The EIC’s Wan Afiq Outlines Opportunities, Challenges in Region’s Energy Sector
Wan Afiq, senior energy analyst for the Energy Industries Council (EIC), a Breakbulk events global knowledge partner, assesses the project landscape in the Middle East as the region continues its transition from oil-dominant powerhouse to a leader in sustainable energy.
From Issue 3, 2024 of Breakbulk Magazine.
The Middle East is undergoing a remarkable transformation, evident in its ambitious energy projects under development, with an estimated capital expenditure of approximately $979 billion.
This colossal investment signals a regional shift toward not only enhancing oil and gas infrastructure but also embracing renewable energy, power projects and key energy transition initiatives.
Leading this surge are the United Arab Emirates and Saudi Arabia, closely matched with 19.22 percent and 19.2 percent of the investment share, respectively, followed by significant contributions from Iraq, Oman, Qatar, Kuwait and Jordan.
Remarkably, oil and gas projects still dominate the landscape, accounting for 73.47 percent of these projects. However, the increasing allocation toward renewable energy (6.34 percent) and energy transition projects (5.24 percent) underscores a conscious shift toward sustainable energy sources.
The contract awards between 2019 and 2024 highlight the industry’s vibrancy, particularly in the upstream and downstream sectors. Yet, the renewable energy sector’s surge, with 42 contracts, reflects a pivot toward clean power.
Projected capacities for power and renewable energy from 2024 to 2028 place Saudi Arabia at the forefront, which aligns with its vision to balance its energy mix toward 50 percent renewables by 2030. This ambition mirrors the broader regional commitment to diversification of energy sources with Oman pioneering in green hydrogen projects.
As the Middle East navigates its energy ambitions, it stands at the cusp of redefining its identity from an oil-dominant powerhouse to a leader in sustainable energy. This transition is not simply a financial undertaking but a clear indication that the region is taking its cleantech plans seriously.
For 80 years the EIC has helped companies maximize business opportunities in the energy industries, whether sourcing or supplying goods and services, at home or abroad.
TOP PHOTO: Kanoo Logistics loads breakbulk in Saudi Arabia. CREDIT: Kanoo Logistics
