The value of project finance deals reached USD21bn in MENA in 1H16, according to a recent report by UK-based Dealogic. This is the highest half-year total since at least 2010, and a 32.5% increase over 1H15. Sixteen transactions were closed during the period, with the largest being Oman Oil Refineries & Petroleum Industries Company’s Liwa Plastics project, for which the company borrowed USD3.8bn for the USD5.2bn project. This made Oman the most active Middle East market for project finance so far in 2016, with six deals worth USD6bn, according to Dealogic data, where other independent power and water projects were also secured financing during 1H16. In Saudi Arabia, project finance was dominated by three refinancings; namely: Maaden fertiliser complex, and PP11 and Rabigh IPPs. The total value reached USD6.4bn, with no new project finance deals. Egypt was the third largest project finance market in the region, with four deals reaching a total of USD4.4bn. The Egyptian Electricity Holding Company borrowed a total of USD3.2bn to finance the three power plants being built by Germany’s Siemens in a USD9bn deal. Midor borrowed a further USD1.2bn for its Alexandria Oil Refinery Expansion project, according to Dealogic. In 2H16, volumes are expected to fall slightly, with no major deals coming up in Qatar or Kuwait, and slowing activity in Oman. However, several major projects, such as Hassyan coal IPP in Dubai and Egypt’s USD7.2bn Tahrir Petrochemicals Project could reach a financial close before the end of 2016. (MEED)