Infrastructure & PPPs in Oman, Qatar and Kuwait - Q3 2026

YOG INFRA

21 min read

OMAN, QATAR, AND KUWAIT are advancing clean energy, transport, digital infrastructure, and PPP projects to strengthen energy security, regional connectivity, and sustainable economic growth. OMAN is expanding its logistics and utility footprint through the USD 400 Mn Sohar logistics terminal, financial close on the 120 MW Jaalan Bani Bu Ali wind project, municipal wastewater PPP expansions, and over USD 560 Mn in road and port developments. QATAR is driving long-term expansion through a USD 38.5 Bn public-private infrastructure pipeline, resumed works on the USD 13 Bn North Field East LNG expansion, the USD 1.23 Bn school infrastructure PPP package, and MEEZA’s USD 440 Mn data center expansion. KUWAIT is accelerating critical energy and utility infrastructure, headlined by the landmark USD 16 Bn midstream oil pipeline joint venture, the 1.1 GW Al-Dibdibah/Al-Shagaya solar IPP, the USD 3.3 Bn North Kabd wastewater treatment facility, and the USD 371.5 Mn Doha SWRO desalination plant.

Read the key developments in Infrastructure and PPPs in three GCC countries in our latest insight of the Q3 2026 series.

OMAN

OMAN’S TENDER BOARD AWARDS DEVELOPMENT CONTRACTS WORTH OVER USD 296 MN

Oman’s Tender Board has approved and awarded a series of development contracts and supplementary works with a combined value exceeding OMR 114 Mn (USD 296 Mn), covering major infrastructure, transportation, healthcare, logistics, and public service projects across the Sultanate.

Mahout Fishing Port: OMR 36.99 Mn (USD 96.2 Mn) to develop a modern fishing port, strengthening the fisheries sector and supporting economic growth in Al Wusta.
Healthcare Support Services: OMR 24.51 Mn (USD 63.7 Mn) for catering, cleaning, laundry, pest control, and food services across Ministry of Health facilities.
Al Batinah Expressway (Package 3): OMR 21.74 Mn (USD 56.5 Mn) to complete a key section of the expressway and enhance the national road network.
Al Jabal Al Abyad Road: OMR 13.50 Mn (USD 35.1 Mn) for road construction to improve connectivity in North A'Sharqiyah.
Sohar Dual Carriageway: OMR 8.25 Mn (USD 21.5 Mn) to ease congestion and support urban and industrial development.
Dhofar Road Works: OMR 3.52 Mn (USD 9.2 Mn) for supplementary road infrastructure improvements.
Digital Authentication Infrastructure: OMR 2.10 Mn (USD 5.5 Mn) to enhance the national digital authentication and e-signature system.

PDO SIGNS AGREEMENT WITH PWP TO SUPPLY 200 MW TO OMAN NATIONAL GRID

Petroleum Development Oman (PDO) has signed a Power Purchase Agreement (PPA) with Nama Power and Water Procurement Company (PWP) for the supply of up to 200 MW of power generation capacity to Oman’s national electricity grid.

Under the agreement, PDO will supply electricity generated from its existing power generation assets to the national grid for a period of five years. The agreement covers the provision of up to 200 MW of generation capacity, supporting the country’s growing electricity demand and contributing to the reliability and security of Oman’s power supply.

The PPA forms part of PDO’s strategy to maximize the value and utilization of its power generation assets while supporting the Sultanate’s evolving energy requirements. The agreement will enable the integration of additional generation capacity into the national grid, strengthening the country’s energy security and supporting long-term economic and industrial growth.

COMBINED GROUP CONTRACTING JV SECURES USD 53.65 MN COASTAL ROAD CONTRACT IN OMAN

A joint venture between Combined Group Contracting Company K.S.C. and Combined Group Trading and Contracting Global L.L.C. has been awarded a contract valued at approximately OMR 20.66 Mn (USD 53.65 Mn) for the Construction of Coastal Road at the Special Economic Zone at Duqm (SEZAD) in Oman.

The project, designated as C056-OM-03, involves the construction of a coastal road within the Special Economic Zone at Duqm, supporting the development of critical transportation infrastructure and enhancing connectivity within the strategically important economic zone.

The project forms part of ongoing infrastructure development initiatives in Duqm, aimed at strengthening road connectivity and supporting the expansion of industrial, commercial, logistics, and other economic activities within the Special Economic Zone. The contract includes a 30-day mobilization period followed by a 730-day construction and completion period

OMAN APPROVES USD 400 MN LOGISTICS TERMINAL PROJECT

Omani integrated logistics provider Asyad Group and French shipping giant CMA CGM have signed a framework agreement to develop, manage, and operate a new multipurpose logistics terminal in Sohar. It finalized during the Sultan of Oman's official visit to France; the strategic collaboration reflects growing economic ties between the two nations. The project involves an estimated USD 400 Mn investment to expand Oman's maritime infrastructure and integrate its ports into global supply networks.

The new facility will deliver advanced supply chain solutions, boost cargo handling capacity, and open new regional and international trade routes. The partnership combines global shipping capabilities with local port infrastructure to attract high-value investments and trade flows into Oman’s free and economic zones. Additionally, the hub aims to improve regional connectivity while securing dependable inland access to critical shipping corridors for regional logistics network.

This development builds on the extensive reach of Oman's national logistics provider, which spans over 76 cities across 24 countries with a fleet exceeding 100 vessels. By linking over 200 commercial ports worldwide, the joint venture supports the nation's broader goal of establishing itself as a premier global logistics hub.

OMAN IMPLEMENTS USD 273 MN ROAD INFRASTRUCTURE PROGRAMME

Oman has initiated a comprehensive road network expansion program valued at OMR 105 Mn (USD 273 Mn) across the North A'Sharqiyah Governorate, executed under the national Vision 2040 strategy by the Ministry of Transport, Communications and Information Technology. The program spans 2025 through 2026 and comprises greenfield construction, brownfield expansions, and highway dualisation designed to connect residential, industrial, and commercial hubs.

Significant progress includes over 85% completion of the 9 Km Aqabat Wadi Bani Khalid Road to integrate central Wadi Bani Khalid with primary economic regions. Additional ongoing initiatives include an OMR 8 Mn (USD 20.8 Mn) road linking Mahlah, Ghubrat Al Tam, and Ismailiyat Al Khabah in Dima Wa Al Taaiyin, alongside an OMR 29.1 Mn (USD 75.7 Mn) contract awarded to dualise the 15.6 Km Al Yahmedi Al Qafisi Road in Ibra.

In July, five additional road contracts were awarded to expand regional transport capacity. These comprise an OMR 4.8 Mn (USD 12.5 Mn) route connecting Ibra and Dima Wa Al Taaiyin, an OMR 13.5 Mn (USD 35.1 Mn) mountain road at Al Jabal Al Abyadh, an OMR 12.4 Mn (USD 32.3 Mn) paving project in Al Qabil, an OMR 9.2 Mn (USD 23.9 Mn) upgrade along the Sinaw-Mahoot-Duqm corridor, and an OMR 15.6 Mn (USD 40.6 Mn) contract to complete the Sultan Turki bin Said Road across North and South A'Sharqiyah governorates. The integrated program enhances regional supply chain efficiency, supports tourism growth, and optimizes logistics corridors.

RAKIZA DEEPENS OMAN’S WATER INFRASTRUCTURE PUSH

Rakiza Fund I and IV3 Aqua have agreed to acquire Majis Industrial Services SAOC from OQ, significantly strengthening private sector investment in Oman's industrial water utility infrastructure in July 2026. Majis operates as the principal integrated industrial water utilities provider serving the SOHAR Port and Freezone under a long-term concession framework. The deal reflects growing international institutional investor interest in the infrastructure market of the Sultanate of Oman, specifically targeting strategic assets that deliver stable, long-term contracted revenues.

The target entity supplies essential seawater cooling, process water, potable water, and wastewater treatment services to a broad array of industrial clients within Sohar, a primary industrial and logistics hub. This acquisition expands the operational footprint of IV3 Aqua within Oman, complementing its existing ownership and operation of the Qurayyat Independent Water Project, which features a 200,000-cubic-metre-per-day desalination plant.

Rakiza Fund I, co-managed by Equitix and Oman Infrastructure Investment Management, co-manages over USD 2 Bn in infrastructure assets spanning utilities, transport, energy, and telecommunications, while Equitix manages around USD 20 Bn globally. The investment directly supports the strategy of the government of Oman to increase private sector participation in strategic infrastructure assets to support manufacturing growth, enhance operational efficiency, and build resilient utility networks required for sustainable industrial expansion aligned with Vision 2040 targets.

OMAN REACHES FINANCIAL CLOSE ON 120 MW JBB WIND PROJECT

The 120 MW Jaalan Bani Bu Ali (JBB) Wind Project in Oman has officially achieved financial close following a 20-year Power Purchase Agreement with Nama Power and Water Procurement Company. Developed by a consortium comprising EDF power solutions, Al Khadra Partners, and OQ Alternative Energy, the onshore wind farm represents a key infrastructure milestone in the region.

Located in the South Al Sharqiyah Governorate about 440 km from the Port of Duqm, the installation will feature 16 wind turbines rated at about 7.7 MW each. The project aims to begin commercial operations by the third quarter of 2027, expanding the Sultanate's renewable energy capacity through long-term private sector collaboration.

Once fully operational, the wind facility is expected to generate enough clean electricity to power more than 13,500 Omani households annually while offsetting over 270,000 tonnes of carbon dioxide emissions each year. The initiative aligns with Oman Vision 2040 and supports the nation's broader targets to source at least 30% of its electricity from renewables by 2030 and reach Net Zero emissions by 2050.

OMAN’S NAMA PWP INVITES BIDS FOR MUSANDAM RENEWABLE ENERGY FEASIBILITY STUDY

Nama Power and Water Procurement Company (Nama PWP) has issued a tender inviting qualified consultants to bid for techno-economic consultancy services regarding a renewable energy feasibility study in the Musandam Governorate. The study is expected to support the identification of the most suitable renewable energy solutions for Musandam, taking into consideration the governorate’s specific energy requirements, technical conditions and economic viability.

The tender seeks to appoint a specialist consultant to assess the technical and economic feasibility of developing renewable energy solutions in the Musandam Governorate. Interested bidders can purchase the official tender documents through September 3, 2026. Final bid submissions must be completed and submitted by September 24, 2026, at 12:00 PM Oman time.

OMAN’S USD 259.8 MN DEVELOPMENT BONDS DRAW STRONG INVESTOR DEMAND

The Central Bank of Oman (CBO) has reported strong demand for its 84th Government Development Bond (GDB) issuance, with total subscriptions reaching OMR 164.37 Mn against an target offering of OMR 100 Mn. The issue attracted interest exceeding the offer size by more than 1.6 times. It had a base issue size of OMR 80 Mn, with a greenshoe option of up to OMR 20 Mn, which was fully utilised amid strong demand.

The seven-year development bonds carry a fixed coupon rate of 4.50% per annum, maturing on August 25, 2033. Investors will receive interest payments semi-annually on August 25 and February 25 throughout the term of the bond. The auction yielded an average rate of 4.48% (OMR 100.120), with accepted yields ranging between a minimum of 4.00% (OMR 103.03) and a maximum of 4.50% (OMR 100). The bond issue was open to all investors, including residents and non-residents, regardless of nationality.

These Government Development Bonds represent direct and unconditional obligations of the Sultanate and may be used as collateral for loans from local commercial banks. They are also tradable on the Muscat Stock Exchange (MSX) at prevailing market prices.

OMAN PLANS TO INCREASE SHARE OF RENEWABLE ENERGY TO 90-100% BY 2050

Oman intends to implement new large-scale projects in the fields of solar and wind energy, as well as energy generation from waste. The target share of renewable sources in electricity generation is set to reach 30% by 2030, 60–70% by 2040 and 90–100% by 2050.

Recent expansion includes two major solar power facilities commissioned in early 2025 within the Wilayat of Manah in Al Dakhiliyah province, delivering a combined capacity of 1 GW. To continue this momentum, Oman intends to implement new large-scale projects in the fields of solar and wind energy, as well as energy generation from waste between 2027 and 2031. Their combined capacity could reach 10.6 GW.

ASYAD SHIPPING AWARDS USD 103.6 MN CONTRACT TO HYUNDAI HEAVY INDUSTRIES FOR TWO MR TANKERS

Asyad Shipping Company S.A.O.G. has contracted Hyundai Heavy Industries Co., Ltd. to construct two new Medium Range (MR) product tankers for approx. OMR 39.9 Mn (USD 103.6 Mn). Scheduled for delivery in 2029, each fuel-efficient vessel will have a deadweight capacity of around 49,999 DWT. The new builds serve as sister ships to an earlier order of six MR tankers, expanding the operator's modern energy transport fleet.

The acquisition is financed via existing cash reserves alongside debt facilities to back long-term fleet renewal. Upon completion, both vessels will operate under five-year time charter agreements with a major global energy firm. These charters ensure predictable commercial revenue while strengthening capacity to address rising international demand in refined petroleum shipping.

ARAB CONTRACTORS WINS CONTRACT TO BUILD FISHING PORT IN MAHOUT, OMAN

The Ministry of Agriculture, Fisheries and Water Resources has awarded a contract to Arab Contractors Company to construct a new fishing port in the Wilayat of Mahout, Al Wusta Governorate. Part of a broader national initiative to upgrade marine infrastructure and strengthen coastal economies, the agreement is valued at approximately OMR 37.00 Mn (USD 96.10 Mn). The strategic development aims to boost commercial capacity and modernize facilities across the Sultanate's fisheries sector.

The project encompasses extensive marine civil works, requiring roughly 1.2 million cubic meters of land reclamation alongside 50,000 cubic meters of dredging, breakwaters, fixed berths, and two floating pontoons. Onshore components include dedicated access roads, boat ramps, comprehensive utility networks, and dedicated administrative buildings. Operations will be supported by commercial facilities featuring two ice factories, a two-level fish market, repair workshops, and five dedicated retail shops for local fishermen.

TEAMS PREPARE BIDS FOR OMAN PPP WASTEWATER PROJECT

At least three consortiums are preparing bids to develop and operate two major sewage treatment plants under a public-private partnership framework in Oman. State-owned Nama Water Services issued the request for proposals for the project, which encompasses the phase three expansion of the Al-Ansab facility and the phase two expansion of the Al-Amerat facility in Muscat. Prequalified contenders competing for the contract include France’s Veolia, Saudi Arabia’s Miahona, and South Korea’s Samsung E&A.

The expansion will substantially elevate municipal processing capacity, raising Al-Ansab from 125,000 cubic metres per day (cm/d) to 207,000 cm/d. Simultaneously, the Al-Amerat plant will expand from 18,000 cm/d to 54,000 cm/d to meet growing regional wastewater demands. The initiative builds upon earlier delivery phases across both sites to accelerate private-sector participation in the country's utility infrastructure.

ORASCOM, MURIYA MOVE FORWARD ON 3 OMAN PROJECTS

Orascom Development and its local platform, Muriya, are advancing construction across three major destinations in Oman: Hawana Salalah, Jebel Sifah, and As Sodah Island. In Hawana Salalah, the first phase of Amazi is nearly 80% complete and on track for handover in Q1 2027, with the Lubana Islands project also in development. Expansion is simultaneously progressing at Jebel Sifah, where both destinations are slated to add approx. 1,000 hotel rooms over the next 3 to 5 years, bringing Muriya's cumulative investment in the Sultanate to over OMR 288.46 Mn (USD 750 Mn).

On As Sodah Island off the coast of Dhofar, development is actively moving forward through direct shareholder capital and institutional financing instead of off-plan sales. More than OMR 9.62 Mn (USD 25 Mn) has already been injected into infrastructure and construction, with an additional OMR 25.00 Mn (USD 65 Mn) or more expected to follow. This will elevate the total investment in the private island project to beyond OMR 34.62 Mn (USD 90 Mn), reflecting a commitment to long-term delivery and growth in the country.

OMAN DIRECTS USD 489 MN TO DEVELOPMENT PROJECTS IN 2026

Oman’s Ministry of Transport, Communications and Information Technology directed over RO 188 Mn (USD 488.8 Mn) toward priority development initiatives during the first nine months of 2026, allocating 68% of funds to road infrastructure. Key expenditures included RO 32 Mn (USD 83.2 Mn) for the Sultan Faisal bin Turki Road in Musandam, RO 24 Mn (USD 62.4 Mn) for dualising the Adam-Thumrait road, and RO 9 Mn (USD 23.4 Mn) for the Al Mughsail Bridge. An additional RO 8 Mn (USD 20.8 Mn) supported repairs for weather-related damage alongside works in Al Mouj and local airport developments.

Ministry revenues reached RO 29.09 Mn (USD 75.63 Mn) in the first seven months of the year, marking an increase of RO 3.48 Mn (USD 9.05 Mn) compared to 2025. To strengthen fiscal governance and payment speed, the entity has completed 60% of project bank guarantee classifications and 65% of document archiving while automating disbursements. The ministry also fulfilled its annual hiring targets by recruiting 79 permanent staff, onboarding 33 project contractors, regularising 475 share-based roles, and naming 18 supervisory appointees.

QATAR

QATARENERGY, MINISTRY SIGN MESAIEED EXPANSION DEAL

QatarEnergy and Qatar’s Ministry of Commerce and Industry (MoCI) have signed the Terms of Reference (ToR) to establish a joint governance framework for the allocation of hydrocarbon-derived resources to industrial investment projects and to facilitate the development of a new medium industries area in Mesaieed Industrial City (MIC).

The strategic agreement aims to strengthen Qatar’s industrial sector by ensuring the efficient allocation of natural gas, power, hydrocarbon feedstocks, and other national resources to qualified downstream industrial investment opportunities, while maximizing value creation and supporting long-term industrial growth.

The two entities will jointly establish a governance mechanism to evaluate and allocate hydrocarbon-derived resources, natural gas, electricity, and related utilities required by downstream industrial projects. The framework is expected to improve transparency in resource allocation while supporting investments that deliver higher economic value and contribute to Qatar’s industrial diversification objectives.

A key component of the initiative is the development of a new medium industries zone within Mesaieed Industrial City, creating additional capacity for industrial investors and expanding the country’s manufacturing base. To support the expansion, QatarEnergy has committed to supplying natural gas volumes equivalent to those currently allocated to small and medium industries located in Doha’s Industrial Area.

MEEZA ADVANCES 4 MW DATA CENTRE EXPANSION

MEEZA, Qatar’s leading managed IT services and data centre provider, has successfully completed and handed over its 4 Megawatt (MW) Data Centre expansion project to a leading global hyper-scaler, marking a significant milestone in the country’s digital infrastructure development.

The expansion forms part of a long-term agreement valued at more than QAR 350 Mn (USD 96 Mn), signed with the global hyper-scaler for a period exceeding 10 years. The project will support the customer’s expanding cloud computing operations while reinforcing Qatar’s position as a regional hub for hyperscale digital infrastructure and cloud services.

MEEZA designed, constructed, commissioned, and delivered a 4 MW expansion of its state-of-the-art data centre ecosystem. The new facility has been engineered to provide high availability, scalability, operational resilience, and energy-efficient performance to support mission-critical digital applications.

The expanded infrastructure is designed to host a broad range of next-generation workloads, including cloud computing platforms, artificial intelligence (AI) applications, high-performance computing (HPC), and enterprise digital services, enabling the customer to accelerate the deployment of advanced cloud technologies across the region.

QATAR PROGRESSES USD 1.23 BN SCHOOL INFRASTRUCTURE PPP PROJECT

Qatar's Public Works Authority 'Ashghal' has achieved nearly 80% completion on a major social infrastructure project to construct 14 new schools across 10 strategic locations, including Muaither, Al Gharrafa, Al Wajbah, Al Thumama, and Ain Khaled, valued at approx. QAR 4.5 Bn (USD 1.23 Bn), this greenfield initiative forms the second package of the Qatar Schools Development Program executed under a Public-Private Partnership (PPP) framework.

Once operational, the facilities will accommodate over 10,000 students. Advanced engineering solutions and modern construction techniques are being integrated into the development process, including 3D printing and modular construction utilizing prefabricated structural systems to optimize delivery efficiency and sustainability. Project teams are mandated to maintain quality standards to meet the approved target schedule.

The initiative aligns directly with Qatar's Third National Development Strategy (2024–2030), which targets expanded private sector participation in executing national infrastructure developments. By incorporating modern engineering solutions, the project serves to expand long-term social infrastructure capability and support national economic development goals.

MEEZA SECURES USD 440 MN FACILITY TO EXPAND QATAR DATA CENTRE CAPACITY

MEEZA, a Qatari data centre and managed IT services provider, has secured a QAR 1.6 Bn (USD 440 Mn) Sharia-compliant Commodity Murabaha financing facility from Dukhan Bank. This long-term funding will support the development of three new facilities—M-VAULT 6, M-VAULT 7, and M-VAULT 8—adding approx. 44 MW of new capacity. The capital injection provides the necessary financial flexibility to accelerate construction and support long-term digital growth.

The ongoing expansion is part of MEEZA’s broader strategy to triple its total data centre footprint to more than 60 MW. These advanced, scalable facilities are engineered to serve hyperscalers, enterprise clients, and government entities. The added capacity will directly meet the escalating market demand for cloud computing, artificial intelligence, cybersecurity, and other mission-critical IT services.

The strategic investment aligns with the goals of the Qatar National Vision 2030 by modernizing national digital infrastructure, enhancing regional computing capabilities, and advancing the country's broader transition into a digital economy.

QATAR'S TRANSPORT INFRASTRUCTURE MARKET SET FOR STRONG GROWTH THROUGH 2031

Qatar’s transportation infrastructure construction industry is entering a new phase of long-term strategy-led growth. According to market analysis by Mordor Intelligence, the sector is projected to reach QAR 47.82 Bn (USD 13.12 Bn) in 2026, up from QAR 45.48 Bn (USD 12.48 Bn) in 2025. It is expected to further expand to QAR 61.41 Bn (USD 16.85 Bn) by 2031, reflecting a compound annual growth rate of 5.14%. This expansion is heavily supported by the Ministry of Transport’s 2025–2030 Strategy, which encompasses 125 projects backed by over QAR 1.2 Bn (USD 330 Mn) in investments.

Key government initiatives are sustaining momentum and driving modernization across the country's transit networks. Ashghal’s five-year development plan (2025–2029), valued at QAR 80.91 Bn (USD 22.2 Bn), continues to fund roads, public buildings, and drainage projects, with 67 infrastructure developments underway in early 2026 alone. Additionally, the 'Transport and Logistics Digital Transformation Roadmap' launched in late 2025 introduces 39 initiatives aimed at strengthening logistics efficiency and freight visibility across roads, ports, and future rail networks.

QATAR PLANS USD 38.5 BN INFRASTRUCTURE PIPELINE AND USD 22.5 BN PRIVATE INVESTMENT PUSH

Qatar is rolling out an infrastructure and private investment pipeline exceeding QAR 218.4 Bn (USD 60 Bn) over the next five years. This includes approx. QAR 140.14 Bn (USD 38.5 Bn) allocated to Public-Private infrastructure developments and QAR 81.9 Bn (USD 22.5 Bn) dedicated to real estate and hospitality projects, such as the QAR 21.11 Bn (USD 5.8 Bn) Simaisma Beach venture. To spearhead these domestic efforts, the sovereign wealth fund launched Doha Investment to manage 45 state-owned enterprises—accounting for roughly one-third of its QAR 2.11 Trn (USD 580 Bn) in assets—aiming to boost private-sector involvement and deepen capital markets.

The initiative proceeds despite significant regional instability, including shipping disruptions in the Strait of Hormuz and damage that knocked out approx. 17% of the country’s LNG export capacity. Leadership affirmed that near-term geopolitical friction will not disrupt long-term development targets, even though energy facility repairs may require years. Simultaneously, diplomatic channels remain active to mediate tensions between the United States and Iran, emphasizing regional stabilization alongside domestic economic expansion.

ESTITHMAR HOLDING AWARDS USD 137 MN CONTRACT FOR MEEZA AI-READY DATA CENTER IN QATAR

Estithmar Holding has awarded a turnkey construction contract valued at over QAR 500 Mn (USD 137 Mn) to its subsidiary, Elegancia Contracting & Industries, to build MEEZA’s newest data center in Qatar. Executed across two phases at the Qatar Science & Technology Park, the project is designed to significantly expand national capacity for hyperscale cloud providers and high-density artificial intelligence workloads.

Elegancia will handle end-to-end execution, spanning site preparation, structural works, mechanical and electrical systems, and final commissioning. The integrated delivery model leverages specialized internal subsidiaries across engineering, MEP, and steel to minimize interface risks, accelerate delivery, and bolster Qatar's mission-critical digital infrastructure.

KUWAIT

COMBINED GROUP LEADS BID FOR USD 520 MN KUWAIT WATER PROJECT

Combined Group Contracting Co. (K.S.C.) has announced that it has ranked first as the lowest-priced bidder for a major KWD 159.96 Mn (USD 520 Mn) project to develop, construct, complete, operate, and maintain a treated water system in the southern region of Kuwait. The tender, No. SE/246, has been issued by the Kuwait Ministry of Public Works as part of efforts to enhance the country’s treated water infrastructure and support food security initiatives.

The project, titled “Developing, Construction, Completion, Operation and Maintenance of the Treated Water System in the Southern Region to Enhance the Food Security System in the State of Kuwait,” carries a total tender value of KWD 159.96 Mn (USD 520 Mn) and has a contract duration of 1,825 days, equivalent to approximately five years.

Under the proposed contract, Combined Group Contracting will be responsible for the development, construction and completion of the treated water system, followed by its operation and maintenance. The project is expected to support the provision of treated water infrastructure required for agricultural and food security-related activities in southern Kuwait.

CHINA STATE CONSTRUCTION TO BUILD NORTH KABD WASTEWATER PLANT

China State Construction Engineering Corporation Ltd. (CSCEC) has signed the contract for the North Kabd Wastewater Treatment Plant and Related Works Project in Kuwait, marking a major step forward in the country’s wastewater infrastructure development programme.

The North Kabd Wastewater Treatment Plant project is a major infrastructure development aimed at strengthening Kuwait’s wastewater management capabilities and enhancing the country’s wastewater collection, transportation, treatment and water reuse infrastructure. The Central Agency for Public Tenders (Capt) had authorised MPW to proceed with a direct contract valued at KD 999.85 Mn (USD 3.3 Bn).

The project scope includes the development of a new wastewater treatment plant at North Kabd, together with associated works required to support the collection and transportation of wastewater and the treatment and reuse of reclaimed water.

Upon completion, the project is expected to enhance Kuwait’s capacity to manage wastewater efficiently, increase the availability of treated water for reuse, and contribute to the country’s environmental sustainability and water resource management objectives.The project also represents a significant milestone in infrastructure cooperation between Kuwait and China and is aligned with broader Belt and Road cooperation in infrastructure development and ecological and environmental protection.

KUWAIT SIGNS USD 16 BN PIPELINE NETWORK ENERGY INFRASTRUCTURE PROJECT

Kuwait Oil Company signed a USD 16 Bn infrastructure agreement in July 2026 with an international consortium comprising Blackstone, Brookfield, and KKR to establish a midstream energy joint venture. Known as Project Peregrine, the brownfield transaction covers the national domestic and export crude oil pipeline network, spanning 13 pipelines across approximately 320 Km. The project represents the largest foreign direct investment and energy infrastructure partnership in the nation's history.

Structured under a 20.5-year lease-and-leaseback framework, Kuwait Oil Company retains a 51% controlling equity stake in the joint venture, while the private consortium holds the remaining 49% in equal shares. Kuwait Oil Company maintains full physical asset ownership, operations, and maintenance responsibilities. The joint venture leases network usage rights and grants Kuwait Oil Company exclusive operational rights in exchange for volume-based tariffs, preserving full state authority over crude oil production targets and refinery throughput.

The arrangement yields USD 7.85 Bn in upfront proceeds for Kuwait Oil Company, allocating liquidity toward the capital investment strategy of Kuwait Petroleum Corporation. These proceeds directly support national plans to expand crude oil production capacity to 4 million barrels per day by 2035. The partnership represents the first long-term commitment of international institutional capital into the midstream sector of the country and remains subject to customary regulatory approvals and closing conditions.

KUWAIT OPENS TECHNICAL BIDS FOR 500 MW SHAGAYA SOLAR PPP PROJECT

Kuwait has reached a key milestone in its renewable energy expansion as the Kuwait Authority for Partnership Projects, alongside the Ministry of Electricity, Water and Renewable Energy and the Kuwait Institute for Scientific Research, opened technical bids for a 500 MW solar power initiative in July 2026. Officially named the Al Dibdibah Power and Al Shagaya Renewable Energy Phase III – Zone 2 project, this greenfield development is situated in Jahra Governorate within the Shagaya Renewable Energy Park.

Two consortia submitted technical proposals for the Public-Private Partnership (PPP) venture. The selected developer will execute the project under a Public-Private Partnership (PPP) framework, supported by a 30-year Power Purchase Agreement (PPA) with the Ministry of Electricity, Water and Renewable Energy serving as the sole off-taker.

While specific project capital expenditure details remain undisclosed, the project represents a pivotal component of Kuwait’s strategy to diversify its energy generation mix, enhance grid reliability, and expand clean utility infrastructure. Upon completion, the facility will significantly increase renewable capacity, support national clean energy targets, and foster long-term infrastructure investment across the nation.

WABAG–HEISCO JV SIGNS USD 371.5 MN DOHA SWRO DESALINATION PLANT CONTRACT

The WABAG–HEISCO Joint Venture has signed a major KWD 114.28 Mn (USD 371.5 Mn) contract with Kuwait’s Ministry of Electricity, Water & Renewable Energy. The agreement marks the formal execution phase of the Doha Seawater Reverse Osmosis (SWRO) Desalination Plant Stage II after its initial award in June 2026. This project represents VA Tech WABAG’s entry into the Kuwaiti market while continuing its expansion across the GCC water infrastructure sector.

Under the Design, Build and Operate contract, the joint venture will handle the engineering, procurement, construction, and commissioning of the facility. The plant is designed to output 60 million imperial gallons (272 million liters) of potable water per day using advanced reverse osmosis and recarbonation technologies. Construction is slated for completion within 36 months, after which the joint venture will manage operation and maintenance for five years. The project will also incorporate on-site solar photovoltaic (PV) systems to meet part of the facility’s energy requirements, supporting Kuwait’s clean-energy objectives and helping reduce the plant’s overall carbon footprint.

KUWAIT GULF OIL LAUNCHES USD 3.3 BN AL-ZOUR GAS PLANT TENDER

Kuwait Gulf Oil Company (KGOC) has officially issued a USD 3.3 Bn tender for the construction of the Al-Zour onshore gas plant using a fast-track procurement model that bypasses the Central Agency for Public Tenders. It is located adjacent to the existing Al-Zour refinery, the facility will process up to 632 million cubic feet of gas and 60,000 barrels per day of condensates from the offshore Dorra field. Contractors have until December 29 to submit their bids, with a preliminary technical coordination meeting set for September 14.

The project has drawn strong interest from international engineering firms, including Samsung E&A, Larsen & Toubro, Tecnicas Reunidas, Saipem, Hyundai Engineering & Construction, and JGC.

The development forms a core component of the broader USD 9 Bn-plus Dorra field program, which recently marked major progress in its development program. Two contracts totaling roughly USD 5.2 Bn were awarded, including a USD 1.5 Bn package to McDermott International and a USD 3.7 Bn package to a consortium of Larsen & Toubro and Saipem. Following the final bid evaluations, the main contract award for the onshore plant is anticipated in early 2027.

KUWAIT SELECTS DEVELOPER FOR 1.1GW SOLAR PROJECT

A consortium comprising Abu Dhabi Future Energy Company (Masdar) and Kuwait's Fouad AlGhanim & Sons has been chosen to develop the 1.1 GW Al-Dibdibah solar project and the Al-Shagaya Renewable Energy Phase III (Zone 1) independent power project in Kuwait. The Ministry of Electricity, Water and Renewable Energy will procure the generated power through the Kuwait Authority for Partnership Projects.

This development aligns with Kuwait's strategy to expand its large-scale renewable energy capacity and diversify its overall power generation mix. By integrating major solar assets into the national grid, the country aims to reduce its reliance on traditional energy resources and accelerate its clean energy transition.

The project marks a major milestone in advancing regional clean energy goals and scaling up utility-scale infrastructure. By securing established developers, the initiative ensures the execution of essential infrastructure needed to meet long-term sustainable energy targets.

SOUQ SHARQ TO BECOME HOME TO 8.77-MW SOLAR POWER PROJECT

An 8.77-megawatt solar power system is set to be installed across the rooftops and carports of the Souq Sharq waterfront complex. The project is believed to be the first of its kind in Kuwait’s private sector. Developed through a partnership between Alternative Energy Projects Company and United Real Estate Company, the project includes complete engineering, procurement and construction, and a 15-year operate and maintenance agreement. It’s scheduled for completion by the end of 2027.

The project is expected to reduce approx. 189,000 metric tons of carbon dioxide emissions over its lifetime. The project supports New Kuwait Vision 2035, which targets renewable energy accounting for 15 percent of Kuwait’s power demand by 2030.

KUWAIT TENDERS TWO AL-MUTLAA CITY CONSTRUCTION PACKAGES

Kuwait’s Public Authority for Housing Welfare tendered two construction contracts for public buildings across five districts in the Al-Mutlaa City residential development. The first package covers districts N5 and N6, while the second spans N1, N3, and N4, with a bid submission deadline set for 30 September. Located 38.3 kilometers northwest of Kuwait City, the 104-square-kilometer mixed-use project is planned to accommodate up to 400,000 residents as part of Kuwait’s Vision 2035.

Driven by government spending under the New Kuwait 2035 National Development Plan, the national construction industry is projected to expand at an average annual rate of 7.1% between 2025 and 2028. This growth includes a planned investment of KD 350 Mn (USD 1.1 Bn) in sports developments across the country. Meanwhile, residential construction is forecast to grow by 3.8% annually over the same period, supported by state initiatives to deliver 65,500 housing units across five major projects by 2029.

List of key transactions - Qatar and Kuwait Q3 2026

Source: YOG INFRA analysis

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