Infrastructure & PPPs in UAE and Bahrain - Q1 2026 Update

YOG INFRA
5 hours ago
8 min read

UAE and BAHRAIN are advancing renewable energy, digital infrastructure, and strategic development projects. UAE is progressing key sustainability initiatives, including the 1.5 GW Khazna Solar PV project by Engie and Masdar, sewerage PPP developments in Dubai, and a USD 3.46 Bn expansion of Dubai Silicon Oasis to strengthen its innovation ecosystem. BAHRAIN is similarly strengthening its infrastructure and sustainability agenda, with 372 renewable energy projects adding around 141 MW of capacity, the 100 MW Bilaj Al Jazayer Solar IPP under a PPP model, and the launch of its first edge data centre through collaboration between Batelco and Qareeb Data Centers.

Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q1 2026 series.

UAE

ENGIE SECURES FUNDING FOR 1.5GW KHAZNA SOLAR PV PROJECT IN UAE

French energy company Engie and its partner Masdar have reached financial close for the 1.5GW Khazna Solar PV project in the United Arab Emirates (UAE). Equipped with nearly 3 million solar panels, the project is set to be the largest photovoltaic (PV) installation undertaken by Engie globally. It is located between Abu Dhabi and Al Ain and is expected to become fully operational in 2028. Financing for the project has been secured from a consortium of seven major banks, including Abu Dhabi Islamic Bank and Crédit Agricole Corporate and Investment Bank.

The Khazna Solar PV project was awarded to Engie and Masdar by the Emirates Water and Electricity Company (EWEC) in Q4 2025. Under a 30-year power purchase agreement, EWEC will procure the output of the solar facility. The project aims to supply electricity to approximately 160,000 homes and is projected to reduce carbon emissions by more than 2.4 million tonnes per annum.

Khazna Solar PV also represents the first rollout of a regional cooperation agreement between Engie, PV module supplier LONGi, and engineering, procurement, and construction company PowerChina. The partnership brings together their expertise and resources to develop large-scale solar projects totaling more than 800 MW across Saudi Arabia, the UAE, and Morocco, while expanding their presence throughout the Middle East and North Africa.

DUBAI INVITES BIDS FOR PHASE 2 LINKS PACKAGE OF STRATEGIC SEWERAGE TUNNELS (DSST) PROJECT

Dubai Municipality, through its Sewerage and Recycled Water Projects Department (SRPD), has announced the launch of the Public-Private Partnership (PPP) Request for Proposal (RfP) for the Phase 2 Links Package of the Dubai Strategic Sewerage Tunnels (DSST) Project.

Issued under Tender No. 214893, the RfP relates to DSST–PPP Phase 2: Links Package (rfq_234673). The tender aims to appoint a qualified PPP developer to deliver this critical phase of the DSST Project.

The scope of the project covers the development, financing, design, engineering, procurement, construction, commissioning, ownership, operation, maintenance, and eventual handback of the DSST Phase 2 Links Package. The project will be implemented under Dubai’s PPP framework, in line with PPP Law No. 22 of 2015.

DUBAI LAUNCHES USD 3.46 BN STRATEGIC EXPANSION PROJECTS FOR DUBAI SILICON OASIS

Dubai has launched expansion projects at Dubai Silicon Oasis (DSO), a special economic zone under the Dubai Integrated Economic Zones Authority (DIEZ), with total investments of AED 12.8 Bn (USD 3.46 Bn). The plan includes two main projects: District IO and Block 14, aimed at strengthening Dubai’s position as a global hub for knowledge, innovation, and technology-driven development.

The District IO project, with investments of AED 11 Bn (USD 2.97 Bn), will provide infrastructure to support future technologies and enhance Dubai’s research, development, and innovation ecosystem. Comprising 25 LEED-compliant buildings—including commercial, residential, and hospitality facilities—the project is expected to create over 70,000 direct and indirect jobs, contribute AED 103 Bn (USD 28.05 Bn) to Dubai’s GDP, and attract AED 30 Bn (USD 8.1 Bn) in foreign investment by 2036. Development will occur in two phases starting in 2026, with offices, R&D labs, retail, and later, hospitality and innovation centers.

The project also offers incentives such as end-to-end business setup solutions, sector-specific labs, funding support, flexible leasing, and access to research networks, positioning it as a flagship initiative under programs like Sandbox Dubai and the Unicorn Programme.

The Block 14 project, with AED 1.8 Bn (USD 486 Mn) in investments, supports the Dubai 2040 Urban Master Plan and the transit-oriented development model. Designed as a residential and lifestyle district, Block 14 aims to enhance quality of life with world-class amenities, smart infrastructure, and integrated urban design while supporting the development of robotics, autonomous systems, and a knowledge-based economy.

DUBAI BUILDING 100-MW SOLAR-POWERED DATA CENTRE

The Dubai Electricity and Water Authority (DEWA) has announced that work is set to start on Phase I of its solar-powered Green Data Centre being set up by its key subsidiary, Data Hub Integrated Solutions (Moro Hub), in Warsan in 2026.

Moro Hub, a key subsidiary of Digital Dewa, is the fourth green data center being developed by the company, thus reflecting its continued commitment to advancing digital sustainability and providing world-class infrastructure that supports the UAE’s digital transformation.

With a planned capacity of over 100 MW, the new center will further strengthen Dubai’s position as a leading hub for sustainable and future-ready digital solutions. The key facility, covering an area of 66,000 sq m, is undergoing development as a major hub for sustainable and future-ready digital solutions.

RAS AL KHAIMAH SIGNS USD 300 MN SEWAGE TREATMENT AGREEMENT WITH INTERNATIONAL CONSORTIUM

The Government of Ras Al Khaimah, through the Public Services Department, has entered into a long-term Sewage Treatment Agreement (STA) with a consortium consisting of the UAE's Etihad Water and Electricity (EtihadWE), TAQA Water Solutions, and France's Saur International. The partnership is aimed at developing and operating the Ras Al Khaimah Wastewater Treatment Plant.

The facility, designed to treat 60,000 cubic meters per day (m³/day), is expected to support a population of approximately 300,000 upon its completion. This project marks the first Public-Private Partnership (PPP) initiative in the emirate and will be implemented under a Build–Own–Operate–Transfer (BOOT) model. The consortium will oversee the design, financing, construction, commissioning, insurance, ownership, operation, and maintenance of the plant and its assets for the duration of the project lifecycle.

Details regarding the concession agreement and the expected completion timeline have not yet been disclosed. The project is estimated to involve an investment of approximately USD 300 Mn. The plant will also be designed with provisions for future expansion, enabling its treatment capacity to increase to 150,000 m³/day as demand grows.

BAHRAIN

BATELCO AND QAREEB TO LAUNCH EDGE DATA CENTRE IN BAHRAIN

Batelco by Beyon has signed a strategic partnership agreement with Bahrain-based Qareeb Data Centers to launch Bahrain’s first edge data centre. Under the agreement, Qareeb will manage and operate its first edge data centre through a long-term lease of Batelco’s recently announced White Space Data Centre, which offers 6,000 square metres of space inside Beyon’s 140,000 square metre Data Oasis in Southern Bahrain.

The agreement represents an important step forward in translating data centre strategy into operational excellence, enabling to extend our reach across key market segments. The new data centre facility will enable it to deliver sovereign, low-latency and AI-ready co-location services for enterprises, cloud providers and digital platforms across the Gulf Cooperation Council (GCC).

This facility represents Qareeb Data Centers’ first operational data centre and a significant milestone in delivering high-performance, scalable and sovereign edge colocation for cloud providers, AI innovators and enterprise organisations across the Middle East. This development contributes to strengthening Bahrain’s digital infrastructure while enabling customers to scale next-generation cloud and artificial intelligence workloads with confidence.

BAHRAIN’S BEYON WINS USD 2.8 BN KUWAIT FIBRE PPP UNDER 50-YEAR AGREEMENT

Bahrain-listed technology company Beyon has been selected by the Kuwait Authority for Partnership Projects (KAPP) as for building and operating the Fixed Telecommunications Network Development Project under a 50-year Public Private Partnership (PPP) agreement.

Under the agreement, Beyon will design, finance, build, operate, and maintain Kuwait’s nationwide, high-speed fibre broadband network with a total investment exceeding USD 2.8 Bn over the lifetime of the agreement. KAPP will hold a 60% stake in the project company to be established, while Beyon will retain 40%. Once the network is fully operational, KAPP plans to IPO a portion of shares for subscription by Kuwaiti citizens.

BAHRAIN LAUNCHES 372 RENEWABLE ENERGY PROJECTS TO ADD 141 MW OF GREEN POWER CAPACITY

The Kingdom of Bahrain announced the launch of 372 renewable energy projects designed to significantly expand the nation’s clean power capacity and advance its long-term energy transition strategy. The combined capacity of these initiatives is estimated at approximately 141 MW, marking a major step toward diversifying Bahrain’s energy mix and reducing reliance on fossil fuels and supporting the Kingdom’s national decarbonization agenda.

The newly launched projects include a range of solar energy installations and other innovative renewable solutions across the kingdom, reflecting Bahrain’s commitment to increasing its renewable footprint and aligning with broader Gulf Cooperation Council (GCC) sustainability objectives. Many of the projects are expected to be deployed in both urban and rural settings, contributing to energy resilience while creating opportunities for local clean energy jobs and infrastructure development.

Officials emphasised that these initiatives are being rolled out under the framework of Bahrain’s Renewable Energy Policy and concerted efforts to meet national climate targets, including contributions to the Paris Agreement commitments and the transition toward a lower carbon economy. By prioritising renewable deployments, the government aims to reduce greenhouse gas emissions and strengthen energy security through diversification.

The expansion of renewable capacity is also aligned with regional ambitions to harness abundant solar resources and accelerate clean power generation through collaborative planning, investment incentives, and strategic partnerships. Bahrain’s launch of these 372 projects signals a growing momentum in the Middle East’s transition toward sustainable energy systems and supports the kingdom’s vision of sustainable economic growth while enhancing environmental outcomes.

BAHRAIN’S EWA RECEIVES BIDS FOR 100 MW BILAJ AL JAZAYER SOLAR IPP PROJECT

The Electricity and Water Authority (EWA) has received bids for the development of the Bilaj Al Jazayer Independent Power Project (BAJ Solar IPP), a utility-scale solar photovoltaic (PV) facility planned in Bahrain. The two companies submitted bids for the project: ACWA Power and Yellow Door Energy. The solar project is expected to have a generation capacity of at least 100 MWac.

The BAJ Solar IPP will be developed under a Public-Private Partnership (PPP) framework on a Build-Own-Operate (BOO) basis. The selected developer will be responsible for the entire lifecycle of the project over a 25-year period, covering development, financing, construction, operation, maintenance, decommissioning, and site restoration.

The planned solar facility will deploy proven photovoltaic (PV) modules supported by utility-grade inverters designed to operate efficiently under local environmental conditions. The project scope also includes the construction of associated infrastructure such as internal and access roads, as well as other supporting facilities required for plant operations.

Once completed, the Bilaj Al Jazayer Solar IPP is expected to contribute significantly to Bahrain’s renewable energy ambitions, supporting the Kingdom’s target of achieving 20% renewable energy in its energy mix in 2035. The project forms part of the government’s broader strategy to diversify energy sources and reduce carbon emissions while meeting growing electricity demand.

List of key transactions - UAE and Bahrain Q1 2026

Source: YOG INFRA analysis

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