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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/

Ecolab, a global leader in sustainability solutions for water, hygiene and infection prevention, has signed a non-binding MoU with the Saudi Water Authority (SWA) aimed at accelerating water innovation and supporting the Kingdom’s long-term sustainability ambitions.

The agreement reflects a shared commitment to advancing more efficient, resilient and circular water systems in line with Saudi Arabia’s Vision 2030.

The MoU was formalised during the US-Saudi Water Summit 2025, held last month in Palo Alto, California. The summit brought together international water sector leaders to discuss emerging challenges, technological advances and collaborative models capable of transforming water management across the Kingdom. Against a backdrop of rising demand, climate pressures and industrial expansion, the agreement highlights the growing importance of public-private partnerships in securing Saudi Arabia’s water future.

Under the MoU, SWA and Ecolab will collaborate to position sustainable water management as a strategic enabler of national development. By improving water efficiency and reuse, the partnership aims to help safeguard scarce water resources while enhancing water quality across key sectors. These efforts are also expected to deliver wider environmental and economic benefits, including reduced energy consumption, lower CO2 emissions and improved operational efficiency for industrial and commercial operators.

The framework for cooperation includes the exchange of technical insights and best practices across sectors such as data centres, refineries, petrochemicals, heavy industry, desalination, manufacturing, food and beverage, and hospitality.

Key areas of partnership

The collaboration also covers support for water source selection, regulatory development and performance monitoring, alongside workshops focused on advanced digital solutions such as smart water systems and predictive maintenance. In addition, the partners will explore pilot projects within Saudi industrial cities, applying Ecolab’s global technologies under local operating conditions, and identify opportunities to support innovation initiatives, including Rabigh Oasis, the Global Water Innovation Prize (GWIP), collaborative research and development roundtables, and broader innovation promotion programmes.

Ecolab has maintained a strong presence in Saudi Arabia for more than four decades through its Nalco Water business, supporting major industrial players in optimising water use. Today, its solutions are deployed across energy, manufacturing, food and hospitality, helping organisations conserve water, reduce energy consumption and strengthen long-term business resilience while meeting sustainability goals.

His Excellency Abdullah bin Ibrahim Al-Abdulkarim, President of the Saudi Water Authority, highlighted the partnership as a step toward building a world-class water sector that safeguards resources, supports national growth, and demonstrates how innovation and sustainability can secure water for future generations in line with Vision 2030.

Stefan Umiastowski, Ecolab’s Senior Vice President & CEO for India, Middle East, and Africa, said, “This collaboration represents an important step in advancing Saudi Arabia’s Vision 2030 commitment to long-term water sustainability in a region where water is one of the most critical resources. As digitalization and AI reshape economies and create new demand patterns, intelligent water management has become essential for sustainable growth. By combining Ecolab's global innovation capabilities with the SWA’s vision and local expertise, we're creating a powerful platform to scale water transformation across the Kingdom's most strategic industries.”

Overall, the MoU demonstrates how closer collaboration between government and industry can translate sustainability ambitions into measurable outcomes, supporting the transition towards Net Zero while enhancing industrial competitiveness and water security across Saudi Arabia.

Zebra Technologies Corporation, a global leader in digitising and automating workflows, has announced a successful deployment of its FS40 fixed industrial scanners and ET60 tablets at Royal Canin’s warehouse in Cambrai, France.
 
The implementation, carried out by Zebra partner WIIO, has delivered a 50% increase in forklift loading rates while enhancing worker safety and optimising logistics operations.Royal Canin’s Cambrai facility ships 1,800 food pallets daily, operating 24/7 to supply global markets.
 
Each pallet is scanned prior to loading onto trailers to maintain visibility and efficiency.
 
Camilo Caro Urrego, Focus Improvement Manager at Royal Canin, explained, “With our previous manual processes, we had pedestrian operators unloading pallets and circling around to perform the scans. We knew reducing the contact between operators and the pallets through automation would greatly improve work safety and speed up tracking.”
 
WIIO, a Zebra Premier Solution and Industrial Automation Partner, installed the FS40 scanners and ET60 tablets across the Cambrai plant in just three days, in close collaboration with Zebra, without interrupting production.
 
François-Xavier Bréhon, Factory Manager at Royal Canin, said, “Zebra and WIIO didn’t just offer us a product. They brought a plug-and-play system directly to our site, let us test it without stopping production and stayed involved throughout the process. Zebra’s technology integrated with WIIO has changed everything.”
 
The solution integrates seamlessly with Royal Canin’s existing warehouse management system (WMS), eliminating pedestrian traffic in loading zones and providing accurate, hands-off traceability for every pallet.
 
Benjamin Defaye, Machine Vision and Fixed Industrial Scanning Manager, France, at Zebra Technologies, commented, “We are proud to have helped Royal Canin achieve a positive return on investment within three months. Our collaboration with WIIO has enabled us to address Royal Canin’s diverse production requirements with an intelligent automation solution that improves safety and productivity for its frontline workers.”The success at Cambrai has prompted other Royal Canin plants to explore similar deployments, with the goal of rolling out this efficiency and safety enhancement across multiple sites.

Seequent, the Bentley Subsurface Company, will participate in the fifth edition of the Future Minerals Forum (FMF), taking place in Riyadh, Saudi Arabia, from 13-15 January 2026.

The company will use the event to showcase its geoscience technologies, highlighting its role in advancing data-driven mineral exploration in Saudi Arabia and engaging with industry leaders on the future of the regional mining sector.

Seequent’s participation aligns with its commitment to supporting the objectives of Saudi Vision 2030 and will underline its involvement in major mining projects across the Kingdom. Visitors to the company’s stand will be able to explore its portfolio of solutions, including MX Deposit, Imago, Leapfrog, Evo platform and Oasis Montaj, and see how these technologies integrate to form a connected digital ecosystem for exploration and mining.

Dr. Janina Elliott, Segment Director for Mining at Seequent, said, “Seequent’s participation in this dynamic event underscores our longstanding vision to promote sustainable mining practices and digital innovation in the Middle East. It also highlights our expertise in the geoscience and data-driven exploration sector, as well as our position as a market leader trusted by nine of the world’s top ten mining companies.”

As part of the FMF 2026 programme, Dr. Elliott will take part in a panel discussion titled ‘Tackling the Data Challenge in Geological Surveying and Exploration’.

Ahead of the forum, Seequent will host a pre-FMF workshop in partnership with AGC Al Haytham Mining Company on 12 January 2026, prior to the signing of a memorandum of understanding between the two organisations. Titled ‘Unlocking Integrated Workflows – Seequent Solutions for Exploration and Resource Modelling’, the workshop will be led by Amjad Alashqar, Seequent’s Regional Manager of Business Development. The session will focus on how digital integration can reduce operational risks, improve decision-making and strengthen collaboration across exploration and mining teams.

FMF 2026 will provide a platform for Seequent to engage with C-suite executives, policymakers and international mining stakeholders. The company continues to expand its footprint in the Middle East, with offices in Saudi Arabia and the United Arab Emirates, and supports major industry players and regional giga-projects through its advanced geoscience technologies.

Ras Al Khaimah has taken a major step to simplify industrial approvals with a new partnership between Ras Al Khaimah Economic Zone (RAKEZ) and the Environment Protection and Development Authority (EPDA). The two entities signed an MoU to establish a structured framework for environmental verification and approval in priority sectors, including cement, chemical, and general industries.

The MoU, signed by RAKEZ group CEO Ramy Jallad and EPDA acting director general H.E. Dr Abdulrahman Al Shayeb Al Naqbi, aims to speed up licensing procedures while ensuring compliance with environmental regulations. The framework has been developed in coordination with RAKEZ’s Health, Safety and Environment (HSE) Department to align regulatory oversight with operational processes.

Under the new system, industrial companies can expect a faster, more predictable approval process, with clear guidance on expansion or modification requests from the outset. Officials said the initiative would enhance transparency for investors and provide a smoother pathway for project development while safeguarding Ras Al Khaimah’s environment.

“The collaboration reflects our commitment to balancing industrial growth with environmental responsibility,” said Ramy Jallad. “By aligning processes with EPDA, we are creating a more efficient framework that benefits investors while upholding the highest environmental standards.”

H.E. Dr Abdulrahman Al Shayeb Al Naqbi added that the MoU represents a significant step in integrating world-class environmental practices with industrial development. “By establishing clear, time-bound approval frameworks, we are helping investors in the cement, chemical, and industrial sectors while protecting the emirate’s environment,” he said. “This approach ensures that faster business setup and expansion occur with strict compliance and technical oversight, fostering a sustainable and competitive industrial ecosystem.”

The agreement also includes joint initiatives for knowledge sharing, technical alignment, and training between EPDA and RAKEZ’s HSE teams, aimed at improving environmental governance across the emirate’s industrial base.

RAKEZ, home to nearly 40,000 companies, continues to strengthen its ecosystem through partnerships that enhance operational efficiency, regulatory clarity, and long-term sustainability. Industry observers say the new framework could significantly reduce delays in project approvals and reinforce Ras Al Khaimah’s reputation as an investor-friendly hub for sustainable industrial development.

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.”