Saudi Arabia & UAE Deepen Energy Ties with Morocco, Algeria, and Nigeria
Insights Dispatch - June 29, 2026
Welcome to the Monday edition of Insights Dispatch, our flagship brief of the latest developments bridging Africa and the Gulf
MOROCCO: Saudi’s Acwa Power Secures $60 Million Permit
Acwa Power, a renewable energy development and investment company based in Saudi Arabia, gained a new permit in northern Morocco tied to the Khalladi wind project. Totalling roughly $60 million, the permit will expand the 120MW plant over the next two years to meet rising industrial demand. The permit increases Acwa’s already substantial footprint in Morocco, with $3 billion invested in Morocco to date.
Acwa Power is 44% owned by Saudi Arabia’s Public Investment Fund, and its shares are up about 9% year-to-date despite Q1 net profit falling 19%. Its increasing involvement in Morocco reflects Rabat’s effort to attract foreign investment to realize its renewable energy potential, specifically by tapping into the country’s vast phosphate wealth.
ALGERIA: Algiers and Riyadh to launch $5.4 Billion Oil and Gas Project
Algerian Energy Minister Mohamed Arkab held talks with Saudi state-owned Midad. The discussions focused on officially launching a $5.4 billion contract signed between Midad and Algerian state-owned Sonatrach in October. The deal will see Midad finance oil and gas exploration in southern Algeria over the course of 30 years.
The agreement is part of Algeria’s effort to modernize its energy sector by utilizing foreign investment, particularly amid a tide of rising European demand. The GCC’s expertise in oil and gas, coupled with its close historical, cultural, and commercial ties to North Africa, has positioned the GCC as a key partner to Algeria.
NIGERIA: Abuja Draws $1.5 Billion from First Abu Dhabi Bank, Dangote Refinery Purchases Emirati Crude
Nigeria withdrew the first tranche of a $5 billion financing package from First Abu Dhabi Bank (FAB). The tranche, worth $1.5 billion, aims to help Abuja address budget financing requirements and refinance higher-cost borrowings.
In parallel, the Dangote Refinery bought two cargoes of Emirati crude. The purchase comes in the aftermath of a meeting between Aliko Dangote and ADNOC Group CEO Sultan Ahmed Al Jaber in Abu Dhabi.
As the UAE expands its African investments to the western region, Nigeria has emerged as its closest partner. Nigeria likewise views Emirati collaboration as a significant step toward both addressing fiscal challenges and bolstering its energy sector.