Saudi Petrochemical & Plant EPC Wins and Risk Report — 2026-06-08

1. Updates on Project Wins

1) KEPCO and Doosan Enerbility — Jafurah 2 Cogeneration Project (KAWC, Power & Water)

• Client: Saudi Aramco
• Project Scale: Expected 2.1 trillion KRW in power and steam sales revenue over 17 years.
• Scope: KEPCO signed the power and steam sales agreement; Doosan Enerbility is handling the EPC.
• Completion Goal: 2029
• Status: Confirmed (Contract signed)
• Location: Approx. 400km east of Riyadh, the Saudi capital.

2) Dubai-listed ALEC — $500 Million EPC Contract Wins (Gulf Region)

• Client: To be confirmed
• Project Scale: Approx. $500 million (total for 3 contracts)
• Scope: Won 3 EPC contracts in the Gulf region through subsidiaries.
• Timeline: Varies by contract.
• Status: Confirmed (Contracts awarded)

1 sources

mstoday.co.kr

한전·두산, 사우디서 2.1조 발전사업 따냈다 - MS TODAY

2. Participation Opportunities and Financial Support for Korean Firms

1) Expanding Participation in Aramco Projects

• KEPCO's win for Jafurah 2 strengthens ties between Korean companies and Aramco.
• At a government meeting, the Vice Minister of Culture, Sports and Tourism emphasized the need for "continued interest and cooperation to ensure our firms, with their world-class technology and project management skills, can participate more broadly in Aramco's projects."
• Future Cooperation Areas: Major energy projects in Saudi Arabia, including oil, gas, and petrochemicals.
• Activation Strategy: Discussions are underway regarding cooperation via strategic oil reserves and crude oil storage infrastructure.

2) Regulations on Saudi Government Projects

• Since 2024, companies without a Regional Headquarters (RHQ) in Saudi Arabia are barred from government-awarded projects.
• Part of Vision 2030 to boost non-oil growth and manufacturing infrastructure.
• Korean companies must either establish an RHQ in Saudi Arabia or form local partnerships.

1 sources

newspim.com

newspim.com

3. Risk Monitoring (Contractual/Financial/Political)

1) Concerns Over Payment Delays by the Saudi Government

• Current Situation: The Saudi Ministry of Finance refuted claims by global consultants and law firms regarding late payments, stating that bills are being paid "within contractual terms" as they fall due.
• Risk Assessment: High probability of extended payment collection cycles.
• Impact: Potential strain on the cash flow of EPC contractors.

2) Neom City Funding Woes and Project Cancellations

• Current Situation: The massive "Neom City" project is adjusting its pace due to funding issues, with major sub-projects (like high-speed rail) being canceled.
• Risk Assessment: Reduced capacity for Saudi government infrastructure investment; potential for fewer future plant project tenders.
• Impact: Concerns about a decrease in mid-term business opportunities.

3) Geopolitical Instability in the Middle East

• Current Situation: Risk of construction delays due to Middle East war scenarios.
• Risk Assessment: Difficulty in assigning liability for delays and predicting when projects might resume.
• Today’s Risk Notes: No specific new negative developments reported.

4. Competitor Trends and Strategies

1) Strengths of Korean Companies

• The Jafurah 2 win proves the tendering capability of Korean construction and energy firms in the Middle East.
• Strong government support for expanding cooperation (Korea-Saudi energy supply chain partnership).
• Global project management expertise held by large EPC firms like Doosan Enerbility.

2) Requirements for Localized Saudi Market Entry

• Companies without an RHQ are excluded from government projects (as of 2024).
• Need for stronger local partnerships.
• Building cooperation with major oil companies like Aramco is a key competitive differentiator.

Report Date: June 8, 2026