Saudi Petrochemical and Plant EPC Report — 2026-07-24

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1. Project Award Updates

Al Kamil Solar 1 IPP, Oman

• Status: EPC contract awarded
• Scale: 500 MW, valued at $210 million
• Contractor: Shanxi Installation Group Co., Ltd. (approx. RMB 1.5 billion)
• Details: This utility-scale solar project in Oman is being developed by the EDF Power Solutions consortium.
• Date: 3 days ago (2026-07-21)

ADNOC Gas Plant Expansion Project, Abu Dhabi

• Status: EPC contract awarded
• Scale: $5.1 billion
• Details: Gas plant expansion for the Abu Dhabi National Oil Company.
• Date: 2 days ago (2026-07-22)

PDO 6-Year EPC Framework Agreement, Oman

• Status: Framework agreement signed
• Scale: Up to $6 billion across 8 projects
• Contractor: Petrojet-ENPPI consortium
• Details: Petroleum Development Oman (PDO) has selected EPC firms to be invited for future tenders over the next 6 years.
• Date: 4 days ago (2026-07-20)

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2. Participation Potential and Financial Support for Korean Firms

Expansion of Policy Financing for Saudi Vision 2030

• Restrictions remain for government projects aimed at promoting non-oil growth and manufacturing infrastructure (global companies without a regional headquarters in the Middle East have been barred from participation since 2024).
• Establishing a regional headquarters in Saudi Arabia or utilizing local partners is essential.

Recent Korean Wins in the Middle East

• HanmiGlobal has secured consecutive projects in Kuwait and Saudi Arabia (totaling 47 billion KRW).
• Growing opportunities for Korean PM firms in residential and infrastructure sectors.

Opportunities in Oman's Solar Projects

• The Al Kamil Solar project offers subcontracting opportunities for Korean firms with the necessary financial and technical capabilities.
• The involvement of the EDF Power Solutions consortium creates a favorable environment for international bidding.

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3. Risk Monitoring (Contractual/Financial/Political)

Intensifying Risks of Construction Delays and Payment Collection in Saudi Arabia

The International Contractors Association of Korea and the Ministry of Land, Infrastructure and Transport discussed entry conditions for overseas construction markets on July 23, 2026, emphasizing that construction delays lead directly to cost losses. Key concerns include:

• Uncertainty in securing project funding
• Delays in the registration process for project owners
• Necessity of pre-checking payment collection risks against delay risks
• Potential for sharp profit losses due to rising costs during delays

Payment Freezes for Consultancies and Law Firms in Saudi Arabia (Past Cases)

• In May 2026, some global consulting firms and law firms experienced payment freezes.
• Reports indicate some firms were requested to suspend work on new projects.

Impact of Neom Project Delays

• The 'Running Tunnel' project (won in 2022 by a Samsung C&T and Hyundai E&C consortium) remains delayed at the client’s request.
• This is affecting local financing and cash flow for Korean companies.

Risk Note: While payment risks persist, projects in Oman and the UAE currently appear to be proceeding normally.

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4. Competitor Trends and Strategies

Aggressive Bidding by Chinese Firms

• Shanxi Installation Group secured the 500 MW Al Kamil Solar project (RMB 1.5 billion).
• Major Chinese construction firms are intensifying their focus on the solar and gas plant sectors.

Strengths and Weaknesses of Korean Firms

• Strengths: Proven PM capabilities, high trust from international financial institutions (EDCF, ODA support).
• Weaknesses: Burden of establishing regional headquarters, weaker price competitiveness compared to Chinese firms, lack of localization strategy.
• Counter-strategies: Forming consortia with local partners, emphasizing technical differentiation.

Competitor Landscape

• International EPC firms like EDF Power Solutions (solar) and Petrojet-ENPPI (gas plants) are highly active.
• Increasing opportunities for international consortium participation in the UAE and Oman markets.

Editor's Note: This report includes information released between July 22 and July 24, 2026. While large-scale projects are underway in neighboring countries (Oman, UAE), Saudi Arabia's domestic order volume remains limited, making regional expansion strategies crucial.