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ADNOC CEO: The World Will Rely on Oil, Gas for Many Decades to Come

Oil and gas will play an important role in the transition to a lower-carbon future and should be at the center of the conversation on climate change, says CEO of the Abu Dhabi National Oil Company. WAM
Oil and gas will play an important role in the transition to a lower-carbon future and should be at the center of the conversation on climate change, says CEO of the Abu Dhabi National Oil Company. WAM
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ADNOC CEO: The World Will Rely on Oil, Gas for Many Decades to Come

Oil and gas will play an important role in the transition to a lower-carbon future and should be at the center of the conversation on climate change, says CEO of the Abu Dhabi National Oil Company. WAM
Oil and gas will play an important role in the transition to a lower-carbon future and should be at the center of the conversation on climate change, says CEO of the Abu Dhabi National Oil Company. WAM

The world will still rely on oil and gas for many decades to come and the UAE is investing to further reduce the carbon intensity of its barrels, according to Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Group CEO of the Abu Dhabi National Oil Company (ADNOC).

This came in remarks he made during the 5th Atlantic Council Global Energy Forum, which is taking place virtually as part of the Abu Dhabi Sustainability Week (ADSW).

Oil and gas will play an important role in the transition to a lower-carbon future and should be at the center of the conversation on climate change, Al Jaber noted, state news agency WAM reported.

"Here the UAE has a dual advantage: a leadership that has always put environmental protection first, and a natural advantage because our geology gives us some of the least carbon-intensive oil in the world. And we are building on this position by reducing our carbon intensity by a further 25 percent over the next 10 years, by enhancing efficiencies and expanding our industrial-scale CCUS facility, which is the first and largest in the region," he noted.

Al Jaber highlighted that the UAE is exploring the potential of new fuels such as Hydrogen which could be "a game-changer in the energy transition."

ADNOC already produces about 300,000 tons of hydrogen a year as part of its current industrial processes, and the "company is exploring the viability of markets in Asia, and Europe and will build the business case as those markets develop, to position the UAE as a major supplier of Blue Hydrogen."

He went on to call for smart investments in new energies to create a viable diversified energy mix and explained how the UAE is diversifying its energy mix as it drives sustainable development and combats climate change.

"The UAE has always made positive contributions to global challenges and the challenge of climate change is no different. This is the ethos that guided us to launch Masdar 15 years ago and to shape it into becoming a clean technology hub and the permanent home to the International Renewable Energy Agency (IRENA).

"Masdar is an active investor in renewable energy in the UAE and around the world, with projects in 30 countries, including right here in the UAE. So we not only talk the talk, we walk the walk and we’ve seen first-hand, how smart investment in diversifying the energy mix can pay off," the Minister said.

Concluding the session, Al Jaber shared his perspective on how to balance the need for economic development in emerging economies with the need for global and universal climate action.

"I fundamentally believe that we can accelerate progress on climate change goals while ensuring climate change goals are met if we avoid one size fits all policies. Efforts to curb climate change must take into account the varying rates of economic development around the world.

"Reducing carbon is something we can all agree is a common goal, but it should not undermine the ability of emerging economies to give their people a better future. We need to create the right mechanisms in terms of funding, energy mix and broader economic development that strikes the right balance."

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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
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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.

Business

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.

Business

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.