ACWA Power Makes $693m Move into Kuwait and Bahrain

A $693m acquisition marks the firm’s debut in Kuwait and expansion in Bahrain

26 Feb 2025

Gulf utilities are no longer content with playing supporting roles. In February, ACWA Power, a Saudi-based energy giant, announced a $693m deal to acquire stakes in four major power and desalination plants: three in Bahrain and one in Kuwait. The purchase, its first foray into Kuwait and a deepening of its presence in Bahrain, underscores a shift in the Middle East’s utility landscape.

The acquired assets include Al Ezzel, Al Dur, and Al Hidd in Bahrain, along with Az Zour North in Kuwait. Together they generate 4.61 gigawatts of electricity and over a million cubic metres of desalinated water each day. ACWA will also take on full operational and maintenance responsibilities, tightening its grip on essential infrastructure.

Its timing is no accident. Gulf countries, once reliant on foreign operators, are growing more assertive. “The Gulf is taking charge of its own future,” says one energy analyst. Rather than building new projects from scratch, ACWA is acquiring fully operational assets that provide immediate returns and strategic access to key markets.

For the European seller, the exit is part of a global retreat from carbon-intensive operations. By shedding mature fossil-linked assets, the firm hopes to redeploy capital toward renewable technologies. The shift aligns with broader investor priorities, although it also reflects a preference for cleaner portfolios with less operational burden.

ACWA will face hurdles, particularly in Kuwait, where regulatory complexity and bureaucratic oversight are significant. Integrating operations across borders also poses risks. Still, the firm has experience managing large-scale infrastructure in varied environments, including solar projects in Dubai and wind power in Central Asia.

As energy security and water sustainability climb national agendas, Gulf firms are positioning themselves as stewards of regional infrastructure. ACWA’s latest move suggests that control of critical assets is no longer being outsourced. The Gulf is taking ownership of its future, one utility at a time.