UAE to Revise Energy Strategy to Align with Climate Neutrality Goal

The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)
The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)
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UAE to Revise Energy Strategy to Align with Climate Neutrality Goal

The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)
The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)

Emirati Minister of Energy and Infrastructure Suhail al-Mazrouei said the ministry intends to start revising its energy strategy at the beginning of 2023 to align it to achieve climate neutrality by 2050.

Mazrouei said that the review of the energy strategy includes the expansion of renewable energy and the implementation of new projects in areas such as hydrogen energy, hydropower, and waste-to-energy conversion.

It will also include a study of solutions that can be followed regarding traditional methods of electricity production to examine the possibility of adopting carbon dioxide capture, in parallel with a survey about its cost.

The Minister said that the world had witnessed remarkable changes in recent years concerning the climate. The energy strategy review will contribute to determining the optimal mix for the UAE to achieve supply security and reach climate neutrality by 2050.

The minister explained that the volume of electricity production capacity currently amounts to about 35 gigawatts all over the country and will increase in the coming years with the entry of many new projects at total capacity.

Mazrouei was speaking ahead of the launch of the Abu Dhabi International Petroleum Exhibition and Conference 2022 (ADIPEC), which kicked off on Monday.

ADIPEC will be hosting 54 of the top national and international petroleum and integrated energy companies, in addition to 28 international pavilions, providing the optimal platform for stimulating trade activities throughout all segments of the energy sector supply chain.

The event is expected to be attended by more than 150,000 energy experts from 160 countries, alongside 2,200 exhibitors who will unveil the latest innovations in the sector.

Mazrouei said that UAE aims to increase clean projects' share of its energy mix to 50 percent by 2050, while the current allocation of clean energy projects within service or under construction reached 24 percent.

The UAE government is working to keep pace with the increasing demand for energy through its reliance on natural gas and renewable energy sources, said the minister.

Meanwhile, 35 leading energy chief executives discussed delivering energy security, equitable access to energy, and climate progress simultaneously during their participation at the 8th annual Abu Dhabi CEO Roundtable.

They also discussed the building blocks required for a practical, realistic energy transition.

Chairman of the Abu Dhabi Executive Office and Chairman of the Executive Committee of the Abu Dhabi National Oil Company (ADNOC) Board of Directors, Sheikh Khaled bin Zayed Al Nahyan, welcomed world energy leaders to the Roundtable.

Sheikh Khaled stressed the importance of the forum in strengthening Abu Dhabi's position as a global energy center.

The Minister of Industry and Advanced Technology, Managing Director, and ADNOC CEO, Sultan al-Jaber, said that holding this forum annually confirms UAE's ability to create a platform that brings together different opinions and viewpoints with the aim of providing practical solutions to support energy security, equitable access to energy and climate progress with realistic and practical solutions to the energy transition.

The hydrocarbon industry is uniquely positioned to provide practical solutions to the trilemma of secure, accessible, sustainable energy and will play a critical role in delivering a successful energy transition, said the Minister.

"Ensuring energy security is fundamental to economic and climate progress, and global economies will continue to rely on reliable supplies of energy that our industry provides," he said.



Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
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Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)

Saudi Arabia’s non-oil exports have reached their highest levels since the second quarter of 2022, continuing to grow at a steady pace. By the end of the third quarter of this year, non-oil exports, including re-exports, totaled SAR 80 billion (USD 21 billion), reflecting a 16.8% increase compared to the same period in 2023.

This growth aligns with the goals of Vision 2030, which aims to diversify Saudi Arabia’s economy and reduce reliance on oil revenues. Credit rating agency Moody’s recently upgraded Saudi Arabia’s credit rating to AA3 from A1 with a stable outlook, citing the Kingdom’s ongoing economic diversification and the strength of its non-oil private sector. Moody’s projects the non-oil private sector’s GDP to grow by 4–5% annually in the coming years.

According to data from Saudi Arabia’s General Authority for Statistics, non-oil national exports (excluding re-exports) grew by 7.6% in the third quarter of 2024, reaching SAR 57 billion (USD 15.1 billion). Re-exports saw a remarkable surge of 48.4%, amounting to SAR 23 billion (USD 6.1 billion).

In contrast, total merchandise exports dropped by 7.7% to SAR 276 billion (USD 73.5 billion) due to a 14.9% decline in oil exports. As a result, the share of oil exports in total exports decreased from 77.3% in the third quarter of 2023 to 71.3% this year.

Chemical industry products accounted for 25.5% of non-oil exports, growing by 5.3% compared to the same period last year. Plastics, rubber, and their derivatives followed closely, representing 24.9% of non-oil exports, with an 8.9% increase from the third quarter of 2023.

China remained Saudi Arabia’s top export destination, accounting for 15.2% of total exports in the third quarter of 2024. Japan and South Korea followed, at 9.3% and 9.2%, respectively. Other major destinations included India, the UAE, the US, Poland, Egypt, Bahrain, and Taiwan. Together, these ten countries accounted for 66.4% of Saudi exports.

Experts emphasize that the growth in non-oil exports strengthens Saudi Arabia’s economy and reflects the success of its diversification strategy under Vision 2030.

Shura Council member Fadhel Al-Buainain highlighted the importance of considering the scale of Saudi non-oil exports during the third quarter of 2024. He emphasized two key aspects of Saudi non-oil exports.

First, the 16.8% growth achieved is a significant leap that boosts the Saudi economy’s ability to continue strengthening non-oil exports, which are a focal point of Vision 2030 and its economic diversification goals.

Second, he said the 48.4% increase in the value of re-exported goods represents substantial growth, reflecting the Kingdom’s potential to play a pivotal role in regional re-export activities. This, in turn, can stimulate exports and position Saudi Arabia as a global logistics hub.

He further noted that the increase in export value compared to the second quarter of this year, amounting to SAR 37.2 billion (USD 9.92 billion) or 15.6%, indicates sustained and accelerating export growth.

Al-Buainain believes that Saudi Arabia’s ports on the Red Sea and the Arabian Gulf are well-equipped to play a central role in re-exporting, supported by free economic zones, robust infrastructure, and a well-established transportation and logistics network.

He also stated that the improvement in global demand, particularly in the petrochemical sector, which accounted for the largest share of exports, contributed to this growth.

However, the global economic conditions may face certain challenges that will reflect negatively on global demand, he remarked, stressing the importance of diversifying exports.

Dr. Osama Al-Obaidi, an international commercial law consultant and professor, told Asharq Al-Awsat that the significant increase in non-oil exports in the third quarter of this year compared to the same period in 2023 is linked to the growth in petrochemical exports, particularly plastics, rubber, and their derivatives.

He explained that this rise reflects the effectiveness of Saudi Arabia’s economic diversification efforts and its reduced reliance on oil as a sole income source, in line with Vision 2030.

It also highlights the success of the substantial investments made by the government to develop ports and logistics services, such as King Abdulaziz Port in Dammam and Jeddah Islamic Port.

Moreover, improvements in domestic, regional, and international airports, along with initiatives to promote local industries—particularly chemicals, food products, pharmaceuticals, and other high-demand goods in foreign markets—have also played a pivotal role.