MEED Middle East Economic Digest articles from June 2009

MEED Middle East Economic Digest archives from June 2009

Access road and site construction works.(LIBYA)(Brief article)
June 5, 2009... Carrying out civil works comprising an access road and site construction works, on a design and build basis, for eight well site locations in area 113.

Qapco awards Mesaieed deal to Uhde.(Contract awards)(Brief article)
June 5, 2009... [ILLUSTRATION OMITTED] Germany's Uhde has been awarded a contract to build a polyethylene plant at Mesaieed by Qatar Petrochemicals Company (Qapco). The engineering, procurement and construction contract involves building a low-density...

Strabag wins Sohar airport contract.(Brief article)
June 5, 2009... Austria's Strabag has been awarded a $99m contract for civil works at Sohar airport. It is the first phase of construction work on the new airport.

Swiss and US firms secure Abu Dhabi deals.(Contract awards)(Brief article)
June 5, 2009... The US' GE Oil & Gas is to supply compressors to two Abu Dhabi oil fields, and Switzerland's ABB will supply speed-drive systems, in deals worth more than $80m.

Tehran awards South Pars deal.(National Iranian Oil Company )(Oil Industry & Engineering Company)(Brief article)
June 5, 2009... National Iranian Oil Company has appointed one of its subsidiaries, Oil Industry & Engineering Company, to design and develop phases 20 and 21 of the South Pars gas field.

Exysm wins Kuwaiti cables contract.(Brief article)
June 5, 2009... A consortium led by Japan's Exysm Corporation has won a contract for the supply of ground cables to the Electricity & Water Ministry, with a price of $32m.

Events.(Brief article)(Calendar)
June 5, 2009... Middle East Dispute Resolution in Construction 14-16 June The Westin Hotel, Dubai, UAE www.meed.com/events/disputeresolution MEED's Dispute Resolution in Construction is an informative and practical conference designed to answer...

States should seek stability.
June 5, 2009... As commodity prices drop, Gulf business fortunes are reversed Stabilisation of real estate prices is vital to avoid sustained deflation [ILLUSTRATION OMITTED] Just 12 months ago inflation was one of the biggest problems facing the...

Sohar can buck the slowdown.(OMAN)(Brief article)
June 5, 2009... Despite the global financial downturn, the Omani port town of Sohar is taking on ambitious projects and continuing to grow The population in the Omani town of Sohar as grown from 90,000 to around 120,000 since the first commercial vessel...

Baghdad is right to issue bonds.(ECONOMY)(Brief article)
June 5, 2009... The government has defeated insurgents, with this borrowing programme it can maintain peace The Iraqi government of Noun al-Maliki has enjoyed a huge upswing in its authority in the past 12 months. Since the Charge of the Knights...

Tehran must woo foreign investors.(Brief article)
June 5, 2009... [ILLUSTRATION OMITTED] The Iranian government is likely to relax foreign investment restrictions, benefiting trade and relations Buying stakes in Iranian companies throws up some novel problems for many foreign investors. Financial...

Riyadh has to act on water scheme.(Brief article)
June 5, 2009... The utility has waited for more than a year for the Finance Ministry to approve credit support The news that private financing could be abandoned on yet another project in Saudi Arabia is likely to fuel growing speculation about a major...

Riyadh reviews wastewater sell-off: state-run utility considers alternative procurement options for new wastewater plants in the capital.(WATER: SAUDI ARABIA)
June 5, 2009... The kingdom's state-owned National Water Company (NWC) may ditch plans to involve the private sector in the contract to build new wastewater plants in Riyadh if it fails to receive government financial support for the scheme. NWC is...

Baghdad prepares $3bn bond issue to rebuild infrastructure: public spending will focus on power, transport and infrastructure schemes.(ECONOMY: IRAQ)
June 5, 2009... Baghdad is preparing to issue $3bn in government bonds to finance a major redevelopment of Iraq's electricity, transport and water infrastructure. The Council of Ministers will vote on 8 June to approve the first issue of government paper...

Wastewater plant secures $500m loan.(Brief article)
June 5, 2009... The long-term financing for Abu Dhabi's $500m second wastewater treatment plant will be finalised by late June with banks now completing internal approvals, bankers close to the project tell MEED. The deal will be structured as a nine-year...

Shuweihat 2 to secure $1bn financing: independent water and power project nears financial close as banks commit to funding scheme.(BANKING & FINANCE: UAE)
June 5, 2009... Financing for the $3.2bn Shuweihat 2 power project in Abu Dhabi is expected to hit financial close by mid-July, with six banks to commit to the remaining $1.1bn commercial loan with investments of about $100m each. Banking sources close to...

French law firm in line to draft partnership legislation.(Brief article)
June 5, 2009... Jordan is finalising the appointment of a law firm that will draft legislation to govern all future public-private partnership schemes in the country. French law firm Gide Loyrette Nouel is considered to be frontrunner after submitting the...

Developer outlines plans for finance zone: Al-Rayadah tenders major infrastructure contracts for multi-billion-dollar King Abdullah Financial District.(CONSTRUCTION: SAUDI ARABIA)
June 5, 2009... Saudi developer Al-Rayadah Investments is to launch a multibillion-dollar construction scheme for its SR36bn ($9.6bn) King Abdullah Financial District (KAFD) on the outskirts of Riyadh. It will tender three major infrastructure contracts in...

Baghdad increases competition for Nahr Bin Umar oil field.(Brief article)
June 5, 2009... The Iraqi Oil Ministry is in talks with a third bidder to develop the giant Nahr Bin Umar oil field, after receiving preliminary technical offers from Norway's StatoilHydro, and a consortium of France's Total and the US' Chevron Corporation....

Ras Tanura investment faces 12-month delay over design: Aramco and Dow put investment decision on hold until third quarter of 2010.(PETROCHEMICALS: SAUDI ARABIA)
June 5, 2009... State oil giant Saudi Aramco and the US' Dow Chemical Company are to delay a final investment decision on their $20bn integrated petrochemicals project at Ras Tanura by a year after underestimating the amount of design work required, sources...

Chevron trials heavy oil recovery.(Brief article)
June 5, 2009... The US' Chevron Corporation will launch a $337m steam injection pilot scheme in a bid to boost heavy oil production at its concession in the neutral zone, between Kuwait and Saudi Arabia, in the second half of 2009. Kurt Glaubitz,...

US Navy to expand military presence at Mina Salman: the US' largest overseas-based fleet will take over the former commercial port.(DEFENCE: BAHRAIN)
June 5, 2009... The US Navy is to expand its base in Bahrain, converting the former commercial port at Mina Salman into a military facility. Commercial operations have now ceased, following the opening of Bahrain's new Khalifa Bin Salman Port in March. ...

Linde seeks to win work without bids.(Brief article)
June 5, 2009... German contractor Linde is in talks with several Gulf petrochemicals companies about bypassing costly bidding processes for contracts to design and build cracker units. Heinz Zimmermann, vice-president of olefin plant business development...

Turkish contractor in line for King Khaled hospital award.(CONSTRUCTION: SAUDI ARABIA)(Brief article)
June 5, 2009... Turkey's Baytur Construction & Contracting Company is the front runner for the estimated SR3bn ($800m) contract to build a teaching hospital at King Khaled University at Abha. The three-year contract covers the construction of an 800-bed...

Value of Gulf contracts spiral down: Saudi Arabia is only market to buck the trend as the Gulf construction sector is hit by slowdown.
June 5, 2009... The value of construction contracts awarded in the Gulf so far this year has plunged by nearly half compared with the first half of 2008, as developers continue to shelve plans for new projects. Contracts awarded in the first five months of...

LyondellBasell to retain its interests in the kingdom.(PETROCHEMICALS: SAUDI ARABIA)
June 5, 2009... LyondellBasell is retaining its stakes in two major petrochemicals companies in the kingdom according to Just Jansz, technology president of the Dutch chemicals giant, quashing rumours it may abandon the ventures. LyondellBasell will...

The rising risks of falling prices: after years of inflation, deflation now threatens profit margins for GCC firms and could delay recovery.
June 5, 2009... Residents of the GCC have long been hoping for prices to reverse their upward march, and this year they may get their wish. After a sustained period of double-digit inflation in the past two years, it is now rapidly falling, and the latest...

Tehran cuts through red tape: Iran is changing investment rules to attract overseas buyers to its stock market, reducing the time they are required to hold investments and relaxing boardroom restrictions.(Iran)
June 5, 2009... Iranian voters face a crucial decision in the presidential election on 12 June about whether to continue with the economic policies of the incumbent Mahmoud Ahmadinejad or to opt for reforms under the one of his three challengers. But whatever...

Alafco: Kuwait's Aviation Lease & Finance Company has built up a customer base across the globe.(Company overview)
June 5, 2009... COMPANY SNAPSHOT Date established 1992 Main business sectors Leasing commercial aircraft Main business regions Middle East, southern Asia, China Chairman and chief executive officer Ahmad Alzabin STRUCTURE Building on...

Special report: Oman.(Brief article)
June 5, 2009... [ILLUSTRATION OMITTED] In a year when Sandi Arabia and the UAE have been investing in agricultural land in Africa and Asia to meet their food needs, Oman is concentrating on the development of its own agriculture industry for both its...

Muscat trades on its location: as one of four Arab nations to have signed a free trade agreement with the US, Oman is seeking to exploit its reputation as a regional trans-shipment hub.(TRADE)
June 5, 2009... Straddling ancient trade routes between Europe and Asia, yet separated from the rest of the Arabian Peninsula by the massive Rub al-Khali desert, Oman's 1,700 kilometres of coastline are home to ports serving trade routes that stretch across...

Reserves fund future spending: with its neighbours showing signs of fatigue during the economic slowdown, Oman is continuing its public spending plans by running a small deficit in 2009.
June 5, 2009... With political and economic instability to its west in Yemen, and a battered real estate market to the north in the UAE, the performance of Oman's economy in the past 12 months highlights Muscat's relative prudence in its public spending plans...

Sohar grows its economic zone: despite the global economic slowdown, the special economic zone surrounding the Port of Sohar is proving a highly popular location for downstream industry.
June 5, 2009... The Port of Sohar signed a contract with Bahrain's Mashael Group for the construction of the region's first bitumen refinery on 30 May. Ground will be broken on the $200m Sohar project by the end of this year and completed by 2012. The...

Driving up oil and gas production: by pioneering the use of advances in oil recovery techniques and opening exploration of three new gas concessions, Oman is on course to raise production levels for the first time since 2001.
June 5, 2009... After almost a decade of declining oil production and gloomy forecasts for the country's future, Oman has achieved what many analysts believed was near impossible. Having arrested the downward slide in the oil sector's output, Oman now plans to...

Returning to the land: Oman is revitalising its food industry by offering tax incentives to fisheries and farmers, but its climate is proving challenging.(FOOD)
June 5, 2009... Agriculture and raising livestock were once cornerstones of the Omani economy, before its focus on oil exports, which began in the late 1960s, eclipsed the sultanate's interest in these traditional industries. But today, Muscat is...

Bahrain Islamic bankers: six key bankers working in Bahrain's Islamic banking sector.(Ithmaar Bank)
June 5, 2009... Mohamed Hussain POSITION Co-chief executive officer (CEO), Ithmaar Bank BIOGRAPHY Mohamed Hussain has been co-chief executive officer with Michael Lee since April 2008, and a member of the bank's board of directors since June 2008....

Building a centre of excellence.(Qatar Science & Technology Park)(Brief article)
June 5, 2009... The inauguration in March of the Qatar Science & Technology Park (QSTP) is a major milestone in the development of the Qatari economy. Over the past decade, Qatar has been the region's stellar performer, consistently delivering...

Qatar's national vision: with the aim of becoming an advanced economy by 2030, Doha has begun the process of developing the skills of its population through investment in education and research.
June 5, 2009... The discovery of Qatar's giant North gas field in the early 1970s was initially met with disappointment that it was not another oil reservoir. But strategic investments in developing and commercialising the field have turned it into the...

Building a regional research hub: the establishment of the Qatar Foundation 13 years ago has been the catalyst for wide-ranging reform of the education sector, as Doha attempts to become a centre for new scientific discoveries.(Qatar Foundation for Education, Science & Community Development)
June 5, 2009... It is difficult to overstate the contribution the Qatar Foundation for Education, Science & Community Development has made to the development of Qatar. The charity, which was founded in 1995 by the then new emir, Sheikh Hamad bin Khalifa...

University campus comes of age: the graduation in May of 200 students from leading US educational institutions based in Qatar is a key moment for Doha's pioneering Education City project.(Qatar Foundation for Education, Science & Community Development)
June 5, 2009... Parents, siblings and students filled out the white marble ceremonial court at Education City on 5 May 2009 as the Qatar Foundation for Education, Science & Community Development staged its second annual senior convocation ceremony. Close...

Sidra raises the bar: the opening of the Sidra Medical & Research Centre in 2012 will give Qatar one of the most technologically advanced teaching hospitals in the world.
June 5, 2009... In years to come, students from the Weill Cornell Medical College in Qatar will be fortunate enough to study at one of the most technologically advanced teaching hospitals in the world. Rising out of the sands in the northern part of the...

The final piece of the jigsaw: the opening of the Qatar Science & Technology Park in March was the key element in the Qatar Foundation's plan to create a research hub.(QATAR SCIENCE & TECHNOLOGY PARK)
June 5, 2009... The co-location of Qatar Science & Technology Park (QSTP) and Education City is a key element of the Qatar Foundation for Education, Science & Community Development's strategy to establish Qatar as a regional research hub. The foundation's...

Paying for results: the Qatar National Research Fund (QNRF) has the weighty task of deciding which projects will receive financial backing.(QATAR NATIONAL RESEARCH FUND)
June 5, 2009... "Our mission at Qatar National Research Fund [QNRF] is to advance knowledge and education by supporting original and competitively selected research in all disciplines," says Abdul Sattar al-Taie, director at the QNRF. "We provide opportunities...

Qatar research: six key figures behind the development of Qatar's research sector.(Centre of excellence)(Sheikha Mozah, Daniel Bergin, Mohammad Fathy Saoud, Abdul Sattar al-Taie, Tidu Maini and Abdelali Haoudi)(Qatar Foundation for Education, Science & Community Development)(Sidra Medical and Research Centre)(Qatar Foundation)
June 5, 2009... [ILLUSTRATION OMITTED] Sheikha Mozah bint Nasser al-Missned POSITION Chairwoman, Qatar Foundation for Education, Science & Community Development BIOGRAPHY Sheikha Mozah bint Nasser al-Missned chairs the Qatar Foundation, the...

Power plant civils.(EGYPT)
June 12, 2009... Carrying out the civil works package for a 750MW combined cycle power plant.

Power plant consultancy.(EGYPT)
June 12, 2009... Consultancy services for a 750MW combined cycle power plant project.

Substations.(IRAQ)
June 12, 2009... Supply of substations as part of an electricity sector reconstruction project.

Oil and gas exploration.(JORDAN)
June 12, 2009... Oil and gas exploration bid round for the Northern Highlands and Jafr & Central Jordan blocks.

Oil cables.(KUWAIT)
June 12, 2009... Supply of high-tension oil cables of up to 300kV.

Port bridge cranes.(KUWAIT)
June 12, 2009... Manufacture, supply, operation and maintenance of bridge cranes at a port.

Provision of onshore drilling operation services.(LIBYA)
June 12, 2009... Provision of casing, running and handling equipment and services to support planned onshore drilling operations.

Diesel hydro-desulphurisation revamp.(OMAN)
June 12, 2009... Provision of engineering, procurement and construction services for a diesel hydro-desulphurisation revamp and catalytic cracking reformer lift line project.

Production well drilling and road construction.(OMAN)
June 12, 2009... Drilling of production wells and construction of roads for agricultural scheme.

Buildings development project.(QATAR)
June 12, 2009... Construction and maintenance of buildings including a restaurant, mosque, museum, farm, amphitheatre and administration blocks.

Road improvement works.(QATAR)
June 12, 2009... Carrying out road improvement works.

Apartment buildings.(SAUDI ARABIA)
June 12, 2009... Construction of nine four-storey apartment buildings and a mosque.

Diesel generators.(SYRIA)
June 12, 2009... Supply of 20 18MW generators using fuel oil.

Static meters.(UAE)
June 12, 2009... Supply, installation, testing and commissioning of 1,500 high-voltage static meters.

Canadian firm wins regional power deal.(Contract awards)(Brief article)
June 12, 2009... [ILLUSTRATION OMITTED] Canada's SNC Lavalin has won the contract to provide consultancy services on the planned electricity interconnection between Egypt and Saudi Arabia. It will prepare requests for proposals for the engineering,...

Algeria awards gas services deal to Swiss firm.(Contract awards)
June 12, 2009... ABB has won a $233m contract to provide equipment and technical services to state-owned energy giant Sonatrach for three gas plants.

Systra to manage Casablanca trams.(Contract awards)(Brief article)
June 12, 2009... France's Systra has won a contract to carry out project management work on a new tram system in Casablanca with the local CID Engineering & Development Consultants.

Mott MacDonald wins Dubai chemicals storage.(Contract awards)
June 12, 2009... UK-based Mott MacDonald has won the contract to manage the development of a chemicals storage terminal at Jebel Ali in the UAE.

Oman awards water management contract.(Contract awards)
June 12, 2009... A consortium led by KPMG is to advise Muscat on developing and tendering the management contract for the sultanate's water sector.

Events.(Conference news)(Calendar)
June 12, 2009... Middle East Dispute Resolution in Construction 14.16 June The Westin Hotel, Dubai, UAE www.meed.com/events/disputeresolution MEED's Dispute Resolution in Construction is an informative and practical conference designed to answer...

Sama must lift lid on debts.(ECONOMY)
June 12, 2009... Defaults at large family groups may delay financial recovery in the Gulf Billions of dollars of debt is already in line to be restructured. [ILLUSTRATION OMITTED] After a torrid six months marked by redundancies, the bursting of...

Doha can make diplomacy work.(QATAR)(Brief article)
June 12, 2009... With Doha's links to both the US and pro-Iranian political factions, the country has a useful role to play as a diplomatic deal broker Doha is treading a delicate path. It is still very much a staunch US ally while also supporting...

Utilities are right to bond together.(Brief article)
June 12, 2009... Government utilities working together will ensure Saudi Arabia's power and water demands are met Responsibility for the power and water sectors in Saudi Arabia is shared between four separate government owned utilities--the Water &...

Sheikh Nasser will need clear vision.(KUWAIT)(Brief article)
June 12, 2009... [ILLUSTRATION OMITTED] The Kuwaiti prime minister must build a strong petroleum council to regain his government's credibility The clock is ticking for Kuwait's Prime Miner Sheikh Nasser Mohammed al-Ahmed al-Sabah. With little more...

Flexibility is key to Aramco awards.(SAUDI ARABIA)(Brief article)
June 12, 2009... Contractors will have to be more flexible in future to win contracts with the Saudi oil giant Saudi Aramco has played a smart game during the economic downturn. It was one of the first national off companies to correctly identify that...

Oil ministry outlines energy masterplan: Kuwait will select a new Supreme Petroleum Council later this month to restart energy projects.(ENERGY: KUWAIT)
June 12, 2009... Kuwait has finalised a five-year development plan for the country's oil and gas sector and will appoint a new Supreme Petroleum Council (SPC) in a bid to restart progress on a string of major energy projects. Plans for the country's energy...

Aramco to award $7bn worth of Jubail export refinery deals: oil giant completes negotiations for seven of the largest packages.(ENERGY: SAUDI ARABIA)
June 12, 2009... State oil company Saudi Aramco is expected to formally approve the award of nearly $7bn worth of construction contracts for its Jubail export refinery at a board meeting on 16 June with its joint venture partner, France's Total. Sources...

Mashael prequalifies refinery bids.(ENERGY: OMAN)(Brief article)
June 12, 2009... Bahrain's Mashael Group is pre-qualifying engineering and construction contractors to bid on its $200m heavy oil refinery project at Sohar port, following the signing of a long-term lease agreement at the site. Mashael signed an agreement...

Marafiq abandons private sector plan: Yanbu water and power project brought back under government control because of funding difficulties.(WATER: SAUDI ARABIA)
June 12, 2009... The Power & Water Utility Company for Jubail & Yanbu (Marafiq) has abandoned plans to develop its Yanbu power and water plant as a private project and will implement it on an engineering, procurement and construction (EPC) basis instead,...

International firms compete for offshore pipeline contract.(ENERGY: UAE)
June 12, 2009... Abu Dhabi state-owned oil and gas company Zakum Development Company (Zadco) is inviting at least six international firms to bid for the $300m construction contract to build a 600-kilometre offshore oil pipeline. Zadco, a subsidiary of Abu...

Nakheel bond risk threatens ratings: Dubai-based entities could be downgraded if developer fails to repay $3.5bn of maturing bonds.(BANKING & FINANCE: UAE)
June 12, 2009... Dubai-based real estate developer Nakheel will have to seek government support to repay $3.5bn of bonds maturing in December, or the credit ratings of other entities in the emirate risk being downgraded. Credit ratings agency Moody's...

Al-Ittefaq agrees to $1bn debt extension with lenders.(BANKING & FINANCE: SAUDI ARABIA)
June 12, 2009... The kingdom's Al-Ittefaq Steel Products Company has agreed with its lenders to extend the maturity of $1bn of debt as part of a restructuring of the firm's financial obligations. Following the agreement, a new financial repayment schedule...

Baghdad in talks to boost investment: foreign investors could be given more rights as shortfall in project funding threatens to hit $70bn.(ECONOMY: IRAQ)
June 12, 2009... The Iraqi parliament is to debate measures seeking to boost overseas investment in the country as the government launches a nationwide survey of land for sale to foreign businesses. By mid-June, the government will attempt to push through a...

Doha to retender airport deals by July: fresh bids sought as airport project seeks to capitalise on fall in commodity and materials costs.(CONSTRUCTION: QATAR)
June 12, 2009... Doha is to issue fresh tenders for the first part of the third phase of the $11bn New Doha International Airport project by the start of July, having cancelled the original tender in March in a bid to cut costs, contractors close to the project...

Riyadh prepares tenders for Mecca-Medina rail link.(TRANSPORT: SAUDI ARABIA)(Brief article)
June 12, 2009... The second round of bidding on the Haramain high-speed raft project between Mecca and Medina is to start by the end of June, as the Saudi Railways Organisation (SRO) seeks to progress the $6bn link between the holy cities. The SRO is...

Dubai seeks to ease costs of metro line.(TRANSPORT: UAE)(Brief article)
June 12, 2009... The Dubai Metro's new Purple line now looks set to be built as a public-private partnership (PPP) as the Dubai government is keen to ease the financial burden on contractors. "A PPP is the most likely outcome because of the economic...

Abu Dhabi launches study on impact of federal rail scheme: Union Railway Company to assess how rail link will affect all seven emirates.(TRANSPORT: UAE)
June 12, 2009... Abu Dhabi-based Union Railway Company is launching a study into the environmental impact of the federal rail network, which will link all the emirates in the country. Union Railway, a government-owned entity, has issued a request for...

Abu Dhabi launches '1.8 million' scheme: Adco invites bids for the main construction package on its $3bn onshore oil capacity upgrade.(ENERGY: UAE)
June 12, 2009... Abu Dhabi Company for Onshore Operations (Adco) has launched its $3bn scheme to develop several of the emirate's largest onshore off fields by inviting contractors to bid for the main construction contract. Adco's plan, the '1.8 million...

Akakus work goes to Foster Wheeler.(ENERGY: LIBYA)(Brief article)
June 12, 2009... Libya's Akakus Oil Operations has awarded a project management consultancy deal to the US' Foster Wheeler as part of development plans for a 100,000 barrel-a-day (b/d) gas oil separation plant in the Murzuq basin, 700 kilometres from Tripoli....

Contractors line up for work on Marib 2 power scheme: contract for the third phase of the development will follow in coming months.(Brief article)
June 12, 2009... Contractors are to submit bids for the deal to build the Marib 2 power plant In Yemen on 15 July with a second contract covering the Marib 3 plant to follow in the second half of this year. One source close to the project tells MEED the...