Optimism about industry growth in the energy sector, as well as about energy transition prospects, is stronger in the Middle East and North Africa than anywhere else in the world, according to DNV’s Energy Insights 2025 Report

According to the report, based on an annual survey of more than 1,100 senior professionals, 84% of respondents in the Middle East and Africa express optimism about energy industry growth prospects compared to 68% globally, and this figure has risen sharply from 69% last year. The report highlights that the energy sector is booming in the region, as many countries look to develop both their renewable and fossil fuel resources, noting that it has become the fastest-growing renewables market outside China, mainly thanks to solar sector growth. Installed solar capacity is forecast to rise to 100GW of installed capacity by 2030, up from just 23GW today, with Saudi Arabia looking to generate half of its domestic electricity from renewables by 2030, including 40GW of solar PV – six times the current capacity. Early this year Masdar announced a 5.2GW solar plant combined with a 19GWh battery storage facility, making it the largest combined solar battery energy storage system (BESS)  in the world.

At the same time, the region is continuing to develop its fossil fuels, particularly natural gas, DNV notes. Iran, Qatar, and Saudi Arabia are in the world’s top ten natural gas producers, while other countries are also growing production.  The combination of gas and solar is a winning one, with solar offering a cheaper and cleaner way to meet rising domestic electricity demand, while natural gas can be profitably exported.

Middle East and Africa respondents are most optimistic about reaching revenue and profit targets in the year ahead, at 73% and 71% respectively, compared with 63%/54% in North America, 58%/48% in Europe, 55%/52% Asia Pacific and 63%/54% Latin America.

Uncertain political environment

The report highlights the uncertain policy and geopolitical environment, particular in the US, with political risk seen as the leading constraint to growth. Recent geopolitical shifts have caused considerable uncertainly, with a lot of capital being diverted from renewables into oil and gas, and emerging technologies such as green hydrogen CCS, green steel and synthetic fuels being negatively impacted.

Reflecting this uncertainty, several oil and gas companies, (bp for example), have scaled back renewables commitments over the past year and increased their investment in fossil fuels. 53% of oil and gas sector respondents say they will prioritise fossil fuels over renewables over the next five years — up from 46% a year ago, while 24% of respondents in the power sector are looking to prioritise fossil fuels over renewables over the next five years, more than double the figure (11%) of a year ago. While optimism in the oil and gas sector has held steady over the past two years, standing at 66% in 2025, most oil and gas respondents (60%) say that political issues such as elections, policy uncertainty and regime change are a major threat to success in the year ahead.

Policy reversals and uncertainty are expected to hold back the energy transition in some sectors and regions, with only 55% of energy industry professionals now believing the energy transition is accelerating, sharply down from 79% two years ago. A key factor noted is the shift in investor sentiment. However, many organisations continue to invest in sustainable energy, taking a medium to long-term view.

Certain parts of the world are positive about the  pace of the energy transition, notably the Middle East and Africa region, where 77% say the pace of the energy transition is accelerating,  and Asia Pacific, where the figure is 68%. In contrast, only 47% in North America and 48% in Europe think the pace is accelerating.

"Despite global economic and political uncertainty, most of the energy industry maintains a general optimism, supported by megatrends such as electrification and energy demand," says the report. "Energy security and affordability have become priorities and are influencing both oil and gas expansion and the acceleration toward renewables. Sentiment varies from region to region, with the Middle East and Africa the most optimistic, and North America the least."

ADNOC has launched “Make it with ADNOC”, a first-of-its-kind mobile app designed to accelerate local manufacturing and support the UAE’s industrial growth.

Developed in alignment with the Make it in the Emirates initiative, the app provides real-time visibility into ADNOC’s procurement pipeline, allowing manufacturers, SMEs, and entrepreneurs to identify long-term local production opportunities.

The app promotes smarter business engagement with ADNOC by enhancing transparency, streamlining supplier onboarding, and helping companies make informed investment decisions. The launch event took place at ADNOC’s headquarters, where HE Omar Al Suwaidi urged industrial players to participate in the upcoming Make it in the Emirates forum from 19-22 May at ADNEC, Abu Dhabi.

More than 500 companies are expected to attend the forum, which will showcase investment opportunities, industrial enablers, and incentives from key government entities, national champions, and financial institutions.

The app’s launch builds on the success of ADNOC’s In-Country Value (ICV) programme, which has reinvested AED242 billion (US$65.9bn) into the UAE economy and facilitated the employment of 17,000 Emiratis in the private sector since 2018. ADNOC now aims to inject a further AED200 billion (US$54.5 billion) into the economy over the next five years through the ICV programme.

Abu Dhabi's growing needs

Yaser Saeed Almazrouei, ADNOC executive director, people, commercial & corporate support, said, “We are delighted to launch Make it with ADNOC mobile app as it will provide businesses with real-time visibility into the products we plan to purchase and offer them a more streamlined, integrated process to capitalise on the significant local manufacturing opportunities we are creating. As a key catalyst of the Make it in the Emirates initiative, ADNOC continues to drive new and innovative ways to boost local manufacturing and strengthen the resilience of the UAE’s industrial base. We encourage new and existing businesses to leverage Make it with ADNOC app to directly engage with us and unlock mutual value.”

His Excellency Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology (MoIAT), said, “In collaboration with strategic partners, MoIAT continues to advance the National Strategy for Industry and Advanced Technology, Operation 300bn, and enhance the competitiveness of the UAE’s industrial sector. 
 
“This new platform will provide manufacturers and investors with real-time information on opportunities within ADNOC’s value chain. This will enable companies to identify products that they can manufacture in line with ADNOC’s procurement needs. This will empower them to make more informed investment decisions based on accurate data. It will also help enhance supply chain resilience and sustainability, support national self-sufficiency, and contribute to the objectives of the National ICV Program by stimulating local manufacturing and fostering long-term industrial partnerships.”

HE Omar Al Suwaidi encouraged manufacturers, investors, and suppliers to participate in the largest and most comprehensive edition of Make it in the Emirates, taking place from May 19-22 at ADNEC, Abu Dhabi.

He noted that more than 500 companies will participate to explore new investment opportunities, industrial enablers, and incentives offered by government entities, national champions, financial institutions, and technology providers.

Project Hajar, a partnership between 44.01 and Aircapture, has been named the top performer in the Air category of the XPRIZE Carbon Removal competition, receiving a US$1mn XFACTOR award.

The initiative, based in Fujairah, UAE, combines Aircapture’s Direct Air Capture (DAC) technology with 44.01’s mineralisation process to permanently lock away atmospheric CO₂—preventing it from ever re-entering the atmosphere.

The four-year global competition, backed by Elon Musk and the Musk Foundation, sought scalable carbon dioxide removal (CDR) technologies that could operate at the gigatonne level. Out of more than 1,300 teams from nearly 80 countries, 20 finalists were announced in May 2024, with the winners unveiled today in New York.

Local support

Project Hajar is one of the world’s first operations to durably store captured atmospheric CO₂ underground. XPRIZE judges praised it as a high-quality, scalable solution with strong potential to support global climate goals.

The project was supported by ADNOC and the Fujairah Natural Resources Corporation.

44.01 has already demonstrated its mineralisation process in Oman and the UAE and is now focused on international expansion.

Talal Hasan, founder and CEO of 44.01, said “The success of Project Hajar is testament to the leading role our region can play in decarbonising our atmosphere, providing new jobs and opportunities as we navigate the energy transition. Our climate needs decarbonisation solutions that can be deployed at scale, and we are working hard to scale up our technology in the Middle East and export it around the world.”

Matt Atwood, founder and CEO of Aircapture, said “This recognition from XPRIZE underscores the strength of our vision for deploying carbon removal infrastructure that is both rapidly scalable and economically viable. While many are focused on future capabilities, our modular system is already operating in the field—delivering measurable results today. We’re honoured that the XPRIZE judges acknowledged the commercial and technical merits of our approach, which is designed for near-term impact and long-term scalability.”

“At this critical turning point for our planet, the technologies developed by these winning teams represent hope with a broad range of approaches that are suitable for different geographies and can help the world reach net zero and ultimately reverse climate change,” said Anousheh Ansari, chief executive officer, XPRIZE. “We cannot stabilise our climate without sustainably and safely extracting carbon from our atmosphere and oceans at large scales. I’m incredibly proud of the ways this XPRIZE competition catalyzed and fostered the innovation and collaboration necessary to build this critical new industry that was missing prior to our competition.”