In The Spotlight
Is the Middle East redefining smart manufacturing today?
Rockwell Automation has released the Middle East results of its 11th annual State of Smart Manufacturing Report, revealing that manufacturers across the region are leading global efforts to implement digital transformation initiatives and advanced industrial technologies
The report draws on research conducted with manufacturing executives worldwide, including a representative sample from the Middle East. Findings indicate that manufacturers in the region are moving beyond planning and experimentation, with a growing focus on deploying digital technologies at scale to improve operational performance.
According to the study, the Middle East has emerged as the world's most committed region when it comes to digital transformation. Nearly all respondents, 98%, consider digital transformation essential to their business, placing the region ahead of Europe, the United States and the global average. This commitment is reflected in spending priorities, with manufacturers dedicating close to 30% of their operating budgets to industrial technology investments.
“Manufacturers in the Middle East are not just adopting digital technologies, they are scaling them at pace,” said Ediz Eren, regional vice-president, Middle East, Africa and Türkiye, Rockwell Automation.
“What sets the region apart is the combination of strong investment, clear strategic intent and a willingness to embed advanced technologies directly into operational environments.”
AI drives industrial transformation
Artificial intelligence continues to play a central role in the region’s manufacturing evolution. The report shows that AI adoption has reached near-universal levels, with almost every manufacturer either already using AI technologies or planning to do so. Generative AI has also gained widespread acceptance, becoming integrated across industrial operations throughout the region.
Rather than being limited to experimental applications, AI is increasingly being incorporated into operational technology environments. Manufacturers are using it to enhance quality management, strengthen cybersecurity measures and optimise production processes.
The study found that organisations are prioritising technologies capable of delivering measurable business outcomes. AI and machine learning were identified as the technologies generating the highest return on investment, reinforcing the region’s focus on practical and performance-driven digital transformation strategies.
Workforce and cyber security remain priorities
As digital adoption accelerates, manufacturers are facing new organisational challenges. Workforce readiness has become a major concern, with change management emerging as the leading challenge as companies introduce advanced technologies throughout their operations.
To address these issues, manufacturers are expanding reskilling initiatives and increasing efforts to recruit employees with expertise in digital technologies and artificial intelligence. The report highlights a growing recognition that future manufacturing competitiveness will depend heavily on workforce capabilities.
Cybersecurity continues to rank among the highest priorities for industrial organisations. As operational environments become more connected, manufacturers are investing heavily in protecting digital systems while managing the risks associated with increased connectivity.
The report also highlights growing interest in simulation technologies such as digital twins. Adoption plans in the Middle East exceed those seen in other regions, with many organisations preparing to invest in these technologies over the coming year. Digital twins are increasingly being used to model production environments, test operational changes and improve efficiency before implementation.
Despite strong progress in digitalisation, the research indicates that many manufacturers still struggle to maximise the value of their operational data. While significant volumes of data are being collected, a substantial proportion remains underutilised, highlighting the need for stronger data-driven decision-making capabilities.
Overall, the findings suggest that manufacturers in the Middle East are pursuing a distinctive approach to digital transformation characterised by significant investment, widespread technology adoption and a strong emphasis on operational outcomes. The report concludes that the region is not only keeping pace with global manufacturing trends but is increasingly helping shape the future direction of industrial transformation.
The State of Smart Manufacturing Report captures perspectives from manufacturing leaders across a range of sectors, including automotive, life sciences, consumer goods and industrial manufacturing. The research examines how organisations are adopting technologies such as artificial intelligence, cybersecurity solutions, digital twins and workforce development strategies as they respond to growing operational complexity and competitive pressures.
Aluminium Bahrain plans to acquire Aluminium Dunkerque, strengthening its global low-carbon aluminium strategy and European presence. (Image source: Alba)
Alba advances acquisition of Aluminium Dunkerque facility
Aluminium Bahrain B.S.C. (Alba) has announced plans to acquire Aluminium Dunkerque, the European Union’s largest aluminium smelter, in a deal valued at around US$2.2bn
The proposed transaction forms part of Alba’s ambition to establish a global low-carbon aluminium platform and was announced alongside current owner American Industrial Partners (AIP) and French public investment bank Bpifrance, which is set to become a minority shareholder in the business.
Following completion of the transaction, Alba will take full ownership of Aluminium Dunkerque through a deal valued at around US$2.2bn. The acquisition will be financed entirely through a consortium of Alba’s banking partners. Under the terms of the MoU, Bpifrance will invest €100mn in the transaction, securing a 6% shareholding in Aluminium Dunkerque, subject to the necessary regulatory and customary approvals. The investment bank will also be represented on the board of the smelter’s holding company.
The participation of Bpifrance as a minority shareholder and board member is intended to reinforce Aluminium Dunkerque’s strategic role within France’s industrial sector while strengthening its regional presence.
His Excellency Shaikh Salman bin Khalifa Al Khalifa said the agreement reflects the strong economic relationship between Bahrain and France while highlighting the confidence global investors continue to place in Bahrain. He noted that the deal further reinforces the Kingdom’s position as a competitive industrial centre with the talent and capabilities required to pursue opportunities internationally.
Khalid Amro Al-Rumaihi, chairman of Alba’s board of directors, emphasised the importance of Aluminium Dunkerque as a strategic French industrial asset. He described the acquisition as a significant milestone for Alba, demonstrating confidence in the company’s future growth potential while supporting the development of a more diversified and internationally competitive industrial platform. He added that the transaction creates opportunities to strengthen industrial resilience in both Bahrain and France while deepening economic and industrial cooperation between the two countries.
"Alongside Alba, Bpifrance’s investment in Aluminium Dunkerque underscores our commitment to securing and reinforcing the long-term future of this strategic industrial site. By joining forces, we are not only supporting the growth of a key player in the European aluminium sector but also ensuring that Aluminium Dunkerque remains a cornerstone of France’s industrial resilience and innovation. Together, we will work to strengthen the site’s industrial project, fostering sustainable development and competitiveness for years to come," remarked Nicolas Dufourcq, CEO at Bpifrance.
“We are pleased to mark an important step in the transition of Aluminium Dunkerque’s ownership to Aluminium Bahrain. Over the past four months, the process has advanced smoothly as expected thanks to the constructive work among all parties and a shared commitment to responsible execution. We remain confident that Alba is the right long-term owner for Aluminium Dunkerque and will be a strong partner for France in supporting the company’s continued development and strategic role in Europe. Aluminium Dunkerque’s success during our ownership reflects France’s enduring attractiveness as a destination for long-term industrial investment, supported by its strong industrial base, skilled workforce and commitment to decarbonisation,” concluded Dino Cusumano, general partner at AIP.
Based in Loon-Plage near Dunkerque, the facility has an annual production capacity of approximately 300,000 tonnes of aluminium. Supported by advanced automation systems, integrated operations and a skilled workforce, the smelter is well positioned to meet rising demand across Europe for low-carbon and sustainably produced aluminium.
Around US$2.2 trillion is expected to go to grids, storage, low-emissions fuels, nuclear, renewables, efficiency and electrification in 2026. (Image source: Adobe Stock)
Energy security concerns reshape global investment priorities: IEA
Global energy investment is projected to reach US$3.4tn in 2026 as countries continue to strengthen electricity systems, expand clean energy deployment and invest in more resilient energy infrastructure, according to the International Energy Agency's (IEA) World Energy Investment 2026 report
The report forecasts that around US$2.2tn will be directed towards grids, energy storage, low-emissions fuels, nuclear power, renewables, efficiency measures and electrification this year. Investment in oil, natural gas and coal is expected to total approximately US$1.2tn.
Electricity-related spending remains the dominant theme in global energy markets. Investment in electricity supply and infrastructure is set to reach nearly US$1.6tn in 2026, rising to almost US$2tn when end-use electrification is included. Spending on electricity grids is expected to approach US$550bn, while battery storage investment is projected to exceed US$100bn.
Renewable energy continues to attract significant capital, with investment in renewable power projects expected to reach US$665bn, including US$365bn for solar energy alone. Nuclear energy is also gaining momentum, with annual investment exceeding US$80bn and close to 80GW of new nuclear capacity currently under construction across 15 countries.
However, the report notes that energy security has become an increasingly important factor in investment decisions following the latest disruption to global energy markets.
The ongoing conflict in the Middle East and the effective closure of the Strait of Hormuz have triggered fresh concerns over the reliability of energy supplies and international trade routes. According to the IEA, the resulting supply shock is prompting governments and companies to reassess risk and accelerate diversification strategies.
The impact has been particularly pronounced in Asia and the Middle East, where disruptions to shipping flows through the Strait of Hormuz have affected energy markets and reinforced the need for alternative supply routes and domestically available energy resources.
"We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s," said IEA executive director Fatih Birol.
"We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources – such as advancing new pipelines and other supply infrastructure, on the one hand, and turning more to domestically available resources, on the other. These range from renewables and nuclear to coal, oil and gas, in some cases – as well as broader measures to strengthen electricity systems, expand electrification and accelerate energy efficiency."
While oil prices remain elevated, upstream oil investment is expected to decline for a third consecutive year, falling below US$500bn. The report attributes this to uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets.
Natural gas investment, meanwhile, is forecast to reach US$330bn, the highest level in a decade, supported by new LNG export developments, particularly in the United States and Qatar.
The report also points to rising investment in energy efficiency, with approximately US$350bn being invested globally each year. More than 20 countries have already announced new efficiency policies in response to the current crisis.
At the same time, increased market volatility linked to the Middle East conflict is raising financing costs and slowing investment decisions in some regions. The IEA warns that higher financing costs could disproportionately affect capital-intensive energy projects, particularly in emerging and developing economies.
As governments and industry respond to another major energy shock, the report suggests that diversification, electrification and stronger energy security measures will remain central to investment decisions in the years ahead.
Read the full World Energy Investment 2026 report for a comprehensive analysis of global and regional energy investment trends here