Orascom Construction, backed by Egypt’s richest family, advances in $2.6 billion Saudi deal

Key Points

• Orascom Construction, in a joint venture with Técnicas Reunidas, will expand Saudi Arabia’s Qurayyah IPP, adding 3 GW of gas-fired power capacity.
• The Qurayyah expansion includes a 380-kV substation and future carbon capture readiness, reinforcing Saudi Arabia’s shift toward cleaner energy solutions.
• Orascom’s latest deal strengthens its presence in Saudi Arabia, reinforcing its strategic push for geographic diversification in power and infrastructure projects.

Orascom Construction, controlled by Egypt’s richest family, the Sawiris family, has officially confirmed receiving a notice to proceed on a $2.6 billion engineering, procurement, and construction (EPC) contract for the expansion of the Qurayyah Independent Power Plant (IPP) in Saudi Arabia.

The contract, awarded by Hajr Two Electricity Company—a consortium comprising ACWA Power, Saudi Electricity Company, and Haji Abdullah Alireza & Co. Ltd.—will add 3 gigawatts of combined-cycle gas-fired power generation capacity. The project also includes a 380-kilovolt electrical substation and provisions for future carbon capture, aligning with Saudi Arabia’s broader push toward cleaner energy solutions. 

Orascom secured the EPC contract through a 50-50 joint venture with Spain’s Técnicas Reunidas. With the notice to proceed now in place, the project marks a significant step in Orascom’s regional expansion, further strengthening its footprint in Saudi Arabia’s energy sector.

Strengthening Saudi Arabia’s energy infrastructure

As Egypt’s construction powerhouse deepens its footprint in Saudi Arabia’s energy sector, its latest contract marks a significant step in reinforcing the kingdom’s power infrastructure. In collaboration with Spain’s Técnicas Reunidas, Orascom Construction will lead the Qurayyah IPP Expansion Project in the Eastern Province, further solidifying its position in the region’s energy landscape.

Osama Bishai, CEO of Orascom Construction, underscored the company’s strategic ambitions, stating, “This project exemplifies our commitment to geographic diversification, particularly in critical sectors such as power and water. Leveraging our extensive expertise, we aim to deliver world-class infrastructure that maximizes long-term value. Our success in Egypt’s power sector provides a strong foundation, and we are eager to replicate that impact in Saudi Arabia. We are also pleased to extend our collaboration with Técnicas Reunidas on this large-scale endeavor.”

The Qurayyah expansion aligns with Saudi Arabia’s broader energy vision, integrating advanced high-efficiency power generation technology with future carbon capture readiness to enhance sustainability. Beyond reinforcing Orascom’s reputation for executing complex infrastructure projects, the initiative plays a pivotal role in advancing the kingdom’s energy diversification strategy, supporting its long-term economic and environmental goals.

Strategic growth and regional influence

Orascom Construction, founded in 1976 by the late Onsi Sawiris, has grown into a leading multinational engineering firm specializing in large-scale infrastructure and energy projects. The Sawiris family remains at the helm, with Nassef Sawiris—Egypt’s richest man—holding a 28.97 percent stake.

With a power portfolio exceeding 30 GW across the Middle East and Africa, including two 4.8 GW plants in Egypt, Orascom Construction continues to expand its regional energy footprint. The Qurayyah IPP expansion reinforces its presence in Saudi Arabia, aligning with its strategy of geographic diversification and sustainable energy investment.

By leveraging decades of expertise, Orascom Construction remains a pivotal force in shaping the region’s energy future. Its latest contract underscores its commitment to high-quality infrastructure and strengthens its position in the Gulf’s competitive energy market.