Continued Evolution in Middle Eastern Project Finance
The evolution of project finance in the Middle East has been driven by the region ’ s ambitious development goals and energy transition strategies as GCC governments are increasingly prioritising public-private partnerships ( PPPs ) to finance large-scale infrastructure projects .
Bracewell is involved in project financings in the Middle East for a diverse range of asset classes . In recent years the Middle East ’ s project finance landscape has been significantly shaped by the liquidity and risk appetite of regional and international banks . Local and regional banks , bolstered by high oil revenues in recent years , have maintained strong liquidity levels , enabling them to play an increasingly prominent role in financing large-scale ( and often “ first of a kind ”) infrastructure and energy projects .
At the same time , the increasing involvement of Chinese and Asian banks in the region , alongside traditional Western lenders , underscores global interest in Middle Eastern infrastructure projects . These international banks have maintained a cautious but steady appetite for exposure to Middle Eastern projects , focusing on wellstructured deals with robust revenue streams , especially in sectors such as renewables ( including notably in the recent REPDO Round 4 and Round 5 projects ).
Banks are enthusiastic about financing projects in countries with strong credit ratings like the UAE and Saudi Arabia , with increased activity from Asian Export Credit Agencies ( ECAs ) in recent years . The availability of robust liquidity and a selective risk appetite have sparked innovation in financing structures . Islamic financing is a key tool for project sponsors looking to diversify funding while aligning with regional cultural and legal frameworks . Additionally , banks are increasingly supporting sustainable finance initiatives , offering favourable terms for projects that adhere to Environmental , Social , and Governance ( ESG ) principles , in line with ambitious regional strategies such as Saudi Vision 2030 and the UAE ’ s Net Zero 2050 .
Recent Notable Matters
• Two Saudi Arabian REPDO Round 4 wind IPPs — advising Japan Bank for International Cooperation ( JBIC ) and commercial lenders in relation to the project financing by the Marubeni Corporation-led consortium for both the Waad Al-Shamal 500 MW Wind IPP and Al-Ghat 600 MW Wind IPP in Saudi Arabia
• Round 5 Solar PV 3.7GW IPPs — advising Masdar-led consortium with respect to its bid for four solar PV projects under procurement by SPPC , totalling 3.7 GW of renewables capacity in Saudi Arabia
• Al Ansar Hospital PPP — advising lenders to a consortium of Tamasuk and Alghanim in relation to project financing of the development of a hospital and associated facilities . This project is the first PPP healthcare project in Saudi Arabia .
• Juranah Independent Strategic Water Reservoir Project — advising the Vision International Investment Company , TAQA and GIC consortium in relation to its project financing of Saudi Arabia ’ s first strategic water reservoir concession ( servicing Mecca )
• Taweelah C 2.6GW IPP — Advising JERA and Etihad WE with respect to its bid for this 2.6 GW conventional gas fired IPP
• Saadiyat Island RO ( formerly tendered as a two-plant deal named Abu Dhabi Islands ) — advising Acciona Agua as a bidder in relation to EWEC ’ s third IWP
• Barka 2 IPP and Barka 1 IWP — representing the lenders with respect to the term extension , refinancing and restructuring of Barka 2 IPP and Barka 2 IWP projects in Oman
The Year Ahead
As the region continues to diversify its funding sources and explore innovative financial tools , the Middle East project finance market will remain a key driver of its economic transformation . bracewell . com