Infrastructure & PPPs in UAE and Bahrain - Q3 2025 Update

YOG INFRA
2 days ago
9 min read

UAE and BAHRAIN are advancing major infrastructure and clean energy initiatives aligned with their national visions for sustainability and innovation. UAE is expanding transport and logistics capacity, launching large-scale renewable energy and power projects, and piloting smart mobility technologies such as autonomous delivery vehicles. Sharjah’s new solar plant and inland container depot, along with EWEC’s new IPPs, reflect strong public–private collaboration to enhance energy efficiency and trade connectivity. BAHRAIN is progressing renewable and smart infrastructure projects, including solar power plants, a major water and power facility, and the region’s largest maritime solar installation, while also developing its first digital bus station to support sustainable urban mobility and economic diversification.

Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q3 2025 series.

UAE

UAE LAUNCHES USD 204.2 MN STRATEGIC PROJECT TO DEVELOP EMIRATES ROAD

UAE’s Ministry of Energy and Infrastructure has announced the launch of a project to develop and enhance the capacity of Emirates Road, as part of a comprehensive national plan to address traffic congestion. This strategic project reflects the UAE’s commitment to building a smart, resilient, and sustainable infrastructure that supports economic growth objectives, enhances quality of life, and improves the efficiency of the federal road network.

The project is being implemented in collaboration with local government entities and is expected to deliver tangible outcomes that positively impact mobility, goods transport, and service flow across the country. The Emirates Road development project includes expanding the road from three to five lanes in each direction over a stretch of 25 kilometres, starting from Al Badee Interchange in Sharjah to the Emirate of Umm Al Quwain. This expansion will increase the road’s capacity to approximately 9,000 vehicles per hour, representing a 65% increase.

The project also features a comprehensive upgrade of Interchange No. 7 on Emirates Road, with the construction of six directional bridges totalling 12.6 kilometres in length, and a combined capacity of 13,200 vehicles per hour. In addition, the development will include the creation of collector roads on both sides of Emirates Road, spanning 3.4 kilometres.

The project, with an estimated cost of AED 750 Mn (USD 204.2 Mn) is scheduled to begin in September 2025 and will span two years. It aims to regulate traffic flow and achieve the highest safety standards for road users. The development will significantly reduce travel time – by up to 45% – for commuters traveling from Ras Al Khaimah, through Umm Al Quwain and Sharjah, to Dubai, and vice versa.

SHARJAH LAUNCHES 60 MW SOLAR PLANT TO POWER GAS COMPLEX, GRID

The emirate of Sharjah has commissioned its first utility-scale solar plant to power the Sajaa Gas Complex and export surplus electricity to the grid. The 60 MWp SANA facility, developed in collaboration with a Masdar–EDF joint venture, is among the first in the region to integrate solar power into oil and gas operations.

Emerge, a joint venture between Masdar and France's EDF Group, developed the project in collaboration with SEWA and SNOC. The new solar plant will enhance energy security and reduce emissions. It consists of more than 98,000 solar panels mounted on 13,000 single-axis trackers. The SANA solar plant, spanning 850,000 square meters, is one of the first large-scale oil and gas processing facilities in the world to be powered by on-site solar generation. The plant will purportedly offset 66,000 metric tons of carbon dioxide per year, which is equivalent to the annual electricity consumption of about 13,780 homes. The project is expected to support SNOC’s operations by day and draw from SEWA at night.

EWEC ISSUES RFP FOR AL NOUF IPP

Emirates Water and Electricity Company (EWEC), UAE has issued a Request for Proposals (RFP) for the development of the Al Nouf Independent Power Producer (IPP) project, the largest single-site carbon-capture-ready Combined Cycle Gas Turbine (CCGT) plant in the UAE. The state-of-the-art plant is designed to deliver world-class efficiency, operational flexibility, and lower emissions, supporting the UAE’s long-term decarbonisation agenda.

The Al Nouf Complex will play a pivotal role in the UAE’s energy and water security, with the site carefully selected for its strategic coastal location and ability to accommodate both seawater-cooled power generation and reverse osmosis (RO) desalination technologies. Designed with long-term scalability in mind, the complex features ample space and infrastructure capacity to support multiple utility-scale energy and desalination projects in the future. This integrated planning approach underscores EWEC’s commitment to developing energy clusters that deliver synergies in performance, efficiency, and environmental sustainability.

The project is expected to support Emiratisation targets by facilitating the inclusion of UAE Nationals across key roles, thereby supporting national workforce development goals. It will involve the development, financing, construction, operation, maintenance, and ownership of the plant, with the successful developer or developer consortium owning up to 40 %of the entity. The remaining equity will be held indirectly by the Abu Dhabi Government.

MAADEN AND EMERGE SIGNS PPA FOR SOLAR POWER PROJECT

Maaden Bauxite and Alumina Company (MBAC), a subsidiary of Maaden (Saudi Arabian Mining Company) has signed a Power Purchase Agreement (PPA) with Emerge, a joint venture between Masdar and EDF power solutions.

Under the agreement, Emerge will develop a solar power project to supply the Al Baitha Bauxite Mine with clean, renewable energy for the next 30 years. This initiative supports Saudi Arabia’s energy transition and aligns with the goals of Vision 2030 by reducing carbon emissions and promoting sustainable industrial growth.

The off-grid energy facility will integrate a ground-mounted 8 MWp solar photovoltaic array with a 30 MWh battery energy storage system backing up the intermittency of the solar production and securing a 24/7 electricity supply. The facility is expected to generate approximately 17,300 MWh of electricity annually. The project will help avoid around 13,800 tonnes of carbon dioxide (CO₂) emissions per year, equivalent to removing more than 3,000 cars from the road annually. With this facility, the Al Baitha Bauxite Mine will be able to operate almost entirely on renewable energy, marking a major step toward sustainable mining operations.

EWEC RECEIVES BIDS FOR 2.5GW TAWEELAH C IPP

EWEC (Emirates Water and Electricity Company), the sole procurer and supplier of water and electricity for the Abu Dhabi emirate received three proposals for the development of the 2.5 gigawatts (GW) Taweelah C Independent Power Producer (IPP) project. The proposals were submitted by:

Consortium of Saudi Arabia's Al Jomaih Energy and Water Company and Singapore's Sembcorp Industries consortium
Consortium of Japan's Sumitomo Corporation, and South Korea's Korea Overseas Infrastructure and Urban Development Corporation, and Korean Midland Power
Consortium of South Korea's Korea Western Power Company, the UAE's Etihad Water and Electricity, and Japan's Kyuden International.

The new carbon-capture-ready Combined Cycle Gas Turbine (CCGT) plant will be located in the Al Taweelah Power and Desalination Complex, approximately 50 kilometres North-East of the city of Abu Dhabi. The plant will have a capacity of 2.5 gigawatts and is expected to achieve commercial operations in Q4 2028. The Taweelah C project reflects EWEC’s long-term strategy to transform the nation’s energy infrastructure while fostering economic development, creating high-skilled jobs, and contributing to national sustainability goals.

ABU DHABI LAUNCHES PILOT FOR AUTONOMOUS DELIVERY VEHICLES IN MASDAR CITY

Abu Dhabi has taken a major leap in its smart mobility ambitions with the launch of its first autonomous delivery vehicle pilot programme in Masdar City. Developed through a Public-Private Partnership (PPP) collaboration involving local tech and logistics firms, this trial marks the emirate's initial move toward integrating AI-powered logistics into everyday life-combining sustainability, innovation, and regulatory progress into a single initiative.

The Integrated Transport Centre (ITC)—also known as Abu Dhabi Mobility-has officially launched the first pilot programme for autonomous delivery vehicles in Masdar City, a hub for sustainable urban development in the emirate. The vehicles, developed by Autogo, a subsidiary of K2, operate without human drivers and are powered by advanced smart mobility systems and artificial intelligence. The pilot rollout included a significant milestone: issuance of Abu Dhabi's first official licence plate for a self-driving delivery vehicle.

GULFTAINER LAUNCHES UAE’S FIRST BONDED INLAND CONTAINER DEPOT IN SHARJAH

Gulftainer has set a new benchmark for trade and logistics in the UAE with the launch of the country’s first bonded Inland Container Depot (ICD) in Sharjah. The strategic facility, already operational, is poised to transform cargo movement and strengthen the UAE’s position as a leading global logistics hub.

Located just 20 km from Sharjah Port and 140 km from Khor Fakkan, the bonded ICD offers seamless multimodal connectivity between seaports and inland markets. The initiative is designed to streamline customs clearance, accelerate cargo flows, and provide competitive, efficient solutions for importers, exporters, NVOCCs, and carriers.

By offering faster processing and stronger integration with regional and international supply chains, the Sharjah ICD is expected to significantly enhance trade efficiency. With this milestone, Gulftainer reinforces its commitment to advancing logistics infrastructure and supporting Sharjah’s growth as a gateway for global trade.

GFH PARTNERS AND PALMON GROUP LAUNCH HIGH-BAY TEMPERATURE-CONTROLLED WAREHOUSE IN JAFZA

GFH Partners Manrre REIT (CEIC), managed by GFH Partners, together with its development manager Palmon Group marked the start of construction of a new state-of-the-art logistics facility in North Jafza. The development is set on a 214,000 sq ft plot and will introduce one of the UAE’s first high-bay, temperature-controlled warehouses, establishing a new benchmark for Grade A logistics assets in the region. Built to international specifications, the facility is designed for efficiency, scalability, and tenant convenience, directly addressing the rising demand for premium logistics space across high-growth sectors, said the company.

With a 144,000-sq-ft built-up area, the facility will offer 32,000 pallet positions, 16 loading bays, an FM1 super-flat floor slab, and 15,000 sq ft of modern office space, including a rooftop viewing deck overlooking DP World’s Jebel Ali Port. The design maximises storage capacity within the same footprint while ensuring operational intelligence, adaptability, and sustainability.

Construction is scheduled for completion in the Q1 of 2027, with advanced leasing discussions already underway with one of the region’s leading logistics providers to occupy space in the facility, reflecting the strong market appetite for Grade A assets.

BAHRAIN

BAHRAIN LAUNCHES TENDER FOR 150 MW SOLAR PROJECT

The Electricity and Water Authority (EWA) announced the commencement of work on Bahrain’s first solar power plant for electricity generation, with a planned production capacity of up to 150 MW. The project, which will be developed in partnership with the private sector, forms part of national initiatives to enhance the Kingdom’s reliance on renewable energy sources and contributes to Bahrain’s target of reaching net-zero carbon emissions by 2060.

The solar power plant will be located in the southern region of Bahrain, near Bilaj Al Jazayer, covering a total area of approximately 1.2 square km. The project will utilise the latest advancements in solar energy technologies to optimise output and efficiency. This initiative is a cornerstone of the Kingdom’s National Renewable Energy Plan, which aims to raise the share of clean energy to 20% of Bahrain’s energy mix by 2035. Once operational, the plant is expected to generate electricity sufficient to meet the needs of approximately 6,300 homes and will contribute to an annual reduction of over 100,000 tonnes of carbon emissions, reinforcing Bahrain’s environmental sustainability goals and energy resilience.

BAHRAIN LAUNCHES INTERNATIONAL TENDER FOR 1400MW POWER PLANT

Bahrain's Electricity and Water Authority (EWA) has announced the launch of an international tender for the development of the Sitra Independent Water and Power Production Plant (IWPP), with a planned capacity of 1400–1500 megawatts (MW) of electricity and 30 million imperial gallons per day (MIGD) of potable water. The project will be implemented through a strategic partnership with the private sector under a Build-Own-Operate (BOO) system.

EWA has pre-qualified 6 leading project developers for the project as well as a consortium.

Japanese groups Jera
Sumitomo Corporation
Korea Electric Power Corporation (Kepco)
Saudi utility major Acwa Power
UAE-based Abu Dhabi National Energy Company (TAQA)
Kuwait's Gulf Investment Corporation (GIC)
China Energy Engineering Corporation (CEMC) and China Datang (Overseas Hong Kong)

The operational testing phase and initial commercial operation of 600MW of electricity and 30 MIGD of water are expected to begin in the second quarter of 2028, with the full commercial operation of the plant scheduled for the second quarter of 2029. EWA has invited contractors and investors interested in co-operation to directly communicate with these entities to explore partnership opportunities and exchange expertise for the implementation of the project.

BAHRAIN'S ASRY LAUNCHES LARGEST MARITIME SOLAR PROJECT WITH KANOO CLEANMAX

The Arab Shipbuilding and Repair Yard Company (ASRY) have launched a landmark 44.5 MW solar power project in partnership with Kanoo CleanMax Renewables, the largest solar installation globally in the ship repair and shipbuilding industry. The facility will generate more than 71 million kWh annually and deliver savings exceeding USD 2 Mn, advancing both operational efficiency and Bahrain's clean energy goals.

The project will be developed in two phases, 22.5 MW in the first stage, producing over 36 million KWh per year, followed by an additional 22 MW in phase two, bringing total output above 71 million kWh annually.

Kanoo CleanMax is a joint venture between Yusuf Bin Ahmed Kanoo Company WLL. and CleanMax Solar MENA FZCO, a wholly owned subsidiary of CleanMax Enviro Energy Solutions Ltd. The initiative consolidates ASRY's status as a regional maritime hub and supports Bahrain's long-term aspirations to build a sustainable green economy for future generations.

BAHRAIN LAUNCHES FIRST DIGITAL BUS STATION IN PARTNERSHIP WITH STC

Bahrain’s Ministry of Transportation and Telecommunications has signed an agreement with STC Bahrain to introduce the Kingdom’s first digital bus station. The project forms part of national efforts to expand smart infrastructure and align with Bahrain’s Economic Vision 2030.

The new facility will use data-driven systems to improve passenger services, enhance reliability, and support smarter transport planning. It is also expected to serve as a model for future smart mobility hubs across the country. The initiative highlights growing collaboration between the public and private sectors, with stc Bahrain contributing digital expertise to advance sustainable urban mobility.

List of key transactions - UAE and Bahrain Q3 2025

Source: YOG INFRA analysis

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