While countries are investing in cleaner energy solutions, governments across the Middle East and North Africa (Mena) continue to strengthen their oil and gas sectors, expand natural gas capacity, increase liquefied natural gas (LNG) exports and develop value-added industries.

Since 2017, GCC countries have awarded more than $417bn in oil, gas and petrochemical contracts, averaging over $46bn annually.

Investment reached a record level in 2023, with approximately $79bn in project awards driven by major developments including the Jafurah gas field development in Saudi Arabia, the Hail and Ghasha offshore projects in the UAE, and Qatar’s LNG expansion projects.

GCC oil, gas and petrochemical project activity moderated after the strong investment levels of 2023. Capital expenditure declined by 9% in 2024 compared with the previous year, followed by a further 23% reduction in 2025 compared with 2024. 

This year the Mena energy sector has had to navigate severe supply disruption and conflict-driven volatility, with the closure of the Strait of Hormuz removing approximately 20 per cent of global seaborne oil and LNG supplies overnight.

By June 2026, total contract awards across the region stood at $34bn, indicating continued caution among investors and project owners as geopolitical uncertainty and oil price fluctuations influence short-term investment decisions. 

However, long-term fundamentals remain strong, supported by continued energy demand and regional development plans.

Approximately $417bn of the regional project pipeline is in the GCC, including hydrogen projects

Future opportunities 

The Mena region has more than $640bn of planned oil, gas and petrochemical projects, creating significant opportunities for contractors, suppliers, consultants and technology providers. Approximately $417bn of the regional project pipeline is in the GCC, including hydrogen projects. Oil and gas developments contribute $321bn, underlining the GCC’s role as the region’s primary hub for energy investment.

Future opportunities will be driven by large-scale gas and LNG developments, offshore and unconventional projects, refinery and petrochemical integration, and strategic energy infrastructure investments. Emerging industrial clusters focused on hydrogen, chemicals and carbon management will also create new opportunities and support the continued development of the energy and industrial sectors.