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MEED
November 2007

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  • Abats partners IntelDyne

    Qatari IT outsourcing company Ali bin Ali Technology Solutions (Abats) has formed a joint venture with Indian outsourcing company IntelDyne Solutions to win more outsourcing deals. The joint venture is targeting small businesses and Qatar's largest companies. 'The pace of growth in Qatar's economy made us realise that we needed to join hands with a global player in outsourcing,' says Mohamad Ebrik, general manager of Abats.

  • ABB Lummus opts for more Sasref work

    US-based ABB Lummus Global has opted to carry out the main engineering, procurement and construction management (EPCM) contract for the ultra-low sulphur diesel complex at the Jubail-based Saudi Aramco Shell Refinery Company (Sasref) refinery. ABB, which beat competition from the US' Jacobs Engineering to win the original front-end engineering and design (FEED) deal in 2006, held the option to carry out the main construction contract under the original terms of the agreement (MEED 24:11:06).

  • Abu Dhabi revamps Gamco

    The Abu Dhabi government is expanding its interests in aviation maintenance and logistics by overhauling the aerospace maintenance and engineering group Gulf Aircraft Maintenance Company (Gamco).

  • Abu Dhabi to finance two dams in Yemen

    The Abu Dhabi Fund for Development will finance two dams in the provinces of Abien and Al-Hudaida, according to Yemeni President Ali Abdullah Salah.The projects will be co-ordinated by the Agriculture & Irrigation Ministry in Yemen.Saleh is urging more foreign investors to enter the oil, industrial, agricultural sectors to provide more job opportunities for the country's youth.Speaking in the southern province of Abien on 5 November, he said:

  • Accident at Dubai Marina bridge site

    A accident at a construction site at Dubai Marina has killed seven workers and injuring 15, according to local police.

  • Adco to issue Sahil tender

    Abu Dhabi Company for Onshore Oil Operations (Adco) is preparing to issue tender documents for the first phase of its Sahil, Asab and Shah (SAS) full field development. Only four groups are believed to be prequalified for the $1,300 million-1,500 million engineering, procurement and construction contract (MEED 20:7:07). They are UAE-based Petrofac International; Paris-based Technip with UAE-based Dodsal; Italy's Snamprogetti with India's Dodsal; and Spain's TR with Athe

  • Addax expands in Abu Dhabi

    Addax Bank is expanding its activities in Abu Dhabi by setting up a $1,000 million sharia-compliant finance company and another firm offering wealth management services targeted at high net worth women.

  • Adwea fast-tracks Shuweihat

    Abu Dhabi Water & Electricity Authority (Adwea) has taken the unprecedented step of inviting two developer groups to submit proposals for Shuweihat 2, its latest independent water and power project (IWPP).

  • Airline sale set for approval

    The Kuwaiti government aims to approve legislation authorising the privatisation of Kuwait Airways by the first week of December.

  • Aldar and Besix enter talks over partnering for Ferrari

    Local real estate developer Aldar Properties is in discussions with Belgium's Besix to form a partnership to build the Ferrari theme park and shopping mall on the AED 147,000 million ($40,000 million) Yas island development in Abu Dhabi.

  • Aldar builds headquarters

    The local/UK joint venture of Aldar Properties and Laing O'Rourke has started work on a new headquarters for Aldar at its Al-Raha Beach development in Abu Dhabi.

  • Aldar signs hotel deal with Moevenpick

    Local developer Aldar Properties has signed an exclusive development contract with Moevenpick Hotels & Resorts for three hotels in Abu Dhabi.The first project will be a 500-room hotel will be on Yas Island, close to the Ferrari Theme Park and the Warner Brothers Theme Park. It is due to open in 2010. The other two hotels in the development contract are currently in the planning stages.Aldar has formed similar partnerships with Oberoi Hotels & Resorts and Acc

  • Aldar signs hotel deal with Moevenpick

    Local developer Aldar Properties has signed an exclusive development contract with Moevenpick Hotels & Resorts for three hotels in Abu Dhabi.The first project will be a 500-room hotel will be on Yas Island, close to the Ferrari Theme Park and the Warner Brothers Theme Park. It is due to open in 2010. The other two hotels in the development contract are currently in the planning stages. Aldar has formed similar partnerships with Oberoi Hotels & Resorts a

  • Algiers seeks fertiliser partner

    Algiers is in negotiations to agree a third joint venture with an international partner to expand its fertiliser production capacity, according to industry sources.

  • Al-Habtoor joint venture in line to build Trump tower

    The local/South African joint venture of Al-Habtoor Engineering Enterprises and Murray & Roberts Contractors (Middle East) is the frontrunner for the estimated AED 2,000 million ($545 million) contract to build the Trump International Hotel and Tower on the Palm Jumeirah in Dubai.

  • Al-Habtoor wins contract to build Gulf Hotel complex

    The local Al-Habtoor Engineering Enterprises has been awarded the estimated AED 1,000 million ($272 million) main construction contract for the Gulf Hotel development next to the Grand Mosque on Abu Dhabi island.

  • Amlak bond faces delay

    Amlak Finance has delayed the sale of $250 million worth of bonds until later this year because of the credit market turmoil in the US pushing up interest costs on borrowing worldwide.

  • ANALYSIS: Court to decide Tunisiana ownership

    Tunisiana, the country's largest mobile phone operator, may soon have a change of owner as the legal dispute between its two shareholders approaches a showdown in the International Court of Arbitration, in Paris. Egypt's Orascom Telecom and Kuwait's Wataniya are battling for control of the company they founded in 2002. The case began on 4 April 2006, when Orascom filed a request for arbitration. A decision is due within weeks, but whichever firm wins, it will find the m

  • Apicorp wins $500m gas financing mandate

    Arab Petroleum Investments Corporation (Apicorp) has been awarded the advisory mandate for the estimated $500 million financing of the Hasdrubal gas and condensates field development.Six banks are understood to have been shortlisted.Apicorp will work with the client, state oil company Entreprise Tunisienne d'Activites Petrolieres (Etap), to structure the deal. The financing is set to be launched in the second quarter of 2008, with syndication of the deal to

  • Arab countries at bottom of gender report

    Arab countries have fared poorly in the Global Gender Gap Report published by the World Economic Forum on 8 November.In the survey of 141 countries, Kuwait was ranked 96th, the highest position of any Arab country. Egypt came in at 120, Morocco at 122, Saudi Arabia at 124. Yemen fared worst of all, being ranked in last place out of 128 countries.Saadia Zahidi, one of the authors of the report, said Arab women receive almost as much education and health benef

  • Aramco to invest $31bn to boost capacity

    Saudi Aramco is to spend $31,000 million in an effort to boost crude production capacity to 12.2 million barrels a day (b/d) by 2012, from the current figure of 10.8 million b/d.

  • Areva signs uranium deal

    France's Areva has signed a headline agreement with state-owned Office Cherifien des Phosphates (OCP) for the extraction of uranium from phosphates. The two companies are planning a joint feasibility study into a uranium facility to process phosphoric acid manufactured from phosphate ore. The kingdom's phosphate reserves contain an estimated 6 million tonnes of uranium.

  • Austrians share expertise

    Austrian integrated oil firm OMV and Abu Dhabi-owned International Petroleum Investment Company (Ipic) have signed a memorandum of understanding to pursue upstream energy projects in the Middle East, North Africa and Caspian Sea. Under the terms of the deal, the two firms will work together to share knowledge and expertise to assess their participation in regional upstream opportunities. In the past two months Ipic has purchased a stake in Japan's Cosmo Oil and agreed to build a new refinery in

  • Award nears on Ras Laffan

    An award is imminent on the world-scale petrochemicals complex at Ras Laffan, planned by Qatar Petroleum and the US' ExxonMobil Chemical Company, following finalclarification meetings with the three bidders.

  • Bakeries report sharp drop in sales due to rationing

    Jordan's bakeries have reported a 35 per cent drop in sales since the government started rationing wheat and flour on 1 November.The rationing has forced some bakeries to increase their prices by between 20 and 60 per cent, driving away customers.Jordan's Ministry of Industry and Trade took control of the distribution of wheat and flour on 1 November.The ministry is selling wheat to mills and flour to bakeries at prices set by its civil servan

  • Bank giant enters region

    The Chinese Industrial and Commercial Bank, the world's largest by assets, is entering the Middle East for the first time by opening branches in the Dubai International Financial Centre and the Qatar Financial Centre.

  • Batelco looks overseas

    Batelco, Bahrain's largest mobile phone operator, wants to spend $4,000 million on foreign telecoms companies or new licences over the next two to three years. Chief executive officer Peter Kaliaropoulos says Batelco is targeting the new licence in Kuwait, privatisations in Lebanon and Muscat's sale of a strategic stake in Omantel.

  • Ben Ali marks 20 years in power

    Tunisian President Zine al-Abidine Ben Ali will celebrate 20 years in power on 7 November, with critics urging him to resist calls to stand for a further term.The next election is due in 2009, but Ben Ali's supporters are already decorating the countries major towns with Ben Ali portraits and posters declaring that he would be the 'best choice in 2009'.However, critics are tiring of Ben Ali's unchallenged leadership. 'Certainly we have recorded social stabil

  • Bids due for Ghannouch

    Commercial bids are due to be submitted by the end of 2007 for the planned 400-MW combined-cycle power plant at Ghannouch near Gabes on the east coast. France's Alstom and a team of Germany's Siemens and Canada's SNC Lavalin are vying for the estimated $300 million contract. The two parties are in talks with the client, Societe Tunisienne de l'Electricite & du Gaz, to align their technical bids (MEED 17:8:07).

  • Big oil to boost Manama capacity

    International oil companies (IOCs) are pledging to double the capacity of Bahrain's onshore Awali oil field to 70,000 barrels a day (b/d) and boost gas production to 2,000 million cubic feet a day (cf/d). Eight bids were received on 1 November for a major revamp of Bahrain's onshore field from majors including ExxonMobil Corporation and Occidental Petroleum of the US, and Denmark's Maersk Oil. Oil & Gas Minister Abdulhussain bin Ali Mirza tells MEED several of the compa

  • Binladin wins library deal

    Saudi Binladin Group has been awarded a SR 288 million ($77 million) contract to build the King Fahd National Library in Riyadh. The building will use a combination of membrane, cable and steelwork with a gross floor area of about 85,000 square metres. The contract duration is 30 months. A local/German team of Saudi Consulting Services (SaudConsult) and Gerber Architects is the consultant. Arriyadh Development Authority is the client (MEED 6:10:06).

  • BMI flies into Dammam

    The UK's BMI has launched direct flights between London and Dammam. The service will open early in 2008, operating three times a week. The airline recently expanded its Middle East operations, adding six destinations. The Saudi government is keen to establish a Heathrow link to the kingdom's Gulf coast (MEED 7:9:2007).

  • Boosting business

    King Abdullah’s visit to the UK in late October was not the diplomatic success for which many had hoped. Although the first state visit to the UK by a Saudi monarch in 20 years reflected the deep ties that exist between the two kingdoms, it also exposed some significant problems.

  • Bourse to move to Business Bay

    The Dubai Financial Market (DFM) has been granted land for a new stock exchange building at Business Bay.

  • BP awards contracts for Khazzan and Makarem

    The UK's BP has awarded four major contracts covering the exploration and appraisal of its central Khazzan and Makarem tight gas fields.

  • BP seeks opportunities in Qatar oil and gas sector

    UK oil major BP is in discussions with Qatar Petroleum (QP) to re-enter the state's upstream oil and gas sector after a break of 15 years. However, any opportunities are likely to be delayed until the next round of oil and gas exploration begins.

  • Budget deficit forecast soars

    Jordan’s government is raising its budget deficit forecast for 2007 by almost 50 per cent after weeks of record oil prices.

  • Cairo awards six cement plant licences

    Cairo has awarded licences for six new cement plants and two plant expansions, worth a total of $200 million.

  • Cairo revives plans for nuclear plants

    Egyptian President Hosni Mubarak said the country will build a number of nuclear power stations.'I announce before you Egypt's position to prepare the programme for building several nuclear power stations,' said Mubarak on 29 October. 'We believe that energy security is a major part of building the future for this country and an integral part of Egypt's national security system.'The president said he would revive the Supreme Council for the Peaceful Pur

  • Cargo-handling tariff rises

    Royal Jordanian has signed a memorandum of understanding with Jordanian Logistics Association to put a new cargo-handling tariff in place at Queen Alia International Airport. The deal, supervised by the Civil Aviation Regulatory Commission, will increase the handling tariff on all air cargo for export and import, and will start on 1 November. The association says the tariff will help the country's shipping industry.

  • Chevron seeks to renew Divided Zone concession

    Saudi Arabian Chevron (SAC), a subsidiary of the US' Chevron Corporation, has started negotiations with Riyadh over the renewal of its 50-year onshore concession in the Divided Zone.

  • China Harbour wins dealto build container terminal

    China Harbour Engineering Company has won a contract to build a container terminal at Jeddah Islamic Port on Saudi Arabia's Red Sea coast.

  • China offers cheap loans

    The Chinese government has extended $200 million in credit to Egyptian companies to finance capital goods imports from China.

  • China to set up industrial zone

    China's Tianjin Economic & Technological Development Area (Teda) has signed an agreement with Cairo to develop the first Chinese industrial zone outside the country. The zone is set to attract up to $2,500 million in investment from Chinese companies.

  • China wins production line

    China National Building Material Equipment Corporation has been awarded a $162 million contract by Oman Cement Company to build a third production line at its plant near Muscat. The production line will produce 4,000 tonnes of cement a day, taking its total capacity to 9,000 tonnes a day. Completion is expected in 2009.

  • Chinese bid low for Yanbu

    The local/Chinese China Harbour Engineering Arabia Company is the low bidder with a price of $100 million for the dredging and excavation contract on the phase 1 and 2 waterfront development of the Madinat Sinaiyah al-Yanbu project. The other bidders are the local Huta Group and Geneva-registered Archirodon Construction (Overseas). A contract award is expected by the end of 2007. The Royal Commission for Jubail & Yanbu is the client.

  • Citadel seeks advisers for $2.4bn refinery project

    Banks are being approached to take on a supplementary adviser role in the financing of the $2,400 million refinery project planned by local private equity firm Citadel Capital. It is expected to be the largest ever project financing deal in the country.

  • Commerzbank considers fund investing in sukuk

    Germany's Commerzbank is considering launching a fund that will invest in sharia-compliant bonds (sukuk). If it goes ahead, it will be one of only a few that invest in tradeable sukuk.

  • Costs on gas project rise to $4 billon

    Costs on the Yemen liquefied natural gas (LNG) project, led by France's Total, have risen to over $4,000 million, an increase of over $300 million on previous estimates, according to Yemen's oil minister.Costs for energy projects worldwide have skyrocketed with both labour and materials in short supply.'The cost will be over $4 billion,' Oil Minister Khaled Mahfoud Bahah said. 'It's not surprising really when you l

  • Crescent finds solution to Iranian gas import problems

    Sharjah-based Crescent Petroleum says it expects to overcome technical glitches with Iran in the next few months, which will mean it can start importing gas supplies early in 2008.

  • Damascus plans refinery

    Damascus has signed an agreement with Tehran, Caracas and Malaysia's Bukhary Group for a 140,000-barrel-a-day (b/d) refinery in the Al-Faraqlus area, 180 kilometres north-east of Damascus. Venezuela and Iran will supply crude oil to the estimated $2,600 million refinery, which is set to come on stream in 2011.

  • Damascus to close struggling state firms

    Damascus could start shutting underperforming state-owned companies in 2008, after a cabinet committee approved the latest set of economic reforms for the country.

  • Darfur rebels agree to mediation

    Rebel groups boycotting the Darfur peace talks in Libya this week have agreed to meet with international mediators.A UN-African Union mediating team is preparing to send a delegation to meet the Sudanese rebels in an effort to bring them to the negotiating table.'We are having consultations with those here in Sirte [in Libya] and will be having consultations with those outside too,' said Noureddine Mezni, a spokesperson for the African Union.

  • Darfur rebels agree to mediation

    Rebel groups boycotting the Darfur peace talks in Libya this week have agreed to meet with international mediators.A UN-African Union mediating team is preparing to send a delegation to meet the Sudanese rebels in an effort to bring them to the negotiating table.'We are having consultations with those here in Sirte [in Libya] and will be having consultations with those outside too,' said Noureddine Mezni, a spokesperson for the African Union.S

  • Darfur talks continue but hopes for deal fade

    UN and African Union officials are set to travel to Sudan in the coming days to try persuade key rebel groups to end their boycott of the Darfur peace talks taking place in Sirte, Libya.'We cannot lose momentum after we started serious and promising dialogue,' said Jan Eliasson, a UN envoy. 'This process must end with the outcome we are looking for. The all-inclusive process will continue and will not be adjourned.'Officials from the Khartoum government

  • Delta Two quits Sainsbury deal

    Delta Two, the investment fund backed by the Qatar Investment Authority (QIA), has pulled out of a£10,600 million deal for UK supermarket chain Sainsbury's because of global credit conditions pushing up its cost of funding.Since announcing it is backing down from the acquisition on 5 November, the Sainsbury's share price has fallen 100p and in turn Delta Two's 25 per cent stake in the company has fallen by more than£400 million in value.Under stock exchange

  • Dewa plans power boost

    Dubai Electricity & Water Authority (Dewa) is planning two further power complexes at Hassyan. A tender for Q Station will be issued In early 2008. It will be built in two phases with a total capacity of 3,000 MW and 200 million gallons of water a day (g/d). A third complex is planned for 2008. The Hassyan site can accommodate up to 9,000 MW and 600 million g/d of additional capacity (MEED 24:8:07).

  • Doha adds link to airport

    Efforts are under way to build a rail link to the new international airport under construction in Doha, an element that was left out of the original design. Bids will be submitted by the second week of November for a preliminary design adding a rail link to the project. The design and management of the airport has been carried out since 2004 by US construction giant Bechtel, which omitted a rail link from its original plans. 'At the time it took over there

  • Doha considers laws to tackle inflation

    Qatar is mulling the introduction of laws governing sectors of the economy - including real estate regulations - in a bid to tackle double-digit inflation.Prime Minister Sheikh Hamad bin Jassim al-Thani says slowing rent hikes in the second quarter would help to achieve a balance between demand and supply in the property market, reducing inflationary pressures.Inflation hit 11.8 per cent in Qatar last year and was 10.6 per cent in the first six months of 200

  • Doubt grows over production claims

    Industry observers are casting doubts over Kuwait's claim that it will soon start producing its first meaningful quantities of gas. State upstream operator Kuwait Oil Company (KOC) said in early October that it was on schedule to produce 175 million cubic feet a day (cf/d) from two northern oil fields by the end of 2007. However, observers claim it is unclear how, where or by whom the gas is being produced. The confusion stems from a sudden announcement in

  • DP World buys into Egyptian container firm

    The UAE's DP World, a subsidiary of Dubai World, has bought a 90 per cent stake in Egyptian Container Handling Company (ECHCO) for $670 million.The container company, founded in 1997 by Jordanian Ossama Al-Sharif, was 50 per cent owned by Al-Sharif and 50 per cent by the local Orascom Construction Industries.Al-Sharif, a graduate of Alexandria Maritime Academy, will retain a 10 per cent interest in the company through the local Amiral Holdings.

  • DP World listing bolsters bourse

    The Dubai International Financial Exchange (DIFX) was beginning to look like a flop that would cost Dubai in credibility and cash. Two years have passed since its launch in September 2005 and still volumes on the offshore exchange are flat. But a series of events in the past two months, including DP World’s decision to list on the exchange, could save it from obscurity.

  • Du dominates market

    Emirates Integrated Telecommunications Company (Du) signed up more than 60 per cent of all new mobile phone customers in the UAE during the three months to the end of September. Egyptian bank HC Securities Brokerage has calculated that Du won 62 per cent of new customers in the quarter after estimating that Etisalat signed only 200,000, compared with Du's 330,000.

  • Du extends market reach

    Emirates Integrated Telecommunications Company (Du), the second telecoms operator in the UAE, has now signed up 880,000 mobile phone customers, taking its reach to 21 per cent of the UAE population. The company's sales revenues reached AED 412 million ($112 million) in the three months to 30 September, up 36 per cent on the previous quarter's figure of AED 302 million ($82 million).

  • Dubai bourse tohold US roadshow

    The Dubai Financial Market (DFM) will hold a roadshow in New York in mid-November to promote its listed companies to US investors. Emaar Properties and Air Arabia are among the 14 companies participating.

  • Dubai drives Iran power link

    Dubai's plans to import electricity from Iran are moving ahead despite doubts over the amount of spare capacity in the Iranian network.

  • Dubai Drydocks buys rival

    Dubai Drydocks World, part of Dubai World, has made a $1.63 billion cash offer for Singapore's Labroy Marine. It has already gained the backing of shareholders owning 65 per cent of the company. The deal strengthens Dubai Drydocks' position in ship building and repair, and gives it access to the rig-building sector for the oil and gas industry. Labroy has two shipyards in Batam, Indonesia, and is listed on the Singapore Stock Exchange.

  • Dubai extends deadline

    Dubai's Roads & Transport Authority has extended the closing date for the fourth contract on the parallel roads scheme to 17 December. The original closing date was 27 September. The two-year contract involves the construction of two roads through Dubai Industrial Area and Jebel Ali Free Zone South, between the Shaikh Zayed and Emirates roads. De Leuw Cather International, part of US-based Parsons International, is the consultant (MEED 14:9:07).

  • Dubai Holding takes on more debt

    Dubai Holding has taken out a $1,260 million bridging loan to finance Dubai International Capital's acquisition of a 9.9 per cent stake in US hedge fund Och Ziff Capital Management. Dubai International Capital, a private equity firm owned by Dubai Holding, will purchase the holding after a separate initial public offering of the fund is complete. The offering is expected to take place in mid-November. Morgan Stanley is Dubai Holding's financial adviser and h

  • Dubai Metro costs spiral as deadline looms

    Dubai Metro is set to run up to AED 2,325 million ($633 million) over budget as the emirate's transport regulator seeks to complete the construction of the Red and Green lines on schedule.

  • Dubai reveals hotel plans

    Dubai plans to have 554 hotels by 2016, according to the Department of Tourism and Commerce Marketing.Khalid bin Sulayem, director general of the department, said that its strategic plan envisages an increase in the room capacity of hotels and hotel apartments from 46,775 units now to 127,100 units by 2016, a growth of more than 170 per cent.Many of the new rooms will be at the Bawadi tourism and leisure development in Dubailand.

  • Dubai: Giant threat to local rival

    Plans to build the world's largest airport at Dubai World Central could prove terminal for the existing Dubai International.

  • Echoes of 1967 as the Gulf prepares to dump the dollar

    In a sequence of disasters, Britain's Middle East empire disintegrated in the quarter century following the end of the Second World War. London reneged on its promises by withdrawing precipitately from Palestine in May 1948 and allowing almost 60 per cent of its non-Jewish population to be driven out in 12 months. In October 1956, it ganged up with France and Israel against Egypt and failed.

  • Eight vie for Al-Zour

    Saudi Arabian Mining Company (Maaden) has invited eight companies to bid by 23 February for the $1,300-1,500 million contract to build a power plant at the Ras al-Zour aluminium complex.

  • Emaar to develop zone

    The UAE's Emaar Properties is expected to sign a deal in early 2008 to develop an industrial and residential zone on the Mediterranean coast near the Tunisian border. Emaar signed a joint venture agreement with the government-owned Zwara & Kamash Development Zone in November 2006 for the new economic city and has since been developing a masterplan (MEED 17:11:06).

  • Emirates looks at listing

    Local carrier Emirates Airline has confirmed that it is considering an initial public offering. The shares could list on the Dubai International Financial Exchange (DIFX), although the company says no decision has yet been made. The DIFX says further government-related companies will list on the exchange, following DP World's recent announcement that it will list shares there. No decision has yet been made on the timing of any Emirates share offer.

  • Emirates NBD to seek mergers

    Emirates NBD, the newly merged UAE bank, will target mergers and acquisitions deals across the region to build up a regional banking brand, according to the company chairman.'I think the time has come for [intra regional] bank mergers,' says Ahmad Humaid al-Tayer. 'With large assets and equity base, we are looking at regional expansion.'He added that organic expansion in the GCC banking market was a long proces

  • Emirates NBD to seek mergers

    Emirates NBD, the newly merged UAE bank, will target mergers and acquisitions deals across the region to build up a regional banking brand, according to the company chairman.'I think the time has come for [intra regional] bank mergers,' says Ahmad Humaid al-Tayer. 'With large assets and equity base, we are looking at regional expansion.'He added that organic expansion in the GCC banking market was a long process, and acquisitions would be a key part of build

  • Emirates profits soar

    The local Emirates Airline has announced a 99 per cent increase in net profits for the first half of the financial year ending 30 September. Profits rose to AED 2,360 million ($643 million) compared with AED 1,180 million ($323 million) for the same period in 2006. Despite the impact of soaring fuel costs, passenger revenue at the Dubai-based carrier increased by 30.5 per cent to AED 13,100 million ($3.56 billion). The airline carried 10.3 million passengers in the first financial half, a 23 per

  • Empty Quarter comes up dry

    Saudi Aramco is facing crisis talks with a string of international companies searching for gas in the Rub al-Khali (Empty Quarter) after it emerged that no gas has been discovered despite five more wells being drilled.

  • Eni signs up for Galsi

    Snam Rete Gas, a subsidiary of Italy's Eni, signed a memorandum of understanding on 7 November to build the Italian section of the Galsi natural gas pipeline between Algeria and Italy. The section includes a 300-kilometre-long overland section in Sicily, between Cagliari and Olbia, and a 220-kilometre offshore section to Pescaia on the Italian mainland, at a depth of 900 metres (MEED 2:11:07).

  • Etihad agrees fleet finance

    Etihad has agreed a $288 million 12-year loan with the National Bank of Abu Dhabi (NBAD) to finance the acquisition of four new aircraft. The Airbus A330-200 planes have been delivered in phases by the manufacturer since July 2007 and are already in service. The bank is the sole arranger on the loan. In November, the Abu Dhabi-based carrier will unveil details of a further $500 million credit facility to fund its acquisition of four Airbus A340s.

  • Etihad signs Virgin Blue

    Etihad has struck a deal with Virgin Blue in Australia enabling passengers to connect between the two airlines. Virgin Blue flies to 22 destinations in the country. The Abu Dhabi-based carrier currently flies daily between Abu Dhabi and Sydney, and will increase that service to 11 flights a week early next year. In September, the airline added three flights a week to Brisbane. The deal comes weeks after Etihad's local rival Emirates rejected speculation about a possible takeover of Virgin Blue.

  • Etisalat secures financing

    Etisalat Egypt, a subsidiary of the UAE's Etisalat is close to raising bank loan facilities of nearly $850 million to develop its mobile network in the country.

  • Exxon quadruples Barzan gas capacity

    The Barzan gas development has grown four-fold from its initial target of 1,500 million cubic feet a day (cf/d), with plans now in place for six gas trains to be developed over the next eight years.

  • Fichtner to help reform sector

    Germany's Fichtner has won the contract to provide technical advice on implementing the restructuring and privatisation of the Saline Water Conversion Corporation (SWCC).

  • Firms revise Laffan bids

    The General Electricity & Water Corporation (Kahramaa) has received three revised proposals for the Ras Laffan C independent water and power project. The bidding groups are led by the UK's International Power, Marubeni Corporation of Japan and Belgium's Suez Energy International (MEED 10:8:07).

  • First transformer plant in region opens

    Brush Transformers Gulf, a joint venture of Abu Dhabi-based Al Nasser Industrial Enterprises and the UK's Brush Transformers, has opened the first dedicated transformer plant in the Middle East.The plant is located at the Industrial City of Abu Dhabi in Mussafah and covers an area of 20,000 square metres. It will build units in a range of 33KV-132 KV and up to 90 megavolt ampere (MVA).'This partnership is evidence of the capabilities of Abu Dhabi in attracti

  • Four compete for Zayed museum

    The local Tourism Develop-ment & Investment Company has shortlisted four firms for the architectural competition to design the Shaikh Zayed National Museum on Saadiyat island in Abu Dhabi.

  • Four firms bid for Landbridge deal

    Four prequalified consortiums have submitted bids for the contract to build the $5,000 million Saudi Landbridge rail-way linking the kingdom's major Red Sea and Gulf ports in Jeddah and Dammam.

  • France invests in Alam

    Gaz de France has bought a 45 per cent interest in the Alam el-Shawish West licence in the Western Desert, from Greece's Vegas Oil & Gas. Several discoveries have been made on the 1,075 kilometre-square block in the Bu Gharadig basin, and an exploration programme is under way. The deal will increase Gaz de France's reserves by an estimated 30 million barrels of oil equivalent.

  • Fugro wins Galsi study

    The Netherlands' Fugro has won the Eur 18 million ($26 million) contract for a marine survey on the planned Galsi gas pipeline to Italy.

  • Gamal positioned to run for president

    Gamal Mubarak, the son of Egyptian President Hosni Mubarak, will be able to stand as the National Democratic Party's candidate in the next presidential election, after being elected to the party's new Supreme Council.Gamal, who was already the head of the policy committee, was elected to the 50-member Supreme Council during the party's convention which began on 3 November in Cairo.Until recently the presidential candidate had to be the head of the NDP's poli

  • Gas plant fire kills seven

    A fire at a natural gas complex at Arzew in the northwest has injured seven people, state energy company Sonatrach has announced.Electrical cables caught fire following a leak in a gas pipe at the complex, 400 kilometres west of Algiers. The cause of the leak is not yet clear.The fire coincided with questions in parliament about the safety of the country's other major coastal oil and gas facility, at Skikda in the northeast.An explosion at a l

  • Gulf airports: Runaway expansion plans

    As Gulf airports ambitiously increase their passenger capacity, will there be enough demand to justify the investment?

  • Gulf funds to take lead on code of conduct

    Gulf-based sovereign wealth fund managers could be the first to agree to a voluntary code of conduct to regulate their activities, according to the IMF.'I think Saudi Arabia may be the first to agree to a voluntary code,' says Moshin Khan, regional director for the Middle East at the IMF. 'Gulf funds are already among the most transparent, although any code would have to be voluntary.'Khan's comments follow those of David McCormick, US undersecretary fo

  • Gulf states offer enriched uranium to Iran

    Arab Gulf states are offering to provide enriched uranium to Iran as a way of resolving the stand-off with the West over its nuclear programme.Under a proposal put to Tehran by the GCC states, a multinational consortium established by the GCC will provide enriched uranium to power plants in the Islamic Republic. This would allow it to develop its nuclear energy programme while at the same time removing fears that it is seeking to develop nuclear weapons.Spea

  • HSBC relocates contact centre

    HSBC will become the first company to directly offshore part of its contact centre and IT services operations to Egypt, according to the chief executive officer of the government agency promoting Egypt.

  • Industrial city shapes template for infrastructure finance

    With the sun setting swiftly over the Gulf, the 10 million-square-metre second phase of the Industrial City of Abu Dhabi in Mussafah south-west of Abu Dhabi City was declared open on 29 October in a ribbon-cutting ceremony attended by the emirate's Crown Prince Shaikh Mohammed bin Zayed.

  • Industry welcomes minister despite political allegations

    The local hydrocarbons sector has broadly welcomed the appointment of former finance minister Bader al-Humaidhi as the new oil minister, despite continued criticism of him in parliament. 'Unlike his two predecessors, Al-Humaidhi has a proven track record of being able to deliver, and brings with him a good reputation from the finance ministry,' says one Kuwait-based oil executive. 'An added bonus is that he is already familiar with the oil sector due to his membership of the Supreme

  • Internationals vie for Petro-Rabigh consultancy work

    Four international consultants have submitted prequalification applications for the joint front-end engineering and design and project management consultancy contract on the second-phase expansion of the Rabigh Refining & Petrochemical Company (Petro-Rabigh) integrated refinery and petrochemicals complex.

  • Introduction: Gulf's aviation market matures

    While the big three Gulf airlines are taking an ever larger share of the global market, and the region's new low-cost carriers have got off to a profitable start, many others in the industry are struggling to find a niche.

  • Israeli minister calls for El Baradei to be sacked

    Israel's deputy prime minister has called for the sacking of Mohamed El Baradei, the head of the UN's nuclear watchdog, the International Atomic Energy Agency (IAEA).Shaul Mofaz demanded El Baradei be replaced for failing to understand the urgency of Iran's nuclear ambitions.'The policies followed by El Baradei endanger world peace,' said Mofaz, during a visit to the US. 'His irresponsible attitude of sticking his head in the sand over Iran's nuclear program

  • Israeli strike kills four Palestinians

    An Israeli air strike on a Hamas-run police station in Khan Younis on 31 October left four Palestinians dead. The Israeli military says it had targeted a position used by militants to launch rockets into Israel.The attack came as Israeli Defence Minister Ehud Barak warned that a wider military operation could be launched imminently. 'Every passing day brings us closer to a broad operation in Gaza,' he said. 'We are not looking forward to it, we would be

  • Istithmar awards deals

    Local developer Istithmar Leisure has awarded three contracts totalling AED 380 million ($104 million) on its Jumeirah Golf Estates scheme. Dubai-based ETA Ascon has won the AED 188 million ($51 million) contract for underground piping work. The local Al-Buraq Contracting has won the AED 174 million (47 million) contract to install electrical and telecoms systems, and street lighting. The local Hennessey Construction will build the Agronomy Centre. The UK's Mott MacDonald is the project manager

  • Itochu joins venture

    Qatar Petroleum International (QPI) and Japan's Itochu Corporation have signed a memorandum of understanding (MoU) to work on joint ventures in oil, gas and petrochemicals. Itochu, Japan's fourth-largest trading firm, holds a 4 per cent stake in trains one and two of the Ras Laffan Liquefied Natural Gas Company (RasGas) liquefied natural gas processing facility, which produces an annual output of 6.6 million tonnes.

  • Jafza signs deal for Indian logistics parks

    Dubai-based Jafza International has formed a joint venture with India's Tata Realty & Infrastructure (TRIL) to operate a chain of business and logistics parks across India. It follows the signing of a memorandum of understanding between Jafza and TRIL in May this year. The Indian logistics industry is estimated to be worth $90,000 million a year and it is estimated to grow to over $125,000 million a year by 2010. Jafza International i

  • Japan to launch sovereign sukuk

    Japan Bank for International Cooperation (Jbic), the state-owned export credit agency, says it plans to sell a $100 million sukuk - Islamic bond - by the end of May 2008. If it goes ahead, it will be the first by a major industrialised nation. The sukuk would be issued as part of Japan's plans to position itself as an Islamic finance hub, and would mean Japan would beat the UK, which has also been considering issuing a own government-backed sukuk.Tadashi Mae

  • Jeddah deal faces delay

    The Electricity & Water Ministry has delayed the deadline for bids on the Jeddah water network management contract until 5 January. Bids were originally due on 27 November. Prequalified companies include France's Veolia Water; France's Suez with the local Acwa Power Projects; Berlinwasser and GTZ, both of Germany, with Saudi Oger; and Aqualia with Fomento de Construcciones y Contratas, both of Spain (MEED 5:10:07).

  • JP Morgan to open office

    The Riyadh-based investment subsidiary of JP Morgan will start operations by the end of 2007.

  • Kurdistan signs deals to increase oil production

    Kurdistan has pledged to increase oil output to one million barrels a day (b/d) by 2012 after signing seven new deals with international oil majors and awarding four projects to a new state-owned firm.

  • Kuwait Airways: Board opens the emergency exit

    A disagreement with ministers over adding to the fleet led to a mass exodus of board members.

  • Kuwait Drilling supplies rig

    The local Kuwait Drilling Company (KDC) has won a contract worth KD 24 million ($85.6 million) to supply a drilling rig to Kuwait Oil Company (KOC). Under the terms of the five-year contract, KDC will supply and operate a deep-well drilling rig for onshore oil exploration operations.

  • Kuwait to privatise ports

    Kuwait's port sector is to be opened to private ownership, after a decision by the cabinet's economic committee. It has agreed in principle to offer the Kuwait Ports Authority's shares in Shuwaikh, Shuaiba and Doha ports. Special purpose vehicles will be set up to manage the three facilities, which will be able to bring in international partners to manage and operate the terminals and invest in the ports' infrastructure.

  • Kuwait's national carrier faces turbulent times

    It has been an eventful year for Kuwaiti aviation. For its airlines, it has been one of mixed fortunes. The buoyancy of the low-cost market, and the strong performance of Jazeera Airways in particular, has been in marked contrast to the continued turmoil at the national airline, Kuwait Airways.

  • Maroc rules out network sharing

    Maroc Telecom, Morocco's largest mobile phone operator, will not share its network with other companies that want to enter the local market, according to its majority shareholder. 'Maroc Telecom will not try to push for virtual network operators (VNOs) in Morocco because they are not needed,' says Matthieu Coutiere, director of strategic projects at Vivendi, the French company that owns 51 per cent of the firm. Although Maroc Telecom is not prepared to do such deals in

  • Masdar to bring in private sector

    Masdar, the Abu Dhabi alternative energy initiative, is expected to decide on how the private sector will participate in the building of the Gulf's first major solar power plant by the end of 2007.

  • Mashreq reports rising profits

    Mashreq bank has reported profits of AED 1,350 million ($367.6 million) for the first nine months of the year, up 21 per cent compared to AED 1,110 million ($302.3 million) in the same period in 2006.The bank also said that total assets had grown by 45 per cent to AED 74,200 million ($20,207 million), and that customer deposits were up 37 per cent to AED 43,900 million ($11,955 million).Net interest income, and income from Islamic products was AED 1,130

  • MIDDLE EAST PEACE PROCESS: Searching for a solution

    Prince Saud al-Faisal has been at the heart of Saudi efforts to find a solution to the Israel/Palestine conflict since the Saudi-inspired Arab peace plan was unveiled in Beirut in 2002.

  • Ministry signs water deal

    The Saudi Organisation for Industrial Estates & Technology Zones has signed contracts worth SR 2,000 million ($535 million) with Industrial Cities Development & Operation Company for the management of water services in Dammam 1st and 2nd industrial cities and Al-Ahsa 1st Industrial City. It follows deals in October with International Company for Water Distribution (Tawzea) for water services in Jeddah, Riyadh and Al-Qassim.

  • Mobily cuts call costs

    Mobily, the Saudi mobile phone operator run by the UAE's Etisalat, has cut the cost of mobile phone calls made from home in an attempt to encourage people to stop using their fixed-line phones, which are supplied by rival Saudi Telecom. Mobily has cut the price of calls made within half a kilometre of home by one-third, from SR 0.30 ($0.80) to SR 0.20 ($0.50).

  • Mobily speeds up service

    Mobily has begun offering customers mobile broadband at speeds of up to 7.2 Mb a second. Most other broadband services in the region, including broadband over fixed-line connections, have top speeds of about 2 Mb per second. Mobily's new service will cost customers SR 100 ($26.77) per month. The specialist router needed to use the service will cost an additional SR 1,000 ($267.70).

  • Mobinil questions rival tariff

    Egypt's largest mobile phone operator, Mobinil, is demanding an investigation into the relationship between its closest rival, Vodafone Egypt, and the country's only fixed-line telecoms operator, Telecom Egypt, over a new pricing structure.

  • Mobinil subscriber numbers rise but costs dent margins

    Profits at Egypt's largest mobile phone operator, Mobinil, have fallen over the past three months despite strong growth in customer numbers, as the company struggles to keep down costs. Mobinil's net profit for the three months to the end of September was£E 472.2 million ($85.5 million), down from£E 516 million ($93.5 million) for the same period in 2006. The company's rate of signing up customers accelerated over the quarter, with an addition

  • More workers go on strike in Dubai

    Dubai has been hit by another labour dispute just one week after a violent protest in the Jebel Ali Industrial Area.Workers employed by the local Arabtec Construction have refused to go to work and are demanding an increase in wages. A spokesman for Arabtec said that the main issue is the declining value of the UAE dirham against non-dollar pegged currencies, such as the Indian rupee, which has reduced the amount of money workers can send home.The Ministry o

  • MP targeted in smear campaign

    Jordan's parliamentary election has become embroiled in allegations of dirty tricks after an Islamist MP for the Baqaa refugee camp revealed that he had been the subject of a smear campaign.Mohammad Akel, who is standing as an independent candidate, said that schoolchildren had been employed to hand out leaflets containing 'harmful and untrue information' about him.Akel has represented Baqaa, the largest Palestinian refugee camp in Jordan, since the 200

  • Muscat to issue revised tender for Nimr

    Petroleum Development Oman (PDO) is set to issue the final revised tender for its innovative water treatment and re-use project at the Nimr oil field in the south.

  • Nalpetco awards West Med

    North Alamein Petroleum Company (Nalpetco) has awarded a front-end engineering and design contract to the US' KBR for facilities on two fields on its deepwater West Mediterranean concession.

  • Nawras launches 3G

    Nawras, Oman's second-largest mobile phone operator, will launch the first 3G service in the sultanate in a few months, enabling customers to make video calls and send email using their phones. The 3G service will launch in Muscat and Sohar before expanding to cover Oman's other towns and cities. Nawras is owned by Qatar's Qtel. Oman's largest mobile operator, Omantel, has yet to announce its plans for 3G technology.

  • Northern emirates introduce mandatory health insurance

    Expatriates in the emirates of Dubai, Sharjah, Ajman, Umm Al-Qaiwain, Ras al-Khaimah and Fujairah will be covered by a mandatory health insurance system from early 2008 as part of a proposed federal insurance law.The draft law proposed by the health ministry is currently being reviewed currently with the Legislations Committee and it will soon be sent to the Cabinet for approval. Abu Dhabi residents have been covered by a mandatory health insurance scheme si

  • Observers pull out of monitoring general election

    A coalition of non-governmental organisations (NGOs) has decided that its members can no longer monitor Jordan's parliamentary elections on 20 November because of government restrictions.'How do you expect us to report on the credibility of elections when civil groups are not permitted to observe vote casting and ballot counting?' said Samih Sunukrut, secretary general of the Arab Organisation for Human Rights, one of 15 members of the Jordan Coalition for Civil Society Or

  • Oil minister resigns after eight days

    Kuwait's oil minister has resigned eight days after accepting the job, in the wake of continued criticism over his time as finance minister.Bader al-Humaidhi, who had been finance minister since 2005, took up the vacant oil portfolio after a cabinet reshuffle in late October. The post had been vacant since the resignation of Sheikh Ali al-Jarrah al-Sabah earlier in 2007.The cabinet reshuffle was partly caused by parliament submitting a request to question Al

  • Oman: Rewriting the power and water rulebook

    The completion of the Barka II independent water and power project pioneers the privatisation of brownfield assets in Oman.

  • Omantel links districts

    Omantel expects to sign up 14,000 broadband users by extending its network to three districts that have never had a high-speed connection before. The monopoly fixed-line operator will have capacity for up to 170,000 broadband connections in the Buraimi, Dhofar and Muscat governorates. Only 90,000 people in Oman have internet connections - using fixed-line broadband and dial-up networks, and second-generation mobile networks.

  • One in four use mobiles

    Iran's mobile phone penetration has reached 25 per cent of its population, according to Communications and IT Minister Mohammad Soleymani. The country's largest mobile phone operator, Mobile Company of Iran, a subsidiary of Telecommunications Company of Iran, has more than 20 million customers.

  • Opposition backs election process

    Campaigning for the upcoming parliamentary elections has progressed without government interference, according to a former leader of the Muslim Brotherhood opposition group.Adbul Majid Thneibat said he had not witnessed any government interference in the election so far. The statement is significant as the political wing of the Muslim Brotherhood, the Islamic Action Front (IAF), has previously boycotted elections over claims of government interference.The IA

  • Orascom plans sale of Algerian joint venture

    Orascom Telecom plans to sell the Algerian fixed-line telecoms business that it runs as a joint venture with Telecom Egypt, the Egyptian government-owned fixed-line operator.Naguib Sawiris, chairman of Orascom, says a single buyer had emerged for Consortium Algerien de Telecommunication (Lacom), but he declined to name the company.'There is a company that is negotiating to buy the firm from us. But I am not sure this will succeed,' he says.Tel

  • Petronas to sell Block 8

    India's ONGC Videsh (OVL) is holding talks to acquire a 30 per cent interest in Block 8, on the border with Ethiopia, from Malaysia's Petronas, Khartoum's oil minister Awad Ahmed al-Jazz said on 6 November. OVL is also aiming to buy a one-third share in Block B in the south, said the minister. The US' Marathon is seeking to sell its 32.5 per cent interest in the block (MEED 22:6:07).

  • POWER: Building capacity and reducing demand

    Kuwait appears to have narrowly avoided a summer of discontent in the power sector. The much-anticipated nationwide power cuts never happened, allowing government ministers and civil servants to breathe a collective sigh of relief. An energy crisis that threatened to engulf the government in political turmoil was avoided at the last minute. In late February, a crisi seemed inevitable. The state had total installed capacity of 9,800 MW, but summer peak demand for power was forecast t

  • Prisoner tortured to death, say officials

    Egyptian officials have said that a man died after being tortured for three days by police.The officials, who refused to give their names, informed foreign media organisations that Ahmed Saber Saad was jailed on suspicion of possessing drugs. They said Saad was tortured even after state prosecutors had ordered his release, citing insufficient evidence.Saad died one day after his body was dumped on a street in Giza, southwest of central Cairo.E

  • Privatisation plan stalls

    Most countries embarking on major privatisation programmes do not discover that their best state-owned organisations have been labelled sponsors of terrorism or guilty of nuclear weapons proliferation. But Iran is not like most countries. On 25 October, US Secretary of State Condoleezza Rice imposed unilateral sanctions against three of Iran's largest banks and the Islamic Revolutionary Guards Corps, the country's largest military force and a shareholder in many of its biggest compa

  • Property developer to offer shares

    Talaat Mostafa Group plans to stage an initial public offering of 295 million shares. The proceeds of the sale valued at E£ 3,100 million - E£3,700 million ($566 million-676 million) will be used to fund the real estate developer's projects in Egypt and future schemes in the region. The shares will list on the Cairo & Alexandria Stock Exchange. EFG Hermes and HSBC are joint global co-ordinators and bookrunners for the issue.Talaat Mostafa owns stak

  • Qafco raises train budget

    Qatar Fertiliser Company (Qafco) has increased by $400 million the amount it will raise in project finance for the construction of a fifth production train, because of rising costs.

  • Qatar ups iron project stake

    Qatar Steel Company has taken a 49.9 per cent share in the development of the country's only iron pelletisation project, set to cost an estimated $1,500 million.

  • Rail project to begin next year

    A project to build a UAE rail network linking all seven emirates will get under way in 2008, with completion anticipated in 2012, according to a senior official at the Abu Dhabi Department of Transport. A search is under way to put consultants and legal advisers in place for the project, says the official. This should be completed in early 2008. A consortium of German rail firms has completed a feasibility study and the design for the network. The 800-kilometre

  • Ras al-Khaimah seeks rating

    Ras al-Khaimah is the latest emirate to seek a credit rating in anticipation of launching an Islamic bond, following the lead of both Abu Dhabi and Dubai.

  • Regulator rules against virtual networks

    The Egyptian mobile phone market is too immature to support virtual network operators (VNOs), according to the country's telecoms regulator. VNOs, which use existing operators' networks to sell their own mobile services, will not be allowed in Egypt because they would reduce the quality of phone calls for existing users. 'The quality of service is not growing at the same speed as the number of customers,' says Olfat Abd el-Monsef, vice-president for policies at

  • Regulator to rule on funds

    Private equity and venture capital funds should be able to set up in the Qatar Financial Centre (QFC) by the end of 2007, once laws governing limited and general partnerships are approved.

  • Rentable space to triple at Garri free zone

    The Sudanese Free Zones & Markets Company (SFZMC) is launching a second phase of development at one of the country's largest industrial free zones in 2008.

  • Resignation throws sector into confusion

    The resignation of oil minister Bader al-Humaidhi on 5 November, eight days after he was appointed to the post, has thrown the local hydrocarbons sector into confusion.

  • Rice offers backing to Ankara over Kurdish rebels

    US Secretary of State Condoleezza Rice says the Kurdistan Workers' Party (PKK) is a common enemy of Washington and Ankara. Rice has been visiting the Turkish capital for talks with the government aimed at averting a military operation against PKK fighters in northern Iraq.'I affirmed to the prime minister [Recep Tayyip Erdogan] as well as to the foreign minister [Ali Babacan] that the US considers the PKK a terrori

  • Riyadh questions UK efforts to tackle terrorism

    King Abdullah of Saudi Arabia has accused the UK of failing to act on information passed on by his country that could have helped avert the 2005 London bombings.The king has also criticised the UK for not doing enough to combat terrorism, adding that the threat to Saudi Arabia from Al-Qaeda remained high.'We have sent information to Great Britain before the terrorist attacks in Britain but unfortunately no action was taken. And it may have been able to

  • Riyadh questions UK efforts to tackle terrorism

    King Abdullah of Saudi Arabia has accused the UK of failing to act on information passed on by his country that could have helped avert the 2005 London bombings.The king has also criticised the UK for not doing enough to combat terrorism, adding that the threat to Saudi Arabia from Al-Qaeda remained high.'We have sent information to Great Britain before the terrorist attacks in Britain but unfortunately no action was taken. And it may have been able to maybe

  • Riyadh replaces regulator to avoid conflict of interests

    The Saudi Railways Organisation (SRO), which manages the kingdom's rail network, is to be shut down and replaced with a new government regulator. The moves comes as Riyadh seeks to avoid a conflict of interest once the contract to build the $5,000 million Saudi Landbridge project is awarded The conflict would arise from the SRO's joint position as the client for the Landbridge and the owner of the existing section of track between Riyadh and Dammam, which will form part of

  • Riyadh signs tax accord with London

    Saudi Arabia has signed a series of deals with the UK which will see the two countries work more closely on technology and taxation issues.The bilateral agreements include a technical and vocational memorandum and an accord on double taxation. The latter was signed by the two countries' finance ministers, Ibrahim Al-Assaf and Alistair Darling. It is the first comprehensive double taxation convention between the two countries.The treaty's features includ

  • Riyadh signs tax accord with London

    Saudi Arabia has signed a series of deals with the UK which will see the two countries work more closely on technology and taxation issues.The bilateral agreements include a technical and vocational memorandum and an accord on double taxation. The latter was signed by the two countries' finance ministers, Ibrahim Al-Assaf and Alistair Darling. It is the first comprehensive double taxation convention between the two countries.The treaty's features include the

  • Riyadh to privatise airports

    Riyadh is to privatise its three main international airports by 2015, in a further step to liberalise its aviation sector.

  • Riyadh to set up investment company with UK

    The UK and Saudi Arabia have agreed to set up a company to promote private sector investment between the two countries.A memorandum of understanding was signed in London on 30 October by Baroness Symons and Khalid Al-Seif, joint chairs of the Saudi British Joint Business Council, for a possible Saudi British Investment Company.The proposed company will seek to boost the involvement of UK companies in Saudi Arabia. It will also promote investment in both

  • Riyadh urges caution over Iranian nuclear programme

    Saudi Arabia's King Abdullah has urged the West to approach the issue of Tehran's nuclear programme with more caution.'The world fears that Iran's nuclear program will lead to developing nuclear weapons,' the king said in an interview with Germany media. 'Iran has announced its nuclear program is intended for peaceful use. If this is the case, then we don't see any justification for escalation, confrontation and challenge, which only makes issues more complicated.'

  • Russians lead bidding on North-South rail

    Russian Railways has submitted the lowest bid for the contract to build the final section of Saudi Arabia's North-South minerals railway.

  • S&P to set up in Dubai

    Standard & Poor's will be the third ratings agency to establish a presence in the Dubai International Financial Centre when it opens an office there in February 2008. Moody's Investors Service and Fitch Ratings already operate in the centre. The office will initially be staffed with credit and sovereign analysts, and investment services analysts will follow.

  • Sabic pursues plastics plan

    Saudi Basic Industries Corporation (Sabic) and the US' ExxonMobil Chemical are pushing ahead with plans to manufacture synthetic rubber products at their joint venture plants in Jubail and Yanbu.

  • Sabic pursues plastics plan

    Saudi Basic Industries Corporation (Sabic) and the US' ExxonMobil Chemical are pushing ahead with plans to manufacture synthetic rubber products at their joint venture plants in Jubail and Yanbu.

  • Sadr to license Sahara blocks

    The Saharawi Arab Democratic Republic (Sadr) has launched a second oil and gas licensing round for nine blocks in the Western Sahara region, despite the political status of the territory being unresolved.

  • Saipem builds gas pipeline to Arzew

    Saipem, a subsidiary of Italy's Eni, signed a $500 million contract on 5 November to build a liquefied petroleum gas (LPG) pipeline between the Hassi R'Mel gas field and Arzew in the north-west.

  • Saline Water invites bid for three plants

    State-owned desalination company Saline Water Conversion Corporation (SWCC) has issued a tender to build three small-scale multi-effect distillation desalination plants. The deadline for bids is 6 January 2008.

  • Sanaa in talks over joining World Trade Organisation

    Sanaa says it is on track to join the World Trade Organisation (WTO) within two years, after pushing for progress during their latest talks on accession.

  • Sanaa scraps nuclear plan

    Sanaa has cancelled a preliminary agreement with the US' Powered Corporation. The deal would have resulted in the firm building five nuclear power plants with a total capacity of 5,000 MW, at a cost of $15,000 million over 10 years. The deal was annulled after intervention by the National Supreme Anti-Corruption Authority, which said the US firm did not have the necessary experience or capital for the project. Powered Corporation could not be reached for comment.

  • Saudi Arabia: Playing by a different set of rules

    With a captive pilgrim market, the kingdom's aviation industry sits apart from the rest of the sector.

  • Senior Al-Qaeda figure for North Africa surrenders

    The man responsible for publicising the activities of Al-Qaeda's North Africa wing has given himself up, according to reports in the Algerian press on 5 November.His surrender comes two days after a Libyan Islamist group joined the organisation.Abu Abderahmane was the propaganda chief for Al-Qaeda in the Islamic Maghreb, which grew out of Algeria's Salafist Group for Preaching & Combat. The organisation's publicity machine, particularly the online element of

  • Sharjah goes to Darwish

    The local Darwish Engineering has been awarded a AED 500 million ($136 million) infrastructure works contract for Sharjah Investment Centre. The project covers an area of 300,000 square metres close to Sharjah International Airport and the Hamriyah Free Zone. Saudi-based real estate company Snasco is the client (MEED 7:7:06).

  • Sharjah road work starts

    The local Al-Shahba & Al-Darari has started work on a AED 117 million ($32 million) contract to build internal roads in Sharjah. The project involves 34 kilometres of roads and is part of a broader plan to pave all roads in the emirate. Sharjah Municipality is the client.

  • Sheikh Mohammed checks on Metro progress

    Sheikh Mohammed bin Rashid al-Maktoum has toured the 75 kilometre-long Dubai Metro project.The visit by the ruler of Dubai coincides with the Road & Transport Authority's admission that project costs could exceed the original budget of AED 15,500 million ($4,221 million) by up to 15 per cent.The Dubai Urban Rail Link consortium which is building the two lines has requested an extension to the schedule because of extensive changes to the project's specificati

  • Snamprogetti bids low for booster station

    Italy's Snamprogetti is low bidder at KD 179 million ($649 million) for the contract to build gas booster station 160 for Kuwait Oil Company (KOC), following the submission of bids on 5 November.

  • Solios wins Qatalum deal to build treatment centres

    France's Solios Environnement has been awarded the engineering, procurement and construction contract for gas treatment centres on the $4,800 million Qatalum aluminium smelter at the Mesaieed industrial area.

  • Sonatrach expands fleet

    State energy company Sonatrach has taken delivery of its first giant crude carrier, Mesdar. The 2-million-barrel, 330-metre-long tanker was ordered in February 2006. The $120 million vessel was built by the Chinese/Japanese Nantong Cosco KHI Ship Engineering (MEED 26:7:06).

  • Sonatrach suspends talks

    State energy company Sonatrach has suspended joint venture negotiations for the second phase of its petrochemicals masterplan in favourof carrying out feasibility studies, according to seniorindustry sources.

  • Sonatrach wins gas deal

    State oil company Sonatrach has signed a long-term agreement to supply Energias de Portugal (EDP) with up to 1,600 million cubic metres a year of natural gas. The deal gives Sonatrach a 25 per cent stake in the development of three EDP combined-cycle power plants and a place on EDP's supervisory board. It is subject to approval by the companies' boards. Sonatrach bought 2 per cent of EDP in April.

  • Sonelgaz prequalifies bids

    State energy company Sonelgaz has prequalified 10 bidders for the project to build a 509-kilometre-long gas pipeline running from the eastern Khenchela region to the western Sidi Belabbes region.

  • Sorfert targets local banks

    The $1,600 million funding for the construction of the Sorfert Algerie fertiliser plant is due to come to market before the end of 2007 and will be aimed exclusively at local banks.

  • Special report: Aviation sector - Stuck on the runway

    While the big three Gulf airlines are taking an ever larger share of the global market, and the region’s new low-cost carriers have got off to a profitable start, many others in the industry are struggling to find a niche.

  • State approves Al-Masane

    The Commerce & Industry Ministry has approved the formation of the Al-Masane al-Kobra Mining Company. The joint stock company will be 50 per cent owned by the US-based Arabian American Development Company. The remaining 50 per cent will be held by Saudi investors. The Saudi investors are contributing $60 million in cash, while Arabian American is contributing its 30-year mining lease in the Al-Masane area of south-west Saudi Arabia.

  • State delays back-up plan

    The full implementation of the 2007 power emergency plan has been delayed, with the Electricity & Water Ministry saying all the planned plants will not be commissioned until May 2008. 'Some of the power stations for 2007 have not been finalised,' says the ministry.

  • Strikes hit Dubai developers

    The construction industry has been hit by a series of protests, calling into question the success of Dubai in tackling poor conditions for workers.

  • Strong field for El-Merk packages

    Stiff competition is expected in the race to secure contracts on the estimated $3,000 million-4,000 million El-Merk oil field development, with at least four companies shortlisted for each of the six packages.

  • Summit to restructure ahead of public offering

    Summit, the holding company of five Egyptian technology businesses, will restructure in early 2008 ahead of a planned initial public offering (IPO) in 2009.

  • System wins Indigo work

    Local developer Indigo Properties has awarded the local System Construct a AED 127 million ($35 million) contract to build eight buildings at its Indigo Central development along Shaikh Zayed road in Dubai.

  • TangMed to prequalify bidders

    The Tangier Mediterranean Special Agency plans to prequalify contractors by 16 November for the estimated $1,400 million turnkey construction contract for the extension of the TangMed port complex, known as TangMed II.

  • Tehran claims nuclear target reached

    Iran's president has claimed Tehran has developed 3,000 centrifuges for enriching uranium, which some scientists says is potentially sufficient to make one nuclear bomb.President Mahmoud Ahmadinejad added that he would continue to ignore UN Security Council demands to stop the country's nuclear programme, saying 'the Iranian nation could not care less' about previous sanctions.'We have now reached 3,000 machines,' Ahmadinejad told a rally in the city of Birj

  • Tehran fails toattract private metro funding

    The Iranian government has effectively admitted defeat in its efforts to find private sources of finance for the $18,500 million expansion of the Tehran Metro.

  • Terminology: Heavy Oil

    Heavy oil is a type of crude that does not flow easily because of its high viscosity and heavy molecular structure. This in turn means it is harder - and thus more expensive - to extract from the reservoir and treat at a refinery.

  • Three bid for Seeb sewer

    Oman Wastewater Services Company has received three bids for the engineering, procurement and construction contract to build a sewage collection system and main sewer at Seeb, near Muscat. Egypt's The Arab Contractors (Osman Ahmed Osman & Company) with the local National Construction & Trading was the low bidder with a price of RO 102 million ($266 million). India's Larsen & Toubro and the local Galfar Engineering & Contracting also bid (MEED 12:10:07).

  • Three compete for Ruwais diesel work

    Commercial bids were submitted on 4 November for the estimated $600 million-800 million Ruwais green diesel project, planned by Abu Dhabi Oil Refining Company (Takreer).

  • Tripoli to complete plant studies by end of the year

    State-owned National Oil Corporation (NOC) will complete initial studies by the end of 2007 into new grassrootspetrochemicals facilities, according to a senior sourceat the company.

  • Twelve die in protest against oil company

    Twelve people have been killed during a protest by Yemeni tribesman against an international oil firm.The attack was confirmed by Sanaa's ruling party, the General People's Congress.Six guards and six tribesmen were killed in the fighting between the Bel-Hareth tribe and security personnel from the oil firm, an unidentified Ukrainian company. The clashes took place in the eastern province of Shabwa.Members of the Bel-Hareth tribe have been pet

  • Two firms vie for feasibility studies

    Two international companies are competing for the contract to draw up feasibility studies for an estimated $500 million port development in the Red Sea Free Zone, near Port Sudan. China Harbour Engineering Company and an unidentified German company are in negotiations with the Sudanese Free Zones & Markets Company for the two-year contract. An award is expected in December. Established in 2000, the 14-square-kilometre zone is a mixed-use development catering for industr

  • UK criticises plans to cut Gaza power supply

    The UK has condemned the decision by Israel to restrict the supply of fuel to the Gaza Strip in response to rocket fire into Israel.'We are deeply concerned by the humanitarian situation in Gaza and in particular about reports that the Israeli government has restricted the supply of fuel and is considering electricity cuts,' said the Foreign Secretary David Miliband and Secretary of State for International Development Douglas Alexander in a joint statement.

  • UN calls on Tripoli to end torture

    The UN Human Rights Committee is urging Tripoli to end what it describes as the systematic use of torture.It also calling on the government to investigate the mistreatment of foreign health workers charged with infecting Libyan children with HIV.The 18-member body of independent experts also calls for the regime to repeal measures based on Sharia law allowing crimes including adultery and theft to be punished with flogging and amputation.'The

  • UN extends Western Sahara mission

    The UN has agreed to extend the mandate of its mission to Western Sahara, but has urged the two parties disputing the territory to increase their efforts to find a solution.The Security Council voted unanimously on 31 October to extend the mandate of the UN Mission for the Referendum in Western Sahara (Minurso) for another six months, until 30 April 2008.The territory is contested by the Polisario Front and Morocco. While the former supports independence for

  • Uncertainty over presidency prevents ratings upgrade

    Egypt's sovereign rating remains unchanged despite Cairo's economy drawing praise in a report published on 7 November by ratings agency Standard & Poor's (S&P).'Since our revision of the outlook to stable from negative in March 2005, we have not raised the ratings,' says the firm in a statement. 'They continue to be constrained by the country's fiscal inflexibility, and by uncertainty surrounding presidential succession.'S&P has kept with its BB ratings for

  • US calls for further sanctions

    The US has pushed for further UN sanctions against Iran, during talks in London over Tehran's controversial nuclear programme.US Undersecretary of State Nicholas Burns attended the talks on 2 November, along with the other four permanent members of the UN Security Council and Germany.The UK, France and Germany have all said they will support further sanctions if Iran does not halt its uranium enrichment activities

  • US warns of risk to Mosul dam

    A $27 million US-funded project to reinforce Iraq's largest dam at Mosul has been mismanaged, according to a report published by the Special Inspector General for Iraq Reconstruction (SIGIR) on 30 October. The audit found a number of the 21 contracts awarded on the project had suffered from faulty construction and the delivery of incorrect parts.Some work was incomplete despite contractors being paid in full. The dam, on the Tigris River 50 ki

  • US warns of risk to Mosul dam

    A $27 million US-funded project to reinforce Iraq's largest dam at Mosul has been mismanaged, according to a report published by the Special Inspector General for Iraq Reconstruction (SIGIR) on 30 October. The audit found a number of the 21 contracts awarded on the project had suffered from faulty construction and the delivery of incorrect parts.Some work was incomplete despite contractors being paid in full. The dam, on the Tigris Ri

  • Veco to modify Gasco plants

    The US/Canadian Veco has been selected for the front-end engineering and design contract on the Asab, Bab, Bu Hasa and Ruwais modifications project, planned by Abu Dhabi Gas Industries Company (Gasco).

  • Wataniya loses in price war

    Kuwait's Wataniya Telecom is expected to reveal further losses by its Algerian operations when it releases results for the third quarter of the year later this month. Its local subsidiary, Nedjma, is suffering the effects of a price war with its two larger competitors, Djezzy and state-owned operator Algerie Telecom. However, Harri Koponen, chief executive officer of Wataniya, says it will turn the situation around in the near future. 'There is a heavy price wa

  • World Bank predicts 2010 start date for Gulf railway

    Construction work on the GCC railway project could begin by 2010, after completion of a feasibility study in 2008, according to the World Bank, which is advising the GCC Technical committee on the tendering process. With the full support of all GCC states, the plans for a 1,000 kilometre-long line along the eastern coast of the Arabian Peninsula are being pushed forward. The estimated cost of the project is $2,500 million. 'If you look at the example of Saudi Arabia, e

  • World Central on schedule

    Construction of the first runway at Dubai World Central International Airport has been completed on schedule. The runway is the first tender to be completed at the airport. Operational from 2015, it has been designed to cater for the Airbus A380 superjumbo and is 4.5 kilometres long and 500 metres wide. The runway will now undergo six months of testing.

  • Zain to bid for licence

    Zain, the Kuwaiti telecoms giant, will bid for one of the two mobile licences to be offered in Lebanon in 2008. Communications Minister Marwan Hamada has valued the 20-year licences and the networks that are being sold with them at $3,000 million each (MEED 12:10:07). However, Saad al-Barak, chief executive officer of Zain, says this is more than his firm is willing to pay.

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