Infrastructure & PPPs in Oman, Qatar and Kuwait - Q2 2026

YOG INFRA
1 day ago
13 min read

OMAN, QATAR, AND KUWAIT are accelerating investments in clean energy, digital infrastructure, utilities, and economic diversification through government-led initiatives, private investment, and Public-Private Partnerships (PPP). OMAN is advancing large-scale renewable energy and industrial projects, including a USD 4.2 Bn green hydrogen expansion, 1.5 GW of new solar IPPs, a 150 MW green data centre, and a USD 2.29 Bn water and wastewater contract. QATAR is strengthening its energy infrastructure through a USD 604 Mn grid expansion for the 2-GW Dukhan Solar Project, major LNG and carbon capture contracts, and strategic wastewater infrastructure developments. KUWAIT is progressing digital and utility infrastructure with a USD 2.7 Bn national fixed telecommunications network, a USD 371.5 Mn desalination plant, and major investments in water distribution and airport infrastructure, supporting long-term economic growth and infrastructure modernization.

Read the key developments in Infrastructure and PPPs in three GCC countries in our latest insight of the Q2 2026 series.

OMAN

OMAN SIGNED NEW POWER PURCHASE AGREEMENTS WITH INDEPENDENT POWER PRODUCERS (IPPs)

Nama Power and Water Procurement Company (PWP), Oman signed new power purchase agreements (PPAs) with three independent power producers (IPPs). The Agreements was signed with Phoenix Power Company, Al Batinah Power Company and Al Suwadi Power Company.

Al Suwadi Power Company and Al Batinah Power Company announce that under the terms of the new PPA, the contracted capacity of the ASPC power plant will be 746.53 megawatts (MW). The New PPA ensures the continued offtake of power under mutually agreed commercial terms, strengthens the strategic partnership between ASPC and PWP, provides long-term revenue visibility, supports operational sustainability, and aligns with the Company’s long-term strategy in Oman. The new agreement would commence on Q1 2028, immediately after the expiry of the current agreement, and would continue for a period of 15 years until Q1 2043.

Phoenix Power Company announces that the new agreement provides for the continuation of the purchase of 1,978.41 to 2,074.13 megawatts of power under agreed commercial terms, further strengthening the strategic partnership between the Company and Nama Power and Water Procurement Company (PWP). It also ensures long-term financial stability and supports the Company’s future operational sustainability. The new agreement would commence on Q1 2029, immediately after the expiry of the current agreement, and would continue for a period of 15 years until Q1 2044.

OMAN INVITES BIDS FOR GREEN HYDROGEN POWER GENERATION PROJECT CONSULTANCY SERVICES

Nama Power and Water Procurement Company (PWP) has issued a Request for Proposal (RFP) seeking techno-economic consultancy services to support the development of a green hydrogen-based power generation project in the Sultanate of Oman.

PWP, the entity responsible for procuring new power and water capacity in Oman, plans to appoint a qualified consultant to carry out an initial assessment for a new Independent Power Project (IPP). The proposed facility is expected to be capable of operating on up to 100% hydrogen, with an indicative generation capacity ranging between 800 MW and 1,000 MW.

This initiative aligns with Oman’s broader strategy to diversify its energy mix and accelerate the transition toward cleaner and more sustainable energy sources.

OMAN TO ESTABLISH USD 250 MN ELECTRIC VEHICLES AND BATTERY CELLS PLANT IN DUQM

The Public Authority for Special Economic Zones and Free Zones (OPAZ), Oman signed an investment usufruct agreement with EL B&T, a Korean electric vehicle (EV) technology company, to establish a project for the production of electric vehicles and battery cells in the Special Economic Zone at Duqm (SEZAD). The project has an investment value of approximately OMR 96.2 Mn (USD 250 Mn).

Phase I of the electric vehicle and battery cell production project in the Special Economic Zone at Duqm will cover an area of 467,000 square metres, while the company is expected to reserve an additional 429,000 square metres for the second phase. The project is expected to support the development of an integrated industrial ecosystem for the electric vehicle sector in the zone by strengthening value chains linked to batteries and other components, helping attract complementary industries in the future. The project will be implemented in two phases, with a production capacity of up to 60,000 vehicles annually and 1.6 million battery cells upon completion of Phase II.

USD 825 MN RESIDENTIAL DEVELOPMENT DEAL BOOSTS OMAN'S HOUSING SECTOR

Retal Urban Development Company has announced the signing of a major development agreement with the Oman’s Ministry of Housing and Urban Planning to develop an integrated residential community within Sultan Haitham City, marking the company’s first project in the Sultanate of Oman and a significant step in its regional expansion strategy.

Under the agreement, Retal will act as the Lead Developer for the project, which covers areas 3, 15, and 17 within Sultan Haitham City, located in the Wilayat of Seeb in Muscat Governorate. The estimated value of the development is OMR 320 Mn (USD 825 Mn).

The project will be developed across a total land area of approximately 1.3 million square meters and will feature more than 2,000 residential units, including villas and apartments. The master-planned community will also include commercial and mixed-use developments, alongside a wide range of community facilities designed to support modern urban living. The project is expected to be completed over a period of approximately 9 years.

KHAZAEN ECONOMIC CITY SECURES USD 46.8 MN REAL ESTATE INVESTMENT

Khazaen Economic City has signed an investment agreement with Al Dar Arabia Real Estate Development to develop a new freehold mixed-use project with an estimated investment value of approximately OMR 18 Mn (USD 46.8 Mn). The development will span an area of 14,000 square metres within Khazaen Economic City.

The agreement was signed on the sidelines of the Oman Real Estate, Design & Build Exhibition and Conference 2026, one of the Sultanate’s leading platforms for showcasing major real estate and infrastructure developments.

Construction work on the project is scheduled to commence during Q4 of 2026. The development will include retail outlets, administrative offices, residential apartments, and modern facilities designed to support a wide range of commercial and service activities within the economic city.

ACME COMMITS USD 4.2 BN FOR EXPANSION OF GREEN HYDROGEN AND AMMONIA PROJECT

Hydrogen Oman (Hydrom) has announced a major milestone in the Sultanate’s green hydrogen sector, with India-based ACME Group committing approximately USD 4.2 Bn for the development of Phase 2 and Phase 3 of its green hydrogen and green ammonia project in the Special Economic Zone at Duqm (SEZAD). The investment reinforces Oman’s position as a leading global hub for green hydrogen production and supports the country’s economic diversification objectives.

The investment follows the signing of Project Development and Usufruct Agreements between Hydrom, the Public Authority for Special Economic Zones and Free Zones (OPAZ), and ACME Group, formally integrating the project into Oman’s national hydrogen development framework.

ACME will develop the second and third phases of its green hydrogen and green ammonia complex across a combined area of approximately 80 square kilometers in Duqm. Each phase is expected to produce around 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia annually, significantly expanding the project’s overall production capacity.

ITALY, OMAN SIGNS 150 MW GREEN DATA CENTRE PROJECT

Five international companies have signed a joint development agreement to establish a sustainable hyperscale data centre project in the Sultanate of Oman during Oman Sustainability Week 2026, marking a major step in advancing the country’s digital infrastructure and sustainability ambitions.

The agreement was signed by Italy’s RINA Consulting, Vitali Spa, Forte Secur Group, Oman’s Ahlam Group and Corpolgia to jointly develop an advanced AI-focused data centre in Oman with an estimated capacity of 150 megawatts (MW). The signing ceremony took place at the Italian Pavilion during Oman Sustainability Week 2026 under the patronage of Pierluigi D’Elia.

The project scope includes the development of sustainable digital infrastructure integrating artificial intelligence, cybersecurity, renewable energy solutions and energy-efficient technologies to support Oman’s growing digital economy and position the country as a regional hub for advanced digital services.

The planned facility will be classified as a hyperscale data centre and is intended to support future demand for data storage, cloud computing and AI-driven technologies across industrial and commercial sectors in Oman and the wider region.

FUTURE FUND OMAN SIGNS AGREEMENTS WORTH USD 1.51 BN

Future Fund Oman (FFO), operating under the umbrella of the Oman Investment Authority (OIA), has signed agreements for 105 new projects and investments with a total value of RO 583 Mn (USD 1.51 Bn), reinforcing its commitment to accelerating economic diversification and private sector growth in the Sultanate.

The Fund’s direct investment commitments amount to RO 225 Mn (USD 585 Mn), while local investors are contributing approximately RO 176 Mn (USD 458 Mn). The projects are also expected to attract around RO 182 Mn (USD 473 Mn) in foreign direct investment (FDI), further strengthening Oman’s position as an attractive investment destination.

The newly signed projects span a diverse range of strategic sectors, including:

Tourism and hospitality
Renewable energy
Advanced manufacturing and industrial development
Healthcare and medical technologies
Innovation and emerging technologies
Entrepreneurship and start-up ecosystems

OMAN ACCELERATES ENERGY TRANSITION WITH 1.5 GW SOLAR IPP TENDER

Nama Power and Water Procurement (PWP) has launched the Request for Qualification (RFQ) process for the development of the Adam Solar Independent Power Project (IPP) and Sinaw Solar Independent Power Project (IPP), which will add a combined 1,500 MW of renewable energy generation capacity to the Sultanate of Oman’s national grid.

The projects represent the latest additions to Nama PWP’s renewable energy development program and have been designated as Projects No. 11 and 12 under the company’s renewable energy roadmap. The developments support the objectives of Oman Vision 2040, the national energy transition strategy, and the country’s commitment to expanding clean energy generation capacity while reducing carbon emissions.

Adam Solar IPP – A 1,000 MW solar photovoltaic (PV) power plant integrated with a Battery Energy Storage System (BESS), to be developed in the Wilayat of Adam.
Sinaw Solar IPP – A 500 MW solar photovoltaic (PV) power plant, to be developed in the Wilayat of Sinaw.

SUEZ-LED CONSORTIUM SECURES USD 2.29 BN WATER AND WASTEWATER OPERATIONS CONTRACT

Oman Water and Wastewater Services Company (NAMA Water Services) has awarded a consortium led by SUEZ, alongside National Trading Company L.L.C. (NTC) and National Energy Center S.A.O.C. (NEC), a 15-year performance-based contract valued at approximately EUR 2 Bn (USD 2.29 Bn) to operate and maintain water and wastewater assets across Muscat, North Sharqiyah, and South Sharqiyah Governorates.

This is the largest contract ever awarded to SUEZ in the Middle East and will provide essential water and wastewater services to approximately 2.3 million residents, equivalent to around 43% of Oman’s population.

The consortium will be responsible for the operation, maintenance, and performance improvement of extensive water and wastewater infrastructure serving the Sultanate’s most populous region. The project supports Oman’s Vision 2040 objectives to enhance operational efficiency, reduce water losses, improve service quality, and strengthen the long-term sustainability of the water sector.

QATAR

BAKER HUGHES SECURES MAJOR CONTRACTS IN QATAR

Baker Hughes has announced a series of significant contract awards in Qatar during the Q1 of 2026, reinforcing its position as a key technology provider supporting the region’s expanding energy and sustainability initiatives.

The company confirmed a major liquefied natural gas (LNG) equipment award from QatarEnergy LNG for the North Field West project. The contract covers the supply of main refrigerant compressor trains and power generation packages for two LNG mega trains.

As part of the scope, Baker Hughes will deliver six Frame 9 gas turbines and 12 centrifugal compressors, alongside integrated power solutions incorporating three Frame 6 gas turbines and three BRUSH™ Power Generation generators. These systems are designed to enhance efficiency and reliability in large-scale LNG production.

In a further boost to its clean energy portfolio, Baker Hughes also secured a significant contract to provide compression and pumping technologies for a large-scale carbon capture and transport facility being developed by QatarEnergy LNG. The project is expected to play a critical role in reducing emissions, with equipment designed to capture and transport up to 4.1 million tonnes of CO₂ annually.

QATAR AWARDS USD 604 MN CONTRACTS FOR DUKHAN SOLAR GRID INFRASTRUCTURE

Qatar General Electricity and Water Corporation (KAHRAMAA) has awarded a series of contracts worth more than QR 2.2 Bn (USD 604 Mn) for the development and expansion of the electricity transmission network in Qatar’s western region to facilitate the integration of the 2-GW Dukhan Solar Power Project into the national grid.

The projects encompass the engineering, procurement, and construction (EPC) of new high-voltage transmission infrastructure, including the construction and upgrading of substations, installation of underground cable systems, and development of overhead transmission lines required to connect the large-scale solar facility to the national electricity network

A key component of the program includes the development of a 400kV substation and associated transmission facilities to accommodate power generated by the Dukhan Solar Power Project, one of the largest renewable energy developments in the region. The infrastructure will ensure the reliable evacuation of solar-generated electricity and enhance the grid’s capability to absorb increasing volumes of renewable energy. The projects are designed to improve network flexibility, strengthen transmission reliability, and enhance overall system performance while supporting the growing demand for electricity across Qatar.

ASHGHAL AWARDS USD 104 MN SEWER AND PUMPING STATION PROJECT IN QATAR

The Public Works Authority (Ashghal) has awarded a major infrastructure contract worth approximately QAR 378.8 Mn (USD 104 Mn) for the development of a strategic wastewater project in Qatar, marking a significant step in the country’s long-term urban expansion and utility modernization plans.

The contract for the project “Completion of the Remaining Works of the Construction of Strategic Trunk Sewer from Sheehaniya to Doha North Sewage Treatment Works (DN STW) and Construction of Sewage Terminal Pumping Station at DN STW – P02” to National Industrial Contracting Company (NICC).

The project is a key component of Ashghal’s wastewater infrastructure strategy, aimed at enhancing collection, conveyance, and treatment capacity to support rapid population growth and planned residential and industrial developments.

The system will serve an area of approximately 27,320 hectares within Al Sheehaniya Municipality, including residential villages, military camps, agricultural zones, camel stabling areas such as the El Reiss Camel Racetrack, and the planned Sheehaniya New Residential Development. It will also connect to the existing Doha North Sewage Treatment Works (DN STW).

At the core of the project is the Sheehaniya Strategic Trunk Sewer (SSTS), a deep sewer network designed to transport wastewater over 39 kilometers to the treatment facility. The system will include pipe diameters ranging from 600 mm to 1,800 mm, along with 159 manholes, multiple branch connections, end caps, and extensive excavation and commissioning works.

KUWAIT

KUWAIT AWARDS USD 137 MN WATER DISTRIBUTION COMPLEX PROJECT IN HAWALLI

The Ministry of Electricity, Water & Renewable Energy (MEWRE) has announced the award of a major infrastructure contract for the construction, completion, maintenance, and development of a water distribution complex in the Hawalli area, along with associated works.

The project has been awarded to United Gulf Construction Company (W.L.L.), reflecting the Ministry’s continued commitment to enhancing water infrastructure and ensuring reliable and efficient services across Kuwait.

The total value of the contract stands at KWD 42.26 Mn (USD 137 Mn). The project scope includes the development of a fully integrated water distribution complex designed to support growing demand, improve operational efficiency, and strengthen the resilience of the national water network.

KUWAIT AWARDS USD 371.5 MN DOHA SWRO PLANT CONTRACT

The Board of Directors of the Central Agency for Public Tenders (CAPT), Kuwait has approved the award of Tender No. MEW 16/2024/2025 for the development of the Doha Seawater Reverse Osmosis (SWRO) Desalination Plant with Re-carbonation System (Stage-2) to the Joint Venture between VA TECH WABAG Ltd. and Heavy Engineering Industries & Shipbuilding Co. (HEISCO).

The contract, awarded on behalf of the Ministry of Electricity & Water & Renewable Energy, is valued at KD 114.28 Mn (USD 371.5 Mn), with a total project duration of 8 years, which includes supply, erection, and operation & maintenance (O&M) services.

The Doha SWRO Desalination Plant (Stage-2) will incorporate advanced reverse osmosis technology along with a re-carbonation system, enhancing water quality and operational efficiency. The project aligns with Kuwait’s broader strategy to adopt energy-efficient and environmentally sustainable desalination solutions.

UNITED REAL ESTATE SIGNS PHASE THREE CONTRACT FOR KUWAIT WATERFRONT PROJECT

United Real Estate Company has announced the signing of the contract for the Waterfront Real Estate Project – Phase Three, located in the Sharq Area of Kuwait City.

The agreement covers the upgrading, development, repair, major rehabilitation, management, operation, and periodic maintenance of the project. The contract was signed between the Ministry of Finance – Department of State Properties and United Marasi Company for Lands and Real Estate Development, a wholly owned project-dedicated subsidiary established by United Real Estate Company for the execution and management of the development.

Under the terms of the agreement, the annual right-of-use fee amounts to KWD 13.13 Mn (USD 42.53 Mn) for a total duration of 16 years from the date of handover. The contract includes a one-year grace period allocated for design and refurbishment works, followed by a 15-year operational period.

The Waterfront Real Estate Project – Phase Three is expected to play a key role in enhancing the Sharq waterfront district through comprehensive redevelopment and long-term operational management. The project aligns with ongoing efforts to modernize and revitalize prominent urban and commercial destinations in Kuwait City.

KUWAIT RECEIVES BIDS FOR AIRPORT TERMINAL 2 OPERATIONS & MAINTENANCE

Kuwait’s Directorate General of Civil Aviation (DGCA) has received bids from three leading international airport operators for the contract covering the operation, management, and enhancement of services at the New Passenger Terminal (T2) of Kuwait International Airport.

The tender covers the operation, management, and improvement of training, maintenance, and development services at Terminal 2 and its associated aircraft parking areas. The contract also includes the corporate management of a centralized operation and maintenance model for Kuwait International Airport, aimed at enhancing operational efficiency, passenger experience, and long-term asset performance.

DAA International Limited offered the lowest bid of KWD 419.03 Mn (USD 1.35 Bn), followed by TAV Airports Holding Inc. with a bid of KWD 764.15 Mn (USD 2.47 Bn), while Incheon International Airport Corporation submitted a bid of KWD 959.48 Mn (USD 3.1 Bn).

KUWAIT’S GOVERNMENT SIGNS USD 2.7 BN FIXED TELECOM DEAL TO POWER DIGITAL ECONOMY

In a major move to advance its digital economy, Kuwait’s government has signed a USD 2.7 Bn agreement with Bahrain’s Beyon Group to develop and operate the country’s national fixed telecommunications network. The landmark deal was advised on by Tri International Consulting Group and Oliver Wyman.

The fixed telecommunications network development project represents a long-term national investment that supports Kuwait’s digital future, a key pillar of the New Kuwait 2035 vision.

The project will help ensure that the fixed telecommunications network serves as the backbone of future digital services, including cloud computing, artificial intelligence, smart cities, advanced government services, and the broader transition to a technology-driven knowledge economy. With a value of USD 2.7 Bn, the agreement ranks among Kuwait’s largest strategic partnerships in the digital infrastructure sector.

The project is being led by the Ministry of Communications and the Kuwait Authority for Partnership Projects, which conducted a competitive tender process to select the best external partner for the mega Public-Private Partnership (PPP) agreement. Beyon Group, the parent company of several telecommunications, ICT, and digital transformation businesses in Bahrain – including Batelco, Beyon Cyber, and Beyon Solutions – was selected as the winning bidder.

List of key transactions - Qatar and Kuwait Q2 2026

Source: YOG INFRA analysis

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