The transformation of the Organization of Arab Petroleum Exporting Countries (OAPEC) into the Arab Energy Organization marks a strategic step toward reinforcing Arab cooperation in the energy sector.
The move supports collective efforts and contributes to sustainable development across the region. By broadening its scope to encompass all forms of energy—not just petroleum—the organization is adapting to modern demands and becoming more inclusive.
This shift provides an opportunity to enhance the efficiency of Arab collaboration in the energy field, keeping pace with the evolving global energy landscape, which now includes diversified energy sources and renewable energy. It also positions Arab nations to confront global challenges through unified policies and strategies, strengthening their presence in international markets while bolstering energy security within the region.
Foundation of OAPEC
OAPEC was established in 1968 with the aim of separating petroleum policy discussions from the political conflicts that often dominated the Arab League at the time. Membership was restricted to Arab petroleum-exporting countries, enabling the creation of shared Arab enterprises, such as the Arab Petroleum Investments Corporation (APICORP), headquartered in Dammam, Saudi Arabia.
Over the decades, OAPEC played a key role in shaping Arab petroleum policies and made impactful decisions, such as the 1973 oil embargo. However, calls have grown over the years to transform the organization into a more comprehensive entity that encompasses various energy sectors, boosting Arab cooperation in this critical area.
New Vision for Arab Energy Integration
In this context, Saudi Energy Minister Prince Abdulaziz bin Salman proposed transforming OAPEC into the Arab Energy Organization. The proposal, which has faced challenges due to complex Arab political dynamics, aims to expand cooperation to include renewable and nuclear energy alongside traditional energy sources.
The proposal outlines several strategic objectives, including fostering Arab integration in energy and economic sectors, unifying policies among member states to strengthen collective action, and contributing to sustainable development in the region.
Unlocking New Opportunities for Cooperation
If implemented, this transformation would signify a paradigm shift in Arab collective efforts. The organization would become a hub for coordinating policies and exchanging expertise among member states. It would also empower Arab nations to address global energy challenges while promoting sustainable economic development within the region.
While the success of this transformation depends on political consensus and collective determination to overcome obstacles, it presents a historic opportunity to strengthen Arab integration in one of the world’s most strategic sectors.
Coordinating Energy Initiatives
OAPEC recently announced its restructuring and renaming as the Arab Energy Organization (AEO). According to energy experts, the change allows for more comprehensive coordination of energy initiatives across the Arab world. Such efforts will support and enhance the export of oil and gas while aligning with the global trend of diversifying energy sources.
Dr. Mohammed Al-Sabban, an international economic and energy consultant, explained to Asharq Al-Awsat that the original name, OAPEC, was centered on petroleum exports. However, the current shift toward multiple energy sources and greater collaboration among Arab nations motivated Saudi Arabia to propose renaming the organization as the Arab Energy Organization.
Al-Sabban emphasized that the new name reflects a broader mandate, offering an opportunity for coordinated efforts in various energy sectors.
“Western nations claim they are moving away from oil and gas production, yet they continue to heavily support coal—a clear double standard,” he remarked.
He noted that Saudi Arabia is intensifying efforts to diversify energy sources, focusing on hydrogen development, renewable energy, and nuclear power. These steps align with the Kingdom’s larger vision of sustainability and global environmental commitments.
During its 113th ministerial meeting in December, OAPEC approved Saudi Arabia’s proposal to rename the organization as the Arab Energy Organization.
OAPEC, founded in 1968, includes 10 member states: Saudi Arabia, Kuwait, Libya, Algeria, Qatar, the UAE, Bahrain, Iraq, Egypt, and Syria. Of these, six are also members of OPEC.
