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ADNOC Says UAE, US to Invest $440 billion in Energy Sector through 2035

File photo of ADNOC logo - WAM
File photo of ADNOC logo - WAM
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ADNOC Says UAE, US to Invest $440 billion in Energy Sector through 2035

File photo of ADNOC logo - WAM
File photo of ADNOC logo - WAM

The United States and the United Arab Emirates plan to spend a total of $440 billion in the energy sector over the next decade, Sultan al-Jaber, the UAE oil company ADNOC, said on Friday.

As part of a tour of Gulf countries, US President Donald Trump announced deals with the UAE totalling over $200 billion.

Already in March, when senior UAE officials met Trump, the UAE had committed to a 10-year, $1.4 trillion investment framework in the United States to deepen reciprocal ties, Reuters reported.

The framework will "substantially increase the UAE's existing investments in the US economy" in AI infrastructure, semiconductors, energy, and manufacturing, the White House said in a statement on Friday.

XRG, the international investment arm of ADNOC, is hunting for a significant investment in US natural gas.

ADNOC's stakes in NextDecade's Rio Grande LNG export facility and a planned ExxonMobil hydrogen plant - both in Texas - were transferred to XRG, which was set up last year and which ADNOC has said has $80 billion in assets. It has a mandate to pursue global deals in chemicals, natural gas and renewables.

Mubadala Energy, an arm of Abu Dhabi's second largest sovereign wealth fund, last month signed a deal with US firm Kimmeridge that will give it stakes in US gas assets.

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US Involvement in Iran-Israel Conflict Raises Fears of Strait of Hormuz Closure

A general view of the Strait of Hormuz (Reuters)
A general view of the Strait of Hormuz (Reuters)
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US Involvement in Iran-Israel Conflict Raises Fears of Strait of Hormuz Closure

A general view of the Strait of Hormuz (Reuters)
A general view of the Strait of Hormuz (Reuters)

As the conflict between Iran and Israel intensifies, experts warn that direct US involvement could trigger a dangerous escalation, most notably, the closure of the Strait of Hormuz, a critical global energy chokepoint.

If Iran were to follow through on this long-standing threat, the consequences would be severe, cutting off roughly 20% of the world’s oil exports and 30% of global natural gas shipments.

Russian strategic analyst Andrey Ontikov told Asharq Al-Awsat that fears remain real and growing, particularly if the war expands.

If the United States is drawn into the war alongside Israel, the likelihood of Iran moving to close the Strait of Hormuz becomes the most serious and effective threat, he said.

Ontikov explained that such a move would paralyze global energy flows from the Gulf, sending oil and gas prices soaring and inflicting major economic damage on both exporting and importing nations.

The resulting disruption would directly affect international shipping, raise transport and insurance costs, and cause energy prices to spike, further straining already fragile global supply chains, he added.

He also warned that broader geopolitical implications are at stake. A regional war involving the Strait of Hormuz could jeopardize key trade corridors, including China’s Belt and Road Initiative and Russia’s North-South transport corridor.

That would have a direct economic impact on both Beijing and Moscow, forcing countries to look urgently for alternative trade routes, Ontikov said.

Oil prices are already rising, though Ontikov believes that if tensions ease, the global economic impact could be contained. However, a prolonged or widened war would paint a far more troubling picture.

Saudi economic expert Dr. Ibrahim Alomar, head of Sharah Consulting, echoed these concerns.

“If the conflict stays limited, the effects may include a temporary $10–$20 increase in oil prices and limited disruption to financial and shipping markets,” he said. “But a broader war could push oil prices above $120, causing inflation and a sharp global economic slowdown.”

Alomar warned that in the worst-case scenario - where the Strait of Hormuz is fully closed - oil prices could skyrocket past $200, triggering hyperinflation, severe recession, and a collapse in global financial markets.

“Such a scenario could ultimately reshape the global economic system, depending on who emerges least damaged from the crisis,” he concluded.