The Middle East: “The World’s Most Active Energy Market”

The Middle East has consolidated its position as the world’s most active energy market, driven by a US$2.9 billion capital expenditure (CapEx) based on commissioning dates up to 2031.

Speaking at the 10th anniversary of Breakbulk Middle East, Ryan McPherson, regional director for the Energy Industries Council (EIC), detailed a regional shift toward “energy agnosticism”. Unlike previous years where sectors competed for funding, a diverse pipeline of 750 projects spanning oil and gas, renewables and carbon capture is now progressing in parallel, backed by firm national strategies and deliverable timelines.

While the market is increasingly diversified, the upstream oil and gas sector remains the driver, representing about one-third of the region’s CapEx, McPherson said. Heavyweights such as ADNOC and Saudi Aramco continue to lead this activity, prioritizing brownfield expansions and LNG projects such as the Ruwais liquefaction plant in Abu Dhabi.

Onshore wind is gaining rapid traction, particularly in Saudi Arabia and Oman, while a new trend toward offshore wind projects emerged in the last year. These developments rely heavily on imported turbine components, primarily from Asia, which must be routed through regional hubs like Oman’s Sohar and Duqm ports, though localization efforts in Saudi Arabia are beginning to shift some tower fabrication in-country.

As carbon capture moves from an “experimental technology” into a practical solution — with the UAE currently leading with seven active projects — preferred partnerships are being established in the first wave projects. It is therefore important “to get in there early,” McPherson said.

“The Middle East remains and probably is for some time the most active energy market globally,” McPherson said. “Investment probably for the first time is spanning right across oil and gas, power, carbon capture and renewables, and projects are moving very quickly from your planning into execution phase. For the supply chain, the opportunity for you is significant but it is going to require the focus readiness and a long-term commitment going forward.”

Photo credit: Ulysses&Crew