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The Middle East and North Africa (MENA) is set to become the world’s largest hydrogen exporter by 2060, while maintaining a dominant position in global oil and gas markets, according to DNV’s Oil & Gas Decarbonization in the Gulf Region report

The report highlights how Gulf Cooperation Council (GCC) countries are cutting the emissions intensity of their core oil and gas production while continuing to play a central role in global energy supply, presenting a picture of a region approaching the energy transition from a position of confidence and capital strength. Reductions in emissions intensity are occurring alongside continued hydrocarbon production and investment across renewables, electrification, hydrogen, methane abatement, digitalisation, and carbon capture.

Since 2005, the GCC has produced nearly 18% of global oil and gas, a share expected to increase as investment continues in low-cost, advantaged resources. As global energy demand increasingly shifts toward Asia, the region’s location and cost competitiveness strengthen its position as a preferred supplier. At the same time, decarbonization measures are becoming an integral part of long-term competitiveness.

“The global energy transition will not progress at the same pace across regions, nor will it follow a single pathway,” said Brice Le Gallo, vice-president & regional director for Southern Europe, MEA & LATAM, Energy Systems at DNV. “In the Middle East, oil and gas remain central to economic stability and global energy security. The key challenge is to reduce their emissions footprint while accelerating investment in the technologies needed for a lower-carbon energy system.”

Electrification is being used to cut Scope 2 emissions from pumps, compressors, and offshore facilities, through grid connections, renewable power, and hybrid solutions. These efforts are supported by energy-efficiency measures and the use of digital tools and artificial intelligence to optimise drilling, reservoir management, and asset operations, reducing energy intensity and emissions per barrel produced.

Methane reduction remains one of the most immediate and cost-effective options for lowering emissions. Across the GCC, routine flaring is planned to be phased out by 2030 and leak detection and repair (LDAR) programmes are increasingly standard. National oil companies are also aligning with international methane initiatives, enabling continued production growth while reducing methane intensity in line with national net-zero targets.

GCC countries are realigning domestic energy systems to reduce oil and gas use domestically and free up volumes for export and low-carbon fuel production. Growth in renewables, electrification of transport and buildings, and efficiency gains are driving this shift. Investment in downstream industries, petrochemicals, and low-carbon fuels is also changing export profiles, moving beyond crude oil toward higher-value and lower-carbon energy products.

With access to low-cost natural gas, strong solar resources, and established industrial and export infrastructure, the region is well placed to scale both low-carbon hydrogen (produced from natural gas with carbon capture) and renewable hydrogen produced through electrolysis. By 2060, the Middle-East and North Africa region is projected to produce around 19 million tonnes of hydrogen and 13 million tonnes of ammonia per year, exporting about 50%, mainly toward Europe and advanced Asian economies.

“Hydrogen, ammonia, and carbon capture are becoming core elements of the GCC’s energy export model,” said Jan Zschommler, market area manager for the Middle East, Energy Systems at DNV. “As emissions requirements tighten, access to international markets will increasingly depend on carbon intensity. Integrating hydrogen production with renewable power, carbon capture, and existing industrial clusters allows the region to remain competitive while meeting these requirements.”

Carbon capture, utilization and storage (CCUS) is also set to grow. In January 2026, the UAE's Supreme Council for Financial and Economic Affairs has introduced Carbon Capture Policy as a further commitment to meeting their carbon reduction targets. Captured CO₂ volumes (including CO₂ removal) are expected to reach around 250 million tonnes per year by 2060, equivalent to roughly 8% of regional energy-related and industrial emissions.

Bioenergy with carbon capture (BECCS) and direct air capture (DAC) combined are expected to remove around 81 million tonnes of CO₂ per year by 2060, helping to offset emissions from sectors that are more difficult to decarbonise.

The full report is available at https://www.dnv.com/energy-transition-outlook/oil-and-gas-decarbonization-in-the-gulf-region/

The inaugural IFAT Saudi Arabia aims to accelerate investment in sustainable waste and water infrastructure across the Kingdom. The event will focus on knowledge exchange, policy dialogue, and sector collaboration through a strategic summit and a CPD-certified conference programme.

Taking place from 26-28 January at the Riyadh Front Exhibition & Conference Center, IFAT Saudi Arabia is designed to support national development goals and market readiness. The Summit and conference stages will examine how policy, capital, and technology can enhance waste and water systems, promote circular economy models, and strengthen long-term environmental resilience.

“Strengthening waste management systems is a key priority for supporting environmental protection, operational efficiency and resource recovery,” said Dr. Abdullah Al Sebaei, CEO of the National Center for Waste Management (MWAN). “IFAT Saudi Arabia creates a focused environment for stakeholders to exchange knowledge, review international experience and align on strategic approaches that support the Kingdom’s regulatory direction and circular economy ambitions.”

The invite-only IFAT Saudi Arabia Summit on 26 January will bring together senior government officials, regulators, investors, and industry leaders to discuss the strategic direction of the Kingdom’s waste and water sectors. Sessions will focus on impact investment, public-private partnerships, stakeholder engagement, and future readiness, featuring regional and international case studies and policy insights.

Key discussions include the Leaders Panel, which will assess the evolving waste and water economy in Saudi Arabia, and the Water Security Panel, led by the Saudi Water Authority, focusing on governance and integrated strategies for national water security. “A secure and resilient water sector requires long-term planning, strong governance and close coordination across public and private stakeholders,” said Eng. Mamdooh Alshuaibi, Vice President of Sustainability and Water Sector Services at the Saudi Water Authority. “IFAT Saudi Arabia provides a timely setting to discuss policy priorities, investment frameworks and technical approaches that support efficient water use, system resilience and sustainable service delivery across the Kingdom.”

Complementing the Summit, the CPD-certified conference programme will run across two thematic stages. Orange Stage will focus on waste management, recycling, and circular economy practices, featuring sessions on smart municipal solid waste systems, operational efficiency, and the role of digitalization and cybersecurity. Highlights include a panel marking the launch of the World Bank’s latest report on Solid Waste Management in MENA, in collaboration with the International Solid Waste Association.

Blue Stage, running 27–28 January, will explore water resilience, desalination, reuse, and digital transformation for utilities and industrial users. Sessions include a panel on Middle East water resilience organized by German Water Partnership, a brine mining case study led by NEOM, and discussions on financing and PPP models led by the International Water Association.

By connecting policy, investment, and applied solutions, IFAT Saudi Arabia aims to drive informed decision-making, cross-sector collaboration, and practical delivery across the Kingdom’s environmental ecosystem.

DMCC has announced its intention to join the Natural Diamond Council (NDC) in 2026, aligning the world’s largest diamond trading hub with the industry body responsible for global category marketing of natural diamonds.

The announcement was made on the sidelines of Mining Indaba in Cape Town during the second high-level meeting of the Luanda Accord. Signed in Angola in June 2025, the Luanda Accord commits producer governments and industry participants to renewed, collective investment in the promotion of natural diamonds. The framework brings together key stakeholders including DMCC, De Beers Group and producer governments, and is led by the Natural Diamond Council.

Reflecting strong government engagement, the meeting was overseen by ministers from leading African diamond-producing countries, including H.E. Diamantino Pedro Azevedo, Minister of Mineral Resources, Petroleum and Gas of Angola; H.E. Bogolo Joy Kenewendo, Minister of Minerals and Energy of Botswana; H.E. Modestus Amutse, Minister of Industries, Mines and Energy of Namibia; and H.E. Julius Daniel Mattai, Minister of Mines and Mineral Resources of Sierra Leone.

DMCC’s move comes at a time of structural pressure for the global diamond industry, as shifting consumer preferences, increased competition and heightened scrutiny around provenance and responsible sourcing reshape demand. Founded and funded by leading diamond producers and industry stakeholders, the NDC aims to rebuild consumer confidence through coordinated global marketing and education initiatives, particularly in key consumer markets.

By declaring its intent to join the council, DMCC said it will support collective efforts to strengthen consumer demand for natural diamonds, in line with the principles of the Luanda Accord. The move forms part of Dubai’s broader strategy to reinforce its influence across the global diamond ecosystem as the sector seeks to stabilise trade flows and return to sustainable growth.

The Cape Town meeting also marked the formal accession of the Government of Namibia to the Luanda Accord, while India’s Gem and Jewellery Export Promotion Council (GJEPC) signed a memorandum of understanding outlining a pathway to join the NDC by May 2026. Alongside DMCC’s announcement, these developments signal growing momentum behind coordinated global marketing for natural diamonds. Membership of the NDC remains subject to agreement on financial contributions and the completion of internal legal and regulatory processes.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC, said: “Our decision to join the Natural Diamond Council reflects both the scale of Dubai’s role in the global diamond trade and our responsibility to support the long-term integrity and demand of the natural diamond category. As the world’s leading diamond trade hub and home to more than 1,300 diamond companies, this step underscores our commitment to strengthening consumer confidence and safeguarding the future of the sector.

“At a time of structural change across the industry, collective action grounded in transparency, responsible sourcing and sustained consumer trust is essential. DMCC will continue to work closely with industry and producer governments, contributing our convening power and market insight to initiatives that support the resilience and long-term growth of the global diamond sector.”

Amber Pepper, Chief Executive Officer of the Natural Diamond Council, said: “Collective action is essential to protect the integrity and desirability of natural diamonds. I welcome the opportunity to work with DMCC to ensure that efforts to support the natural diamond sector are aligned and amplified globally.”

DMCC is home to the Dubai Diamond Exchange and a community of more than 1,300 diamond and precious stones companies. Over the past two decades, it has played a central role in shaping global diamond trade flows while contributing to international policy discussions on governance, traceability and compliance through its longstanding engagement with the Kimberley Process, which it has chaired on three occasions.

The Luanda Accord signatories and the Natural Diamond Council have called on stakeholders across the value chain, from miners and traders to manufacturers and retailers, to support the initiative, stressing that sustained investment in consumer demand will be critical to the long-term resilience of the natural diamond sector.

Once overshadowed by hydrocarbons, the UAE’s manufacturing sector has now become a driving force for innovation, investment, and sustainable growth across the country. Without a doubt, manufacturing is poised to take centre stage in the country’s long-term aspirations for economic growth and resilience.

Various initiatives from the UAE’s visionary leaders all point towards continuously building, enhancing and reinforcing conditions that will further encourage investments and enable industrialisation to thrive and prosper.

Among them is Operation 300bn, the UAE’s national industrial strategy launched in 2021 which aims to more than double the industrial sector’s GDP contribution from AED133 billion in 2021 to AED 300 billion by 2031.

In addition, programmes, projects and initiatives by the Ministry of Industry and Advanced Technology (MoIAT) such as the National In-Country Value Program (ICV), ‘Make it in the Emirates’, the Technology Transformation Program (TTP), and the Industrial Technology Transformation Index (ITTI) have all been designed and geared towards pro-actively pushing forward the UAE’s manufacturing and industrial ambitions.

Clearly, the UAE is well on track on achieving its industrialisation objectives and its relentless pursuit of economic diversification have already produced remarkable results.

In the first quarter of 2025, non-oil GDP grew 5.3% , reaching AED 352 billion, according to the UAE's Ministry of Economy and Tourism (MOET). The ministry also identified manufacturing as the fastest growing economic activity, registering 7.7% growth in Q1 2025.

According to the latest report by Abu Dhabi Customs, Abu Dhabi's non-oil foreign trade grew by 34.7% in H1 2025, reflecting a thriving manufacturing industry and a key source of UAE exports.

Driven by visionary leadership

It is quite evident that the vision of the UAE’s leadership for the future of this great nation is fuelled by a determination to thrive, succeed and lead.

Not only are they aiming and enabling the manufacturing sector to grow, but they also implement a deliberate governmental policy and strategy that focuses on strengthening the adoption of advanced manufacturing, sustainability, and Industry 4.0 technologies including artificial intelligence, the Internet of Things (IoT), and 3D printing.

Over the years, the UAE's manufacturing sector has continuously demonstrated its resilience. In 2022, manufacturing GDP growth surpassed pre-pandemic levels by tallying 8.75% growth.

With Abu Dhabi leading the way with a growth of 9.7% , the emirate even further sharpened its focus on manufacturing with the launch of the Abu Dhabi Industrial Strategy (ADIS) in the same year. As a result, in the first half of 2025, Abu Dhabi's non-oil GDP grew 6.37% year-on-year, according to the Statistics Centre - Abu Dhabi

The attractiveness and pull for foreign investment into the UAE’s manufacturing sector have also remained strong. At the fourth edition of 'Make it in the Emirates', a 122,000-strong participation of delegates from across the world was a clear indication of the global attention to the sector’s growing appeal.

With US$11bn committed to advanced manufacturing over five years, the UAE is sending a clear message: it is open for industrial business, and it is serious about reducing its reliance on oil.

Innovation and sustainability at the core

Recognising the need to catch up with countries with larger and more advanced manufacturing sectors in a globalised market, the UAE is not just building factories – it's building smart factories.

Industry 4.0 technologies are being integrated into production lines, making UAE manufacturing globally competitive. Sustainability is also a priority, with circular economy models becoming standard practice.

Solar-powered facilities take advantage of the abundant sunshine, while water recycling systems ensure efficient use of water in a desert climate.

These are supported by the MoIAT's ITTI, which measures the digital maturity and sustainability practices of factories, provides a roadmap for their digital transformation and encourages the adoption of Industry 4.0 solutions and sustainability best practices.

Turning challenges into opportunities

While there are indeed challenges in the UAE’s journey towards economic diversification and industrialisation, the country’s leaders have cleverly manoeuvred around them and have instead focused on capitalising on the opportunities presented by these challenges. An uneven manufacturing growth among the emirates is being addressed by the federal government through Operation 300bn, with a focus on equitable development.

Among its goals is to create 13,500 new industrial facilities and 25,000 specialised jobs, many of which are being directed toward less industrialised regions.

For instance, MoIAT is working to ensure that Northern Emirates like Ras Al Khaimah, Fujairah and Umm Al Quwain benefit from industrial expansion through tailored support and infrastructure upgrades.

Additionally, the ICV program provides incentives for companies sourcing locally, further benefiting the economy. These initiatives create numerous opportunities for businesses and individuals to widen their reach in the burgeoning manufacturing sector.

In line with the rapid adoption of Industry 4.0 technologies, the UAE is also strengthening partnerships among industry, academia and various vocational training programmes, in collaboration with global tech companies, to help bridge any skills gap and ensure a seamless transfer of the latest technological knowledge to the UAE workforce.

Today, the UAE’s manufacturing sector stands at a pivotal juncture. With the UAE's emphasis on attracting investments and prioritising inclusivity, innovation, and sustainability, the country is laying the foundation for long-term industrial leadership.

Alongside policy support, the UAE's strategic location and rapidly improving infrastructure position it as a rising global manufacturing hub.

Manufacturing is no longer just a supporting act in the UAE’s economic story. It’s now a lead character that plays a vital role in shaping a resilient, innovative, and sustainable future for the country.

By Noritsugu Mifune, CEO, Al Gharbia Pipe Company

The UAE’s industrial and logistics sector maintained strong momentum in 2025, with rents rising across all major submarkets, as tight supply conditions continued to shape market performance, according to Knight Frank’s latest UAE Industrial and Logistics Report.

High occupancy levels and sustained rental growth were recorded nationwide, supported by solid economic fundamentals and expanding activity from both domestic and overseas occupiers, particularly logistics operators from mainland China. Investor appetite for industrial and logistics assets also remained firm, underpinning transaction volumes across the sector.

Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, said: “Investor appetite remains firm and competition for institutional-grade stock continues to strengthen, placing further downward pressure on prime yields towards sub-8% territory. This should support capital values, even as rental growth moderates in parts of the market.”

He added that while new supply due in 2026 could begin widening the rental performance gap between older and higher-specification facilities, rental levels are expected to remain firm overall. “We expect the demand drivers that have underpinned rental growth over the past few years to be sustained this year,” Durrani said.

Dubai rents continue upward trend

Dubai’s industrial and logistics rents climbed further in 2025, driven by strong occupier demand and rising land and construction costs.

Al Quoz remained the city’s most expensive industrial submarket, with rents reaching AED 100 per sq ft, supported by its central location. Dubai Industrial City recorded the strongest annual rental growth at 32%, with rents rising to AED 58 per sq ft amid constrained high-quality supply and growing manufacturing demand. Dubai South followed, with rents increasing 25% year-on-year to AED 45–55 per sq ft.

Grade-A assets in Jebel Ali Free Zone (JAFZA) also posted annual increases of around 22%, reaching AED 40–45 per sq ft. Meanwhile, more established inland areas such as National Industries Park and Dubai Investment Park saw rental stabilisation, as relatively higher vacancy levels tempered upward pressure.

Maxim Talmatchi, Partner and Head of Industrial and Logistics, Middle East, said JAFZA presents further upside potential. “With its proximity to Jebel Ali Port and appeal to multinational occupiers, we anticipate scope for further rental growth,” he said.

Knight Frank is tracking 6.6 million sq ftof new supply scheduled for delivery in 2026, with additional completions expected in 2027 and 2028. However, Talmatchi noted that near-term supply will remain relatively constrained in prime locations.

“We expect Dubai’s industrial and logistics supply pipeline between 2026 and 2029 to be relatively stable in the near term, before rising sharply towards the end of our forecast period,” he said. “This new supply should offer some relief to occupiers in the form of stabilisation, or softening in rents in some locations, which could begin towards the end of 2026.”

Demand in 2025 was led by logistics and manufacturing occupiers, each accounting for 21% of total requirements, followed by retailers and traders at 14% and technology-focused occupiers at 12%. Mid-sized warehouses between 10,000 and 50,000 sq ft accounted for the majority of demand in the second half of the year.

Abu Dhabi market anchored by diversification strategy

Abu Dhabi continued to advance its industrial diversification strategy, with 33% of the UAE’s US$5bn in awarded industrial contracts last year located in the emirate.

Rental growth was more measured than in Dubai, with performance largely driven by asset quality and proximity to key transport corridors. The Abu Dhabi Airports Free Zone recorded the highest average rents at AED 625 per sq m, followed by KEZAD Mussafah (ICAD) and Al Falah at AED 550 per sqm, and Mussafah at AED 500 per sqm.

Talmatchi said: “Market conditions in Abu Dhabi are likely to remain broadly stable through 2026, with demand anchored around the ICAD and KEZAD clusters. A disciplined approach to land release and development remains a key stabilising influence, restricting excess supply and limiting volatility in rental performance.”

Looking ahead, project completions in Abu Dhabi are expected to exceed US$1bn in Q1 2026, with another major peak forecast in 2029.

The growth trajectory is underpinned by the Abu Dhabi Industrial Strategy, which aims to more than double the emirate’s manufacturing sector to AED 172bn by 2031, with a focus on foreign direct investment and priority industries including chemicals, machinery, electronics and pharmaceuticals.

Durrani said the UAE’s industrial and logistics sector is entering a more mature phase. “Performance will increasingly be determined at the asset level. Location, specification, tenant quality and active management will matter more than scale alone,” he said. “The medium- to long-term outlook remains positive, with occupiers expected to continue gravitating towards high-specification and quality assets.”