The Gulf will take on the energy transition challenge

Significance

The zero-carbon fuel, promoted as a way to assist a global energy transition away from oil and gas, is the focus of major planned projects in Oman and Saudi Arabia. Meanwhile, the region’s oil and gas exporters are also looking to maximise the value of their fossil fuel resources before the transition is complete.

Impacts

• GCC oil and gas exporters will become increasingly aggressive in their efforts to knock high-cost operators out of the market.
• Economic diversification will gather pace, and Gulf states will seek to become hubs for new forms of energy, in particular green hydrogen.
• The Gulf faces a high risk of economic, political and social turbulence during the transition.