Energy Leaders at ADIPEC: Peak in Oil Demand Not Seen Yet  

Delegates are silhouetted against a screen as they attend the inaugural session of ADIPEC in Abu Dhabi on Monday. (AP)
Delegates are silhouetted against a screen as they attend the inaugural session of ADIPEC in Abu Dhabi on Monday. (AP)
TT

Energy Leaders at ADIPEC: Peak in Oil Demand Not Seen Yet  

Delegates are silhouetted against a screen as they attend the inaugural session of ADIPEC in Abu Dhabi on Monday. (AP)
Delegates are silhouetted against a screen as they attend the inaugural session of ADIPEC in Abu Dhabi on Monday. (AP)

Senior officials in the energy sector agreed Monday during the Abu Dhabi International Petroleum Exhibition and Conference “ADIPEC” that global oil demand has not yet peaked, and that global oil markets are on a positive and stable track.

Leaders attributed this optimism to multiple factors, most notably the balance of supply and demand, the continued growth in global consumption, and the pragmatic policies adopted by major producing countries.

OPEC Secretary-General Haitham Al Ghais said the group was still seeing positive signs for oil demand and did not expect any surprises in the market.

“We are making sure we maintain the supply demand balance,” Ghais added at a panel at ADIPEC, a day after OPEC+ agreed to an additional 137,000 barrels per day (bpd) oil production increase for December and a pause in increases in the first quarter of next year.

Energy security and clean energy

When asked about the possibility of an oil glut in 2026, United Arab Emirates' Energy Minister Suhail al-Mazrouei said: “I am not going to talk about an oversupply scenario. In my view, what we’re seeing right now is growing demand.”

He said the Emirates is cementing its position as a “key player” by pursuing a balanced path while accelerating clean energy.

Al-Mazrouei said UAE is spending AED189 billion ($51.5 billion) on infrastructure and clean energy to reach net-zero by 2050.

It now has 12.4 gigawatts of clean power (over 30% of electricity), three giant single site solar plants, the Barakah Nuclear Power Plant running at full power and the world’s largest solar plus storage project for 24/7 clean electricity, the minister added.

Pragmatic policies

Delivering the keynote address at the opening ceremony of ADIPEC, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC), said the UAE’s pragmatic approach proves how policy grounded in reality builds investor confidence and explained that the country is a model for credible, technology-driven, investment-friendly policy solutions.

“The lesson,” he added, “is that policies should be pragmatic, not performative, based on insight, not ideology, built on first principles, not fleeting popularity. Regulation without realism and legislation without logic, will only weaken economies, stunt societies and drive capital away.”

Noting that $4 trillion annual capital investment is needed in grids, data centers and all sources of energy, Al Jaber said “you can’t run tomorrow’s economy on yesterday’s grid” and went on to highlight the major demand-drivers through 2040.

“Here are the facts: electricity demand will keep surging through 2040, as power for data centers grows four-fold, 1.5 billion people move into cities, and more than 2 billion air conditioners come online. Aviation will also take off, with the global airline fleet doubling from 25,000 to 50,000 planes,” he showed.

Washington: No oil glut in 2026

The US Department of Energy’s deputy secretary, James Danly, said that he does not think there will be an oil glut in 2026.

“We have a demand signal for energy that is going up rapidly,” Danly said at the conference.

Meanwhile, TotalEnergies CEO Patrick Pouyanne said Chinese oil demand growth has slowed since 2020 as the country transitions to greener energy, though he said he was still optimistic long-term due to rising demand in India.

“You have demand growing again steadily, but one thing has changed in the last three or four years: it's the Chinese engine for growth of oil demand, which was really strong between 2000 and 2020,” Pouyanne said. “That engine has slowed down.”



Microsoft Arabia: Saudi Arabia Accelerates AI Adoption, Turns It Into Competitive Edge

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
TT

Microsoft Arabia: Saudi Arabia Accelerates AI Adoption, Turns It Into Competitive Edge

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson

Saudi Arabia has cemented its global standing in artificial intelligence after pouring significant investments into the sector in 2025, accelerating digital transformation and expanding real-world applications across government and the wider economy.

From education and manufacturing to energy and public services, AI is being deployed to advance the diversification goals of Saudi Vision 2030.

Turki Badhris, president of Microsoft Arabia, said the kingdom is experiencing unprecedented momentum in adopting AI as a strategic lever to raise competitiveness and improve performance across vital sectors.

Artificial intelligence has become central to the national transformation journey, he told Asharq Al-Awsat.

Linking transformation

Saudi Arabia’s overhaul spans digital government modernization, the construction of megacities and large-scale projects, industrial development, and the creation of new economic sectors, Badhris said.

AI, he added, is the connective tissue binding these efforts together by enabling smarter infrastructure and more efficient public services.

In 2025, Microsoft expanded cooperation with government and regulatory bodies, as well as major companies, to accelerate the adoption of AI and cloud computing across education, industry, financial services, and government operations.

Turning point year

Badhris described 2025 as a watershed for AI in the kingdom, marked by a shift to broad, sector-wide deployment.

In digital government, training programs implemented with the Digital Government Authority aim to equip more than 100,000 public sector employees with cloud and AI skills, enhancing service delivery and user experience.

In education, AI literacy initiatives have been scaled up in partnership with the Ministry of Education and the Ministry of Communications and Information Technology, alongside the rollout of generative AI tools and digital learning technologies in schools.

Manufacturers have adopted AI-driven predictive maintenance and real-time operational data analysis, cutting downtime and improving efficiency and reliability.

In energy and sustainability, AI solutions are being used to optimize water and energy asset management, including predictive maintenance and intelligent process control, delivering operational savings while supporting emissions reduction and sustainability targets.

Sovereign cloud push

Badhris said the launch of Microsoft’s cloud region in Saudi Arabia, planned for 2026, will mark a qualitative leap by allowing government entities and regulated sectors to run critical workloads in a secure local environment, ensuring data sovereignty and enabling low-latency innovation.

He added that regulatory frameworks developed by relevant authorities have bolstered trust in AI adoption by balancing individual protection with incentives for innovation.

From tools to partners

Looking ahead, Badhris said 2026 will see AI evolve from support tools into “work partners” capable of collaboration and initiative in complex tasks.

The shift will be felt across government services, industry, megaprojects such as Qiddiya and The Red Sea Project, and healthcare.

Advanced AI systems, he said, will sharpen operational efficiency, lift productivity, and enhance service quality, while moving from reactive oversight to proactive governance frameworks that ensure safe and responsible use.

Saudi Arabia, Badhris said, is not simply adopting AI but helping shape its future, investing in sovereign infrastructure, building national capabilities, and embedding responsible-use principles to drive sustainable economic growth and entrench its position as a global technology power.


Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
TT

Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s push to localize half of its defense spending under Vision 2030 is drawing deeper commitments from US defense giant Lockheed Martin, which says it will expand local manufacturing, transfer advanced technologies, and further integrate the Kingdom into its global aerospace and defense supply chains.

Building Saudi partnerships

Steve Sheehy, vice president for international business development at Lockheed Martin’s aeronautics division, said the company is stepping up efforts to partner with both established and emerging Saudi aerospace firms.

Lockheed Martin is looking to build partnerships across maintenance, repair and overhaul, as well as component manufacturing and repair, particularly in advanced avionics, Sheehy told Asharq Al-Awsat.

Speaking after the company’s participation in the World Defense Show in Riyadh, he said Lockheed Martin is also targeting emerging fields such as additive manufacturing, from plastics to metals, and advanced composite materials.

The goal, he said, is twofold: plug gaps in the company’s global supply chain while transferring know-how and strengthening local capabilities in a mutually beneficial model.

Sheehy described the Saudi aerospace sector as established and growing. He also noted that it has a solid base in maintenance and manufacturing, as well as a clear shift toward advanced technologies, creating room for deeper collaboration between national firms and global industry leaders.

Alignment with Vision 2030

Retired Brigadier General Joseph Rank, chief executive of Lockheed Martin in Saudi Arabia and Africa, said the company’s strategy in the Kingdom is rooted in a long-term partnership aligned with Vision 2030, especially the target of localizing 50 percent of defense spending.

Lockheed Martin, he said, is focused on transferring knowledge and advanced technologies, developing local industrial capabilities and building an integrated defense ecosystem that positions Saudi Arabia firmly within global supply chains.

Rank said the company is working closely with government entities and national companies to strengthen local manufacturing, empower Saudi talent and establish a sustainable industrial base that supports innovation and creates high-quality jobs.

Lockheed Martin is advancing manufacturing and repair work on defense equipment, including components of the THAAD air defense system, missile launch platforms, and interceptor missile canisters, in cooperation with Saudi partners, Rank said.

The company has also opened a maintenance center in Riyadh for the Sniper Advanced Targeting Pod system, the first of its kind in the Middle East, to enhance maintenance and technical support capabilities.

Beyond hardware, Lockheed Martin is investing in transferring and localizing advanced technologies in air defense, command and control, and digital manufacturing. It is also supporting science, technology, engineering and mathematics programs and hands-on training in cooperation with national universities.

Broad local network

Rank said the company relies on a wide network of partners in the Kingdom. At the forefront are the General Authority for Military Industries, the main government partner in localization agreements, and Saudi Arabian Military Industries, a key manufacturing and technology transfer partner.

Other collaborators include the Advanced Electronics Company for advanced systems maintenance, the Middle East Propulsion Company and AIC Steel for producing THAAD components and platforms, and the National Company for Mechanical Systems for advanced manufacturing technologies.

Academic partnerships extend to King Abdullah University of Science and Technology, King Saud University, King Fahd University of Petroleum and Minerals, and Princess Nourah bint Abdulrahman University, supporting research and developing national talent.

Localizing aerospace manufacturing

Rank said localizing aerospace manufacturing is a strategic priority. Lockheed Martin has launched projects to produce interceptor missile launch platforms and canisters inside the Kingdom and awarded contracts for key components to Saudi companies, qualifying them to join its global supply network beyond the US.

The company is evaluating and qualifying hundreds of Saudi firms to produce defense equipment to international standards, focusing on technology transfer and building local expertise as a step toward manufacturing more integrated systems in the future.

Company officials said the approach goes beyond supplying systems. It centers on technology transfer, digital manufacturing, and command-and-control systems, laying the groundwork for the production of integrated systems in the Kingdom and strengthening Saudi Arabia’s position as a regional hub for aerospace and defense.


Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
TT

Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)

Türkiye Petrolleri (TPAO) has signed a partnership agreement with Shell to carry out exploration work in Bulgaria's maritime zone, the Turkish energy ministry and British oil major said on Wednesday.

European Union member Bulgaria, which had been totally dependent on Russian gas until 2022, has been seeking to diversify its gas supplies and find cheaper sources, Reuters reported.

TPAO and Shell will jointly explore the Khan Tervel block, located near Türkiye's Sakarya gas field, and will hold a five-year licence in Bulgaria's exclusive economic zone, Minister Alparslan Bayraktar said.

Shell will continue as operator of the block, while TPAO will take a 33% interest in the licence, a Shell spokesperson said.

Since the start of this year, TPAO has signed energy cooperation agreements with ExxonMobil, Chevron and BP for possible exploration work in the Black Sea and the Mediterranean.

In April, Shell signed a contract with Bulgaria's government to allow the oil major to explore 4,000 square metres in the block.