ADIPEC 2019: Oil, Gas Remain Essential Pillars of the Future Energy Mix

UAE Minister of State and CEO of the Abu Dhabi National Oil Company (ADNOC) Sultan Ahmed al-Jaber speaking at ADIPEC 2019 (ADNOC)
UAE Minister of State and CEO of the Abu Dhabi National Oil Company (ADNOC) Sultan Ahmed al-Jaber speaking at ADIPEC 2019 (ADNOC)
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ADIPEC 2019: Oil, Gas Remain Essential Pillars of the Future Energy Mix

UAE Minister of State and CEO of the Abu Dhabi National Oil Company (ADNOC) Sultan Ahmed al-Jaber speaking at ADIPEC 2019 (ADNOC)
UAE Minister of State and CEO of the Abu Dhabi National Oil Company (ADNOC) Sultan Ahmed al-Jaber speaking at ADIPEC 2019 (ADNOC)

Oil and gas industry will remain an essential pillar of the future diversified energy mix, calling on the industry to modernize in response to disruptions on multiple levels and a fast-evolving energy landscape, announced UAE Minister of State and CEO of the Abu Dhabi National Oil Company (ADNOC) Sultan Ahmed al-Jaber.

Delivering the opening keynote address, at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Jaber said the oil and gas industry is being disrupted by new technologies, new business models, new forms of energy and a new geopolitical order, with the rise of Asia.

“This era of disruption is just the beginning and will only gather pace over time. Yet, the oil and gas company of today can be a winner tomorrow, if it operates at a lower level of cost and a higher level of performance; if it brings digital into the core of its operations; if it embeds sustainability into its DNA; and if it rethinks how to leverage its partnerships, enable its people and re-center its customer relationships.”

The Minister added that the fact is by 2040, all the energy currently consumed in the United States, India, and Japan will be added to global energy demand, and oil and gas will provide the source for over half of it.

“These facts are undisputed and simply make a compelling business case to invest in the future of our industry.”

Jaber said ADNOC is on track to expand its oil production capacity to 4 million barrels per day (BPD) by the end of 2020 and is finding new reserves of natural gas as it gets closer to achieving gas self-sufficiency for the UAE.

ADNOC is also leveraging the UAE’s geography as the company expands its downstream operations and creates a world-scale refining and petrochemicals complex, indicated Jaber.

He invited international partners and the UAE private sector to take advantage of ADNOC’s high-quality feedstock and seize this unique opportunity for growth as the company delivers its downstream expansion strategy.

As the oil and gas industry embraces an age of disruption, digitization is the next frontier to driving efficiencies, curbing costs and extracting the highest value from every molecule of a hydrocarbon produced, according to Jaber.

“At ADNOC, Artificial Intelligence powers our Panorama Digital Command Center, enabling clearer, real-time, business-critical decision making. Advanced robotics are transforming our surface and subsurface operations. And predictive analytics is significantly minimizing our operational downtime and maximizing our savings.”

Jaber stressed that technology is also key to unlocking one of the central challenges facing the oil and gas industry, namely on delivering more energy with fewer emissions.

“We are expanding the Middle East’s first commercial-scale carbon capture utilization and storage facility to capture at least 4.3 million tonnes of CO2 annually by 2030. That equals the amount of CO2 captured annually by 5 million acres of trees or forest over twice the size of the UAE,” said Jaber.

He concluded by saying that expanding the operations, ADNOC is pioneering the use of optical drones to monitor fugitive emissions, helping maintain the best-in-class methane intensity.

Also at the ceremony, UAE’s Minister of Energy and Industry, Suhail al-Mazrouei, said that UAE is a leading player in the global energy sector, due to its role in finding solutions to the challenges of energy sustainability, diversifying sources and shaping a new energy landscape.

Pointing out that oil exploration and new hydrocarbon reserves enhance the UAE's position as a reliable source of energy, he expressed his optimism for the global oil market.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.