OMAN, QATAR and KUWAIT countries have ambitious plans for infrastructure development and have shown keen interest to use PPPs as an emerging modality for such projects across varied sectors such as WASH, clean energy transition, transport and urban infra. This has attracted international investors who have committed to take part in this infrastructure growth, including through MoUs and bilateral negotiations.
Read the key developments in Infrastructure and PPPs in key GCC countries in our latest insight of the Q3 2024 series.
OMAN
CONSTRUCTION OF GHUBRAH-3 DESALINATION PROJECT KICKS OFF
Oman - Douglas OHI, an Omani contracting firm, has embarked on the construction of Ghubrah 3 Desalination Plant. This project holds profound significance as a lifeline for Muscat's 2.5 Mn residents. With a planned capacity to produce 300,000 cubic meters of water per day, expandable to 315,000 cubic meters during peak demand, the Ghubrah 3 plant stands as a cornerstone in meeting the region's pressing water needs.
The construction activities mark a milestone in the journey towards completing Oman's largest desalination plant, estimated to cost USD 325 Mn. The plant will occupy 70,400 m2 of land and include a 45,000 cubic meter potable water reservoir, bolstering Oman’s water security and fostering sustainable infrastructure development.
OMAN ANNOUNCES DEVELOPMENT OF NEW LNG TRAIN WITH A CAPACITY OF 3.8 MTPA
The Government of the Sultanate of Oman has announced its plan to develop an additional liquefied natural gas (LNG) train with a capacity of 3.8 million Metric Tonnes Per Annum (MTPA) at Qalhat Industrial Complex in the Wilayat of Sur, South A’Sharqiyah Governorate.
The move comes as part of Oman’s continuous commitment to contribute to energy security in response to the growing demand on green energy. The strategic expansion will boost Oman’s production of LNG to 15.2 MTPA, optimize the utilization of the country’s available discovered volumes of natural gas resources while enhancing its LNG export capabilities.
The Government is now progressing with finalizing the Front-End Engineering Design (FEED) Study for this new LNG train project. This critical step is expected to pave the way for the project’s Final Investment Decision (FID). The addition of a new LNG train is a key component of Oman’s strategy to solidify its position as a leading producer and exporter of liquefied natural gas in the global market
CONSTRUCTION BEGINS ON SOHAR PORT’S NEW WASTE TREATMENT PLANT IN OMAN
Oman’s Elite Hazardous Waste Management Solution (FZC) has broken ground on a USD 3.5 Mn industrial waste treatment plant in Sohar Port and Freezone.  The plant — which spans an area of 10,000 sqm — will treat and recycle industrial waste to produce heavy oil for use in slow-moving machines and low-contamination carbon dust fit for cement and road construction industries. It has an initial production capacity of 40 tons per day, with the capacity slated to increase to 80 tons per day within one year. The plant will also dispose of industrial waste that will not be recycled.
Oman Cement Company is also launching a waste-to-energy facility to reduce gas consumption by processing municipal solid waste. The plant will use Refuse-Derived Fuel processed from municipal solid waste to power its cement complex at its Misfah complex with an annual capacity of 3.6 Mn tonnes.
Q-SUN SOLAR, BAKARAT INVESTMENT TO BUILD 10 GW SOLAR PANEL FACTORY IN OMAN
China-based solar manufacturer Q-Sun Solar has signed an agreement with Oman’s renewable investment entity Bakarat Investment to jointly establish a 10 GW solar module factory in the country with an investment of around USD 200 Mn. The facility, located in the Sohar Free Trade Zone, should have a capacity of 8 GW for modules and 2 GW for cells. It will produce both TOPCON and heterojunction (HJT) panels.
Founded in 2014 and headquartered in Chuzhou City, Anhui Province, Q-Sun Solar operates branches in the US, Germany, Singapore, and other countries, with products sold in over 50 nations.
Bakarat Investment, a leader in Oman’s renewable energy sector, boasts extensive expertise and robust project management capabilities. Its investments span from renewable energy to advanced medical laboratories and youth education programs.
The project demonstrates commitment to introducing cutting-edge technology, supporting the ‘2040 Vision’ through tangible actions, and fostering economic growth through job creation and technological advancement.
OMAN LAUNCHES AIRPORT LOGISTICS HUB PPP
Asyad Group, Oman’s global provider of integrated logistics services, has announced the launch of a tender to design, build, finance, operate and transfer an office complex covering an area of 4,925 square meters in the Muscat Airport Free Zone (MAFZ).Â
This tender is the second call for partnership inviting the local private sector to partner with Asyad in establishing and operating the much-anticipated free zone. Through the second MAFZ tender, Asyad aims to transform the designated project space into an integrated business centre ready to provide investors with the infrastructure they need to operate at the highest efficiency. The anticipated centre will offer ready-to-move-in office space, retail areas and a diverse selection of function rooms, boardrooms, meeting rooms, auditoriums and other event spaces that can be easily configured to meet various business needs and project requirements.
The Muscat Airport Free Zone is the latest addition to Oman’s free and economic zones lineup and one set to create a world-class, air-enabled integrated logistics hub that has the potential to transform regional air logistics. Asyad is dedicated to fostering a business environment that stimulates local economy and complement its interconnected network of core logistics assets.
ZEROVA TECHNOLOGIES AND MUSCAT GAS ANNOUNCE STRATEGIC PARTNERSHIP TO PROPEL EV GROWTH IN THE SULTANATE OF OMANÂ
Zerova Technologies announced a partnership with Muscat Gas, aimed at accelerating the growth and development of electric vehicles (EVs) in the Sultanate of Oman. The parties have entered into an agreement that promises to transform the EV infrastructure landscape in Oman.
This partnership will leverage Zerova Technologies' advanced EV charging solutions and Muscat Gas's extensive local expertise to establish a robust and reliable network of EV chargers across Oman. This partnership marks a significant milestone in Oman's journey towards sustainable transportation.
QUALIFYING COMPANIES ANNOUNCED FOR OMAN WIND ENERGY PROJECTS
Oman-based Nama Power and Water Procurement Company (Nama PWP) has announced qualifiers for the development of five large-scale wind energy projects. The wind Independent Power Projects (IPPs) will contribute to the sultanate’s broader strategy to generate 30% of its energy needs from renewable sources by 2030, thereby reducing dependence on conventional fossil fuels and enhancing energy security.
These five large-scale wind energy projects are:
In the Main Interconnection System (MIS):
Jalan Bani bu Ali Wind IPP - Located in the South Sharqiyah Governate, the key facility with 91-105MW capacity is due for commercial operation in Q1 2027.
Duqm Wind IPP: Located at Ras Madrakah in Duqm, the key facility with 234-270 MW capacity is due for commercial operation in Q4 2027.
Mahoot Wind I IPP: The project, which boasts a capacity of 342-400MW, will be developed in Al Wusta Governate aand is due for commercial operation in Q4 2027.
In the Dhofar Power System (DPS):
4. Dhofar Wind II IPP: The project will be adjacent to the existing Dhofar Wind I IPP in Shaleem and Al Hallaniyat Islands in Dhofar Governate with a capacity of 114-132 MW. It is due to be operational in Q2 2027.
Sadah Wind IPP: The project, with a capacity of 81-99MW, will be developed at a site located in Dhofar Governate. It is due for commercial operations in Q4 2027.
QATAR
QATAR GENERAL ELECTRICITY AND WATER CORPORATION LAUNCHES BESOLAR SERVICE TO PROMOTE DISTRIBUTED SOLAR ENERGY IN QATAR
The Qatar General Electricity and Water Corporation (KAHRAMAA) has unveiled its new BeSolar service, designed to support the installation of distributed solar energy systems across various properties. This initiative aligns with the Qatar National Renewable Energy Strategy and aims to enhance the use of renewable solar energy while offering economic benefits to customers.
The BeSolar service encourages residents and businesses to install solar energy systems in homes, farms, factories, and other properties. As part of this initiative, KAHRAMAA has introduced a distributed solar energy policy and a net billing program. Under this program, any excess electricity generated by solar panels can be fed back into the grid. A bidirectional meter measures this surplus, and KAHRAMAA will credit the value of the surplus electricity against the customer’s next bill, company leading to reduced future energy costs.
BeSolar also supports environmental sustainability by reducing carbon dioxide emissions. The initiative is a key component of Qatar’s National Renewable Energy Strategy, which aims to significantly increase the share of renewable energy in the country’s energy mix.
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QATAR ENERGY UNVEILS PLAN TO BUILD 2 GW SOLAR POWER IN QATAR
Qatar Energy has unveiled plans to build a new 2 GW solar power project in Qatar’s Dukhan area. The initiative is expected to more than double Qatar’s solar energy production capacity, while significantly contributing to the nation’s lower carbon emissions. The project will elevate Qatar’s photovoltaic (PV) solar power production capacity to 4 GW.
Dukhan solar power plant, along with the existing Al-Kharsaah solar power plant, was inaugurated in 2022 with an 800 MW capacity. wo further upcoming projects in the Ras Laffan and Mesaieed industrial cities will bolster QatarEnergy’s solar power portfolio. The Ras Laffan and Mesaieed projects, with a combined capacity of 875MW, are anticipated to commence production before the end of 2024.
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KUWAIT
KUWAIT TARGETS 17Â GW OF RENEWABLES AND 25Â GW OF GREEN HYDROGEN BY 2050
Kuwait's state-owned oil group Kuwait Oil Company intends to develop a Renewables and Hydrogen Masterplan Project, which would target 17Â GW of renewable capacity and 25Â GW of green hydrogen production capacity in Kuwait by 2050. The renewable capacity would be linked to the production of green hydrogen for internal industrial uses, as well as for exports. The consulting services are expected to be completed within 18 months.
The project aims to create a robust and sustainable energy ecosystem. The green hydrogen produced will not only meet the needs of local industries but also serve as a valuable export commodity, positioning Kuwait as a key player in the global green hydrogen market. Kuwait aims to generate 15% of its electricity from renewables by 2030; however, no flagship policy has yet been implemented to accelerate the development of renewables and most of the reduction in GHG emissions planned in the country's updated NDC (2021)Â would come from an oil-to-gas substitution in energy production, new CCGT power plants, energy efficiency measures, and renewable projects.
KUWAIT SHORTLISTS SIX COMPANIES TO DEVELOP A 1.1Â GW SOLAR POWER PROJECT
The Kuwait Authority for Partnership Projects (KAPP)Â has shortlisted six consortiums and companies for the development of the 1.1Â GW Al Dibdibah Power and Al Shagaya Renewable Energy (Phase III)Â Zone 1 Solar PV Independent Power Project. The solar plant will be situated in the Shagaya area of Jahra Governorate, about 100Â km west of Kuwait City.
The list includes
France’s TotalEnergiesÂ
Vietnam's Trung Nam Construction Investment Corporation
ACWA Power, together with Alternative Energy Projects Company
Masdar, with Fouad Alghanim & Sons General Trading and Contracting Company
EDF Renewables, with partners Abdullah Al Hamad Al Sagar and Korean Western Power Company
Jinko Power, with Japan's Jera and Kuwait's National Technology Enterprises Company (NTEC).
Kuwait targets to achieve 22.1 GW of renewable energy installed capacity by 2030, as announced by the country’s Ministry of Electricity, Water and Renewable Energy in March 2024. The total installed renewable energy capacity at the end of 2023 stood at 114 MW, including close to 50 MW of solar PV.
KUWAIT-SAUDI ARABIA RAIL LINK TO COMMENCE IN 2026
The Kuwait-Saudi Railway, a groundbreaking infrastructure project set to stretch 650 kilometers and connect Kuwait City with Riyadh by 2028, could revolutionize logistics in the Gulf Cooperation Council (GCC) region. The initial design of a ground-breaking railway project linking Kuwait and Saudi Arabia, aimed at transporting passengers and goods. The move follows the approval from the Project Management Committee of both countries, which endorsed the financial, economic, technical and social feasibility study for the project. The railway will have the capacity to carry 3,300 passengers daily with six round trips, covering about 500 km in 1 hour and 40 minutes at high speed, the line will start from the Shaddadiyah area in Kuwait and extend to Riyadh.
The project is part of a series of initiatives aimed at fostering economic integration and strengthening historical ties between Kuwait and Saudi Arabia. The transport of goods between Kuwait and Saudi Arabia relies heavily on road networks, which is both time-consuming and expensive. The new railway will drastically reduce travel time from over 10 hours to just 2 hours. This substantial decrease will lead to faster delivery of goods, which is vital for businesses that operate on tight schedules or deal with perishable items.
List of key transactions - Oman, Qatar and Kuwait Q3 2024

Source: YOG INFRA analysis
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