ME to draw $100b in strategic capital expenditure annually

The Middle East is on track to attracting more than $100 billion (Dhs370b) annually in strategic capital expenditure by 2026, spread across oil and gas, renewable energy, healthcare, digital infrastructure and manufacturing, according to a comprehensive industry outlook by Grand View Research (GVR).

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Despite the global energy transition, the region - led by the UAE and Saudi Arabia - is expected to maintain leadership in hydrocarbon supply while rapidly scaling wind, solar, battery storage and digital transformation initiatives.

Sustained output with technology integration: The UAE and its Gulf peers collectively account for roughly 30% of global oil production and 17-18% of gas output, underscoring the region's continued centrality to energy markets. While forecasts point to modest global oil demand growth and potential supply surpluses by 2026, gas demand is expected to rise around 3.5%, driven by power generation, industrial growth and LNG exports.

“The Middle East’s oil and gas sector remains a market anchor but the pace of technology adoption and export infrastructure expansion - particularly LNG - is what will define competitiveness into 2026,” said Swayam Dash, Managing Director at Grand View Research.