The Middle East has witnessed a surge in energy project announcements over the past year, with approximately 140 new initiatives spanning oil and gas, renewables, energy transition, conventional power, and nuclear energy. Despite oil and gas maintaining its dominance, there has been a notable shift towards renewable energy, particularly solar, onshore wind, and carbon capture projects.
Ryan McPherson, regional director at the Energy Industries Council (EIC), highlighted these trends during a MENA project briefing at Breakbulk Middle East. He emphasized that the energy sector is undergoing significant transformation, driven by geopolitical shifts, supply chain disruptions, and sustainability mandates.
“The energy industry is at a pivotal point, being reshaped by geopolitical shifts, supply chain disruption, and sustainability imperatives,” McPherson said.
With ambitious renewable energy targets set across the region, there is a growing urgency to bridge the gap between project announcements and execution. While solar remains the dominant renewable source, wind energy—particularly onshore wind—is gaining traction due to the region’s favorable climatic conditions.
“The Middle East is demonstrating a strong commitment to wind energy, with numerous companies increasing investments in wind projects as part of their broader strategy to diversify energy sources,” McPherson stated.
Several onshore wind projects were announced throughout 2023 and 2024, with offshore wind potentially becoming a future area of interest. However, a key challenge remains: a low percentage of projects are reaching the financial investment decision (FID) stage.
“We’re seeing a lot of projects being announced and then not reaching their FID stages. This is a concerning trend, because FID is a critical stage in the delivery of projects and an indicator of project success,” McPherson noted.
The industry is also grappling with the sustainability of its rapid growth. While many companies in the region recorded exceptional business performance in 2024, maintaining this momentum in 2025 remains uncertain. Export challenges could also impact project execution timelines and business continuity.
“New exports remain a challenge, which may lead to a slight slowdown,” McPherson added.
As energy players navigate these hurdles, adaptability will be crucial. Companies must not only rely on data, but also align their strategies with shifting market demands and customer expectations. The evolving energy landscape presents both opportunities and obstacles, and industry leaders will need to remain agile to ensure long-term success.
Source: breakbulk
