Middle East Energy Opportunities

Movers with the Right Capability to Benefit By

This year we have seen the energy sector comprehensively embark on a course of diversification into cleaner forms of energy. Governments worldwide have turned their net zero pledges into plans and projects, creating massive opportunity across the sector and those affiliated, including for breakbulk.

Our latest Country Insight Report on the United Arab Emirates reveals that by 2026 the UAE alone could produce 25 percent of the world’s clean hydrogen, with six projects costing about US$1.66 billion already in development in the Gulf state. The UAE is also home to the Al Reyadah carbon capture, usage and storage commercial-scale plant, the first of its kind in the Middle East.

Saudi Arabia is looking to increase its wind production to generate 16 gigawatts of electricity from it by 2030 and ramp up gas production. The UAE is also working on shoring up gas and oil production, with plans to increase oil output capacity from 4 million barrels per day now to 6 million barrels a day by 2030. With 56 percent of new global energy project proposals announced up to September of this year being in the clean sector, we are looking at a large infrastructure change and demand for supplies.

All of these threads – diversification, net zero, geopolitics – are being woven together to create a global opportunity for work and development and the ability to grow and export. To do that, we need capability.

At the EIC, as one of the world’s biggest trade associations, we are mindful of the challenges that these all present; it is not just capability, but the capacity to deliver. Those who are in a position to deliver first mover status have the ability to capture a larger share of the market.

Moving project cargo – electrolyzers, small nuclear reactors, turbines, blades – across all of these areas and nations means we are looking at logistical pressures and will rely on expertise. That’s before we add carbon capture into the mix.

We see our members taking steps now to be in a position to deliver, and working in partnership with others is key.

During times like this we see shoring up of support and returning to tried and tested methods – and that works for the supply chain. Add to this the bow wave of projects we see coming, and our members are positioning to capitalize. At an exciting time for industry and businesses we stand to deliver huge gains.

Through our office in the Middle East, we liaise regularly with members,

BY RYAN MCPHERSON

many of whom are global so also have that perspective to give, while our data analysts provide high-quality market data, projections and insight to government officials and key policy makers.

We facilitate and encourage those conversations to ensure that we can flag the areas we need to support in order to deliver, and supply chain capability is one of those areas. With the right logistical support in the right place at the right time, the Middle East region can really deliver. Not just for this region, but globally as expertise and ability is proven. BB