2.5 Bn) green bond initiative, focusing on renewable energy, infrastructure improvements, and eco-friendly real estate. This investment supports smart city infrastructure, with Lusail City emerging as a 38 km² hub integrating AI and data-driven technology to set a global standard for intelligent urban development.

As part of Qatar’s Digital Agenda 2030, the country is investing in digital connectivity and automation, with smart city developments like Msheireb Downtown leading efforts in energy-efficient urban innovation. However, Qatar faces challenges, including rising construction costs. Doha ranks as the second most expensive city for construction in the Middle East, at USD 2,096 per m. Additionally, global supply chain disruptions and competition for skilled labor, exacerbated by Saudi Arabia’s 2034 FIFA World Cup preparations, pose further hurdles.

Despite these challenges, Qatar remains focused on balancing sustainability and economic growth, ensuring its infrastructure aligns with global environmental and technological standards.


ASHGHAL ANNOUNCES COMMENCEMENT OF ROADS AND INFRASTRUCTURE DEVELOPMENT PROJECT IN BIRKAT AL AWAMER

The Public Works Authority (Ashghal) has announced the commencement of the Roads and Infrastructure Development Project in Birkat Al Awamer, aimed at improving internal streets, enhancing traffic safety, and upgrading infrastructure to meet the needs of the logistics zone "Manateq" under the Qatar Economic Zones Company. This project will support the area's logistics requirements and anticipated future urban growth.

Project Overview

  • Location: Zone 91, approximately 41 km south of Doha.

  • Implementation: Divided into four geographical areas, executed successively to minimize inconvenience to road users.

  • Completion Timeline: Scheduled for Q3, 2027.

The Roads and Infrastructure Development Project in Birkat Al Awamer will serve 880 subdivisions within the area's logistics zone, significantly improving connectivity and supporting economic activities. Project works include constructing and developing a road network with a length of 24 km, with the provision of traffic safety elements such as street lighting systems and poles, and directional and road signs. A 5-km surface drainage network will be constructed, as well as a 27,000-cubic-metre rainwater storage lagoon for emergency purposes to protect the area and use rainwater for irrigation purposes.

 

QATAR: REVAMP OF PPP LAWS TO BOOST FOREIGN INVESTMENT IN NON-ENERGY SECTORS

The revamp of key laws related to bankruptcy and Public-Private Partnerships (PPP) is expected to drive stronger foreign direct investment (FDI) inflows, bolstering growth in Qatar’s non-energy sectors. Qatar introduced a 50 % discount on leasing rates in industrial, logistics, and commercial zones in Feb 2025. The decision, implemented by the Ministry of Commerce and Industry and Manateq, aims to foster national economic growth, enhance the private sector’s role, and encourage entrepreneurship and investment in value-driven sectors. Additionally, the Qatar Financial Centre implemented a 90 % reduction in application fees for licensing an entity on its platform.

The country has made significant progress in reducing its dependence on the oil and gas sector, with initiatives focused on infrastructure, real estate, finance, healthcare, and education. Economic reforms, such as introducing favorable business policies and regulatory changes, have further contributed to a positive growth outlook.

Qatar’s economic growth trajectory remains strong, with a continued focus on diversification and innovation, positioning the country for long-term stability. The transport and storage, accommodation and food services, real estate, healthcare, and education sectors have shown strong performance. Authorities continue to take steps to attract investment and broaden economic diversification.

Qatar’s non-energy sector has experienced robust growth, driven by strategic diversification efforts. While the country remains reliant on oil and gas revenues, increasing focus on expanding infrastructure, real estate, finance, healthcare, education, and technology aims to reduce dependence on hydrocarbons.

The finance and real estate sectors have seen significant development, with new initiatives attracting international businesses and investors. As diversification efforts continue, the non-energy sector is expected to become an increasingly important driver of economic growth. Available GDP data for 2024 indicates a 2.9% expansion across non-energy sectors in the first three quarters.

The tourism sector has also provided significant support to non-energy growth and is expected to remain a key driver of future activity and employment. The launch of the pan-GCC visa is expected to further boost performance, with arrivals projected to reach 5.3 million.

 

QATAR’S KAHRAMAA, QEWC SIGN PPA FOR 500 MW PEAKING POWER PROJECT AT RAS ABU FONTAS

State-owned utility Qatar General Electricity & Water Corporation (KAHRAMAA) and Qatar Electricity and Water Company (QEWC) have signed a Power Purchase Agreement (PPA) for a 500 MW peaking power generation project at the Ras Abu Fontas Plant, as announced in a stock exchange filing.

The project, valued at QAR 1.6 Bn (USD 440 Mn), is expected to begin operations in January 2027. It will enhance grid stability and support the integration of renewable energy into Qatar’s electricity network.


KUWAIT

KUWAIT ISSUES TENDER FOR WASTE TREATMENT PROJECTS FEASIBILITY STUDY

Kuwait Municipality has issued a tender for ‘Kuwait Waste Treatment Projects’ feasibility study.  The contract is expected to be awarded by June 2025, and the study is anticipated to be completed by the Q2 2028. This initiative aligns with the Kuwait National Waste Management Strategy 2040 (KNWMS), which aims to significantly reduce landfill usage by setting ambitious recycling and recovery targets for waste streams such as municipal solid waste and construction and demolition debris.

The study is expected to pave the way for Kuwait’s transition towards a more sustainable and efficient waste management system in line with its 2040 vision.

 

MEW SIGNS MOU FOR NEW 3,000 MW POWER STATION WITH ABC TRANSCO

Minister of Electricity, Water, and Renewable Energy, (MEW) signed a Memorandum of Understanding (MoU) with ABC Transco Limited to establish a power generation station and its related infrastructure, in line with the directives of the political leadership. This MoU is part of the government's strategic vision and efforts to engage the private sector in development projects, particularly in power generation, under the independent supplier system. 

ABC Transco Limited, in partnership with General Electric Vernova as a developer, operator, and investor, presented a proposal to the ministry to build a power generation station with a total capacity of 3,000 megawatts, utilizing gas turbines. This project will include all the necessary infrastructure for the power station, such as the main conversion station for delivering electricity to the transmission networks, along with the required water pipelines, fuel lines, and other essential elements deemed necessary for the success of the project.

ABC Transco Limited Energy, will focus on building, implementing, operating, managing, and maintaining the power generation station. The company would prioritize employing Kuwaiti workers in accordance with the Public Authority for Manpower’s guidelines on nationalization and job quotas. The company will also apply modern technologies to reduce carbon emissions and greenhouse gases, aligning with global environmental standards.

 

KUWAIT EXPANDS RENEWABLE ENERGY WITH LARGE-SCALE PROJECTS

Kuwait is increasing its focus on renewable energy with new projects and regional partnerships.  The government outlined Kuwait’s plan to increase the share of renewable energy in its electricity mix. Kuwait is developing large-scale renewable energy projects. The Shaqaya Renewable Energy Complex, a collaboration with China, is designed to generate 3,000 megawatts (MW) of renewable energy. It includes solar photovoltaic (PV), concentrated solar power (CSP), and wind energy. Another project, in partnership with the Public-Private Partnership Projects Authority, will add 2,700MW. Together, these projects will contribute a large portion of Kuwait’s renewable energy capacity. The combined investment is estimated at KWD 1 Bn (USD 3.2 Bn).

A memorandum of understanding has been signed with private sector companies to supply electricity under an independent producer system. Smaller initiatives include rooftop solar panel installations on government and residential buildings.  Kuwait will also host the Kuwait Sustainable Energy Week from May 11 to 13, bringing together local and international organizations to discuss clean energy development. 


CHINESE COMPANIES TO DEVELOP 3.5 GW OF SOLAR PROJECTS IN KUWAIT

Kuwait and China have signed a framework agreement to enhance cooperation in renewable energy and solar plant technology. The agreement, finalized after six months of negotiations, was signed in Kuwait and China. China will oversee the development of the third and fourth zones of the Al-Shagaya and Al-Abdiliya solar plant projects. Each project will have a joint production capacity of 3,500 megawatts (MW), with the potential to expand to 5,000 MW.

The Shagaya Renewable Energy Park, located near the Kuwait-Saudi border, is a key component of Kuwait’s strategy to generate 15% of its energy from renewable sources by 2030. This agreement follows a recent deal between Kuwait and China to develop the Mubarak Al-Kabeer port, a strategic infrastructure project under China’s Belt and Road Initiative. The port is expected to handle over 8 million containers upon completion.

 

CHINESE COMPANY SIGNS USD 557 Mn INFRASTRUCTURE CONSTRUCTION CONTRACTS IN KUWAIT

China Gezhouba Group Company Limited (CGGC) signed two major contracts worth a total of USD 557 Mn with Kuwait's Public Authority for Housing Welfare (PAHW). The contracts cover the construction and maintenance of road networks, infrastructure, irrigation reservoirs, and substations in South Saad Al-Abdullah New City, located about 25 kilometers southwest of the capital Kuwait City.

According to the CGGC, the two projects are valued at KD 77.25 Mn (USD 250 Mn) and KD 94.88 Mn (USD 307 Mn). Spanning approximately 64 square kilometers, the South Saad Al-Abdullah New City project is one of the key projects under Kuwait Vision 2035. It includes the construction of over 20,000 residential units and service facilities, aiming to accommodate around 150,000 residents upon completion. 


KUWAIT TO LAUNCH 2177 KM NEW GCC RAILWAY PROJECT

Kuwait’s Public Authority for Roads and Transportation aims to tender the Kuwait National Railroad project before the end of 2025.  The contract is expected to have an estimated value of KD 300 Mn (USD 973 Mn). The scope of the main contract will include civil works, the installation of tracks and the provision of trains.

The first phase of the project will focus on providing detailed design services and preparing tender documents. This initial phase is set to last for 12 months, after which the tender for the construction phase will be launched.  The Kuwait railway project, which is part of the broader Gulf Cooperation Council (GCC) railway network, is expected to be completed by 2030.

The 111-kilometer rail track will connect Kuwait to Saudi Arabia, with Kuwait serving as the northern station. The passenger station will be located in the Shadadiya area, covering 2 million square meters. Once completed, the Gulf railway network will span 2,177 kilometers. It will link Kuwait City in the north to Oman in the south, passing through several other Gulf countries.

List of key transactions - Oman, Qatar and Kuwait Q1 2025



Source: YOG INFRA analysis


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