Wil Crisp

On 16 February the de facto head of Opec, Saudi Arabia, and the world’s biggest non-Opec crude producer, Russia, announced a preliminary agreement to freeze oil production at January levels.

The deal is unprecedented, marking the first time the two countries have officially worked together to coordinate future production.

As part of the deal, other Opec members, Venezuela and Qatar, said they were willing to limit their production. The announcement was met with apathy by the markets. Brent crude fell by 3.6 per cent in the wake of the deal after seeing a 6.5 per cent increase earlier in the day.

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Egypt hedges its diplomacy to secure foreign aid

Cairo has enjoyed heavy financial support and investments from Beijing, which seems unconcerned with Egypt’s foreign policy and economic landscape

Hossam Abougabal

Regional turmoil and the plummeting of oil prices has meant the flow of cash from GCC government to Cairo may be drying up.

President Abdul Fatah al-Sisi has championed a development programme that has been heavily supported by GCC funds over the past 12 months. Egypt’s premier now finds himself negotiating with regional governments that are rationing spending amid declining revenues.

Aside from regional governments becoming more stringent with the level of foreign aid they give to Egypt, a number of foreign policy issues have also emerged in the past year. Russia’s role in the war in Syria and the lifting of Iranian sanctions has shifted the political landscape of the region.

Riyadh has intensified its anti-Tehran campaign and as such, has been calling on Sunni partners to join. Egypt has instead maintained a relatively neutral position in a bid to preserve its relationships with Russia, the US and other international blocs.

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Riyadh seeks private help

Government is changing how it procures and operates infrastructure

Andrew Roscoe

Saudi Arabia’s power and water sectors are in a vastly different position in 2016 from one year ago.?

With the oil price having declined to its lowest level in over a decade, the world’s largest exporter is having to make significant changes to how it operates and procures major infrastructure projects.

While Saline Water Conversion Corporation had been in discussions with the finance ministry about using the IWPP model for the planned Jubail 3 cogeneration plant? in the next few years, the client is thinking of re-introducing the PPP model much sooner and is contemplating switching the procurement model of the already tendered Jeddah 4 desalination plant to an IWP model.

Moreover, Saudi Electricity Company is planning to use the IPP model to develop its first major standalone renewables projects. The client received bids for the technical consultancy role for the initial solar and wind schemes on 15 February. ?

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