UAE’s Project Outlook

The UAE's economic outlook is positive, with growth set to continue on a rising trend benefiting from a combination of factors, including higher oil prices and sustained growth in non-oil sectors.

The UAE aims to double its GDP to over $800 billion by the end of the decade. Its long term view ranges from developing its petrochemicals capacity to the decarbonization of the economy to hit the Net Zero 2050 target.

The country is expected to remain a major projects market in the MENA region, with significant investment to happen in infrastructure, energy, and other key sectors. About $133bn worth of projects is in the pipeline in the energy and industry sectors, while over $118bn projects are underway in the power and water sector.

With a strong focus on renewable energy, the UAE aims to achieve 14.2 GW clean energy capacity by 2030 and plans to invest a massive AED 200bn ($54.45bn) to triple renewable energy contributions by that year. The all-encompassing strategy that harnesses solar, wind, nuclear, green hydrogen, and carbon capture technologies, positions the country as a leader in the global shift towards sustainable energy. It aims for 50% of energy from clean sources by 2050.

The country has three of the world’s largest solar plants, including the world’s largest single-site solar plant – Al Dhafra Solar PV, Noor Abu Dhabi Solar Park, and the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

The development of a nuclear energy sector is a key component of the UAE’s energy strategy. It is the first country in the region to operate nuclear energy plant, which will eventually provide 25% of the country’s electricity needs.

The Barkah nuclear energy project being developed by the Emirates Nuclear Energy Corporation (ENEC) started up its first unit in Q3, 2020. The $24.4bn development is expected to add 5.6 GW of capacity to the grid when fully operational by 2030.

The UAE's vision is to become a global hydrogen powerhouse as well, with a strong focus on large-scale projects. It plans to produce 1.4 million tonnes of hydrogen annually by 2031.

The oil and gas upstream market in the UAE is positioned for substantial growth, with market size projected to rise from $9.77bn in 2025 to $12.59bn by 2030, reflecting a CAGR of 5.2% during this period. The country is the world's tenth largest oil producers, housing around 96% of its 100 billion barrels of proven reserves in Abu Dhabi.

The major ongoing projects include $16bn-plus Hail and Ghasha Sour Gas Field Development project, and $15bn Upper Zakum development. The Hail, Ghasha ultra-sour gas project is expected to produce 1.5bn cubic feet per day of sour gas plus additional condensate. The project is intended to increase the UAE’s domestic gas production by 18%. The Upper Zakum project aims to increase the premier offshore field’s oil production potential to 1.2 million barrels per day.

The petrochemicals market is just as positive, with $5bn Ruwais LNG complex, and more than $20bn of investment in various plants at the Taziz petrochemicals complex in the pipeline.

The project activity is set to advance in the coming years with a strategic focus to enhance the upstream asset profitability to cater to growing global demand and planned innovations across the energy sector.

Editor