Infrastructure & PPPs in Oman, Qatar and Kuwait - Q2 2025

OMAN, QATAR and KUWAIT are seeing excellent strides in infrastruccture development through PPPs and private sector participation, largely in renewables and clean energy sector. Multiple projects have been annouced across the three (3) countries and there is high level of interest from international developers and financing institutions, in partnerhip with local developers. It will be beneficial to have a long-term project pipeline being published by these countries to give visibility of long-term infrastructure development plans and enable higher committment from international developers in near future.

Read the key developments in Infrastructure and PPPs in key GCC countries in our latest insight of the Q2 2025 series.

---

OMAN

TOTALENERGIES COMMISSIONS SOLAR POWER SYSTEM FOR ILS FACILITY IN OMAN

A new solar power system comprising over 1,800 photovoltaic (PV) panels has been installed at a major warehouse in Barka, a coastal city in northern Oman. The system is expected to generate approximately 1,700 MWh of clean electricity annually, reducing CO₂ emissions by around 1,250 tons each year.

The project is a collaboration between TotalEnergies and Omani Integrated Logistic Services (ILS), aimed at supporting decarbonization and enhancing energy efficiency across logistics operations. It aligns with Oman’s Vision 2040 and sets a benchmark for sustainable logistics in the region.

Delivered under an asset lease model, the project allows businesses to benefit from clean energy without upfront investment, ensuring long-term performance and energy savings. TotalEnergies brings global expertise in designing and operating high-performance solar systems that adhere to strict health, safety, and quality standards. By promoting renewable energy in Oman, the project contributes to sustainability goals and supports the transition to a greener future.

OQ, VOPAK TO DEVELOP OMAN’S DUQM ENERGY HUB

Oman’s OQ and global energy storage company Royal Vopak have entered into an exclusive partnership to develop industrial and energy terminal infrastructure in the Duqm Special Economic Zone (SEZAD). The alliance aims to leverage Vopak’s expertise in large-scale infrastructure to support Oman’s economic growth, attract international investors, and accelerate the country’s energy transition.

The partnership framework agreement, signed in SEZAD, marks a strategic move to unlock future growth in industrial and terminal infrastructure and sustainable energy transition facilities in the region. It will focus on serving new projects requiring storage solutions in Duqm. By combining OQ’s role in positioning Duqm as an integrated hub for hydrocarbons, chemicals, and low-carbon products with Vopak’s experience in infrastructure development, the alliance is expected to create employment opportunities and enhance Duqm’s appeal as a globally competitive energy and chemical hub.

This strategic partnership aims to boost investor confidence, attract international expertise and financing, align long-term strategic goals, and provide access to global talent—supporting Oman’s Vision 2040 and long-term economic sustainability.

OMAN PLANS 2,400 MW POWER BOOST WITH NEW PLANTS

Nama Power and Water Procurement Company (PWP), Oman, has shortlisted companies to develop two new gas-fired power stations: the Misfah and Duqm Independent Power Projects (IPPs), located in the Muscat and Al Wusta regions, respectively. The two gas-fired projects have a combined value of around OMR 880 MN (USD 2.3 Bn).

The Misfah plant is planned to generate up to 1,600 megawatts (MW), while the Duqm plant will provide around 800 MW. Together, the two facilities are expected to contribute 2,400 MW of capacity to Oman’s electricity grid. Commercial operations are scheduled to begin by the second quarter of 2029.

Both projects will be developed as combined-cycle gas turbine (CCGT) plants under a Build, Own, and Operate (BOO) model with private sector involvement. They will be connected to the Main Interconnected System (MIS), Oman’s national electricity network.

The list of pre-qualified bidders includes ACWA Power Company, Korea Western Power Co. Ltd., Marubeni Corporation, Nebras Power, Sembcorp Utilities Pte Ltd., Shenzhen Energy Group, and Sumitomo Corporation.

INVESTCORP TO INVEST IN USD 550 MN OMANI PORT PROJECT

Bahrain-based investor Investcorp’s infrastructure arm will invest in a USD 550 Mn (USD 550 Mn) expansion project at Oman’s Port of Duqm, partnering with CAP INFRA and local stakeholders. Investcorp Aberdeen Infrastructure Partners (AIIP), the infrastructure platform of the global alternative investment firm, has signed a cooperation agreement to invest in the marine infrastructure project. AIIP will join as a shareholder alongside the Port of Duqm Company and the CAP INFRA consortium, comprising DEME Group and Port of Antwerp Bruges.

The project includes dredging and construction of a new quay wall to support a low-carbon industrial facility that will produce green steel, aligning with Oman’s Vision 2040. This investment aligns with AIIP’s mandate to invest in long-term concessions across the GCC and the broader MENA region. It also marks AIIP’s fourth investment commitment, following previous infrastructure investments in the UAE and Saudi Arabia.

As part of the marine works, dredging and the construction of a new quay wall are planned to support a new low-carbon industrial facility in the Special Economic Zone at Duqm. The facility aims to produce low-CO₂ iron metallics and eventually hydrogen-powered "green steel," contributing to Oman’s sustainable infrastructure and energy transition goals under Vision 2040.

OQ ALTERNATIVE ENERGY TO CO-DEVELOP 700 MW OMANI PV PROJECT

United Solar Polysilicon announced a strategic partnership with OQ Alternative Energy to co-develop a 700-megawatt (MW) photovoltaic (PV) solar power station in Oman. While the project’s investment size and timeline remain undisclosed, the initiative marks a significant step forward in the region’s clean energy transition.

United Solar Polysilicon, a global provider of high-quality polysilicon solutions, will collaborate with OQ Alternative Energy, a key renewable energy developer in the Middle East, to deliver the large-scale solar facility. Once operational, the 700 MW plant will significantly contribute to Oman's national renewable energy targets and help diversify the country’s energy mix.

OMAN LAUNCHES NATIONAL BIOGAS PROJECT

Oman Environmental Services Holding Company (be'ah) and OQ Trading have signed a strategic cooperation agreement to jointly develop a national biogas initiative that converts organic waste into renewable energy and industrial-grade bio-carbon dioxide. The project will extract and refine around 20 million cubic metres of biogas annually from existing and future landfill and biofacility sites.

Containing approximately 40% biomethane and 60% bio-CO₂, the gas will support low-carbon industrial applications. The partners will collaborate on a roadmap including feasibility studies, infrastructure planning, and market development.

This initiative supports Oman’s Vision 2040 goals for economic diversification and environmental sustainability, and contributes to the country’s 2050 carbon neutrality target by advancing waste-to-energy solutions and building a national clean energy value chain.

USD 200 MN TURBINE FACTORY SET FOR OMAN

Oman has begun developing its first wind turbine manufacturing facility in the Special Economic Zone at Duqm, with commercial operations expected to start in 2026. The UDS 200 Mn project, led by Mawarid Turbine Company, will have an annual production capacity of up to 1 GW and support the country’s renewable energy goals.

The facility will produce turbines with 6.25 MW and 9.6 MW ratings and supply components for ongoing and future wind power projects. It is expected to generate around 1,080 jobs and includes agreements for technology transfer, local training, and detailed design. This initiative will establish the region’s first wind turbine manufacturing hub, aligning with Oman’s strategy to localize clean energy technologies and expand its green industrial base.

OMAN ISSUES RFP FOR 280MW AL KAMIL WAL WAFI SOLAR IPP

Nama Power and Water Procurement (PWP), Oman, issued the Request for Proposals (RFP) for the Al Kamil Wal Wafi Solar IPP Project (Al Kamil Solar IPP). PWP is planning to develop the fourth solar PV project with a capacity of 280 MW at Al Kamil Wal Wafi (Al Kamil Solar IPP) in partnership with the private sector. The project is in line with the Sultanate of Oman's vision to diversify fuel sources and achieve the net-zero target by 2050 through the use of clean energy for power generation.

Nama Power and Water Procurement (PWP) is responsible for procuring new capacity for power and water and for purchasing and selling the output in the Sultanate of Oman in accordance with the requirements of the law for the regulation and privatisation of the electricity and related water sector. PWP sets the closing date for RFP as 30 October 2025.

OMRAN GROUP AND THE ENVIRONMENT AUTHORITY SIGN INVESTMENT AGREEMENTS TO DEVELOP ECO-TOURISM PROJECTS

OMRAN Group has signed investment agreements with the Environment Authority to develop and manage tourism projects across several nature reserves in Oman. The initiative aims to transform key natural sites into distinctive tourism destinations, enhancing Oman’s global appeal while promoting environmental sustainability.

The agreements cover the Ras Al Shajar Nature Reserve (Quriyat), Arabian Oryx Sanctuary (Haima), Wetlands Reserve (Mahout), and Turtle Reserve (Ras Al Hadd). Usufruct contracts were also signed for projects in Lagashilon and Hayour Overlook within the Jabal Samhan Nature Reserve (Dhofar).

This strategic effort supports Oman Vision 2040 by promoting sustainable ecotourism, preserving natural ecosystems, and diversifying the nation's tourism offerings in line with global environmental standards.

QATAR

ACTIS-BACKED YELLOW DOOR, GWC PARTNER FOR QATARI SOLAR PLANTS

Actis-backed renewables developer Yellow Door Energy has partnered with Qatar-based Gulf Warehousing Company (GWC) to develop solar power plants across three key logistics hubs in Qatar: Logistics Village Qatar, Bu Sulba Warehousing Park, and Al Wukair Logistics Park. This initiative is among the GCC’s largest private solar energy projects and aims to significantly advance GWC’s sustainability efforts. The partnership will support the installation of solar power systems that leverage the region’s abundant sunlight to reduce carbon emissions and energy costs, contributing to Qatar’s Net Zero by 2050 goals.

GWC, a logistics provider offering services such as freight forwarding, supply chain consulting, and contract logistics, has committed to sustainability under the UN Global Compact. It targets a 3% reduction in Scope 1 emissions (direct emissions from its fleet), a 6% reduction in Scope 2 emissions (purchased energy), and a 20% reduction in waste by 2030. This solar initiative supports Qatar National Vision 2030, which aims to develop 4 GW of large-scale renewable energy capacity by 2030, with solar energy playing a central role.

The Al Wukair Logistics Park, one of the sites involved in the project, recently received the ‘Logistics Project of the Year’ award at the 2025 Logistics Middle East Awards, particularly for its green initiatives. GWC was also listed among Forbes Middle East’s Sustainability Leaders for 2024.

GWC’s other sustainability efforts include the Biobin recycling program, which converted food waste into 40 tons of compost for local community gardens, and the recycling of up to 120,000 cubic meters of sewage water annually at Bu Sulba Warehousing Park for irrigation. This water initiative won the Best Water Recycling Initiative Award at the Tarsheed Energy Efficiency Forum 2024.

QATAR SIGNS USD 3.7 BN DEAL FOR RAS ABU FONTAS IWPP

Qatar General Electricity and Water Corporation (Kahramaa) has signed a strategic agreement with QatarEnergy, Qatar Electricity and Water Company (QEWC), and Sumitomo Corporation—representing the Luluah Sky Energy Holding consortium—for the development of the Ras Abu Fontas Independent Water and Power Plant (IWPP).

The project, valued at QAR 13.5 Bn (USD 3.7 Bn), will feature a power generation capacity of 2,400 megawatts (MW) and a water desalination capacity of 110 million imperial gallons per day (MIGD).

QEWC previously signed a 25-year power and water purchase agreement (PWPA) with Kahramaa for the Facility E IWPP project, located in Ras Abu Fontas, south of Doha. The project will be executed by a Sumitomo Corporation-led consortium, which includes Shikoku Electric, Korea Southern Power Company (KOSPO), and Korea Overseas Infrastructure & Urban Development Corporation (KIND).

Commissioning of the project will occur in three stages. The first phase, delivering 836MW of power, is scheduled for April 2028. Full power generation is expected by 1 June 2029, and the water desalination units are set to become operational by 1 August 2028. Once completed, the Ras Abu Fontas facility is expected to contribute approximately 23% of Qatar’s total electricity output and 20% of its water supply.

QATAR LAUNCHES USD 22 BN MEGA INFRASTRUCTURE PLAN WITH MAJOR FOCUS ON WATER AND URBAN RESILIENCE

Qatar’s Public Works Authority (Ashghal) has launched a QR 81 Bn (USD 22.2 Bn) infrastructure development plan, the largest in the country’s history. Running from 2025 to 2029, the initiative focuses on transportation, government services, water infrastructure, and urban development. Investments will prioritize the upgrade of public spaces, smarter transport systems, and enhanced walkability to improve livability. New government buildings will also be constructed to support healthcare, education, culture, and sports sectors.

A major component is the strategic outfalls project, one of Qatar’s largest sustainable drainage efforts. Designed to address urban flooding and improve climate resilience, the project will collect and treat rainwater for use in irrigation and cooling systems. Tunneling works are scheduled to begin this year, with sub-tunneling set to start in early 2026. This two-phase project is being implemented in coordination with the Ministry of Municipality and the Ministry of Environment and Climate Change.

To support economic diversification, Ashghal is increasing reliance on public-private partnerships (PPPs). Infrastructure for over 5,500 residential plots will be developed through PPPs, including roads, treated water systems, landscaping, and lighting. The second phase of the Al Wakra and Al Wukair wastewater treatment plants is also being considered under a PPP model, reinforcing Qatar’s commitment to private sector participation in national development.

QATAR INAUGURATES SOLAR PLANTS

Qatar has commissioned the Ras Laffan and Mesaieed solar photovoltaic power plants, adding a combined capacity of 875 MW and raising the country's total solar power capacity to 1,675 MW. These projects are part of Qatar’s strategy to diversify its energy mix, reduce carbon emissions, and support environmental sustainability goals under the Qatar National Vision 2030.

The new plants are expected to cut annual carbon dioxide emissions by approximately 4.7 million tonnes and meet about 15% of Qatar’s peak electricity demand. This contribution is projected to rise to 30% by 2029 with the planned addition of the 2,000 MW Dukhan solar facility.

Qatar now operates three major solar power plants, including the 800 MW Al-Kharsaa project launched in 2022. The country aims to increase the share of renewables in its power mix from 5% to 18% by 2030. While over 90% of current electricity generation—about 11.3 GW—comes from gas-fired plants, Qatar is gradually expanding its renewable capacity alongside an additional 2.2 GW of planned thermal power by 2027.

KUWAIT

 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.

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.

KUWAIT’S MINISTRY OF ELECTRICITY PLANS 2,000 MW SOLAR POWER PLANTS

Kuwait’s Ministry of Electricity, Water and Renewable Energy (MEW) is currently studying an initiative to establish four solar photovoltaic (PV) power plants with a combined capacity of 2,000 megawatts (MW). The project is expected to be implemented within a year - by summer 2026 – to address the country’s ongoing electricity shortage, which has persisted since last year.

The solar power projects require significantly less time to complete compared to fossil fuel-based power plants, which typically take three to four years to build, in addition to at least one year for tendering and awarding contracts. Through such initiatives, Kuwait aims to increase the share of renewables in its energy mix to 15% by the end of this decade.

KUWAIT ISSUES RFQ FOR 500 MW AL DIBDIBAH POWER AND AL SHAGAYA RENEWABLE ENERGY – PHASE III – ZONE 2 SOLAR PV IPP

The Kuwait Authority for Partnership Projects (KAPP), in collaboration with the Ministry of Electricity & Water & Renewable Energy of the State of Kuwait (MEWRE), is qualifying companies / consortia to participate in a tender for the Al Dibdibah Power and Al Shagaya Renewable Energy – Phase III – Zone 2 Solar PV IPP, a renewable power plant.

The Scope of Works includes design, financing, construction, operation, maintenance and transfer of the Al Dibdibah Power and Al Shagaya Renewable Energy – Phase III – Zone 2 Solar PV IPP, with a net capacity of 500 MW of power.

The Project lies within the administrative boundary of the Jahra Governorate in the west of Kuwait City, approximately 100 kilometers from the capital city. The Project will export the output from the plant to Kuwait’s electricity grid and transmission network. The Project will benefit from Power Purchase Agreement (PPA) with MEWRE as the offtaker for a 30- year term. 

KUWAIT INVITE BIDS FOR AL MUTHANNA COMPLEX REAL ESTATE PROJECT ON PPP MODEL

The State of Kuwait, through the Authority for Partnership Projects, in collaboration with the Ministry of Finance, announces an invitation to interested companies and consortia to participate in Public Tender regarding the Al Muthanna Complex Real Estate Project – located in Kuwait City.

The Project Scope includes rehabilitation, development, renovation, major maintenance, management, operation, and routine maintenance of the Al Muthanna Complex Real Estate Project – located in Kuwait City which is located in Block No. (12) of the Qibla area, within State-owned real estate, and consists of Plots No. (16 and 17) with a total land area of 17,183 square meters.

---

List of key transactions - Oman, Qatar and Kuwait Q2 2025

Source: YOG INFRA analysis

---

 ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

​YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.

For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com

©2025 YOG INFRA. All rights reserved.

#infrastructure #update #PPP #Oman #Qatar #Kuwait