MEED Middle East Economic Digest articles from January 2009

MEED Middle East Economic Digest archives from January 2009

Centrifugal pumps.(Iran)
January 2, 2009... The supply of two vertical centrifugal pumps for the Tehran Oil Refining Company.

Review for the de-bottlenecking of gas-oil separation plant.(Libya)
January 2, 2009... Engineering and design review of existing gas-oil separation plant facilities and crude oil exporting system in El-Feel Field.

Moored semi-submersible drilling unit.(Libya)
January 2, 2009... The supply of a moored semi-submersible drilling unit and equipment and services.

Supply of transformers.(Oman)
January 2, 2009... The supply of 20MVA, 33/11.5 kV power transformers.

Construction of tourism project.(Oman)
January 2, 2009... Construction, completion and maintenance of a tourism development project at Al-Jabal al-Akhdar, in the north of the country.

Construction of Islamic centre.(Qatar)(Brief article)
January 2, 2009... Construction of an Islamic centre at Ain Khalid, including a mosque with a main and dally prayer halls, restaurant, imam houses, stores, service yards and an annex building.

Industrial cleaners for Dukhan fields.(Qatar)(Brief article)
January 2, 2009... The provision of industrial cleaners for four years at the degassing stations, Khuff gas plants, compressor stations, powered water injection stations and gas lift facilities in the Dukhan fields area, for Qatar Petroleum.

Sewer construction.(Saudi Arabia)(Brief article)
January 2, 2009... The expansion of community sanitary sewer mains at Yanbu Industrial City, including the expansion and upgrade of the existing sewer system and the construction of a lift station.

Subway construction.(Tunisia)(Brief article)
January 2, 2009... The building of a pedestrian subway as part of phase two of the modernisation of the rail infrastructure, for the Societe Nationale des Chemins de Fer Tunisiens.

Buildings in Mussefah.(UAE)
January 2, 2009... The construction, completion and maintenance of buildings in Mussafah, in Abu Dhabi.

Read maintenance.(UAE)
January 2, 2009... Maintenance of roads in Al-Ain, Abu Dhabi emirate, for the Al-Ain Municipality.

Siemens takes $2.1bn Iraqi power deal.(Contract awards)(Brief article)
January 2, 2009... [ILLUSTRATION OMITTED] Germany's Siemens has won a $2.1bn contract to supply gas turbines in Iraq. The deal covers the supply of 16 gas turbines with a capacity of 3,150MW to one power plant at Rumaila in Basra province, two plants at Taza...

Cornell to oversee Umm Qasr port.(Contract awards)
January 2, 2009... Iraq's Transport Ministry has appointed the US' Cornell Group to oversee the development of Umm Qasr port.

Occidental submits low bid for Awali.(Contract awards)
January 2, 2009... Occidental Petroleum has submitted a low bid to increase production at Bahrain's Awali oil field.

Kharafi wins Kuwaiti projects.(Contract awards)
January 2, 2009... The Electricity & Water Ministry has awarded a $41m contract to Kharafi National to operate and maintain power and water plants.

Jurong to develop Sudair masterplan.(Contract awards)
January 2, 2009... Singapore's Jurong International has signed a deal to carry out the detailed masterplan for the first phase of Sudair Industrial City.

Qatar sets bid date for Al-Shaheen.(Contract awards)
January 2, 2009... Qatar Petroleum has set a deadline for 15 April, for technical bids on its Al-Shaheen refinery. Commercial bids are to follow in June.

Events.(Brief article)(Calendar)
January 2, 2009... Dubai Mega Projects 2009 Focusing on project delivery, growth and infrastructure challenges 15-17 March The Westin Hotel, Dubai, UAE www.meed.com/events/dubai MEED's Dubai Mega Projects 2009 is the leading forum where you will gain...

Kingdom offers some hope.(REAL ESTATE)
January 2, 2009... [ILLUSTRATION OMITTED] What is emerging is a crash of spectacular proportions in Dubai Saudi Arabia is still in far healthier shape than the UAE market From 2003 to 2008, Dubai's construction industry exceeded all expectations....

Region failing to boost supplies.(GAS)(Brief article)
January 2, 2009... International Energy Agency to put pressure on Middle East to meet rising demand for gas, which is set to increase further by 2030 The stuttering development of the Middle East's gas industry has long been a source of frustration for...

Oil giants should keep investing.(ENERGY)(Brief article)
January 2, 2009... National oil producers to reprioritise investment plans as cuts in oil production are made National oil companies (NOCs) across the Middle East are contemplating a significant slowdown in activity for 2009. At their most recent meeting on...

Blair needs Obama support to succeed.(GAZA/WEST BANK)(Brief article)
January 2, 2009... [ILLUSTRATION OMITTED] For all his passion, Middle East envoy Tony Blair has little to show for his 18 months in the role At an investment conference in London in December, Tony Blair, the Middle East envoy, spoke passionately about...

Crisis takes its toll on credit ratings.(BANKING)(Brief article)
January 2, 2009... Ratings agencies adopt a dark perspective of the banking sector as hope fades and the market slows Ratings agencies have been taking an ever dimmer view of the region's banking sector, with a host of downgrades in December, and more to...

Value of UAE contract awards collapses: construction activity falls by 85 per cent in 12 months as projects fail to secure funding.(CONSTRUCTION: UAE)
January 2, 2009... The value of the UAE construction market fell by 85 per cent over the course of 2008, according to MEED Projects, which tracks project activity across the Gulf. The latest figures show that just $14.4bn of contract awards were made during...

Aramco and Dow approach contractors over Ras Tanura: joint venture floats build-own-operate terms in a bid to minimise costs.(ENERGY: SAUDI ARABIA)
January 2, 2009... Saudi Aramco and the US' Dow Chemical are approaching contractors to gauge their interest in bidding for work on the Ras Tanura integrated refinery and petrochemicals complex on a build-own-operate basis, in an effort to minimise cost exposure....

Suez Canal confronts global crisis.(TRANSPORT: EGYPT)(Brief article)
January 2, 2009... The Suez Canal Authority (SCA) is considering a new tariff structure to contend with falling revenues and traffic volumes, in the face of the global economic crisis, which has led to a downturn in international trade. The new tolls should...

Ratings agencies downgrade Gulf banks: weak operating conditions prompt review of the stability and outlook of the region's institutions.(BANKING & FINANCE: REGIONAL)
January 2, 2009... Credit ratings agencies are expected to make further down-grades on the ratings of GCC banks in the early months of 2009, as negative sentiment continues to build towards the sector. US credit ratings agency Moody's Investors Service, which...

A short, sharp economic shock: GCC economies will face sharp contractions in 2009, but a recovery is possible in 2010.(ECONOMY)
January 2, 2009... Despite the Opec decision to slash production and growing confidence that the oil-price crash is over and may even be partly reversed this year, the Middle East's largest economies will suffer a substantial setback in 2009. According to...

Downturn offers political test: as president-elect Barack Obama enters the White House, four regional states prepare to go to the polls, but there is unlikely to be radical political change in the coming 12 months.(Governance)
January 2, 2009... The oil-rich states of the Middle East imagined for a brief moment in the second half of 2008, that they could remain untouched by the recession taking hold of the world's major economies. But that delusion was punctured as consumer...

Breaking the deadlock: Palestinian Prime Minister Salam Fayyad and international Quartet envoy Tony Blair talk to MEED about their hopes for peace in the Middle East.(peace negotiation declared with UN Security Council passed resolution 1850 )
January 2, 2009... A fresh effort to breathe new life into the moribund Israeli-Palestinian peace process was made on 16 December, when the UN Security Council passed resolution 1850 reiterating its vision of a two-state solution to the conflict. The move...

Projects face crisis of confidence: banks reined in financing in 2008, leaving the future of many developments in doubt, but as cautious optimism returns to the market the biggest challenge for the project finance sector is to hold its nerve.(Project finance affected due to credit crunch in banking sector)
January 2, 2009... It has become popular to say that the global credit crunch did not really start to hit the Gulf region until about halfway through 2008. But there were signs long before then of a collapse, reflected in the willingness of banks to sponsor Gulf...

Gulf energy demand to soar: energy subsidies must be revised if the region is to meet gas and oil production targets.(ENERGY OUTLOOK)
January 2, 2009... REGIONAL With oil prices dropping and the viability of many of the region's megaprojects under review, a new in-depth study of the Middle East's long-term energy prospects forecasts a set of additional daunting challenges for the region....

Sector outlook 2009.(Special Report)(Report)(Brief article)
January 2, 2009... [ILLUSTRATIONS OMITTED] The latest economic data published by the World Bank in its Global Economic Prospects 2009 report, shows that the growth the Middle East has been enjoying over the past decade will slow to 3.9 per cent in 2009,...

State spending to speed recovery: governments are poised to step in and fund key projects to mitigate the fall in oil prices as the global downturn threatens to undermine the economies of the Middle East and North Africa.(ECONOMY)
January 2, 2009... Despite leaders throughout the Middle East and North Africa (Mena) region insisting for most of 2008 that their economies were well shielded from financial and economic troubles in comparison with the rest of the world, the second half of the...

Market faces major slowdown: with investor confidence at an all-time low in the private sector, Gulf governments will have to dip into their savings to shore up key projects.(development project contracts weaken due to economic slowdown)
January 2, 2009... With clients delaying or putting on hold final investment decisions due to turbulence in the world economy, the projects market is set to experience a sharp slowdown in 2009. Indeed, this year will serve as a reality-check to the heady days of...

Major gulf projects.(Special Report: Projects)(Statistical table)
January 2, 2009... MAJOR GULF PROJECTS Value Client/developer Project name Country $bn CONSTRUCTION Aldar Yas Island Ferrari UAE 0.15 ...

Banking: the global liquidity squeeze will affect Middle East banks' performance throughout 2009.(Special Report: Sector outlook 2009)
January 2, 2009... Having spent the first half of 2008 grappling with sky-high inflation and awash with liquidity, the tide turned for Middle East banks in the fourth quarter of 2008. Today, the main concern for banks across the region is where they can...

Construction: labour supply is set to outstrip demand this year as the effects of Dubai's real estate crash hit the region.(Special Report: Sector outlook 2009)
January 2, 2009... Manpower was a critical issue for the construction industry in 2008, and will be again this year. Whereas in 2008 the industry faced a labour shortage, 2009 will be all about oversupply. Consequently, the Gulf's construction industry faces an...

Energy: as demand for oil and gas products declines, the Middle East's refinery projects face major delays.(Special Report: Sector outlook 2009)
January 2, 2009... After the unexpected events of 2008, there is an understandable reluctance in the market to make firm predictions for oil prices over the year ahead. In July 2008, the cost of oil reached $147 a barrel and the upwards march in prices seemed...

Industry: GCC governments are being forced to re-evaluate and prioritise their spending as oil prices fall.(Special Report: Sector outlook 2009)(Gulf Cooperation Council )
January 2, 2009... Much of the Middle East's heavy industries exists to supply domestic markets with the metals and materials needed to fuel the region's construction projects. According to Gulf projects tracker MEED Projects, in the GCC, Iran and Iraq,...

Petrochemicals: with falling demand, the outlook for the Middle East petrochemicals sector is increasingly gloomy.(Special Report: Sector outlook 2009)
January 2, 2009... After two years of frenetic activity in the Middle East project market for petrochemicals, 2008 was a disappointing year. Huge increases in engineering, procurement and construction (EPC) costs in the first half of the year, coupled with...

Power & water: after long delays in 2008, shorter lead times for materials and lower project costs are stimulating activity.(Special Report: Sector outlook 2009)
January 2, 2009... A flurry of project activity is expected in the Gulf's power and water sector in the first half of 2009. Bids are due to be submitted on several major projects delayed from 2008, such as Dubai's Hassyan P phase 2 project and the Yanbu...

Transport: a series of major transport projects will go ahead this year, despite a slowdown in other sectors.(Special Report: Sector outlook 2009)
January 2, 2009... Despite the gloom enveloping other sectors, 2009 will be a good year for the Gulf's transport sector, if everything goes according to plan. GCC ports struggled to meet demand this year. Jeddah and Dubai, the two largest regional trans-shipment...

People to watch 2009: twelve key figures for the region in the coming year.(The MEED List)
January 2, 2009... Haider al-Abadi POSITION Head of the Economy, Reconstruction & Investment Committee, Iraq BIOGRAPHY Iraq's reconstruction effort began to gather pace in 2008, and should accelerate further in 2009. Al-Abadi will be a pivotal figure in...

Underground aluminium cables.(EGYPT)
January 9, 2009... Supply of underground reinforced cross-linked polyethylene and polyvinyl chloride insulated aluminium cables.

Natural gas pipeline equipment.(EGYPT)
January 9, 2009... Supply of various equipment for a natural gas pipeline project.

Boiler feed water pump.(IRAN)
January 9, 2009... Supply of two boiler feed water pumps with motors for a steel company.

Drilling mud and cementing materials.(IRAN)
January 9, 2009... Supply of drilling mud and cementing materials, and rock bits, for an offshore off company.

Water treatment plant and distribution network.(IRAQ)
January 9, 2009... Implementation of the Ghammas water treatment plant and water distribution network for an emergency water supply and sanitation project.

Pumping station electrical system.(IRAQ)
January 9, 2009... Supply of an electrical system for the rehabilitation of a pumping station.

Water transmission system.(JORDAN)
January 9, 2009... Implementation of the Zatary pump station and Zatary-Hofa pipeline project.

Project management and monitoring services.(JORDAN)
January 9, 2009... Provision of a project management company to provide professional services for various projects.

Grid station and transmission line.(OMAN)
January 9, 2009... Construction of a 132/33kV grid station and an associated 132k V transmission line.

Oily water effluent pipeline.(QATAR)
January 9, 2009... Carrying out engineering, procurement, installation and commissioning services for an oily water effluent pipeline in the Dukhan fields.

Water station project.(QATAR)
January 9, 2009... Carrying out a water station project involving headworks construction and associated pipelines.

Sports Club.(UAE)
January 9, 2009... Construction of a sports club at Jumeirah Golf Estates.

Water transmission pipelines.(UAE)
January 9, 2009... Supply and installation of water transmission pipelines from the Hassyan power station.

Riyadh awards Mecca power project.(Saudi Electricity Co. contracts with Al-Fanar Construction )(Brief article)
January 9, 2009... [ILLUSTRATION OMITTED] Saudi Electricity Company has signed a $118m contract for the construction of the Western Mecca substation. The local Al-Fanar Construction will build the 380kV substation within 29 months. The substation will help...

Advisory contract awarded for UAE coal plant.(Contract news)
January 9, 2009... The Ras al-Khaimah Investment Authority has awarded a legal advisory deal for the Mina Saqr 1 power plant to Linklaters.

Qatar awards came deal.(Contract news)
January 9, 2009... Riyadh Cables & Metals has won a $358m contract to supply high-voltage cables to Kahramaa.

Two shortlisted for Abu Dhabi airport.(Contract news)
January 9, 2009... Abu Dhabi Airports Company has shortlisted two firms to develop its new midfield terminal.

Contractors prepare for Fertil talks.(Contract news)
January 9, 2009... The UAE's Ruwais Fertiliser Industries (Fertil) will start technical discussions with bidders on 20 January to expand its fertiliser complex.

Three bid for Kuwait substation.(Contract news)
January 9, 2009... Three firms have submitted bids to build five substations for Kuwait's Electricity & Water Ministry.

Qapco weighs up bids for polyethylene plant.(Contract news)
January 9, 2009... Qapco is assessing three bids to develop its low-density polyethylene plant.

Events.(Brief article)(Calendar)
January 9, 2009... The Kuwait Conference 2009 29-31 March Courtyard Marriott Hotel, Kuwait City, Kuwait www.meed.com/events/Kuwait MEED's Kuwait Projects 2009 conference focuses on the largest developments in oil and gas, power and water, civil...

Banks should disclose losses.(BANKING)
January 9, 2009... Regulators must take a tougher stance to encourage disclosure It is unwise to operate on the basis that markets will recover soon [ILLUSTRATION OMITTED] Never has the dull world of accounting been so contentious. Gulf banks are...

Saudi Aramco sets example.(ENERGY)(Brief article)
January 9, 2009... The extent to which prices can be lowered will remain a source of friction. But for now, producers like Aramco can dictate to the market Saudi Aramco entered new territory late last year when, in response to the dramatic dive in oil prices,...

Cairo will have to rethink spending.(EGYPT)(Brief article)
January 9, 2009... Cairo largely avoided the craze of real estate speculation that took hold in the Gulf and other markets around the world in recent years. This was partly because its banks have only recently been allowed to offer mortgages. Nonetheless,...

Harsh conditions deter oil majors.(ALGERIA)(Brief article)
January 9, 2009... [ILLUSTRATION OMITTED] Algiers' tough contract conditions have driven international energy companies to invest elsewhere If Algeria's plans to increase its off and gas exports are to have any chance of coming to fruition, it will have...

Riyadh must ease the housing, crisis.(CONSTRUCTION)(Brief article)
January 9, 2009... The lack of housing for low-to-middle-income earners is where the real problem lies Riyadh is facing a housing crisis. The need to provide for an expanding, young population is coinciding with rising land prices and the ongoing lack of a...

Banks seek to mask losses on bourse: critics claim accounting techniques will be used to inflate profits so dividends can be paid.(BANKING & FINANCE: QATAR)
January 9, 2009... Banks in Doha are seeking approval from financial authorities to use accounting techniques that critics say will overstate their profits and fail to give an accurate picture of their losses on equity investments. Several local banks have...

Al-Rashid consortium to build phase two of border fence: security contract is expected to be worth $2.6bn and take three years to complete.(DEFENCE: SAUDI ARABIA)
January 9, 2009... A consortium of the local Al-Rashid Trading & Contracting Company and Germany-based European Aeronautic Defence & Space Company (Eads) has won the contract for phase two of Saudi Arabia's border fence project. The contract award has yet to...

Abu Dhabi Ports closes finance deal.(BANKING & FINANCE: UAE)(Brief article)
January 9, 2009... Abu Dhabi Ports Company has closed a $500m financing deal for the development of the $2.5bn Khalifa Port at Taweelah. The deal is being financed by UK bank HSBC, Belgium's Fortis and France's BNP Paribas. HSBC also acted as financial...

Dubai stalls work on landmark schemes: one Zabeel and Meydan racecourse are the first projects the state has delayed that are already under way.(CONSTRUCTION: UAE)
January 9, 2009... The Dubai government is adopting a new strategy of delaying construction projects that are already under way, one leading developer tells MEED, as the impact of the credit crunch continues to hit the emirate's real estate sector. The...

Sama Dubai shelves Jeddah towers in wake of slowdown.(CONSTRUCTION: SAUDI ARABIA)(Brief article)
January 9, 2009... The SR2bn ($534m) Dubai Towers Jeddah project has been put on hold as the developer, Same Dubai, continues to rein in its development plans in the wake of the global economic downturn. One source close to the project tells MEED that it is...

Dubai seeks private funding for infrastructure projects: Dewa demands firms secure finance before bidding for $1.5bn Hassyan deal.(WATER: UAE)
January 9, 2009... The government of Dubai is launching a fresh drive to raise private-sector funding for its infrastructure developments, with the Dubai Electricity & Water Authority (Dewa) inviting bidders to secure financing before making offers for its latest...

Al-Rashid bids low for Ras al-Zour.(Ras al-Zour independent water and power project )(Brief article)
January 9, 2009... The local Al-Rashid Trading & Contracting Company is the low bidder for two packages on the Ras al-Zour pipeline project, worth a total of SR5.2bn ($1.4bn), with Turkey's Mapa also in line to win work. The pipeline project will convey...

Saudi Aramco retenders Petro-Rabigh.(PETROCHEMICALS: SAUDI ARABIA)(Brief article)
January 9, 2009... Saudi Aramco and Japan's Sumitomo Chemical Company are retendering the consultancy contract for the expansion of the integrated refinery and petrochemicals complex at Rabigh on the Red Sea coast, in an effort to reduce costs. Companies...

BNP Paribas wins advisory role on $22bn Green City: official announcement of the award is expected later this month.(Abu Dhabi Future Energy Company )
January 9, 2009... French bank BNP Paribas is expected to be awarded by the end of January the mandate to act as financial adviser on the $22bn Green City project planned by Abu Dhabi Future Energy Company (Masdar). Sources close to the project tell MEED that...

Ipic reviews Fujairah refinery plans: Abu Dhabi-based company says scheme is no longer a priority as demand for refined products plummets.(ENERGY: UAE)(International Petroleum Investment Co.)
January 9, 2009... The development of the Fujairah refinery planned by Abu Dhabi-based International Petroleum Investment Company (Ipic) is in doubt after the company launched a review of the project, saying it is no longer a priority. The decision is based...

Dusup awards $55m contract for Jebel Ali gas terminal.(CONSTRUCTION: UAE)
January 9, 2009... Dubai Supply Authority (Dusup) has awarded Geneva-registered Archirodon Construction Services the AED200m ($55m) contract to build a liquefied natural gas (LNG) ragasification terminal at Jebel Ali. The works involve loading and unloading...

Aramco saves $2bn off cost of Karan field development: energy giant to award contracts after receiving cheaper prices from contractors.(ENERGY: SAUDI ARABIA)(Saudi Arabian Oil Co.)
January 9, 2009... Saudi Aramco has made substantial cost savings on its $10bn Karan gas field development, after demanding cheaper deals from contractors because of the fall in oil and commodity prices in recent months. The state-owned energy giant told...

Doha to put fifth block up for auction.(ENERGY: QATAR)(Qatar Petroleum)(Brief article)
January 9, 2009... Qatar Petroleum (QP) is to offer a fifth deep gas block to international oil companies (IOCs) in the coming months as part of its exploration of areas outside the hydrocarbons-rich North field, sources tell MEED. The state-run firm...

Takreer shortlists bidders for Ruwais: three consortiums prequalify to bid for contract to build 750MW simple-cycle power plant.(POWER: UAE)
January 9, 2009... Abu Dhabi Off Refining Company (Takrear) is pushing ahead with plans to expand its general utilities and power plant at Ruwais, with three bidding groups now shortlisted for the project. A simple-cycle power plant with a capacity of 750MW...