UAE: “Hotbed of Project Opportunity”

By Ryan McPherson

As investments pour into downstream, upstream, midstream, power, and hydrogen, the United Arab Emirates is fast becoming one of the world’s hotspots for breakbulk and project cargo. With a staggering US$192 billion in Capex earmarked for nearly 100 world-scale projects, Ryan McPherson at the Energy Industries Council pinpoints the most exciting opportunities for your company.


The UAE has a strong track record of economic success in the Middle East, and one sector that stands out in the Gulf Arab state is the project cargo industry, which facilitates the transportation of large-scale projects across the region and beyond. A look into the current state of this sector in the UAE reveals the country as a hotbed of opportunity. Indeed, energy supply chain companies, including members of the Energy Industries Council (EIC), the global energy supply chain association, can harness these prospects for growth.

As it stands today, we can confidently say that the UAE is highly active in the project cargo sector, with investments pouring into the downstream, upstream, midstream, power, and hydrogen sectors.

Let the numbers speak for themselves: the country, which is one of the world’s top oil producers but also a breeding ground for a wide mix of energy projects from hydrogen to nuclear and solar, has a staggering US$192 billion in capital expenditure spread across 98 projects.

A granular look at these projects shows a diverse spectrum of investments across various sectors in the UAE. In the downstream sector, an allocation of US$64.825 billion is distributed among 19 projects, while the upstream sector has 41 projects with an investment of US$63.221 billion. The power sector boasts 11 projects and an investment of US$37.383 billion, and the midstream sector has 20 projects with an investment of US$24.604 billion. Lastly, the hydrogen sector, though smaller in terms of investment at US$1.9 billion, comprises 7 projects.

This impressive financial commitment underscores the sector’s significance in the UAE’s economic landscape and indeed highlights the ample opportunities that come with it for companies that are willing to invest in both capability and capacity and for companies still not active in the region but actively looking to venture into new markets.


Sea Freight Support

Successful project cargo transportation hinges on the capabilities of sea transportation companies, and the UAE already boasts a formidable roster of 23 maritime shipping companies. These include both homegrown giants and international heavyweights that have set up shop in the UAE. These companies are ensuring the secure and timely delivery of project cargo, making them integral to the sector’s growth.

The current project pipeline across multiple sectors and the UAE’s 2050 Energy Strategy, focused on diversifying the nation’s sources of energy output, means that opportunities abound for those energy supply chain companies that are capable and willing to venture into new waters.

Members of EIC, such as Baggio Transportes Ltd, ATPI Marine & Energy Division, and CEVA Logistics FZCO, are among the notable players in this arena. Their involvement further underscores the UAE’s reputation as a strategic business hub. Energy supply chain companies are well-placed to leverage these existing partnerships and networks to tap into the growing demand for project cargo services.

The UAE government has not merely stood by but actively supported the project cargo sector’s growth. Significant investments are being poured into port and transportation network upgrades, bolstering cargo movement efficiency and positioning the UAE as a prime destination for project cargo transportation.

Furthermore, the UAE is embracing cutting-edge technologies like blockchain to enhance supply chain transparency. This forward-thinking approach not only streamlines cargo tracking but also strengthens the security and reliability of project cargo transportation. Energy supply chain companies should view this as an opportunity to integrate such technologies into their operations to ensure seamless and transparent supply chain management.

Situated at the crossroads of major trade routes, the UAE boasts a geographical advantage that few can match. It acts as a crucial bridge connecting the Red Sea, East Africa, and the Indian subcontinent. This strategic location not only facilitates smooth cargo movement but also opens doors for trade expansion and economic growth.

In 2022, almost half of the cargo flows from the Gulf Cooperation Council countries came through the UAE. This statistic underscores the UAE’s dominance in the region and its central role in the movement of goods.

Sea freight is leading the charge in the UAE’s logistics market, highlighting significant potential for growth. Among the UAE’s key ports, Khalifa Port, launched in 2012, serves as a game-changer for the project cargo sector. Nestled in Abu Dhabi, Khalifa Port’s state-of-the-art infrastructure and strategic location have propelled it to the forefront of the industry. With deep-water berths and advanced handling facilities, Khalifa Port has the potential to fuel substantial growth in the project freight forwarding market.


Leveraging Opportunities

How can energy supply chain companies benefit from these opportunities? We believe this can be achieved in multiple ways. One is through forging long-lasting strategic partnerships that leverage existing partnerships and networks with maritime shipping companies in the UAE to ensure efficient project cargo transportation. Companies should also embrace innovative technologies like blockchain to enhance transparency and reliability in supply chain management, making services more competitive.

Moreover, for companies still lacking a presence in the UAE and the wider region, consider expanding operations to tap into the growing demand for energy-related project cargo services in the area. The EIC can help energy businesses expand into new markets through our comprehensive global project data, our networking events, strategic advice, and working with governments and key stakeholders.

With reference to government, another way for companies to take advantage of the ample opportunities in the country is through collaborating with UAE government initiatives by investing in logistics infrastructure to support the project cargo sector.

The project cargo sector in the UAE is a sea of opportunity, and energy supply chain companies are in a prime position to ride this wave. With substantial investments, a strategic location, government support, and technological advancements, the UAE’s project cargo sector is poised for sustained growth.

By forging strategic partnerships, embracing innovation, and tapping into the UAE’s booming energy projects, energy supply chain companies can not only benefit from these opportunities but also contribute to the growth and prosperity of the UAE’s project cargo sector.


Ryan McPherson will be presenting a "MENA Project Overview" at Breakbulk Middle East 2024 on 12 February from 11:00am-11:30am. Breakbulk Middle East 2024 is happening on 12-13 February at the Dubai World Trade Center.

TOP PHOTO CREDIT: DSV