Energy leaders from across the Middle East gathered at major conferences in Abu Dhabi and Dubai this month to discuss pressing issues in oil, gas, and renewables. They warned about underinvestment in fossil fuels while highlighting opportunities in digital growth and green data centers, as global demand for all energy types continues to rise.
The ADIPEC event in Abu Dhabi drew over 239,000 attendees and generated $46 billion in deals, focusing on sustaining oil supply amid rising needs. Meanwhile, the Dii Desert Energy Summit in Dubai emphasized renewables and tech innovations, showing how the region could lead in sustainable energy exports.
Key Warnings from ADIPEC on Oil and Gas Investment
Industry experts at ADIPEC stressed that chronic underinvestment in oil and gas could lead to supply shortages. They pointed out that global energy demand is set to grow by 23 percent by 2050, driven by factors like AI expansion and urban growth.
Leaders argued that talk of an oil glut in 2026 is overstated. Instead, they called for more capital to counter natural declines in production and meet future needs. For instance, forecasts show oil demand hitting 123 million barrels per day by 2050, needing $18.2 trillion in investments.
This push comes as electricity demand surges worldwide, with data centers alone expected to quadruple their power use by 2040. Speakers noted that without deregulation and steady funding, the industry risks failing to keep up.
Many highlighted how AI is already boosting efficiency in oil operations, from planning to extraction. This tech integration could help bridge gaps, but only if investments flow freely.
Shifting Views on Energy Transition and Addition
A big theme at the conferences was redefining the energy shift. Speakers moved away from a strict transition from fossils and toward energy addition, where oil, gas, and renewables all expand together.
One leader described natural gas as a destination fuel, not just a bridge, due to its role in replacing coal and supporting growth in Asia. Demand for LNG is projected to rise 50 percent by 2040, with new supplies from places like Nigeria helping to meet it.
Discussions also touched on market changes, like Europe and Asia now competing yet complementing each other for LNG. This fluidity could stabilize prices and encourage more use in transport and shipping.
In developing markets like India, experts see huge potential for gas growth once prices normalize after geopolitical tensions ease. India’s share of global LNG trade could double from its current 5 to 6 percent.
- Global energy demand growth: 23% by 2050
- Oil demand forecast: 123 million barrels per day in 2050
- LNG growth projection: 50% by 2040
- Electricity surge from data centers: Four-fold increase by 2040
Renewables Take Center Stage at Dii Summit
Over in Dubai, the Dii Desert Energy Summit focused on clean energy innovations, with renewables seen as a key export for the MENA region. Attendees explored how solar and wind could power new industries, outpacing global electricity demand growth in early 2025.
The summit released a report on data centers as major buyers of green energy. It positions the Middle East as ideal for sustainable hubs, thanks to low-cost renewables, vast land, and quick policy moves.
Projects like Saudi Arabia’s NEOM and Oman’s Salalah Free Zone are already building these overlaps of power and connectivity. The goal is to export data center capacity, using tech like low-carbon hydrogen for full decarbonization.
This aligns with global trends where low-carbon investments now double those in fossils. In the UAE, a $6 billion solar facility set for 2027 will combine 5 GW of solar with massive storage, showing real progress.
Experts predict global solar, wind, and hydro capacity will double by 2030, giving MENA a chance to lead.
Opportunities in Digital and Green Growth for MENA
The conferences spotlighted how digital tech and renewables could reshape MENA economies. Leaders bet on AI and data centers as the next big export, similar to how oil built the region.
In Abu Dhabi, talks praised AI for cutting costs in oil fields, while Dubai pushed for green data centers to attract global firms like Microsoft and BlackRock. A recent $1.4 trillion UAE pledge includes $25 billion for US energy and data projects.
This digital boom ties into energy needs, as billions more people urbanize and air conditioning demand spikes. Aviation fleets are expected to double by 2040, boosting jet fuel use by over 30 percent.
Yet, challenges remain, like freeing up capital from old infrastructure. The region aims to balance fossils with renewables for energy security.
| Key MENA Energy Projects | Location | Focus | Expected Impact |
|---|---|---|---|
| Mohammed bin Rashid Al Maktoum Solar Park | UAE | Solar expansion to over 8,000 MW by 2030 | Strengthens clean energy targets |
| NEOM | Saudi Arabia | Renewables and data hubs | Builds sustainable digital infrastructure |
| Salalah Free Zone | Oman | Green energy grid with RO 1.4 billion investment | Supports Oman Vision 2040 renewables goals |
| Nigeria LNG Train 7 | Nigeria (with MENA ties) | Increases output to 30 million tons per year | Boosts global gas supply |
Global Implications and Future Outlook
These events reveal a pragmatic approach in the Middle East, blending oil realism with renewable ambition. While ADIPEC focused on sustaining fossil investments, the Dii Summit eyed a net-zero future through tech.
This balance could influence worldwide energy policies, especially as demand for all sources grows. With AI driving power needs, MENA’s low-cost clean energy might become a global asset.
Experts remain optimistic about innovation, from methane reduction tech to efficient drilling. Yet, they warn that without action on investments, supply risks loom large.
As these trends unfold, share your thoughts in the comments below. What do you see as the biggest opportunity for Middle East energy? Pass this article along to spark discussions with friends and colleagues.
