MEED Middle East Economic Digest articles from May 2009

MEED Middle East Economic Digest archives from May 2009

Fishing harbour reclamation and marine works.(BAHRAIN)
May 1, 2009... Carrying out reclamation and marine works in Malkiya.

Power plant transformers.(EGYPT)
May 1, 2009... Carrying out the electric transformers package for a thermal gas/oil-fired power plant project.

Gas turbine station.(KUWAIT)
May 1, 2009... Design, supply, construction, operation and maintenance of a combined-rotation gas turbine station at an electrical power plant.

Forces accommodation and meals.(KUWAIT)
May 1, 2009... Preparation and provision of meals and accommodation services for US forces for the Defence Ministry.

Public buildings construction.(LEBANON)
May 1, 2009... Construction of public buildings in six municipalities in the south.

Port area development.(LEBANON)
May 1, 2009... Carrying out phase 2 works in the port area of Tyre old city for a cultural heritage and urban development project.

Seismic data acquisition.(LIBYA)
May 1, 2009... Provision of 2D and 3D seismic data acquisition services in contract areas of the Sirte, Ghadames and Cyrenaica basins.

Transmission line maintenance.(LIBYA)
May 1, 2009... Maintenance of high-voltage power transmission lines in contract area C.

Power transformer station.(MOROCCO)
May 1, 2009... Construction of a 60/22kV power transformer station at Dar Ouled Zidouh.

Overhead power lines.(MOROCCO)
May 1, 2009... Study for and construction of 400kV overhead power lines from Guelmim to Tantan.

Transformer upgrade.(OMAN)
May 1, 2009... Upgrading of transformers at a main grid station.

Grid station and transmission line.(OMAN)
May 1, 2009... Construction of a 132/33kV grid station and associated 132kV transmission line.

Airport legal and technical consultancy services.(SAUDI ARABIA)
May 1, 2009... Two tenders for the provision of legal consultancy and technical consultancy services. Contract awards

Hochtief secures Barwa Commercial Avenue deal in Doha.(Contract awards)(Brief article)
May 1, 2009... [ILLUSTRATION OMITTED] Germany's Hochtief has won a construction works contract on the Barwa Commercial Avenue project in southern Doha. The mixed-use development forms the commercial centre of the Barwa City residential area, which is...

MCM Group wins Ras al-Khaimah hospital deal.(Contract awards)
May 1, 2009... Abu Dhabi-based MCM Group has won a AED800m ($217m) contract to build the Sheikh Khalifa specialist hospital.

Aramco awards Yanbu contract to WorleyParsons.(Contract awards)
May 1, 2009... Saudi Aramco Mobile Refinery Company (Samref) has awarded a $400m contract to Australia's WorleyParsons for environmental modification work on its 400,000-barrel-a-day (b/d) refinery at Yanbu.

UK team to design Saudi railway stations.(Contract awards)(Brief article)
May 1, 2009... A UK-based joint venture of Foster & Partners and Buro Happold has won a contract to design four stations on the Haramain high-speed railway between Mecca and Medina.

Ernst & Young wins Ghubrah plant consultancy.(Contract awards)
May 1, 2009... Oman Power & Water Procurement Company has awarded a OR990,000 ($2.6m) advisory contract.

Events.(Brief article)(Calendar)
May 1, 2009... Abu Dhabi Mega Projects 2009 24-26 May Sheraton Hotel, Abu Dhabi, UAE www.meed.com/events/abudhabiprojects This event is designed to showcase Abu Dhabrs leading construction projects and outline key upcoming infrastructure...

Dubai must pay for boom: Contractors have effectively been providing their services for free.(UAE)
May 1, 2009... Government assistance is needed to settle the outstanding debts [ILLUSTRATION OMITTED] It is starting to feel as though Dubai's real estate boom never happened. According to research from US real estate consultant Colliers...

Politicians will need time: Kuwait requires a government with strong willpower and a parliament that is prepared to compromise for the sake of the country's future.(KUWAIT)(Brief article)
May 1, 2009... The ministers of state that Kuwait's Emir Sheikh Sabah al-Ahmed al-Jaber al-Sabah will appoint in May are going to have their work cut out. After three successive governments and parliaments in as many years, the various offices charged with...

Algiers is right to invest in railways: Algeria's spending on rebuilding its rail network is approaching the astronomical levels seen in the GCC.(Brief article)
May 1, 2009... Rail projects in North Africa do not get the same publicity as those in the Gulf. For sheer scale and ambition, few transport schemes compare to the Dubai Metro, or to Saudi Arabia's effort to link the east and west coasts of the Arabian...

Sama should back regional lending: Saudi banks have the potential to provide a huge boost to the whole region's project finance sector.(BANKING & FINANCE)(Brief article)
May 1, 2009... [ILLUSTRATION OMITTED] Financial advisers on Middle East projects are desperate for as many new sources of liquidity as they can get. As a result of the tight banking market, severn projects around the region are struggling. In...

Crisis demands bold action: Riyadh's success in using public money to boost activity offers a model for others in the region.(CONSTRUCTION)(Brief article)
May 1, 2009... In December 2008, Saudi Arabia was the first Gulf state to announce a major public spending programme to counteract the effects of the global financial downturn on its economy. Four months after the budget announcement, construction...

Algiers invites bids for $1.5bn rail link: Transport Ministry issues High Plateau tender as part of $3.7bn spending plan for network.
May 1, 2009... Algiers is inviting bids for a $1.5bn passenger and freight rail project, and launching a study for a critical $1bn oil-export railway in the south of the country. Contractors have until the end of June to bid for the High Plateau railway...

Contractors raise prospect of walk-out: firms warn they could stop work on Dubai projects if they are not paid the money owed by clients.(CONSTRUCTION: UAE)
May 1, 2009... Contractors working in Dubai say they could stop work on projects on which they are not being paid, in the latest sign of difficulties in the emirate's construction sector. In a MEED survey of 25 leading international and local contractors...

Al-Ittefaq to restructure $1bn of debt.(BANKING & FINANCE: SAUDI ARABIA)(Brief article)
May 1, 2009... Saudi Arabia's Al-Ittefaq Steel Products Company is negotiating with 26 banks to restructure more than $1bn in loans, say bankers in the kingdom. The rapid fall in steel prices, the slowdown in the construction market, and the ban on...

Saudi banks enter talks over investing in regional projects: Kingdom's cash-rich finance houses seek opportunities abroad for first time.(BANKING & FINANCE: SAUDI ARABIA)
May 1, 2009... At least five of the kingdom's largest banks could invest in projects elsewhere in the region for the first time, in a bid to put their vast capital reserves to work. Banks including Alinma, Al-Rajhi, Banque Saudi Fransi, Riyad Bank and...

State takes control of Ras al-Zour project: Saline Water Conversion Corporation to finance power and water scheme, with tenders due in August.(WATER: SAUDI ARABIA)
May 1, 2009... The Ras al-Zour power and water project will be overseen by state-owned Saline Water Conversion Corporation (SWCC), sources close to the scheme tell MEED. The project has been transferred from the original client, the Water & Electricity...

Kharafi exits Dubai airport deal over appointment of Alec.(CONSTRUCTION: UAE)(Kharafi National)(United Arab Emirates)(Brief article)
May 1, 2009... Kuwait's Kharafi National has walked away from its AED1.6bn ($435m) mechanical, electrical and plumbing (MEP) contract for the Concourse 3 project at Dubai International airport, further delaying the AED5bn megaproject. The contractor...

Al-Zour deals revert to original terms: Kuwait National Petroleum Company to retender multi-billion-dollar refinery on lump-sum turnkey basis.(ENERGY: KUWAIT)
May 1, 2009... LISBURY Kuwait National Petroleum Company (KNPC) will retender construction contracts for the $15bn Al-Zour refinery on a lump-sum turnkey basis, one source close to the company tells MEED. KNPC will put its proposals to the new...

French bank to advise on Chemaweyaat: BNP Paribas in talks with Abu Dhabi National Chemicals Company over role to be awarded in August.(PETROCHEMICALS: UAE)
May 1, 2009... French bank BNP Paribas is in line to win an advisory mandate on the $20bn Abu Dhabi National Chemicals Company (Chemaweyaat) petrochemicals project. Chemaweyaat finished negotiations with four other banks at the start of the year, but...

Kuwait Oil awards $300m worth of pipeline work to locals.(ENERGY: KUWAIT)(Brief article)
May 1, 2009... Two Kuwaiti firms have won contracts worth KD88.6m ($303.6m) to build major oil and gas pipeline infrastructure for Kuwait Oil Company (KOC). KOC signed the contracts, with Heavy Engineering Industries & Shipbuilding Company (Heisco) for...

Dolphin to split Fujairah pipeline deal: energy firm likely to award only part of the work to a new contractor following retendering in April.(ENERGY: UAE)(Dolphin Energy Ltd.)(United Arab Emirates)
May 1, 2009... The UAE's Dolphin Energy is likely to award only part of the retendered $480m Taweelah-to-Fujairah pipeline work to a new contractor to avoid a dispute with its current main contractor, says one source close to the bidding. Russia's...

Al-Habtoor joint venture wins St Regis resort contract.(CONSTRUCTION: UAE)
May 1, 2009... The joint venture of Al-Habtoor Engineering Enterprises and South Africa's Murray & Roberts Contractors (Middle East) has won the AED2bn ($545m) contract to build the St Regis resort on Saadiyat island in Abu Dhabi. The scheme involves the...

Merger and acquisitions activity slows: value of deals in first three months of the year was $6.4bn, down 41 per cent on same period in 2008.(COMPANIES & MARKETS: REGIONAL)
May 1, 2009... The value of mergers and acquisitions involving companies in the Middle East and North Africa (Mena) in the first three months of 2009 was down 41 per cent on the same period in 2008, according to figures from UK data provider Dealogic. ...

Gaca launches airport city at Jeddah: development to cover five square kilometres on land surrounding King Abdulaziz International airport.(REAL ESTATE: SAUDI ARABIA)(General Authority of Civil Aviation)
May 1, 2009... Riyadh is launching the first phase of a multi-billion-dollar city development on land surrounding King Abdulaziz International airport in Jeddah. Some five square kilometres of land owned by the General Authority of Civil Aviation (Gaca)...

Gulf Air shelves global expansion to focus on core markets.(TRANSPORT: BAHRAIN)(Brief article)
May 1, 2009... Gulf Air is shelving plans to expand its global network in 2009 and will instead focus on consolidating business on existing routes. The Bahraini national carrier had hoped to introduce new European destinations to its network this year,...

First metro line to link downtown.(TRANSPORT: UAE)(Brief article)
May 1, 2009... Abu Dhabi's first metro lines will connect the city's downtown areas with the international airport. In April, the project's client, Abu Dhabi's Department of Transport, gave firms bidding for the consultancy services contract for the...

Sembcorp loses preferred bidder status on Salalah: group's tariff change proposal is rejected as client asks for bid revalidations.(POWER: OMAN)(SembCorp Industries Ltd.)
May 1, 2009... A team of Singapore's Sembcorp and the local Oman investment Corporation has lost its preferred bidder status on the Salalah independent water and power project (IWPP), according to sources close to the scheme. Negotiations between the...

Voters seek an end to deadlock: the results of Kuwait's forthcoming national elections will be key to reinvigorating its economy.(KUWAIT)
May 1, 2009... Kuwait's economy has stalled in recent months, and much of the blame is being laid on the bitter infighting between the executive and legislative arms of the country's government, rather than the global banking turmoil that has caused problems...

Orascom loses out over Mobinil: the Egyptian telecoms operator that has helped to pioneer mobile services in the region could sell its domestic business after a ruling by the International Court of Arbitration in France.(Orascom Telecom Holding SAE)
May 1, 2009... Orascom Telecom, the Egyptian telecoms company owned by billionaire Naguib Sawiris, is a pioneer of the mobile phone market in the Middle East and North Africa. But it has now achieved another first for the region: it is being forced to sell...

Industries Qatar: the holding company is expanding into new markets and increasing capacity during the downturn.(INDUSTRY)
May 1, 2009... COMPANY SNAPSHOT Date established 2003 Main business sectors Petrochemicals, fertilisers, fuel additives, steel and real estate Main business regions Qatar, Bahrain and the UAE Chairman and managing director Abdullah bin Hamad...

Sovereign funds narrow their focus: state investment vehicles are concentrating on their domestic markets as the value of their assets falls.(INVESTMENT)
May 1, 2009... SOVEREIGN WEALTH FUNDS The sovereign wealth funds of the Middle East and North Africa may control assets worth more than $1 trillion, but their strength is in many cases weakening. As the value of stock markets and other assets drops...

Gas buys Doha time to diversify: most countries in the region face a bleak year, but strong gas exports mean Qatar's economy will continue to grow through the downturn.
May 1, 2009... Qatar's economy continues to defy global trends. While growth rates for the rest of the region are forecast to be flat or negative this year, Doha remains on track to record a 9 per cent increase in its gross domestic product (GDP), in real...

Special report: construction.(Brief article)
May 1, 2009... [ILLUSTRATION OMITTED] Gulf developers are slowly adjusting to the idea that the region needs more affordable homes. While there are still enough cash-rich buyers in the market to provide some demand for high-end developments, the...

State supports hard-hit industry: Gulf governments are increasing their spending on infrastructure schemes to help the beleaguered construction sector, with major projects now under way across the region.(PROJECTS)
May 1, 2009... The final weeks of 2008 were peppered with announcements of government stimulus packages aimed at rescuing faltering economies around the world, not least in the Gulf, where Saudi Arabia announced the largest spending plan in its history, with...

Falling prices buoy struggling market: materials and labour costs will continue to decline this year, encouraging public sector clients in particular to renegotiate deals with contractors to get major infrastructure projects back on track.(COSTS)
May 1, 2009... The Gulf's construction industry has changed almost beyond recognition since the end of last year. During the market's boom period from 2002 to mid-2008, materials manufacturers and suppliers scrambled to expand their capacity in response to...

Developers rethink housing strategy: the global downturn is forcing Gulf real estate companies to build cheaper accommodation rather than more luxury properties, benefiting those at the middle-to-lower end of the market.(AFFORDABLE HOMES)
May 1, 2009... The news on 9 April that China North Industries Corporation (Norinco) was the low bidder for Saudi Arabia's National Guard housing scheme was more than an announcement of one of the largest construction contracts in the Gulf. It signified the...

Gulf tackles skills shortage: with rising unemployment, regional governments are making increasing efforts to give nationals the skills they need to find jobs in the local construction industry.(TRAINING)
May 1, 2009... Dubai aside, the Gulf's construction sector has been better sheltered from the global economic downturn than other parts of the world, despite key projects across the region being cancelled or put on hold. With regional governments...

Contractors take tough stance: as projects in the region are increasingly cancelled or put on hold because of a lack of financing, developers face a growing threat of legal action over unpaid bills.(DISPUTES)
May 1, 2009... Contractors operating in Dubai are increasingly taking legal action against developers for non-payment of bills. In the fourth quarter of 2008, hundreds of projects across the GCC were suspended because of a lack of available financing. For...

Morocco mining: six leading figures in morocco's mining sector.(The MEED List)(Mostafa Terrab, Driss Traki, Abdellaziz Abarro, Wayne Bramwell, Amina Benkhadra and Hamid Chabat)
May 1, 2009... Mostafa Terrab POSITION Chief executive officer, Office Cherifien de Phosphate (OCP) BIOGRAPHY Mostafa Terrab has led state-run phosphate company Office Cherifien de Phosphate (OCP) since 2003. Morocco is the third-largest phosphate...

Ministry plans airport for holy cities.(Iraqi Transport Ministry )(Brief article)
May 8, 2009... The Iraqi Transport Ministry is holding talks with France's Aeroports de Paris (AdP) over the design and construction of a $250m airport to serve the holy cities of Karbala and Najaf. The ministry says it plans to build the Mid-Euphrates...

Contractors seek financial support for Mostorod refinery.(ENERGY: EGYPT)(Brief article)
May 8, 2009... South Korea's GS Engineering & Construction Corporation and Japan's Mitsui & Company are seeking financing for the $2bn-plus Mostorod refinery project from their national export credit agencies after each firm was offered a 30 per cent stake in...

Petrochemicals.(Special Report)(Brief article)
May 8, 2009... [ILLUSTRATION OMITTED] The global petrochemicals industry has been enduring a miserable time thanks to the slump in demand for plastics. An estimated 20 per cent of the world's crackers, which produce the basic components for the...

Industry struggles to secure feedstock: the development of Kuwait's petrochemicals sector and the diversification of its economy are being hampered by a lack of gas despite a substantial discovery announced almost three years ago.(KUWAIT)
May 8, 2009... "We can say now that Kuwait has entered the world of natural gas," proclaimed Sheikh Ahraad Fahd al-Sabah, Kuwait's then energy minister, in June 2006, announcing the discovery of a substantial new find in the north of the country after years...

Saudi Arabia hotel developers: six key figures in the kingdom's hotel construction sector.
May 8, 2009... Sarmad Zok POSITION Chief executive officer, Kingdom Hotel Investments BIOGRAPHY Sarmad Zok has been chief executive officer (CEO) of Kingdom Hotel Investments (KHI) since 2001. Zok led the company's initial public offering on the...

Egypt: Gas and steam turbines.(Tenders)
May 15, 2009... Provision of gas and steam turbines at a combined cycle, 750MW power plant.

Iran: Combined-cycle power plant.(Tenders)
May 15, 2009... Implementation, on a turnkey engineering, procurement and construction (EPC) basis, of a 500MW, combined-cycle power plant.

Iran: Directional drilling services.(Tenders)
May 15, 2009... Provision of directional drilling services to support offshore drilling rig operations for phases 17 and 18 of the South Pars project.

Iran: Commercial complex.(Tenders)
May 15, 2009... Construction of a commercial complex.

Jordan: Wind farm construction.(Tenders)
May 15, 2009... Construction of a wind farm as part of an independent power project.

Kuwait: Workshop support services.(Tenders)
May 15, 2009... Provision of workshop support services for an oil company.

Kuwait: Gas turbine electrical reactors.(Tenders)
May 15, 2009... Supply of high-tension consecutive electrical reactors for gas turbines.

Libya: Seismic data processing.(Tenders)
May 15, 2009... Provision of 2D and 3D seismic data processing services in onshore contract area 113, blocks one and two, in the Murzuq basin.

Oman: Road construction.(Tenders)
May 15, 2009... Construction of the Madinat al-Haq to Nashib asphalt road, plus internal roads.

Oman: Desalination plant.(Tenders)
May 15, 2009... Extension, operation and maintenance of a 2,000-cubic-metre-a-day desalination plant.

Qatar: Gas plant shutdown maintenance.(Tenders)
May 15, 2009... Provision of shutdown maintenance works for a natural gas liquids (NGL) plant in the Mesaieed industrial area.

Qatar: Fuel transport pipeline.(Tenders)
May 15, 2009... Provision of a 16-inch jet A1 fuel transfer pipeline.

Qatar: Sewerage trunk and sewers.(Tenders)
May 15, 2009... Three tenders for the design and construction of sewerage trunks and internal sewers.

Saudi Arabia: Road bridge construction.(Tenders)
May 15, 2009... Construction of a bridge at a road intersection.

Egypt awards contracts for offshore gas blocks.(Brief article)
May 15, 2009... [ILLUSTRATION OMITTED] Egyptian Gas Holding Company (Egas) has awarded four out of seven exploration blocks on offer in its latest bid round. The UK's BG Group won the first block, while the UK's BP won the second. BP, as part of a...

Saipem wins $268m Arzew export terminal deal.(Contract awards)
May 15, 2009... Italy's Saipem has won a $268m contract to build a marine export terminal in Algeria.

Arabtec wins Nation Towers project in Abu Dhabi.(Contract awards)(Brief article)
May 15, 2009... A local joint venture of National Projects Construction (NPC) and Arabtec Construction has won a AED1.6bn ($436m) contract to build the Nation Towers project on Abu Dhabi corniche.

Orascom secures El-Merk infrastructure work.(Contract awards)
May 15, 2009... Egypt's Orascom Construction Industries (OCI) has won $280m worth of contracts for infrastructure work in Algeria.

Greek and Turkish joint venture secures Muscat airport deal.(Contract awards)
May 15, 2009... Athens-based Consolidated Contractors International Company and Turkey's TAV have won a RO500m ($1.3bn) construction contract for Muscat International airport.

Events.(Brief article)(Calendar)
May 15, 2009... Middle East District Cooling 2009 25-27 May Jumeirah Beach Hotel, Dubai, UAE www.meed.com/events/districtcooling MEED's District Cooling 2009 conference provides a place for significant deals to be made with high-level...

Nakheel has to tackle its debts.(REAL ESTATE)(Brief article)
May 15, 2009... [ILLUSTRATION OMITTED] The outlandish schemes developed by Dubai's Nakheel became synonymous with the city's boom. But the state-backed firm now risks becoming a symbol of the emirate's fall from grace. One of the developer's problems...

Energy majors will comply.(ENERGY)(Brief article)
May 15, 2009... Oil majors and international contractors have endured a difficult 12 months. The price of crude, which peaked at $147 a barrel in July last year, has since dropped by two-thirds as the global recession has taken hold. Foreign firms seeking...

Momentum must be maintained.(Brief article)
May 15, 2009... The Algerian oil and gas projects market in 2009 is a significantly different beast from that of one year earlier. In 2008, as contractors flocked to countries such as Saudi Arabia to bid on megaprojects valued in the tens of billions of...

Riyadh should scrap unfair cap.(TRANSPORT)(Brief article)
May 15, 2009... [ILLUSTRATION OMITTED] It is a measure of how far behind the times Saudi Arabia's aviation sector has fallen that at a time when other regional carriers are cutting fares to attract customers through the downturn, the kingdom's low-cost...

Gulf can lead on renewable energy.(Brief article)
May 15, 2009... In March, two major international energy companies announced they were cutting back on investment in developing renewable energy technologies. Presenting strategy updates to shareholders, the UK/Dutch Shell Group and the UK's BP said they would...

Doha set to reopen North field by 2014; Qatar petroleum expected to lift moratorium on fresh exploration of gas reservoir within five years.(ENERGY: QATAR)
May 15, 2009... Doha says it plans to lift the moratorium on new exploration of the North field, the world's largest non-associated gas field, by 2014 as it seeks to further increase production. Faisal al-Suwaidi, chief executive officer of state-owned...

Nakheel seeks to delay debt repayment; developer is in discussions with banks over plans to extend deadline for paying back $1.2bn securitisation.(REAL ESTATE: UAE)
May 15, 2009... Dubai-based developer Nakheel is in talks with four regional banks to delay its repayments on a $1.2bn securitisation. The change, which has yet to be agreed by all parties, could result in the repayment date being pushed back from July to...