meed-logo

line1 line2 line3
SIGN IN / REGISTER

Abu Dhabi networks on the global stage

24 October 2023

 

Abu Dhabi has been notably active on the world stage in recent months, forging stronger ties with partners from east and west by signing up to the Brics group and a new India-to-Europe trade route. The Cop28 climate summit in Dubai will provide another opportunity to reach out to countries in the global south.

For many years, the UAE has tried to leverage the commercial strength of Dubai and the oil wealth of Abu Dhabi to forge deeper connections with key partners around the world, from both east and west.

That strategy was on clear display in Johannesburg in late August when the UAE was one of six countries invited to join the Brics club of Brazil, Russia, India, China and South Africa.

That was interpreted by some as a clear signal that Abu Dhabi was offering support to Beijing, potentially at the expense of its ties with the West. But a few weeks later, the UAE turned its attention in another direction again.

At the G20 summit in New Delhi on 9 September, the UAE signed up to the India-Middle East-Europe Economic Corridor (Imec) – an initiative to create a new trade route backed by the US and the EU, among others, to stretch from Mumbai across the Arabian Peninsula and the Levant and on to Greece.

Such initiatives have some things in common, not least their potential to bolster oil and non-oil trade. Akanksha Samdani, an economist at UK-based Oxford Economics, said the decision to join the Brics club should help the UAE “by increasing trade and investment opportunities. Also, the group will likely trade with their regional currencies, reducing their dependence on the US dollar.”

The Brics grouping is growing in clout. Oxford Economics estimates the current five-strong club accounted for 26 per cent of global GDP in 2022, but that should rise to 30 per cent by 2024 with the addition of the UAE and the other new members.

Beyond trade and commerce

It is not just about trade though. Brics, Imec and other initiatives such as the I2U2 group with India, Israel and the US are all part of the UAE’s efforts to place itself at the centre of international flows of information, money and more besides.

“I see the UAE as a networking power,” says Andreas Krieg, associate professor at King’s College London. “They’ve found a way to redevelop and redesign their statecraft to position themselves as an indispensable hub … where flows of capital, people, ideas are going from east to west and north to south.

“Dubai and Abu Dhabi are the key hubs in the Middle East, but beyond that they’re becoming increasingly important connectivity hubs between east and west, particular in that multipolar competition we’re seeing now between western countries, China and Russia.”

All this fits in with the UAE’s wider search for economic diversification, something also seen in the surprise decision in early September to set up a federal gambling regulator.

Being an international hub gives the UAE influence or oversight over all sorts of trade. But it can also open the country up to less welcome elements, with those involved in illicit flows of capital and people just as likely to try to exploit the potential.

In March 2022, the Paris-based international financial watchdog the Financial Action Task Force (FATF) placed the UAE on its list of jurisdictions under increased monitoring. The UAE has taken steps to address the FATF’s concerns, but has yet to persuade the body to take it off its ‘grey list’.

Further reputational risks come from allegations of UAE support for rebel groups such as Field Marshal Khalifa Belqasim Haftar’s Libyan National Army in eastern Libya and Mohamed Hamdan Dagalo (Hemedti)’s Rapid Support Forces in Sudan.

The UAE has denied providing weapons to those fighting in Sudan’s civil war, but it has yet to account for a large airlift operation between Abu Dhabi and the remote Chadian town of Amdjarass close to the Sudanese border that started in May.

Also steering between conflicting priorities, the UAE offered a guarded and diplomatic response on developments in Israel and Gaza, condemning the “serious and grave escalation” by Hamas-led militants while calling for the full protection of all civilians under humanitarian law. Days into the conflict, its trade minister said the UAE did not mix trade with politics.

 Top 10 UAE clean energy projects

The Cop test

A key test for the UAE’s standing on the international stage will come with the Cop28 climate change summit, due to be held in Expo City Dubai from 30 November to 12 December.

The UAE has been attracting some criticism for its failure to guarantee free speech for activists at the event, with the UK government issuing a statement on 3 October saying it was “disappointed” the UAE had not given concrete assurances over the rights to freedom of opinion, expression and peaceful assembly. 

“In the year that the UAE will host Cop28, we ask that they share how they will assure citizens, residents and visitors of the UAE these rights now and in future.”

Cop28 is more about positioning themselves as a hub and advocate for the global south and for their needs in the climate change debate
Andreas Krieg, King’s College London

Western observers have also been critical about the decision to appoint Abu Dhabi National Oil Company (Adnoc) chief executive Sultan Ahmed al-Jaber as president-designate of the summit. 

Al-Jaber has appeared unfazed by the criticism and has said he will be using the event to focus on curbing emissions from the production of energy, scaling up renewable power and decarbonising hard-to-abate sectors such as steel, cement and aluminium.

He told the Abu Dhabi International Petroleum Exhibition & Conference (Adipec) on 2 October that “everyone must be around the table to make the transformational progress needed, and especially the energy industry.”

The UAE was always likely to attract criticism from western climate activists, given its position as one of the world’s larger oil and gas producers, but Abu Dhabi’s focus for the event may in fact be directed elsewhere.

“Cop28 was never about appealing to the west,” says Kreig. “For the Emiratis, this is more about positioning themselves as a hub and advocate for the global south and for their needs and interests in the climate change debate.”

Image: UAE Minister of Foreign Affairs Abdullah bin Zayed al-Nahyan met with India’s External Affairs Minister Subrahmanyam Jaishankar on the sidelines of the 78th Session of the United Nations General Assembly in New York in September. Credit: Wam

MEED’s November 2023 special report on the UAE also includes: 

> UAE economy maintains robust growth
> UAE banks enjoy the good times
> Hail and Ghasha galvanises UAE upstream market
> Adnoc spurs downstream gas expansions
> UAE closes ranks ahead of Cop28
> UAE ramps up decarbonisation of water sector
> UAE construction sector returns to form
> UAE aviation returns to growth

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11216746/main.gif
Dominic Dudley

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Qatar tenders Smaisma infrastructure contract

    17 September 2025

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting construction firms to bid for the remaining works on roads and infrastructure in the small seaside town of Smaisma.

    The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.

    The scope of work includes the completion of the remaining works and remedial works on three zones. Each zone is further divided into three sub-zones.

    The scope also covers the remaining works on road C1017.

    The contract duration is two years from the start of construction works.

    The tender was floated on 15 September with a bid submission date of 28 October.

    The latest notice follows the tendering for the construction of roads and infrastructure in Wadi Al-Banat North (Zone 70).

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14682452/main.jpg
    Yasir Iqbal
  • Dragon Oil to boost exploration and production in Egypt

    17 September 2025

    Register for MEED’s 14-day trial access 

    Dubai-based Dragon Oil has signed a deal with the state-owned national oil company Egyptian General Petroleum Corporation (EGPC), agreeing to increase exploration and production activities in the Gulf of Suez.

    Under the terms of the agreement, Dragon Oil will make investments worth about $30m.

    This will fund activities including a programme to drill at least two new wells in the East El-Hamd area.

    Abdulkarim Ahmed Al-Mazmi, the acting chief executive of Dragon Oil, said: “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability.”

    Dragon Oil is wholly owned by Emirates National Oil Company, which is fully owned by the Government of Dubai.

    Al-Mamzi said that the new investments are part of Dragon Oil’s broader strategy to expand in regional markets and to strengthen its position in the oil and gas sector, in line with the directions of the government of the UAE, and in particular the Government of Dubai.

    The agreement was signed at the EGPC headquarters in Cairo.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680456/main.png
    Wil Crisp
  • Construction launched for final major projects of Iraq’s GGIP

    17 September 2025

    Register for MEED’s 14-day trial access 

    Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.

    The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).

    The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.

    Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.

    An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.

    In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”

    The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.

    Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.

    The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.

    The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.

    The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.

    In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.

    The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.

    An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.

    Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.

    “In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.

    “All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.

    “Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”

    Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680455/main.png
    Wil Crisp
  • Saudi drilling firm raises acquisition offer for Dubai rival

    16 September 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia-based ADES International Holding has increased its offer to buy Dubai-based, Oslo-listed rival Shelf Drilling to 18.50 Norwegian Krone ($1.88) per share, representing a 6% increase in the acquisition’s enterprise value.

    The offer was revised from an earlier deal of $1.42 per share or a total of $379.33m.

    ADES International Holding, a subsidiary of ADES Holding Company, signed a transaction agreement to acquire all issued and outstanding shares of Shelf Drilling through a cash merger, with ADES International Cayman (BidCo) also participating in the proposed merger.

    According to a joint statement, irrevocable commitments have now been provided by additional shareholders, including China Merchants, Anchorage Capital Group and Magallanes Value Investors, which, combined with ADES’ 17.9% stake in Shelf Drilling, represent 53.4% of the outstanding shares in the company.

    ADES International Holding raised its offer for Shelf Drilling after reassessing the company’s current market performance and revising its estimated annual cost synergies upwards by $10m, bringing the total to $50m-$60m.

    All other terms of the merger remain unchanged, along with the transaction timetable, with closing expected to occur in the last quarter of the year.

    Shelf Drilling is incorporated under the laws of the Cayman Islands, with its corporate headquarters in Dubai.

    In April this year, ADES International Holding secured a 10-year extension for one of its standard offshore jack-up rigs from Saudi Aramco, valued at approximately $290m.

    The contract for the offshore jack-up marks the re-entry of ADES International Holding into the Saudi offshore oil and gas market. The rig was among six jack-ups whose charters were suspended by Aramco last April.

    ADES International Holding has secured deployments for three of those jack-ups in Qatar, Thailand and Egypt, while the fourth was recently redeployed to Thailand.

    ADES International Holding also said it has increased its footprint since the start of 2025 by securing an offshore drilling job off the coast of Nigeria, marking its entry into West Africa.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14676037/main0952.jpg
    Indrajit Sen
  • Oman tenders Rusayl power cable project

    16 September 2025

    State-owned Oman Electricity Transmission Company (OETC) has opened bidding for the construction of the cable connection from the Rusayl power plant (GT-5 & GT-6) to the Rusayl industrial grid station.

    The tender is open to local companies with tender board registration and valid commercial registration, the authority said.

    Bids must be submitted electronically, with hard copies of the bid bond and other documents delivered to OETC’s head office in Muscat.

    The last date to obtain documents is 23 September, with bids due by 7 October. 

    The new cable tender forms part of OETC’s strategy to expand transmission in line with industrial growth. The Rusayl power plant, located near Muscat, is one of Oman’s key natural gas-fired generation facilities and supplies electricity to the Main Interconnected System (MIS), the country’s largest grid.

    The adjoining Rusayl Industrial City is a major manufacturing hub hosting companies across chemicals, textiles, electrical materials and food production, which has driven steady growth in power demand.

    OETC is undertaking several major transmission projects to reinforce the MIS. These include the construction of new 132kV grid stations, network reinforcements around Muscat and the Masirah Island interconnection, which is valued at about RO72m ($187m).

    Local firm Bahwan Engineering won the main contract for this project and started construction earlier this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14675720/main.jpg
    Mark Dowdall