Infrastructure & PPPs in Oman, Qatar and Kuwait - Q1 2026

YOG INFRA
8 hours ago
13 min read

OMAN, QATAR, AND KUWAIT are accelerating infrastructure, energy, and industrial development in Q1 2026, with PPPs supporting diversification and sustainability goals. OMAN is advancing large-scale renewable energy and clean industry projects, including a 500 MW solar + storage plant, a 1.6 GW pipeline, a 400 km hydrogen network, and investments in polysilicon and EV battery materials. QATAR awarded around 20 infrastructure projects worth USD 3.1 Bn, focusing on public facilities, logistics, and drainage systems. KUWAIT is progressing PPP-led initiatives in renewable energy (1,100 MW), alongside power upgrades worth USD 1.6 Bn and electricity infrastructure worth USD 118 Mn, supporting urban expansion and energy security.

Read the key developments in Infrastructure and PPPs in three GCC countries in our latest insight of the Q1 2026 series.

OMAN

OMAN LAUNCHES USD 29.77 BN BUDGET, TARGETS 4% GROWTH

Oman has approved a USD 29.77 Bn general state budget for 2026, projecting public expenditure of about USD 31.15 Bn and setting a target of around 4% economic growth, as the sultanate continues to diversify from its reliance on oil. The budget also launches the next phase of its economic programme that aims for 4% growth through 2030. Revenues are based on an average oil price of USD 60 per barrel and are forecast to rise by 2.4% from the previous year, while spending is set to increase by 1.5%. The budget projects a deficit of about USD 1.38 Bn, equal to 1.3% of gross domestic product.

Foreign direct investment reached about USD 78.8 Bn by the Q3 of 2025. The Oman Investment Authority holds assets of roughly USD 54.6 Bn and has contributed more than USD 11.4 Bn to the budget in 2025. Government investment continues in education, healthcare and infrastructure, including new schools, hospitals and more than 2,500 kilometres of roads, as authorities seek to sustain growth and social development.

MASDAR SECURES FINANCE FOR 500-MW SOLAR PROJECT WITH BATTERY IN OMAN

Abu Dhabi Future Energy Company PJSC – Masdar and its consortium partners have achieved financial close on the Ibri III project in Oman that will pair a 500-MW solar power plant with a 100-MWh battery energy storage system (BESS).

Masdar is partnering on the project with Al Khadra Partners, Korea Midland Power Co Ltd (KOMIPO) and OQ Alternative Energy (OQAE). Natixis Corporate and Investment Banking (Natixis CIB) and First Abu Dhabi Bank (FAB) will provide financing that will cover a significant part of the project’s total costs of around USD 300 Mn.

The Ibri III Solar Independent Power Project is described as the first utility-scale solar and battery storage project in Oman. It is being developed for Nama Power and Water Procurement, Oman’s sole buyer of electricity. The power purchase agreement (PPA) for the project was signed in Q3 2025.

Masdar the project will support the Oman Vision 2040 target of diversifying energy sources and generating 30% of electricity from renewables by 2030.

NAMA PWP ADVANCES 1.6 GW RENEWABLE ENERGY PIPELINE TO ACCELERATE OMAN’S ENERGY TRANSITION

Nama Power and Water Procurement Company (Nama PWP), the single buyer of electricity and desalinated water in Oman, is advancing an expanding renewable energy pipeline with around 1.6 GW of new solar and wind capacity currently under procurement, reinforcing the Sultanate’s push to decarbonise its power sector.

The procurement activity follows a year of strong progress in 2025, during which Nama PWP oversaw a significant increase in renewable energy capacity across the country.

Among the key projects under procurement is Al Kamil Phase I Solar Independent Power Project (IPP), which is targeting a capacity of 450–500 MW. In parallel, Nama PWP is advancing plans for three mega wind farms located at Mahoot, Duqm, and Sadah, with a combined installed capacity of approximately 1,100 MW.

Meanwhile, the Sadah Wind IPP will further expand Dhofar’s renewable portfolio, building on proven wind resources demonstrated by the Dhofar I Wind Power Project and the under-development Dhofar II Wind Farm, while reducing dependence on gas-based generation.

OMAN PLANS 400 KM-LONG HYDROGEN PIPELINE

Oman plans to roll out a roughly 400 km pipeline network connecting green hydrogen production sites to major industrial hubs as well as export terminals across the Sultanate of Oman.

Oman attaches great importance to strengthening regional interconnections in electricity, gas and hydrogen, viewing them as key pillars of energy security and economic integration in the Gulf. Interconnection improves efficiency and enables the exchange of reserve capacity, while also paving the way for Oman to export surplus electricity and green hydrogen to regional and global markets.

Spearheading the development of the 400-km hydrogen pipeline network is OQ Gas Networks (OQGN). In addition to linking green hydrogen production sites in Al Duqm and Salalah to industrial hubs and export ports, the company is also planning dedicated carbon dioxide pipelines to support the country’s Carbon Capture, Utilisation and Storage (CCUS) strategy.

These efforts fall within the regulatory and financial frameworks established to support an orderly transition to clean energy and carbon neutrality by 2050, while reinforcing regional cooperation in renewable energy and infrastructure development. Oman continues to advance its green hydrogen ambitions, with a portfolio of seven major projects moving forward that target a combined production of around 1 million tonnes annually by 2030.

ENERGY DEVELOPMENT OMAN ISSUES USD 10-YEAR SUKUK WORTH USD 650 MN

Energy Development Oman (EDO) has announced the successful issuance of a USD 10-year Sukuk of OMR 250 Mn (USD 650 Mn), maturing in January 2036. Priced at a profit rate of 5.14%, the Sukuk achieved a credit spread of 100 basis points over the 10-year US Treasury benchmark, representing the tightest pricing ever secured by an Omani government-related entity (GRE).

The 5.14% profit rate compares favourably to the 5.875% achieved for EDO’s debut 10-year Sukuk and the 5.662% secured for the 7-year issuance in 2024, underscoring a strong pricing outcome, particularly in light of challenges facing international markets.

The issuance attracted strong and diversified participation from investors across Asia, Europe, the GCC, the UK and the US. With this latest transaction, EDO extends the average tenor of its debt portfolio while further optimising its overall cost of funding.

EDO is delighted with the success of its latest USD Sukuk, which set a new benchmark for attractive pricing by an Omani GRE. The company added that it was pleased to have locked in a significant portion of its financing requirements early in 2026, given the uncertain global outlook. The success of this transaction reflects the improvement in EDO’s and Oman’s credit standing, as well as investor endorsement of EDO’s business strategy.

OMAN INVITES FIRMS TO QUALIFY FOR VETERINARY QUARANTINE PPP UNDER DBFOM MODEL

Oman’s Ministry of Finance, in coordination with the Ministry of Agriculture, Fisheries and Water Resources, has issued a Request for Qualification (RFQ) for the Design, Construction, Financing, Operation and Maintenance (DBFOM) of a Veterinary Quarantine project under a Public-Private Partnership (PPP) framework.

The project will be delivered under a DBFOM model — a form of PPP in which a private entity is responsible not only for designing and constructing the facility, but also funding, operating it for a defined period, and maintaining it once operational. This structure is intended to leverage private sector efficiency and investment capacity to deliver a fully operational quarantine facility. A veterinary quarantine facility plays a critical role in protecting animal and public health by controlling the entry and movement of livestock, animals, and related products into the country — ensuring compliance with health regulations, disease prevention standards, and international trade requirements. Such facilities help safeguard against the spread of transboundary animal diseases and support safe import/export processes.

PRODUCTION LAUNCHED AT UNITED SOLAR'S POLYSILICON PLANT IN OMAN

United Solar Holding has kicked off production at its polysilicon production facility in the Sohar Freezone in Oman, a facility with an anticipated annual output of 100,000 tonnes.

China-based Shuangliang Hydrogen was contracted to supply four green power intelligent hydrogen production systems, polysilicon reduction furnaces, absorption chillers and high-efficiency heat exchangers, among other equipment. Touted as the Middle East’s largest polysilicon manufacturing site, the facility is expected to support the production of up to 40 GW of solar modules annually.

The USD 1.6 Bn project was financed by the International Finance Corporation (IFC), while United Solar’s largest shareholder, Oman Investment Authority’s (OIA’s) Future Fund Oman, has provided USD 260 Mn. Future Fund Oman (FFO), an investment vehicle launched by Omani sovereign wealth fund Oman Investment Authority (OIA), invested USD 156 Mn in the development.

OMAN PLANS TO DEVELOP A GREEN METHANOL PLANT, BUNKERING HUB WITH SPANISH PARTNER

An Omani and Spanish consortium has announced plans to develop a green methanol production plant and a bunkering project in Oman. The partnership combines the expertise of Spain’s Acciona Nordex Green Hydrogen and Oman’s Al Meera Investments. The new facility will be in the Salalah port and free zone, a key area for maritime trade.

The project is in the final stages of its feasibility study. Exact details on production capacity and investment costs have not been released yet. The facility will use wind and solar energy to produce green hydrogen, a crucial component for making green methanol. The project will also include a dedicated bunkering facility to support the export of this clean fuel to global markets.

This initiative is part of Oman’s larger plan to diversify its economy and reduce reliance on fossil fuels. The country has set a goal to achieve net-zero emissions by 2050, with renewable sources expected to contribute 30% of electricity generation by 2030. The green methanol plant is among several clean energy projects being developed in Oman’s free zones, reflecting the country’s commitment to renewable energy and sustainable growth.

Once operational, the plant and bunkering facility are expected to play a significant role in Oman’s energy transition strategy, providing a model for integrating renewable energy into industrial and export-oriented projects. This development signals Oman’s focus on clean energy innovation and its ambition to become a leader in the global green energy market. The project also aligns with international efforts to reduce carbon emissions and promote sustainable fuels, making Oman an important contributor to the global green energy transition.

GFCL EV LAUNCHES USD 216 MN ADVANCED BATTERY MATERIALS PROJECT IN OMAN

Gujarat Fluorochemicals’ subsidiary, GFCL EV Products Limited (India), part of the diversified INOXGFL Group, is set to establish a state-of-the-art greenfield facility in Salalah Free Zone, Oman, to manufacture advanced battery materials for electric vehicles (EVs) and energy storage applications.

The project, being undertaken through GFCL EV (SFZ) LLC, represents an initial investment of approximately USD 216 Mn. The company has formalized the venture by signing an investment agreement with the Sultanate of Oman through Invest Oman, the country’s Ministry of Commerce, Industry & Investment Promotion, along with a land lease agreement with Salalah Free Zone Company LLC.

GFCL EV Products Limited operates under the INOXGFL Group umbrella, which has a market capitalization of USD 12 Bn and business interests spanning fluoropolymers, refrigerants, chemicals, and renewable energy, including wind and solar power. The new facility in Oman is aimed at meeting the growing demand for battery materials in next-generation energy and mobility sectors.

OMAN SIGNS AGREEMENT WORTH USD 597.5 MN TO ESTABLISH INTEGRATED TOURISM COMPLEX “TELAL AL QURUM”

The Ministry of Heritage and Tourism, Oman signed an agreement with Sorouh Al Qurum Real Estate Company to establish an integrated tourism complex project in Al Qurum area in the Wilayat of Bausher, Muscat Governorate. The project, which covers an approximate area of 165,000 square metres, will be carried out at a cost of RO 230 Mn (USD 597.5 Mn).

The project will be implemented in phases extending over 15 years. The agreement provides for the construction of two 4-star hotels with a capacity of more than 400 hotel units. The project comprises integrated recreational facilities that include an indoor games hall, trampoline facilities and commercial outlets and residential units available for freehold ownership, among other facilities.

QATAR

QATAR’S ASHGHAL AWARDS 20 NEW INFRASTRUCTURE PROJECTS WORTH USD 3.1 BN

The Public Works Authority of Qatar (Ashghal) has confirmed the awarding and tendering of 20 projects totaling approximately QAR 11.5 Bn (USD 3.1 Bn), as part of Qatar’s ongoing infrastructure programme under the National Vision 2030.

The Authority has already awarded 12 projects with a combined value exceeding QAR 4.5 Bn (USD 1.23 Bn), which include redevelopment efforts at Hamad General Hospital, the design and construction of the Post Office building in Al Thumama, renovation of the Qatar Racing and Equestrian Club and the Qatar Equestrian Federation, as well as Phase Four of Al Uqda Equestrian Complex development.

Additionally, Ashghal has assigned contracts for road and infrastructure works in residential areas such as Izghawa and Al Thumid and initiated landscaping projects at Qatar University. Ashghal plans to launch tenders for eight further projects in the upcoming phase, estimated at QAR 7 Bn (USD 1.92 Bn). These will cover strategic initiatives, including the design and construction of both Eastern and Western Strategic Tunnels for surface and groundwater drainage in southern regions and further infrastructure developments to support land plots for citizens in northern and southern areas.

QATAR’S ASHGHAL AWARDS USD 54.5 MN CONTRACT FOR NEW Q-POST HEADQUARTERS AND SORTING FACILITY

Public Works Authority (Ashghal) has awarded the Design and Build contract for the New Q-Post Headquarters Building and Sorting Facility located in Al Thumama. The contract, valued at QAR 198.5 Mn (USD 54.5 Mn), has been awarded to Qatar Building Engineering Co., which will be responsible for the full design and construction of the new facility.

The project aims to develop a modern headquarters and advanced mail sorting facility for Qatar Postal Services Company (Q-Post), supporting the country’s growing postal and logistics sector. The new development will include administrative offices, operational spaces, and state-of-the-art sorting systems designed to enhance the efficiency of mail handling and distribution services.

Once completed, the facility is expected to strengthen Qatar’s postal infrastructure by improving operational capacity, streamlining logistics operations, and supporting the increasing demand for postal and courier services across the country. The project reflects Ashghal’s continued commitment to delivering high-quality infrastructure that supports government services and enhances operational efficiency across key sectors in Qatar.

KUWAIT

KUWAIT INVITES EOIS FOR MEGA MOTOR AUCTION AND AUTO SHOWROOM PPP PROJECT

The Kuwait Authority for Partnership Projects (KAPP) in collaboration with the Ministry of Commerce and Industry has invited local and international companies to participate in the development and operation of the Kuwait Motor Auction and Auto Showroom Project under the Public-Private Partnership (PPP) model.

An Expression of Interest (EOI) notice has been issued for the mega project, which is being procured on a Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) basis. The project will be implemented on a plot of land with an approximate area of 500,000 square metres (sqm), located in Al Jahra Governorate.

The project aims to establish a modern, integrated, and purpose-built vehicle auction facility, supported by car showrooms and ancillary technical and logistics services, operating through an integrated physical and digital auction system, to serve as a centralised and regulated marketplace for vehicle trading in Kuwait.

The project is open to investors and operators, both from within and outside Kuwait, possessing relevant expertise and proven track records in comparable projects related to vehicle auctions, vehicle-related services, logistics services, commercial developments, and digital platform.

THREE GLOBAL CONSORTIA COMPETE FOR 1,100 MW KUWAIT POWER PROJECTS

The Kuwait Authority Public-Private Partnership (PPP) model Projects has opened the technical bids for the Al-Dabdaba Power Generation Project and the Al-Shagaya Renewable Energy Project (Phase Three – Project One).

Informed sources within the authority told Al-Rai that the bids study committee will first evaluate the three technical submissions before opening the financial bids, which will determine the winning consortium for this strategic project, expected to produce 1,100 MW of electricity. Three out of nine consortia submitted bids for the project. These include the Saudi ACWA Power consortium, the Emirati Masdar consortium, and the EDF consortium.

The project will generate electricity using a combination of photovoltaic (PV), concentrated solar power (CSP), and wind technologies. It is considered a key component of Kuwait’s strategy to diversify energy sources and promote sustainable development.

The initiative is designed to strengthen the national grid, reduce dependence on fossil fuels, and support Kuwait’s vision of sustainable energy development through active collaboration between the public and private sectors.

KUWAIT'S PAHW SIGNS USD 118.76 MN POWER LINE DEALS FOR SOUTH SABAH AL-AHMAD

The Public Authority for Housing Welfare (PAHW) announced the signing of two new contracts for the supply, extension, and maintenance of 400 KV underground cables to power four main substations in South Sabah Al-Ahmad Residential City. The total value of the contracts is KD 36.504 Mn (USD 118.6 Mn), and they are part of the state’s plan to secure electrical infrastructure for new cities and ensure the sustainability of vital services.

The first contract, valued at KD 17.813 Mn (USD 57.9 Mn), covers the supply, extension, and maintenance of 400 KV underground cables for the two main 400/132/11 kV substations (1Z and 4Z), with a completion timeframe of 26 months.

The second contract, valued at KD 18.691 Mn (USD 60.75 Mn), covers the supply, extension, and maintenance of 400 KV underground cables to feed the two main 400/132/11 kV digital substations (2Z and 3Z), also to be completed within 26 months.

Work is currently underway to construct four main 400/132/11 KV substations, in addition to 40 other main 132/11 kV substations, to provide the full electrical capacity for the new city. Al-Enezi anticipated that the first batch of main substations would be completed in Q3 2026. In a related development, Al- Enezi confirmed that the city’s infrastructure projects are progressing well and achieving advanced completion rates.

These contracts will help provide electricity to approximately 20,380 housing units, thus supporting the project’s readiness and accelerating delivery to beneficiaries. These contracts are part of the strategic housing plan, aimed at completing infrastructure projects to the highest technical standards, keeping pace with urban expansion, and enhancing the quality of life in new residential cities.

KUWAIT AWARDS USD 1.6 BN CONTRACT TO MODERNIZE SABIYA POWER STATION AND STRENGTHEN NATIONAL POWER GRID

The Kuwaiti government has awarded a major contract worth around USD 1.6 Bn to a consortium led by Mitsubishi Power and the Heavy Engineering Industries and Shipbuilding Company (HEISCO) for the modernization and rehabilitation of the Sabiya Power and Water Distillation Station. This project is part of Kuwait’s broader plan to strengthen its energy security and meet the increasing demand for electricity and water caused by urban growth and industrial expansion.

Under the new contract, the consortium will renovate the plant’s steam turbines and electric generators. The upgrades are expected to extend the facility’s operational life by 20 years while improving efficiency and reducing fuel consumption. A major aim of the project is to increase the plant’s output while lowering its environmental impact. Mitsubishi Power will provide advanced engineering solutions to enable the station to generate more electricity with reduced fuel use, helping Kuwait move towards more sustainable industrial practices and lower carbon emissions. HEISCO, as the local partner, will bring regional expertise in heavy engineering and construction, ensuring smoother project execution and logistics.

The USD 1.6 Bn contract is seen as a significant indicator of renewed activity in Kuwait’s utilities sector. For the Mitsubishi-HEISCO consortium, it strengthens their presence in the Middle Eastern energy market. For Kuwaiti residents, the project promises a more stable and efficient supply of electricity and water over the next two decades, supporting both daily life and industrial growth.

List of key transactions - Qatar and Kuwait Q1 2026

Source: YOG INFRA analysis

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