Infrastructure & PPPs in UAE and Bahrain - Q2 2026 Update

YOG INFRA
11 minutes ago
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UAE and BAHRAIN are advancing large-scale renewable energy, transport, water, digital infrastructure, and PPP projects to strengthen energy security, connectivity, and sustainable economic growth. UAE is leading with major investments, including the USD 15 Bn Abu Dhabi PPP pipeline, the USD 1.63 Bn Dubai–Sharjah–Ajman transport corridor, utility-scale renewable energy and battery storage projects, AI-ready data centres, desalination infrastructure, and nationwide smart energy initiatives. BAHRAIN is accelerating strategic infrastructure through the 1,400–1,500 MW Sitra Independent Water and Power Project (IWPP), the Bilaj Al Jazayer Solar IPP under a PPP model, the Bahrain International Sports City development, and other renewable energy and water security projects aimed at expanding private-sector participation and supporting long-term sustainability.

Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q2 2026 series.

UAE

UAE UNVEILS USD 1.63 BN TRANSPORT MASTERPLAN TO CUT DUBAI- SHARJAH-AJMAN TRAFFIC CHAOS

The Dubai - Sharjah - Ajman stretch has been one of the UAE's most congested commuter corridors, affecting millions of daily travellers moving between home and work. The issue isn't small. The three emirates together form the UAE's largest urban cluster, with over 6 million residents and intense daily cross-border commuting. Peak-hour traffic on major routes like Sheikh Mohammed bin Zayed Road (E311) often slows to a crawl, with long delays becoming routine.

A multi-layered transport overhaul is the only way to fix the problem, not just more roads, but smarter mobility options. At the centre of the plan is a massive AED 6 Bn (USD 1.63 Bn) federal highway project, often referred to as the "Fourth Federal Highway."

Key features include:

68km-long highway connecting Dubai, Sharjah and Ajman
6 to 8 lanes in each direction to significantly increase capacity
10 major interchanges to reduce bottlenecks
4 flyovers to improve traffic flow at key junctions

This new corridor will join existing major highways like E11, E311 and E611, which are currently under heavy pressure. The highway is designed not just to ease congestion but also to support future population growth and economic expansion across the northern emirates.

UAE MINISTRY OF INVESTMENT SIGNS MOU WITH JEREH GROUP FOR INTEGRATED CLEAN ENERGY PLATFORM

The Ministry of Investment UAE has signed a Memorandum of Understanding (MoU) with Jereh Group to develop an integrated clean energy and industrial platform in the United Arab Emirates. The agreement aims to strengthen economic cooperation between the UAE and China, while positioning the UAE as a regional hub for advanced manufacturing and next-generation energy technologies.

Under the agreement, Jereh Group will implement a multi-component investment plan that includes the deployment of small modular reactor (SMR) technology to provide stable, zero-carbon baseload power, the establishment of an anode material manufacturing facility with a planned capacity of 100,000 tonnes per annum, and the development of lithium battery recycling capabilities.

The integrated platform is designed to operate synergistically, with SMR-generated power supporting the anode material production facility. The project is expected to be rolled out in phases over the next three to five years.

The initiative aligns with the UAE’s Energy Strategy 2050, which targets an increased share of low-carbon energy while ensuring a secure and diversified energy mix. It also supports the country’s ambition to expand its advanced manufacturing base and strengthen domestic industrial capabilities. The project reinforces the UAE’s position as an early adopter of advanced energy technologies and enhances its attractiveness as a destination for large-scale industrial investment. The Ministry of Investment is expected to play a key role in facilitating Jereh Group’s expansion in the UAE, in line with its mandate to attract investment into high-growth sectors and promote sustainable development.

MOEI LAUNCHES UAE’S FIRST MICROGRID PROJECT TO BOOST ENERGY RESILIENCE AND SUSTAINABILITY

The Ministry of Energy and Infrastructure (MoEI) has announced the launch of a first-of-its-kind microgrid project, marking a major milestone in the United Arab Emirates’ efforts to build a smart, resilient, and future-ready energy ecosystem.

The initiative, aligned with the ‘We the UAE 2031’ vision, is designed to enhance energy security, sustainability, and operational efficiency. The project was initially developed and implemented in 2025 at the Ministry’s headquarters in Sharjah as part of a proactive strategy to ensure preparedness during power outages and emergency scenarios.

The microgrid system adopts an integrated operational model combining clean energy generation, energy storage, and advanced digital energy management technologies. This enables a shift from reliance on centralized grids to a decentralized system with independent operational capabilities.

During its pilot phase, the project delivered measurable outcomes, including an annual reduction of approximately 362,000 kWh in energy consumption, financial savings of nearly AED 110,000 (USD 29,947.50), and a decrease of 76 tonnes of carbon emissions. Solar energy contributed around 30% of the total electrical load, while the system achieved full operational resilience during unexpected power outages, ensuring uninterrupted service continuity.

The next phase will focus on scaling the initiative nationwide and developing a unified technical and regulatory framework to support microgrid adoption, enhance governance, and ensure alignment between federal and local stakeholders. The project forms part of the UAE’s broader strategy to reshape its energy landscape through renewable energy integration and advanced digital solutions, strengthening infrastructure efficiency and positioning the nation as a global leader in sustainable and resilient energy systems.

DIEZ, VOLT UAE COLLABORATE TO DEVELOP DATA CENTRES IN DUBAI SILICON OASIS

The Dubai Integrated Economic Zones Authority (DIEZ) has announced a joint venture with VOLT UAE, the regional platform established by Dutch data centre and AI factory developer VOLT. The partnership will see the development of an advanced, AI-ready data centre in Dubai Silicon Oasis (DSO), DIEZ’s specialised economic zone for knowledge and innovation, further strengthening Dubai’s position as a global hub for the digital economy.

As part of the project, DIEZ and VOLT UAE will collaborate with Schneider Electric, headquartered in Dubai Silicon Oasis, to deliver advanced electrical systems, power distribution, and smart data centre infrastructure to enhance efficiency, reliability, and sustainability. The strategic DIEZ-VOLT UAE partnership aligns with DIEZ’s continued efforts to enhance its digital infrastructure readiness and attract strategic investments in future-focused sectors across its economic zones. It also reflects Dubai’s broader vision to consolidate its position as a global hub for the digital economy.

The project will be developed within the integrated ecosystem of Dubai Silicon Oasis, supporting the growth of the data centre sector and addressing increasing demand for advanced computing solutions. Spanning up to 60,000 square metres, the development will be implemented in two phases: an initial 29 MW readily available capacity, followed by an additional 100 MW of committed power.

ABU DHABI LAUNCHES USD 15 BN PPP PROJECT PIPELINE FOR NEXT TWO YEARS

Abu Dhabi Investment Office (ADIO) and Abu Dhabi Projects and Infrastructure Centre (ADPIC) have jointly launched a new AED 55 Bn (USD 15 Bn) Public-Private Partnership (PPP) pipeline comprising 24 projects across transport, infrastructure and social sectors.

The projects are expected to be brought to market during 2026 and 2027, creating large-scale opportunities for private sector participation and attracting domestic and foreign investment into Abu Dhabi.

Transport projects: The transport sector accounts for the largest share of the programme, with 11 major road projects valued at approximately AED35 Bn (USD 9.53 Bn). The developments will cover more than 300 kilometres of new and upgraded roads, tunnels, intersections and wider network improvements.
Infrastructure projects: A further AED 11 Bn (USD 3 Bn) has been allocated to five infrastructure projects, including dams, water storage, flood control systems, stormwater upgrades and urban landscaping works.
Social infrastructure: The remaining AED 9 Bn (USD 2.45 Bn) covers eight social infrastructure developments, including sports facilities, specialist healthcare assets, schools and university campuses, delivering essential, government-backed assets that support community development and enhance long-term liveability.

ETIHADWE EXPANDS PPP DESALINATION PIPELINE IN THE UAE WITH SECOND IWP PROJECT

UAE-based Etihad Water and Electricity (EtihadWE) announced second desalination project under a Public-Private Partnership (PPP) model in the country. The state-owned utility’s development and investment arm signed an engineering, procurement and construction (EPC) agreement for the Fujairah I Independent Water Producer (IWP) project with a consortium of Abu Dhabi-based NMDC Infra and Spain’s Lantania Aguas.

The 60 million imperial gallons per day (MIGD) seawater reverse osmosis (SWRO) desalination plant has a total investment value of AED 1.046 Bn (USD 285 Mn). The facility, located at Port of Fujairah, will also have storage capacity equivalent to 18 hours of production, and is expected to be completed within 30 months. Lantania NMDC Water, formed after NMDC Infra acquired a 51% stake in Lantania Aguas in Q1 2026, will deliver the project.

ADIO, BPE LAUNCH SOCIAL VALUE FRAMEWORK FOR ABU DHABI SCHOOLS PPP PROJECT

Abu Dhabi Investment Office (ADIO) and BESIX Plenary Education Properties Development (BPE) have introduced a structured social value framework for the Zayed City Schools Project Public-Private Partnership (PPP) programme in Abu Dhabi. The framework was announced during the Abu Dhabi Infrastructure Summit 2026 (ADIS 2026).

Under the initiative, approximately AED 1.4 Mn (USD 381,000) will be allocated to support student wellbeing initiatives, community engagement programmes and inclusive development projects. The funding will be deployed over the remaining concession period through the special purpose vehicle (SPV) responsible for delivery and operation of the PPP schools. The framework forms part of ADIO’s PPP model, which integrates structured social value mechanisms into project design and delivery, ensuring consistent and measurable contributions from private sector partners.

BPE delivered three schools under the programme in September 2024 under a 20-year finance, design, build and maintain agreement with ADIO and Abu Dhabi Department of Education and Knowledge (ADEK). A fourth school is under construction in Khalifa City. In January 2025, the consortium had achieved financial close on the project under an augmented procurement framework introduced by ADIO to meet the August 2026 operationalisation target set by ADEK.

The augmentation comprises the design, build, finance, and 18-year operation and maintenance of a new campus, which will accommodate 3,380 students in Khalifa City. In July 2024, a consortium led by Plenary Group alongside BESIX and Mazrui International was awarded the Khalifa University Student Accommodation PPP Project, which comprises a 23-year concession to design, build, finance and maintain 3,260 student rooms.

SUNGROW AND MASDAR SIGNS 7.5GWH ENERGY STORAGE SYSTEM FOR ABU DHABI’S WORLD FIRST ROUND-THE-CLOCK RENEWABLE ENERGY PROJECT

Sungrow, the globally leading PV inverter and energy storage system (ESS) provider, and Masdar, a global clean energy leader, have signed an agreement for the supply of Energy Storage System and PV inverter solutions for the UAE’s world-first gigascale round-the-clock renewable energy project (RTC).

Developed by Masdar and the Emirates Water and Electricity Company (EWEC), RTC combines 5.2GW of solar photovoltaic (PV) capacity with a 19GWh battery energy storage system (BESS), delivering baseload renewable energy at unprecedented scale. Under the agreement, Sungrow will supply 7.5GWh of PowerTitan 3.0 ESS, alongside 2.6GW of PV inverter solutions, supporting the project’s operational reliability and efficiency.

Designed to help meet growing demand for uninterrupted clean power, the project will support a range of applications, including energy-intensive industries, business operations, residential communities, and emerging digital infrastructure.

RTC represents a major advancement in the integration of solar PV and battery storage technologies at the utility scale. Once operational in 2027, it is expected to support the delivery of reliable clean energy around the clock while enhancing grid resilience and flexibility.

BAHRAIN

BAHRAIN LAUNCHES PREQUALIFICATION FOR BAHRAIN INTERNATIONAL SPORTS CITY STADIUM PROJECT

The Ministry of Works in the Kingdom of Bahrain has announced the launch of the prequalification phase for contractors for the first package of the Bahrain International Sports City development project. The tender, titled “Bahrain International Sports City – Phase 1A,” covers the construction of a major international sports stadium along with associated infrastructure and supporting works.

The prequalification process is aimed at identifying qualified contractors based on financial strength, technical expertise, previous project performance, and resource capabilities in order to minimize project risks and enhance procurement efficiency.

The Ministry of Works stated that contractors with proven experience in the construction of major international sports stadiums will be invited to participate in the prequalification process ahead of the main tender stage.

Eligible consortium structures for participation include:

Joint ventures between Saudi Class A contractors and foreign/international contractors with stadium construction experience.
Joint ventures between Bahraini Category AA contractors and foreign/international contractors experienced in major sports stadium projects.
Joint ventures comprising Saudi Class A contractors, Bahraini Category AA contractors, and foreign international contractors with relevant stadium construction expertise.

YELLOW DOOR ENERGY AND ACWA SUBMIT BIDS FOR BAHRAIN’S BILAJ AL JAZAYER SOLAR IPP

The Electricity and Water Authority (EWA) of the Kingdom of Bahrain has received proposals from two developers for the development of the Bilaj Al Jazayer Independent Power Project (BAJ Solar IPP), a utility-scale solar photovoltaic (PV) project that will be delivered under a Public-Private Partnership (PPP) model on a Build-Own-Operate (BOO) basis.

The project represents a key component of Bahrain’s renewable energy strategy and supports the Kingdom’s objective of increasing the share of renewable energy in its power generation mix to 20% by 2035. The bids likely correspond to electricity tariffs of approximately 11.398 fils/kWh (around 3.02 US cents/kWh) for Yellow Door Energy and 15.440 fils/kWh (around 4.10 US cents/kWh) for ACWA Power.

The Bilaj Al Jazayer Solar IPP will involve the development, financing, construction, ownership, operation, and maintenance of a utility-scale solar PV facility at Bilaj Al Jazayer in the southern region of Bahrain. The project is expected to contribute significantly to the Kingdom’s clean energy capacity while reducing carbon emissions and supporting long-term energy sustainability objectives.

Once awarded, the successful developer will be responsible for delivering the solar power facility under a long-term concession framework, including all associated infrastructure required for the generation and transmission of renewable electricity to the national grid.

The project forms part of Bahrain’s broader efforts to attract private-sector participation in strategic infrastructure developments and accelerate the deployment of renewable energy projects in line with national sustainability goals.

ACWA AND TAQA SUBMIT PROPOSALS FOR BAHRAIN’S SITRA IWPP PROJECT

The Electricity and Water Authority (EWA) of the Kingdom of Bahrain has received proposals from two leading regional utility developers for the development of the Sitra Independent Water and Power Project (Sitra IWPP), one of the Kingdom’s largest upcoming power and desalination projects.

The bidders that submitted proposals for the project are:

· Acwa formerly knowns as ACWA Power Company (Saudi Arabia)

· Abu Dhabi National Energy Company (TAQA) (UAE)

The Sitra IWPP is being tendered under a Build-Own-Operate (BOO) model and forms a key component of Bahrain’s strategy to strengthen power generation capacity and ensure long-term water security while supporting future economic and industrial growth.

The project involves the development of a large-scale combined power and water production facility comprising a thermal power plant with a Guaranteed Net Contracted Power Capacity (GNCPC) ranging between 1,400 MW and 1,500 MW, alongside a Seawater Reverse Osmosis (SWRO) desalination facility with a Guaranteed Net Contracted Water Capacity (GNCWC) of 5,682 cubic meters per hour.

Upon completion, the facility will significantly enhance Bahrain’s electricity generation and potable water production capabilities, supporting growing demand from residential, commercial, and industrial sectors across the Kingdom.

The project is expected to attract substantial private-sector investment and international expertise, further advancing Bahrain’s Public-Private Partnership (PPP) program and reinforcing the country’s commitment to sustainable infrastructure development.

List of key transactions - UAE and Bahrain Q2 2026

Source: YOG INFRA analysis

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