Infrastructure & PPPs in UAE and Bahrain - Q4 2025 Update

YOG INFRA
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UAE and BAHRAIN are aggressively advancing renewable energy, digital infrastructure, and strategic development projects. UAE, major initiatives include the world’s largest 5.2 GW solar and 19 GWh battery storage project by Masdar and EWEC, the 2,400 MW Fujairah F3 CCGT plant, the 1.5 GW Khazna solar PV project, and expansions in data centers, EV charging, smart glass manufacturing, and national highways. BAHRAIN is similarly investing in clean energy and infrastructure, with multiple solar projects totaling over 270 MW, the world’s largest single-site rooftop solar plant, advanced ICT and data center projects, SME funding programs, and sustainable transport initiatives including eVTOL readiness.

Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q4 2025 series.

UAE

UAE BREAKS GROUND ON WORLD’S LARGEST SOLAR AND BATTERY STORAGE PROJECT TO DELIVER 1GW OF BASELOAD RENEWABLE POWER

The United Arab Emirates (UAE) has initiated construction of an AED 22 Bn (USD 5.99 Bn) renewable energy project, featuring a 5.2 GW solar photovoltaic (PV) power plant with a 19 gigawatt-hour (GWh) advanced battery storage system. Developed by Masdar in partnership with Emirates Water and Electricity Company (EWEC), the project aims to deliver 1 GW of clean, continuous baseload power at a competitive tariff.

The project is anticipated to be the most advanced and the world’s biggest solar and battery storage project, marking a transformational moment for the renewable energy sector. When commissioned in 2027, the project is expected to offset 5.7 million tonnes (mt) of carbon emissions annually. The project is expected to create more than 10,000 jobs and stimulate new manufacturing facilities.

It will utilize a range of technologies to enhance efficiency and reliability, such as virtual power plant models, grid-forming capabilities, and AI-enhanced forecasting. By 2030, Masdar plans to expand its clean energy portfolio to 100 GW, solidifying its position as a key player in the global energy transition.

EWEC, TAQA, AND PARTNERS LAUNCHED FUJAIRAH F3 INDEPENDENT POWER PRODUCER

Fujairah Power Company F3, co-owned by Marubeni, Hokuriku Electric Power Company, Abu Dhabi National Energy Company (TAQA), and Mubadala Investment Company, has begun commercial operations of the Fujairah F3 independent power project.

The project is situated in the Emirate of Fujairah within the United Arab Emirates (UAE). The project encompasses the construction, operation, and maintenance of a combined cycle gas turbine (CCGT) power plant powered by natural gas.

The investment in the Fujairah F3 power project is distributed among the aforementioned partners, with Marubeni holding a 20.4% stake. TAQA owns 40% while Mubadala and Hokuriku Electric Power hold 20% and 19.6%, respectively.

The electricity generated from the project will be sold to Emirates Water and Electricity Company (EWEC) through a 25-year power purchase agreement (PPA). With a generation capacity of 2,400MW, the Fujairah F3 project stands as the largest CCGT power plant in the UAE.

EWEC SIGNS PPA WITH ENGIE AND MASDAR FOR 1.5 GW KHAZNA SOLAR PROJECT

Emirates Water and Electricity Company (EWEC) has signed a Power Purchase Agreement (PPA) with Engie and Masdar for the production of the 1.5 GW Khazna solar PV project in Abu Dhabi (United Arab Emirates). The PPA is structured as an energy purchase agreement where EWEC has engaged to pay for the net electrical energy supplied by the power plant, while ENGIE and Masdar will design, finance, build, and operate the project.

The Khazna Solar PV consists of more than 3 million solar panels, enough to generate enough energy to power about 160,000 homes across the UAE and avoid more than 2.4 MtCO₂/year. EWEC aims to increase Abu Dhabi’s solar power generation capacity to 18 GW by 2035 and to meet 60% of the Emirate’s total power demand from renewable and clean energy sources by 2035.

CSG TO BUILD AED 300 MN SMART GLASS PLANT IN ABU DHABI’S KEZAD

China Southern Glass (CSG), one of the world’s leading producers of energy-efficient glass and advanced materials, has announced a major expansion with the construction of its first overseas intelligent manufacturing facility in Abu Dhabi.

The AED 300 Mn (USD 81.7 Mn) project will be located on a 95,000-square-meter site within ICAD 1, part of Khalifa Economic Zones Abu Dhabi (KEZAD). Serving as CSG’s regional headquarters, the plant will feature state-of-the-art, fully digitalized production lines capable of manufacturing over 5 million square meters of coated, laminated, and insulating glass annually. The facility will supply high-performance energy-saving glass for projects across the UAE, the wider Gulf, Europe, Africa, and the U.S.

The investment will generate around 400 specialized technical jobs, reinforcing Abu Dhabi’s industrial strategy and its goal to expand advanced manufacturing and economic diversification.

The project strengthens the emirate’s industrial base and reduces reliance on imported materials, and Abu Dhabi’s strong infrastructure, logistics, and market access make it the ideal hub for this landmark project, expected to begin operations by late 2026.

UAE PLANS NEW 120 KM NATIONAL HIGHWAY IN AED 170 BN INVESTMENT PLAN

The UAE has unveiled an ambitious AED 170 Bn (USD 46 Bn) investment in transport and road projects, aiming to ease mounting traffic congestion and improve infrastructure across the country. As the population soars and economic growth accelerates, these projects are designed to keep pace with the rapid expansion of urban life.

At the heart of the UAE's plan is a massive overhaul of its federal road network. The aim is clear: tackle the ever-growing traffic congestion caused by a surging population and a booming economy. It revealed several key projects that will radically expand the capacity of the country's busiest roads.

The most notable expansion is to Al Ittihad Road, which connects Sharjah to Dubai. This critical route, notorious for its daily gridlock, will see the addition of six more lanes, three in each direction, boosting its capacity by 60%. The plan further includes a study for a fourth federal highway, extending 120 kilometres with 12 lanes and a capacity of up to 360,000 trips per day.

MICROSOFT, G42 ANNOUNCE 200 MW DATA CENTRE CAPACITY EXPANSION IN THE UAE

Microsoft and G42 have announced a 200 MW expansion of datacenter capacity, delivered through Khazna Data Centers, a subsidiary of G42. This is part of Microsoft’s USD 15.2 Bn investment announcement in the UAE, and the expansion is expected to start coming online before the end of 2026.

Microsoft and G42 revealed that the datacenter expansion will provide additional AI and cloud infrastructure to the UAE, strengthening Microsoft Azure’s sovereign cloud services. This partnership supports the UAE’s national digital economy strategy, which aims to double the digital economy’s contribution to GDP over the next decade.

Additionally, advanced GPUs and AI capabilities will empower public sector organizations, regulated industries, and enterprises to innovate, scale, and operate with agility and resilience. Moreover, the partnership will emphasize cybersecurity, data protection, and ethical AI. The Responsible AI Future Foundation, established through a partnership between Microsoft, G42, and MBZUAI, will serve as a global model for responsible AI development and governance.

UAEV STRENGTHENS NATIONAL CHARGING NETWORK WITH NEW SMART-ENERGY PARTNERSHIP WITH AUTEL

Emarat EV Charging Stations Company (UAEV), a national Charge Point Operator (CPO) driving the UAE’s electric-vehicle charging infrastructure, has signed a Memorandum of Understanding (MoU) with Autel Digital Power Co., Ltd to advance next-generation smart charging and energy solutions across the country. The MoU was formalized during a UAEV delegation visit to Autel’s global headquarters in Shenzhen, marking an important step toward building a future-ready smart energy ecosystem that enhances reliability, efficiency, and long-term sustainability for EV drivers nationwide.

Under the partnership, UAEV and Autel will explore the development of advanced technologies such as Vehicle-to-Grid (V2G) interaction, integrated battery-energy storage systems, and intelligent charging platforms engineered for the UAE’s climate and mobility needs. The joint efforts will include research, pilot programs, and locally optimized solutions that support the continued expansion of the UAE’s national charging network and ensure high-performance operation even in extreme temperatures. As UAEV scales its fast, accessible, and reliable charging network across all seven emirates, these innovations will help strengthen system resilience and enhance overall energy efficiency.

Autel brings strong technical capabilities to the collaboration, including DC fast-charging systems proven to operate in temperatures above 55°C, advanced remote-maintenance capabilities, and ongoing R&D in power modules, cloud-platform optimization, and AI-driven diagnostics. Combined with UAEV’s national mandate and strategic network rollout, the partnership will support the delivery of a smarter, more adaptive charging ecosystem that boosts consumer confidence and accelerates EV adoption across the country.

DEWA TENDER’S 7TH PHASE OF DUBAI MEGAPROJECT

Dubai Electricity and Water Authority (DEWA) has called for bids for the seventh phase of the Mohammed bin Rashid Al Maktoum Solar Park, comprising 2,000 MW of solar power backed by 1,400 MW/8,400 MWh of battery storage capacity.

With this phase, the solar park’s total capacity is set to hit 8,060 MW by 2030, up from the original target of 5,000 MW. The expansion will help cut CO2 emissions by more than 8.5 million tonnes annually, further strengthening Dubai’s leadership in sustainable energy development.

To be implemented under the independent power producer (IPP) model, the seventh phase is described as one of the world’s largest solar-plus-storage projects.

BAHRAIN

BAHRAIN LAUNCHES TENDER FOR 100 MW SOLAR PROJECT

Bahrain’s Electricity and Water Authority (EWA) has issued a tender for the construction of a 100 MW solar power plant in Bilaj Al Jazayer, on the southwest coast of Bahrain. The Bilaj Al Jazayer Independent Power Project (BAJ Solar IPP) will be developed under a Public-Private Partnership (PPP) on a build-own-operate (BOO) basis. The target commercial operation date (COD) is September 30, 2027.

The Bahrain government notes that the winning bidder will be responsible for the “full lifecycle” of the project for 25 years, including decommissioning and site restoration work. The project forms a central part of Bahrain’s push to generate 20% of its power from renewable sources by 2035.

BAHRAIN SIGNS DEAL FOR 137 HOMES IN SALMAN CITY

Bahrain's Ministry of Housing and Urban Planning has signed agreements to build 137 new housing units in Salman City, accelerating a Public-Private Partnership (PPP) push to deliver more homes for Bahraini families. The move is part of the Government Land Development Rights Programme and underscores the ministry's drive to partner with private developers to speed up delivery.

The development covers multiple parcels in Salman City and is structured as three building sets totaling 137 units split into groups of 69, 44, and 24 units across a roughly spacious 27,000 square meters. The project aims to provide a mix of family-friendly homes with lush green spaces and modern amenities.

The new units are allocated as follows:

Delmon Gate will construct the largest share with 69 units.
First Bahrain Real Estate Development Company will implement 44 units.
Naseej Real Estate, in partnership with Almoayyed Contracting Group, will build 24.

BAHRAIN: GENERAL POULTRY COMPANY SIGNS MAJOR SOLAR POWER PURCHASE DEAL

Bahrain—General Poultry Company (GPC), a subsidiary of Bahrain’s sovereign wealth fund Mumtalakat, has signed a 15-year power deal to install a 1.5 MWp rooftop solar farm across its facilities in Hamala. The landmark solar power purchase agreement (PPA) was signed with Kanoo CleanMax Renewables Asset, marking a significant collaboration to embed sustainability into GPC’s operations.

The new project will generate roughly 2,400 MWh of clean energy annually, covering up to 90% of GPC’s daytime power needs and cutting more than 1,100 metric tons of CO₂ emissions each year. The initiative aligns perfectly with GPC’s long-term vision of embedding sustainability into our core business operations.

The 1.5 MWp Solar PV Powerplant will span six rooftops, utilizing high-efficiency modules and string inverters for maximum energy generation and seamless integration. It will initially cover the birdhouse rooftops, with built-in provisions for expansion in a second phase.

The solar installation will also include solar-powered EV charging stations at the facility, supporting GPC’s plan to transition its logistics and transport fleet to electric mobility. The project underscores GPC’s commitment to energy independence and food security, serving as a flagship for industrial sustainability in Bahrain.

BAHRAIN LAUNCHES USD 185 MN FUND TO SUPPORT SMEs

Bahrain has launched a new SME fund following the signing of strategic partnership agreements between Bahrain Development Bank (BDB), the National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), and Al Salam Bank.

BDB will manage the SME Fund and provide Sharia’a-compliant financing with a total value exceeding USD 185 Mn. With Tamkeen covering up to 50% of the profit rate, the fund offers repayment terms of up to five years. Through simplified application procedures and accessible financing, the fund is designed to help clients bridge.

The launch of the fund underscores the strength of Public-Private Partnership (PPP) collaboration to advance Bahrain’s economic diversification goals under Economic Vision 2030. It represents a key national milestone in empowering SMEs to grow and contribute more effectively to the economy by equipping them with the resources they need to succeed within an increasingly competitive environment.

BAHRAIN AND EVE AIR MOBILITY SIGN AAM PARTNERSHIP – COMMERCIAL OPERATIONS IN 2028

Bahrain’s Ministry of Transportation and Telecommunications has signed a Memorandum of Understanding (MoU) with Eve Air Mobility. The signing took place during the Gateway Gulf Investment Forum 2025 in Bahrain. The agreement aims to advance sustainable air mobility solutions and develop the electric vertical take-off and landing (eVTOL) aircraft ecosystem in the Kingdom and the region.

The MoU aims to accelerate the readiness of Bahrain’s regulatory, operational, and infrastructural environment for advanced air mobility operations. It envisions creating a testbed for new systems, developing safe and scalable vertiports, emphasizing emission-free and low-noise operations, and training national talent. Test flights are scheduled to commence in 2027, followed by commercial operations in 2028, with plans to expand to international routes by 2029.

Eve’s eVTOL aircraft are equipped with technologies tailored to the region’s climate, including advanced UV and infrared protection, intelligent air-conditioning, and a Lift & Cruise design that minimizes the impact of dust and sand, ensuring exceptional reliability and comfort even under the most challenging weather conditions.

BATELCO BY BEYON LAUNCHES BAHRAIN’S FIRST WHITE SPACE DATA CENTRE

Batelco by Beyon has announced the completion and commissioning of the new White Space Data Centre, the first facility of its kind in Bahrain, marking a significant milestone in the Kingdom’s digital infrastructure development. The facility spans 6,000 sqm (64,583 sq ft) and forms part of Beyon’s Data Oasis, a 140,000 sqm (1.5m sq ft) site located in southern Bahrain.

The new White Space Data Centre represents a strategic step in strengthening Bahrain’s position as a regional hub for digital transformation and data-driven industries. As part of Beyon’s ongoing investment in advanced infrastructure, the facility will support the growing demand for high-performance computing, cloud services, and secure data hosting across the Kingdom and beyond.

With this development, Batelco continues to expand its digital ecosystem, aligning with Bahrain’s Vision 2030 and reinforcing the country’s ambition to become a leader in technology and innovation within the Gulf region.

OAK ENERGY AND INFRASTRUCTURE DEVELOPS AROUND USD 50 MN SOLAR PROJECT ADVANCING BAHRAIN’S

OAK Energy and Infrastructure WLL announced the development of a photovoltaic solar power project in Bahrain during the Gateway Gulf 2025 Forum in the Kingdom of Bahrain. The project represents an investment of approximately USD 50 Mn and is expected to generate more than 150 gigawatt-hours of clean energy annually.

The solar power project will supply renewable energy to four sites, including Al Dana Amphitheatre, Bahrain International Circuit, and Exhibition World Bahrain. The initiative is backed by international partners and the UK Export Finance (UKEF), supporting the Kingdom's transition towards clean energy.

BAHRAIN TO HOST WORLD’S LARGEST SINGLE-SITE ROOFTOP SOLAR POWER PLANT

Steel-based investment company Foulath Holding and Dubai-based developer Yellow Door Energy have announced plans for a 123 MW solar project in Bahrain. The project will construct ten rooftop solar plants and four ground-mounted PV installations that will feature almost 190,000 solar panels in total, spread across 707,000 sqm.

Among the rooftop solar installations will be a 50 MW array set to become the largest single-site rooftop solar power plant in the world. The installation will consist of 77,000 solar panels alone, installed across a new 262,000 sqm stockyard shed for Bahrain Steel BSC, a wholly-owned subsidiary of Foulath.

Foulath Holding and Yellow Door Energy signed a power purchase agreement (PPA) for the project. Yellow Door Energy will be responsible for overseeing the finance, design, build, commission, operation, and maintenance of the solar project throughout the duration of the PPA.

The project will generate over 200 GWh of electricity every year once operational and will help to decarbonize Bahrain’s steel production by cutting carbon emissions by 90,000 metric tons.

BAHRAIN RUNS 3 MW SOLAR TENDER

Bahrain’s Ministry of Electricity and Water Affairs is running a tender for the development of a 3 MW grid-tied solar power plant. Available tender details state the solar plant will be built for the country’s General Sport Authority under a CAPEX model.

The chosen developer will be responsible for the supply, design, engineering, construction, installation, testing, and commissioning of the solar power plant, with work expected to be completed within ten months. The contractor will then enter into a five-year operations and maintenance contract for the facility.

STC BAHRAIN, CENTER3 ANNOUNCE MAJOR PROGRESS ON USD 320 MN ICT PROJECTS

Bahrain—STC Bahrain and center3 have announced significant progress on two of the Kingdom’s most transformative ICT infrastructure projects: the 2Africa Pearls Submarine Cable and the Bahrain Data Center Park.

The Bahrain Economic Development Board (Bahrain EDB), these projects represent a combined investment of up to USD 320 Mn, reflecting STC Bahrain and center3’s shared commitment to the goals of Bahrain’s Economic Vision 2030. It plays a key role in strengthening Bahrain’s digital economy, expanding regional and international connectivity, and promoting Bahrain as a key enabler of sustainable, innovation-driven energy efficiency.

The 2Africa Pearls Subsea Cable, part of the world’s largest submarine cable system, connects 33 countries through 46 landing points, including recent deployments in Kuwait, Bahrain, Qatar, and Saudi Arabia. Additional landing points in Iraq and the United Arab Emirates are expected by the end of 2025, with full operational readiness anticipated for Q3 2026. Once live, the system will deliver unprecedented data capacity, lower latency, and enhanced network resilience, directly integrating Bahrain into global digital markets and supporting the Kingdom’s long-term connectivity strategy.

The Bahrain Data Center Park, now over 65% complete, continues to progress. The facility serves as a key regional hub for cloud computing and hyperscale workloads, providing advanced infrastructure that supports enterprise transformation, strengthens data sovereignty, and aligns future energy-efficiency goals with Bahrain’s climate commitments.

DHL EXPRESS TO BUILD USD 85.1 MN AIRCRAFT MAINTENANCE HANGAR AT BAHRAIN INTERNATIONAL AIRPORT

DHL Express, the world’s leading express and logistics provider, has announced plans to construct a world-class aircraft maintenance hangar at Bahrain International Airport. With a total investment of USD 85.1 Mn, the project marks one of DHL’s largest aviation infrastructure investments in the Middle East and North Africa.

The new facility will be the first DHL maintenance hangar in the region, designed to support the company’s growing fleet and expand its line maintenance capabilities. Covering a total built-up area of 33,850 square meters, the development will include a 9,800-square-meter hangar and 21,515 square meters of land, equipped to handle a range of line maintenance tasks for DHL’s global fleet of Boeing 777 and 767 aircraft.

Construction is expected to commence in Q4 2026, with the facility scheduled to go live by Q3 2028. Once operational, the hangar will consolidate DHL’s MENA Aviation (AVI) team, which encompasses management, maintenance, operations, and administrative support, into one unified location.

EWA, UOB LAUNCH SOLAR POWER PROJECT

The Electricity and Water Authority (EWA), in cooperation with the University of Bahrain (UoB), announced the launch of a major solar power project.

The project, one of the largest renewable energy initiatives in Bahrain’s education sector, aims to diversify energy sources, reduce reliance on natural gas, and lower pollution levels. The system will feature 64,606 solar panels on parking lots (24.7 MW) and on the ground (21.5 MW), with a total capacity of 46.2 MW and an expected annual output of 70 GWh. It is projected to cut carbon emissions by 35,000 tons per year.

The project, costing approximately BHD 9 Mn (USD 23.87 Mn), will serve as a model for future renewable energy initiatives supporting Bahrain’s sustainability goals. The initiative aligns with Bahrain’s national strategy to expand clean energy, increase efficiency, and achieve carbon neutrality by 2060.

BAHRAIN BREAKS GROUND ON 100 MW SOLAR PROJECT

Bahrain’s Electricity and Water Authority (EWA) has laid the foundation stone for the 100-MW Al Dur solar power plant, a project that will support the kingdom’s plan to raise the share of renewable energy in its power mix to 20% by 2035.

The facility will be built in the Al Dur area of the Southern Governorate and will comprise around 135,000 solar panels. Installation is expected to be completed by Q3 of 2026, after which the plant will be connected directly to the national power grid. The project spans two adjacent sites covering a combined area of about 830,000 square meters and will be integrated into the grid via the Al Dur 66/11-kV substation.

The project is one of a package of initiatives being implemented by the Authority, whether in the field of distributed or large-scale solar energy, contributing to reducing reliance on conventional fuels, supporting national efforts to reduce emissions, and contributing to achieving the Kingdom of Bahrain’s commitment to reaching carbon neutrality by 2060.

List of key transactions - UAE and Bahrain Q4 2025

Source: YOG INFRA analysis

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