DUBAI, UAE — The Middle East and GCC region are expected to assume a greater significance in the global energy arena due to three primary factors: their diplomatic efforts, growing efforts to build capacity, and support for sustainability, believes an expert.
According to Ritu Singh, Regional Director of Stone X Group Inc.: “In light of the escalating tension between Russia and western Europe, many countries of the old continent can no longer rely on Russia to fulfill their oil and gas needs, and have been striving to find new energy sources. This is where it becomes interesting for oil-producing companies in the Middle East and GCC region, as they’re poised to play an increasingly important role in the global energy landscape for three main reasons, namely: their diplomacy, increasing capacity building and support of sustainability.”
Referring to the diplomacy, she said the Abraham Accords between Israel and some Middle Eastern countries has paved the way for new cooperation and energy production opportunities, further solidifying the region’s position in the global energy market. In terms of capacity building, regional oil and gas companies are developing their skill sets in areas of the industry beyond just production.
Recently, Aramco of Saudi Arabia and ADNOC of Abu Dhabi launched their energy trading divisions in order to enhance their profitability by engaging in hedging against price fluctuations.
