News

Hugh Fraser was delighted to represent HFI and be part of panel for the EIC (Energy Industries Council) GCC Energy Market and Project Update March 2024 today hosted by Anand Kumar, Business Development Manager and with Wan Afiq Naqiuddin, Energy Analyst – GCC.

The EIC DataStream project database is now tracking 92 new energy projects for 2023 and 14 energy projects announced from January to March 2024.  The market value for the region is US$628 billion for the period to 2030:-

Oil & Gas (upstream, midstream and downstream) – US$442.6 billion (262 projects); 

Power and transmission/distribution – US$72.9 billion (89 projects); and 

Energy Transition (renewables, hydrogen, CCS, energy storage) – US$113.3 billion (123 projects)

Saudi energy projects, with a market value of US$195 billion for the period to 2030, is dominated by Aramco projects and with NEOM making its mark, represents close to a third of the total GCC US$628 billion market size.  The UAE, dominated by ADNOC Group, has energy projects with a value of US$175 billion, with the widest spectrum of energy transition projects – nuclear, solar, hydrogen and CCS. The balance of US$258 billion represents energy projects in Oman, Qatar, Kuwait and Bahrain.  Oman is dominated increasingly by green hydrogen projects and Qatar by LNG.

HFI commented that its clients project activities broadly represent the EIC findings with a third in Saudi Arabia, a third in the UAE and a third relating to other territories including the other GCC jurisdictions, Iraq, Egypt and India.  Key challenges being experienced by clients in unlocking these opportunities over the last twelve months have been:  high price sensitivity/tight margins even in a resource-constrained market; long-lead times for new technology trials and vendor approvals; costs inflation including finance costs and increased taxation; increased compliance bureaucracy with banks and regulators; and localisation pressures. The last issue is driving local manufacturing and joint-venture collaboration with local partners.

HFI is keen to play its part in supporting its clients to capture these opportunities and mitigate these challenges in the Middle East.  To this end we were delighted to launch the Q1 2024 editions of HFI’s SAVI - Saudi Arabia Ventures Initiative SAVI Guidebook and HFI’s ADVI - Abu Dhabi Ventures Initiative ADVI Guidebook  edition earlier this month.  Guidebooks for other territories are in train, as are specialist editions on Mergers & Acquisitions and Local Partner Ventures.  

Our thanks again to the EIC team for the projects update and we look forward to EIC Connect UAE on 17 May in Abu Dhabi.