In the middle of winter, by the Persian Gulf, the Al Zour North One power and seawater desalination plant in Kuwait continues to operate day and night, delivering essential electricity and fresh water to this desert country. On January 7, 2026, there was a significant change in the ownership structure of this critical infrastructure - Saudi utility giant ACWA Power officially completed the acquisition of its stake in French company Engie.

The dust of the transaction has settled

On January 7th, Shamal Az Zour Al Oula Power and Desalination Company issued a statement on the Kuwait Stock Exchange confirming receipt of notification from ACWA Power regarding the completion of this transaction. The statement clearly states: "We have been informed that the transaction between ACWA Power and Engie regarding the transfer of Engie's equity in Al Zour North One power and seawater desalination plant has been reached and officially completed. ”

This gas integrated power station has an installed power generation capacity of 1.5 gigawatts and a seawater desalination capacity of 107 million British gallons per day, making it an important infrastructure project in Kuwait. Engie originally held a 17.5% stake in the integrated power station and a 50% stake in Az Zour North operation and maintenance company.

The company emphasizes that this equity change will not affect its operations or contractual obligations under the existing energy conversion and water purchase agreements signed with the Kuwait Ministry of Electricity, Water and Renewable Energy, ensuring the continuous and stable operation of the project.

Overview of Strategic Layout

In fact, this transaction is only part of ACWA Power's Middle East expansion strategy. As early as December 2025, the company announced the successful completion of the acquisition of gas-fired power assets (with a total installed capacity of 4.6 gigawatts), seawater desalination assets (with a daily output of 1.1 million cubic meters), and related operation and maintenance companies located in Bahrain and Kuwait from Engie subsidiaries.

ACWA Power plans to acquire Engie's asset equity in Kuwait and Bahrain for a total of $693 million. The background of this series of acquisitions is Engie Group's strategic adjustment announced in February 2025- to align with the group's commitment to achieving net zero emissions by 2045, it will divest its power and seawater desalination assets in Kuwait and Bahrain.

New energy landscape in the Middle East

The acquisition of ACWA Power coincides with a period of rapid expansion in its eastern business. In August 2025, the Saudi Kuwait consortium, consisting of ACWA Power and Gulf Investment Corporation, just signed a 25 year power and water purchase agreement with the Kuwait Cooperation Project Management Authority and the Ministry of Electricity, Water and Renewable Energy, involving the $4 billion Az Zour North 2 and 3 integrated power station project.

This series of actions indicates that in the process of energy transformation in the Middle East, local enterprises in the region are seizing the window period for international energy companies to adjust their strategies and expand their market share. As a leading power developer and investor in Saudi Arabia, ACWA Power is consolidating its influence in the energy sector of Gulf Cooperation Council countries through strategic acquisitions.

New opportunities for cooperation between Chinese enterprises

This change in the Middle East energy market has also brought new cooperation opportunities for Chinese companies actively participating in local infrastructure construction. As regional giants such as ACWA Power expand their asset size, their demand for project construction, equipment procurement, and technical services will also increase accordingly.

Chinese enterprises have rich experience and technological advantages in the fields of power engineering construction, new energy technology, and seawater desalination. By cooperating with regional developers such as ACWA Power, they can jointly participate in the energy structure transformation process in the Middle East. Especially in the fields of clean energy such as solar energy and energy storage, Chinese companies' technological solutions naturally complement the sunshine resources of Middle Eastern countries.

The equity change of the Al Zour North project in Kuwait is not only an acquisition of French corporate assets by a Saudi company, but also a microcosm of the evolution of the Middle East energy landscape. In the global energy transition wave, regional energy enterprises are enhancing their competitiveness through strategic restructuring, which has also created new opportunities for international partners, including Chinese enterprises, to participate. In the future, as Middle Eastern countries continue to promote energy structure diversification, similar market adjustments and cooperation opportunities will continue to emerge.Editor/Yang Meiling