ACWA Power to develop 1,000 MW solar plant in Iraq

The joint venture project will be developed in Central Iraq’s Najaf city, around 160 km south of the capital, Baghdad. (Shutterstock)
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Updated 17 April 2023
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ACWA Power to develop 1,000 MW solar plant in Iraq

RIYADH: Saudi energy firm ACWA Power will build a 1,000 megawatt solar power plant in Iraq, the first clean energy project in the country, according to its electricity minister.   

The joint venture project will be developed in Central Iraq’s Najaf city, around 160 km south of the capital, Baghdad.  

In addition, the construction firm PowerChina has been awarded a contract to construct a 250 MW solar power facility in the country, Ziad Fadel revealed.  

“The Saudi firm has agreed to build the plant in Najaf as a joint investment project. We have already allocated land for the project with the help of the local government,” the minister said, as reported by Aliqtisad.   

This news came five days after Saudi Energy Minister Prince Abdulaziz bin Salman held talks in Riyadh with the visiting Iraqi electricity minister on recent developments on a project that will link the two countries’ power networks.  

The meeting explored opportunities for cooperation between the Kingdom and Iraq in renewable energy, while benefiting from the capabilities of ACWA Power and its contribution to the development of future projects in Iraq.  

The Saudi-Iraqi partnership will improve reliability of the electrical networks in the two countries, achieve economic savings, enhance optimal energy exchange for electricity production, and attract investment in electricity generation projects.
Both ministers also discussed sharing the Kingdom’s expertise in the field of smart meters, as well as opportunities for Saudi companies to participate, alongside Iraqi companies, as contractors and manufacturers in developing infrastructure for smart meters. 

Also this month, French oil major TotalEnergies arranged with the Iraqi government invited ACWA Power to develop a 1 gigawatt solar power plant to supply electricity to the Basrah regional grid.  

Furthermore, Iraq signed a contract with PowerChina in August 2021 to build 2,000 MW solar plants in the nation, Reuters reported at the time.   

During a visit to Baghdad in February, Prince Faisal bin Farhan, the Kingdom’s foreign minister, said that Iraq plays an essential role in strengthening stability in the region.
Prince Faisal also highlighted the depth of relations with Iraq, saying that ties between the two countries have recently witnessed “great momentum.” 


Oman’s logistics industry growth fueled by $8.8bn investment, official figures show

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Oman’s logistics industry growth fueled by $8.8bn investment, official figures show

RIYADH: An investment of 3.4 billion Omani rials ($8.8 billion) by the end of 2025 underscored Oman’s accelerating transformation in transport, logistics, and the digital economy.

According to the Ministry of Transport, Communications and Information Technology Achievement Bulletin, total investment in the transport and logistics sector amounted to 2.3 billion rials from 2021 through the end of 2024, increasing to 3.4 billion rials by the close of 2025.

The level of capital spending achieved signals a clear shift from planning to implementation, as infrastructure, services, and digital systems are now actively transforming the movement of goods, data, and people throughout the Sultanate of Oman.

This funding aligns with Oman’s goal of establishing itself as a key logistics hub connecting regional and international trade corridors.

The investments have been allocated to ports, logistics hubs, land transport systems, and digital platforms that enhance the sector’s efficiency and integration.

A prominent outcome of this investment is the progress in digital transformation. By the close of 2024, 1,700 out of 2,523 key government services had been fully digitized.

By the end of 2025, the number of digitized services rose to 2,277, signaling the near completion of public service digitalization.

For businesses, especially in trade, transport, and logistics, this transition has led to faster processing, greater transparency, and reduced administrative costs, contributing to a more efficient and supportive business climate.

Advancements in workforce localization highlight deeper structural shifts, particularly in tech-driven sectors.

Omanization in the IT sector grew from 38 percent in 2024 to 45.5 percent in 2025, indicating greater integration of Omani talent into high-value digital roles.

In transport and logistics, Omanization rose from 20 percent to 21.6 percent, showing steady progress in developing national expertise in roles historically filled by expatriates.

Trade and operational metrics highlight the sector’s expanding capabilities. Container and cargo traffic rose from 4.3 million twenty-foot equivalent units in 2024 to over 5 million TEUs in 2025, signaling enhanced port performance, efficiency, and deeper regional supply chain integration.

General cargo volumes also grew significantly, increasing from 115.7 million tonnes to 143 million tonnes over the same period, reflecting the continued growth of Oman’s logistics sector.

The bulletin highlights significant progress in digital governance, with the National Digital Transformation Program’s performance rate increasing from 73 percent in 2024 to 94 percent in 2025. This improvement reflects enhanced execution, improved coordination among government agencies, and more effective oversight of complex digital projects.

Financial results across key subsectors further confirm tangible progress. The ports sector saw a 12.9 percent rise in revenue, driven by higher volumes and improved operational efficiency.

Maritime affairs experienced a 6.5 percent jump, while land transport led the growth with an 18 percent increase, reflecting strong demand for freight and mobility services.

Regarding project delivery, although the target for project implementation was set at 70 percent, actual performance reached 85 percent in 2025.

This surpassing of expectations reflects stronger planning, enhanced execution capabilities, and greater accountability in major transport and digital initiatives.

In December, Fitch Ratings upgraded Oman to investment-grade status, raising its long-term foreign-currency rating from BB+ to BBB-, citing the Sultanate’s stronger public finances, improved external position, and continued commitment to prudent fiscal management.

The agency noted at the time that Oman has successfully strengthened fiscal discipline, reducing government debt significantly to around 36 percent of gross domestic product in 2025, down from about 68 percent in 2020.