MEED Middle East Economic Digest articles from February 2009

MEED Middle East Economic Digest archives from February 2009

Sewage pumps.(BAHRAIN)
February 6, 2009... Supply, installation and testing of submersible sewage pumps complete with operating panels.

Combustion turbine generators.(EGYPT)
February 6, 2009... Carrying out the combustion turbine generators package for a 750MW combined cycle power station project.

Substation.(EGYPT)
February 6, 2009... Implementation of a 220/22kV gas-insulated switchgear substation.

Bunkering services.(IRAN)
February 6, 2009... Provision of bunkering services in the south of Qeshm island and Bandar Imam Khomeini.

Water treatment plant.(IRAQ)
February 6, 2009... Implementation of the El-Nasr water treatment plant and water distribution network in the Thi-Qar governorate.

Gas units.(KUWAIT)
February 6, 2009... Delivery of new gas units at the Shuaiba North station for power generation.

Refinery buildings maintenance.(KUWAIT)
February 6, 2009... Maintenance of civil buildings and constructions at a refinery.

Gas oil separation plant.(LIBYA)
February 6, 2009... Engineering, procurement and construction of a gas oil separation plant for the development of an oil field.

Road construction.(MOROCCO)
February 6, 2009... Construction of roads.

Storage tank construction.(OMAN)
February 6, 2009... Engineering, procurement, construction and commissioning of an additional storage tank for a refinery company.

Sewerage network systems.(OMAN)
February 6, 2009... Construction of sewerage network systems and upgrading of a sewage treatment plant.

Sweet fuel gas supply.(QATAR)
February 6, 2009... Provision of engineering, procurement, installation and commissioning services for the supply of sweet fuel gas to consumers in Dukhan.

Stimulation and nitrogen equipment and services.(QATAR)
February 6, 2009... Supply of stimulation and nitrogen equipment and services for onshore works.

Prequalification closes for Kuwait's Clean Fuels Project.(Brief article)
February 6, 2009... [ILLUSTRATION OMITTED] The prequalification process for a series of engineering, procurement and construction contracts for Kuwait National Petroleum Company has closed, with a large number of companies having applied. Further progress on...

Bahrain prequalifies groups for Muharraq plant.(Contract news)
February 6, 2009... The Works Ministry has shortlisted 15 groups for the Muharraq wastewater treatment plant.

Technip wins Midor contract.(Contract news)
February 6, 2009... Paris-based Technip has won a contract for the expansion of the delayed coking unit at Midor's Alexandria refinery.

Azmeel wins Ras al-Zour villa contract.(Contract news)
February 6, 2009... Saudi Arabia's Azmeel Contracting Company has won a contract for a residential village at Ras al-Zour.

Akakus seeks interest in gas oil plant.(Contract news)
February 6, 2009... Akakus Oil Operations has asked firms to apply by 1 March to prequalify for a contract at a new gas oil separation plant in Libya.

ABB wins Saudi electricity contracts.(Contract news)
February 6, 2009... ABB Contracting Company has won two electricity transmission contracts worth almost $160m.

Events.(Brief article)(Calendar)
February 6, 2009... Market intelligence on the region's airport projects expansion programme 22-24 February Park Hyatt Hotel, Dubai, UAE www.meed.com/events/airports Attend the most exclusive air-transport construction and development meeting to...

Default must be avoided: it is still not clear if Borse Dubai will secure enough financial support: the deal will give an indication of the prospects for other refinancings.(Brief article)
February 6, 2009... [ILLUSTRATION OMITTED] With just days to go before Borse Dnbai has to complete the refinancing of a $2.5bn loan, bankers are getting nervous. It is still not clear whether the stock market group will secure sufficient bank commitments,...

Doha right to focus on gas: as liquefied natural gas purchase agreements are typically based on long-term deals, Qatar has assured itself a solid, regular income stream.(Brief article)
February 6, 2009... Qatar has passed a series of milestones in the development of its gas sector in recent years. Between June and September 2008, revenues from gas production surpassed oil income for the first time. This was partly the result of falling oil...

Projects should be led by demand: Saudi Arabia is showing signs of retrenchment, with one of its most high-profile schemes now on hold.(Brief article)
February 6, 2009... One of the few real estate markets in the GCC that has continued to attract investment during the downturn is Saudi Arabia. But it is showing signs of retrenchment too, with one of the region's most high-profile schemes now on hold. ...

Assets sale offers chance to expand: buying existing assets could be the only way for many developers to grow during the downturn.(Brief article)
February 6, 2009... [ILLUSTRATION OMITTED] The decision by the US' AES Corporation to sell its interests in power plants in Jordan, Qatar and Oman is likely to attract significant interest. For a developer, taking a stake in an operational plant is a safe and...

Gulf has to make most of slump: this may well prove to be the year the region's petrochemicals industry fulfils its potential.(Brief article)
February 6, 2009... The Middle East has long been a contender in the global petrochemicals market, with plentiful supplies of feedstock and high revenues from its oil and gas reserves. Yet while giant companies have been formed in other parts of the world in...

Dubai urges banks to support bourse deal: Investment Corporation of Dubai seeks to secure $2.5bn finance for Borse Dubai by mid-February deadline.
February 6, 2009... Borse Dubai's parent company, the Investment Corporation of Dubai (ICD), is seeking to secure support from banks for a $2.5bn refinancing deal for the stock market group, as the mid-February deadline for closure on the deal approaches. The...

US power company in asset sale talks: AES Corporation seeks to sell equity stakes in Middle East power and water plants in bid to exit the region.
February 6, 2009... The US' AES Corporation is in talks over the sale of its power and water assets in the Middle East, sources working with the company in the region tell MEED. One source says AES is in negotiations with investment banks to test their...

Bank of Tokyo-Mitsubishi to mediate over Kayan financing.(Brief article)
February 6, 2009... Bank of Tokyo-Mitsubishi is to mediate between Saudi Basic Industries Corporation (Sabic), the Saudi Industrial Development Fund (SIDF) and the commercial lenders on the Saudi Kayan petrochemicals project, to resolve concerns raised by the...

Takreer to qualify firms for Ruwais.(Abu Dhabi Oil Refining Company )(Brief article)
February 6, 2009... Abu Dhabi Oil Refining Company (Takreer) is moving ahead with the engineering, procurement and construction (EPC) contracts on its planned Ruwais refinery expansion, by asking firms to apply for prequalification. One UAE-based contractor...

Kingdom Holding shelves plans for landmark tower: decision to delay skyscraper follows losses of $8.3bn in fourth quarter of 2008.
February 6, 2009... Work on the world's tallest tower, which at one point had been expected to be one mile in height, has been shelved because of the global economic crisis, sources close to the project tell MEED. The Kingdom Tower was being developed by Saudi...

Ras Tanura expansion attracts strong contractor interest: progress on bidding process reassures firms over future of $8bn refinery upgrade.
February 6, 2009... Up to 50 firms are understood to be applying to prequalify to bid for five contracts on the $8bn expansion of the Ras Tanura refinery in Saudi Arabia, with a short-list of approved bidders to be issued in mid-February. The setting of a...

Al-Rashid and Eads win border deal.(Al-Rashid Trading & Contracting Company contracts with European Aeronautic Defence & Space Company )(Brief article)
February 6, 2009... The local/German consortium of Al-Rashid Trading & Contracting Company and the European Aeronautic Defence & Space Company (Eads) has received official confirmation from Sandi Arabia's Interior Ministry on the award for the second phase of the...

Cairo considers first coal-bred plant: Arab Investment & Development Company applies to build 5,000MW facility at Safaga.
February 6, 2009... Egyptian authorities are considering an application from Arab Investment & Development Company to develop a 5,000MW coal-fired power complex at Safaga, on the Red Sea coast. It is the first time the country has considered building a...

Gasco evaluates bids for integrated gas development: contractors enter three-part bidding process for five main packages.(Integrated Gas Development )
February 6, 2009... Companies have entered unpriced commercial bids for the five main packages of the onshore section of Abu Dhabi's Integrated Gas Development (IGD), in the first stage of a three-part process. The bids were submitted to Abu Dhabi Gas...

Four groups vie to build port at Aqaba.(Aqaba Development Corporation )(Brief article)
February 6, 2009... Four consortiums will submit bids to Aqaba Development Corporation (ADC) in April to build the new port at Aqaba. The corporation is overseeing the overhaul of the Red Sea city's coastal infrastructure and has set the April deadline for...

Beirut cuts tariffs for Zain and Orascom: improved terms for operators of state-owned mobile networks are aimed at increasing customer numbers.
February 6, 2009... Lebanon will allow the country's two mobile network operators to cut their tariffs and retain a share of revenues from 1 April, in an effort to boost the country's telecoms market. In January, Kuwaiti telecoms operator Zain and Egypt's...

Atkins to assess viability of Sultan Qaboos port overhaul.(Brief article)
February 6, 2009... UK consultant Atkins is to conduct a feasibility study into a planned overhaul of Muscat's Sultan Qaboos port. Atkins won the contract to investigate the potential for revamping the commercial port and converting it into a tourist port with...

Al-Latifia to build Gosi head office.(General Organisation for Social Insurance contracts with Al-Latifia Trading & Contracting )(Brief article)
February 6, 2009... Riyadh-based Al-Latifia Trading & Contracting has been awarded a SR1.5bn ($401m) contract for the construction of a headquarters complex for the local General Organisation for Social Insurance (Gosi), in Riyadh. The contract covers the...

Sumitomo secures financing for Ras al-Zour power plant: Japanese-led consortium wins support to proceed with $5.5bn development.
February 6, 2009... The consortium led by Japan's Sumitomo Corporation has completed the financing arrangements for its bid for the $5.5bn Ras al-Zour power project, which should now allow the scheme to proceed. It follows the decision in January by Malaysian...

Qatar overtakes Dubai for investment: bourse beats UAE exchanges as most popular market for fund managers investing in the region.
February 6, 2009... Qatar has overtaken the UAE for the first time as the most popular stock market for fund managers investing in the Middle East and Africa (Mana), according to data from EPFR Global, a US research firm that specialises in monitoring emerging...

Tehran to invest $1.2bn in port upgrades: Islamic Republic earmarks funds to improve infrastructure and masterplans cross-country trade corridor.
February 6, 2009... Tehran is to invest $1.2bn on revamping the republic's ports this year, according to one senior Iranian industry official, and is planning a rail link between the nation's north and south coasts to create a trade corridor. Despite the...

Local firms bid low for university deal: group of Al-Arrab and Rabia is front runner for major housing contract at King Abdulaziz University.(Al-Arrab Contracting Company and Rabia Contracting)
February 6, 2009... A joint venture of local firms Al-Arrab Contracting Company and Rabia Contracting have submitted the lowest bid of SR2.1bn ($560m) for a housing project at King Abdulaziz University in Jeddah. The project covers the construction of 42...

Bidders line up for Suez's controlling stake in United Power.(United Power Company )(Brief article)
February 6, 2009... Bidders vying for a controlling stake in Oman's United Power Company (UPC) have held meetings with the company's management as they prepare to submit second-round bids by 16 February. The groups are competing for the 22.7 million UPC shares...

Bahrain seeks to regain its crown: the global economic crisis is giving the kingdom a chance to revive its position as the region's financial hub.
February 6, 2009... Bahrain has been a significant finance hub for the region since the 1980s, but in recent years it has been losing out to faster-moving rivals such as Dubai. As the global financial crisis continues to hit the Gulf, the question for Bahrain is...

Gulf to gain from consolidation: as the chemicals sector contracts in line with falling global demand, the region's producers are in a strong position to overtake their more established international rivals through mergers and acquisitions.
February 6, 2009... Using their oil and gas resources as a base to expand into petrochemicals industries has been high on the agenda for Middle East states for years, with some success. Companies such as Saudi Basic Industries Company (Sabic) and Saudi...

Almarai company: with its roots in dairy production in the kingdom, the Saudi firm is diversifying via overseas acquisitions.(Company overview)
February 6, 2009... COMPANY SNAPSHOT Date established 1976 Main business sectors Production and distribution of dairy and bakery products, and fruit juices Main business regions Saudi Arabia and GCC Chairman Prince Sultan bin Mohammed bin Saud...

Gulf reaches accord on currency: with the deadline for a single GCC currency fast approaching, members states have finally agreed on the draft proposals.(Dubai International Financial Centre)
February 6, 2009... Since its proposal in 2003, GCC monetary union has been the subject of much controversy. With Oman announcing in December 2006 that it would not take part in any future GCC currency, Kuwait depegging from the dollar in May 2007, and the GCC now...

The hotel lobbies and restaurants of Doha are still buzzing with the sound of business meetings, unlike most other cities in the Gulf.(Brief article)
February 6, 2009... [ILLUSTRATION OMITTED] The hotel lobbies and restaurants of Doha are still buzzing with the sound of business meetings, unlike most other cities in the Gulf. "There is no sign of a recession in Doha," says one visiting banker. The...

Strong liquidity fortifies Doha: just 12 months ago, the large amount of cash in the Qatari economy was a concern for policymakers battling to control inflation, but it is now helping to deliver growth despite the global slowdown.
February 6, 2009... For investors seeking shelter from the global financial storm, there are few better destinations than Doha. Qatar's government has, through good fortune and astute custodianship of its resources, engineered a robust economy that should enable...

Government revises energy strategy: with many of its gas projects nearing completion, Doha is focusing on exploration and building the infrastructure needed to enable it to meet growing domestic demand.
February 6, 2009... Decades of investment in Qatar's gas sector will come to fruition in the next two years. A significant milestone in the development of the state's downstream gas projects was achieved in the third quarter of 2008, when revenues from gas...

Swift action protects banks: while financial institutions in other Gulf states have been hit hard by the global downturn, measures introduced by the Qatar Central Bank have helped shore up the sector.
February 6, 2009... There is no clearer indication of the strength and health of Qatar's banking sector than the fact that all Qatari banks were exempt from the recent raft of ratings downgrades that hit other Gulf banks in January this year. While many GCC...

Raising the budget for public works: Qatar is set to take advantage of the global slowdown in construction activity this year by pushing ahead with an ambitious programme of tourism and infrastructure projects.
February 6, 2009... Qatar's enthusiasm for embarking on new projects remains undiminished despite the global economic downturn, and the government is expected to launch its largest-ever budget for the financial year 2009-10. The financial indicators bode well...

State spending plans boost confidence: contractors are targeting Qatar as a big growth market in 2009, thanks to the government's commitment to developing infrastructure schemes, which is fuelling an ongoing construction boom in Doha.
February 6, 2009... Contractors in Qatar are cautiously optimistic about 2009, and their outlook appears justified. State infrastructure spending continues to drive the development of the country's megaprojects, and the difficult global credit conditions have had...

Qatalum tests market's mettle: Doha's diversification strategy is driving the development of one the world's largest aluminium smelters, but the global downturn is raising concern over its timing.(ALUMINIUM)
February 6, 2009... Just 12months ago, the prospects for the aluminium industry in the Gulf were healthy, with a series of massive investments in capacity being planned at smelters across the region. But today, the global financial crisis is creating deep...

Regional alternative energy: six key figures in the Middle East alternative energy sector.(The MEED List)
February 6, 2009... Sultan Ahmed al-Jaber POSITION Chief executive officer (CEO), Abu Dhabi Future Energy Company (Masdar) BIOGRAPHY AS CEO of Masdar, Sultan Ahmed al-Jaber is responsible for turning Abu Dhabi's vision of energy and environmental...

Housing.(BAHRAIN)
February 13, 2009... Construction of six new duplex housing units.

Transformers.(EGYPT)
February 13, 2009... Supply of two 125MVA, 22/22/220kV transformers for a power transmission company.

Wastewater treatment plant.(IRAN)
February 13, 2009... Provision of financing, design, and the construction and completion of a wastewater treatment plant.

Oil treatment plant.(IRAQ)
February 13, 2009... Supply of an oil treatment plant for degassing, dehydration, heating and filtering of transformer oil.

PPP law design and development.(JORDAN)
February 13, 2009... Provision of consultancy services to provide assistance in the design, development and drafting of a public-private partnership law, as part of the preparation for private participation in infrastructure.

Crude oil transport lines.(KUWAIT)
February 13, 2009... Installation and replacement of crude oil transport lines.

Seismic survey quality control supervision.(LIBYA)
February 13, 2009... Provision of quality control supervision services for seismic survey.

Road construction project security.(MOROCCO)
February 13, 2009... Three separate tenders for security works for road construction projects.

Navigational aids system development.(OMAN)
February 13, 2009... Development of navigational aid systems at international airports.

Radio and television complex renovation.(QATAR)
February 13, 2009... Renovation of a radio and television complex.

Desalination plant consultancy.(QATAR)
February 13, 2009... Provision of consultancy services for a reverse osmosis desalination plant pilot project.

Site development.(SAUDI ARABIA)
February 13, 2009... Site development works at Jubail 2.

Power cables.(TUNISIA)
February 13, 2009... Supply of high-voltage cables for a power distribution network project.

Cables.(UAE)
February 13, 2009... Installation and commissioning of 11kV cables.

Riyadh awards supervision contracts for financial zone.(Public Pensions Agency)(Brief article)
February 13, 2009... [ILLUSTRATION OMITTED] The Public Pensions Agency has awarded three site supervision contracts for building projects in King Abdullah Financial District. Local firms Omrania & Associates, Dar al-Riyadh and Zuhair Fayez Partnership...

Contract for Al-Zour pipelines delayed.(Contract news)
February 13, 2009... The closing date for bids on the contract for pipelines at Kuwait's Al-Zour refinery has been extended to 10 March.

China Railway wins Mecca monorail deal.(Contract news)
February 13, 2009... China Railway Corporation has won the construction contract to build a $1.8bn monorail in Mecca.

Al-Raseed submits low bid for road contract.(Contract news)
February 13, 2009... Oman's Al-Raseed Trading & Contracting Company has submitted the low bid for a road infrastructure deal in Oman.

TR agrees payment for Abu Dhabi contract.(Contract news)
February 13, 2009... Spain's TR and Borouge have agreed a $1.39bn payment on a lump-sum turnkey contract signed in 2007.

South Oil awards Basra contract.(Contract news)
February 13, 2009... Iraq's South Oil Company has awarded a contract to upgrade its Basra export terminal to the US' Foster Wheeler.

Events.(Calendar)
February 13, 2009... Middle East Aluminium Capitalise on the region's aluminium boom 24-26 March Shangri-La Hotel, Dubai, UAE www.meed.com/events/aluminium MEED's Middle East Aluminium 2009 conference offers a line-up of the Middle East and...

Tehran needs investment.
February 13, 2009... [ILLUSTRATION OMITTED] It is in the sphere of economic policy that the largest gaps are likely to emerge during the campaign If privatisation is to succeed, it will have to be matched by lowering tensions in the foreign policy sphere...

Operators can gain advantage: the short-term fall in traffic offers a good opportunity for operators to focus on efficiency.(Brief article)
February 13, 2009... Maritime trade has always been critical to the economic development of the Middle East. Over the past two years, however, ports have struggled to keep pace with the speed of growth in the region's economy. Despite adding capacity on a...

Compromise is key for Iraq: oil majors are increasingly concerned by the level of profit they are likely to make on deals.(Brief article)
February 13, 2009... Baghdad is excited about the prospects for harnessing its energy resources, after suffering from significant declines in production since the fall of the Saddam Hussein regime, and rightly so. But Iraq's optimism may have to be tempered by...

Ownership rules deter investors: ventures need to make higher profits if investors are to gain the same returns they would make elsewhere.(Brief article)
February 13, 2009... [ILLUSTRATION OMITTED] Economists across the region had been expecting foreign direct investment (FDI) to fall in the second half of 2008. Now early estimates of FDI flows into the Middle East and North Africa from the UN Conference on...

Airport upgrades risk overcapacity: Gulf airports may be celebrated for their lack of check-in queues as much as for their architecture.(Brief article)
February 13, 2009... The opening of King Abdulaziz International airport in Jeddah in 1981 was a major event in Saudi Arabia. Its Hajj terminal, designed to look like a sea of Bedonin tents, was an iconic building that symbolised the port city's growling wealth,...

Oil majors criticise Baghdad over terms: firms call for a rethink in approach and say conditions could undermine plans to rebuild the industry.
February 13, 2009... International oil companies (IOCs) have heavily criticised tough new contract terms unveiled by Baghdad for a series of upstream schemes, and are calling on the government to rethink its approach. As MEED went to press, the contract...

Jeddah port officials propose plan to ease road congestion: $1bn project is aimed at improving traffic flow around Jeddah Islamic Port.(Traffic engineering)
February 13, 2009... Ports officials in Jeddah are proposing a $1bn overhaul of the city's roads to ease the severe traffic congestion that can obstruct access to Jeddah Islamic Port, while considering a fourth terminal for the site. The masterplan was...

Abu Dhabi seeks loan for sewage plants.(Abu Dhabi Sewerage Services Company )(Brief article)
February 13, 2009... Abu Dhabi Sewerage Services Company (ADSSC) is seeking to raise a short-term $550m debt facility to develop two sewage treatment plants in the emirate. Its previous plan to raise long-term project finance has been abandoned because of the...