meed-logo

line1 line2 line3
SIGN IN / REGISTER

What happens in Georgia matters to the Gulf

28 May 2024

 

Register for MEED's guest programme 

The ongoing demonstration of tens of thousands of ordinary Georgians against the reintroduction of a so-called “foreign influence” bill is an emerging source of uncertainty for investors at home and abroad, including in the Arab Gulf States.

Backed by the governing Georgian Dream party, the controversial legislation requires media and non-governmental organisations receiving more than 20% funding from abroad to register as an organisation “pursuing the interests of a foreign power”.

Critics have branded the bill the “Russian law”, warning that similar legislation has been used there to quieten free speech and crack down on dissent.

After being passed by Georgia’s unicameral parliament, President Salome Zurabishvili refused to sign the bill into law, despite her opposition being likely to be overruled by Georgian Dream. Following its forced passage, protestors gathered outside Georgia’s parliament building and clashed with police.

A further intensification of protests and violence cannot be ruled out in a country with a rich history of political instability. It would therefore be wise for the GCC states to pay close attention to what might happen next.

Gulf exposure

The GCC has an active interest in maintaining a wary eye on Georgia due to the exponential growth of the region’s economic interests in the Caucasian country in recent years, particularly in its tourism sector.

Statistics suggest that by the end of 2022, the country welcomed almost 210,000 tourists from Gulf states, 15 times more than a decade ago. With a 60% increase in visitors between 2019 and 2022, Saudi Arabia arguably provides the most intriguing rise.

Irrespective of where they come from, many GCC tourists enjoy visiting Georgia for its acceptance of Halal and other Islamic practices, its temperate summer climate and increasing opportunities to indulge in winter sports at its mountain resorts.

Presently, the UAE leads the GCC’s investment into Georgia’s tourist economy. Tourism is also one of the focus areas of the UAE-Georgia Comprehensive Economic Partnership Agreement (CEPA) signed between the two countries in October 2023.

The agreement not only reinforces the UAE’s status as Georgia’s sixth largest investor, but also seeks to double non-oil trade from $481m to $1.5bn in five years. Beyond tourism, target sectors include agriculture, renewables and technology.

The UAE’s foothold in Georgia’s infrastructure is also growing following AD Ports Group’s recent acquisition of a 60% stake in Tbilisi’s dry port. This inland terminal is situated along the Middle Corridor, a trade lane linking manufacturing hubs in Asia with consumer markets in Eastern Europe.

Other significant players in Georgia’s infrastructural development include China, which recently completed a 9,000-metre-long tunnel along the country’s Kvesheti-Kobi road. Improved infrastructure is also integral to Georgia’s currently imperiled candidacy for membership of the EU.

Business conditions

Economists will tell you that the ideal conditions for economic development include infrastructure investment, open trade and investment regimes and political stability.

There can be no denying that Georgia’s steady economic growth in recent years has benefitted from having all three pillars in place, even if political stability is perceived by some to have come at the cost of bona fide democracy.

Conversely, expert-level knowledge is not required to make the connection between political unrest and faltering economic conditions, particularly in key sectors such as tourism.

While Tbilisi remains the main focus of protests and international coverage, opponents of the “foreign influence” bill have made their presence felt in other parts of Georgia, including Batumi, the country’s third city and Black Sea resort.

This places Georgia’s two leading tourist destinations and associated logistics – most notably Shota Rustaveli Tbilisi International airport – on the frontline of both current and future instability. The same can also be said of many GCC investments and business interests in Georgia’s tourist sector.

Next month’s Eid Al Adha will provide valuable insights into how Georgia’s political turmoil is starting to influence choices made by GCC residents and impacting regional economic objectives. Islam’s second major holiday is regularly accompanied by a getaway from the region to cooler climes.

With a two-hour flying time and regular flights from Doha, Dubai and Riyadh, among others, Georgia represented a convenient, relatively safe and value-for-money tourist destination. That is until the country’s latest round of political protests and volatility.

Unlike tourists, those GCC companies and investors with a long-term stake in Georgia’s economy and infrastructure have little option but to watch how political events unfold.

Some worst-case scenarios could prove unpalatable: real estate in tourist locations underutilised during peak seasons; logistics hubs losing business as manufacturers divert to safer trading routes; missed opportunities to bolster regional food security through the export of cheaper agricultural products.

The GCC, and especially the UAE, is by no means the only regional grouping or country that is keeping an eye on Georgia’s uncertain political situation. With growing interest in developing the Middle Corridor and Black Sea port of Anaklia, China particularly stands to benefit from the country’s return to stability.

The same is also true of the US and EU, both concerned about Russia’s rising influence over a country that was once part of the Soviet Union

Accordingly, the GCC has options regarding who it can work with to persuade Georgia to collectively do more to resolve its political crisis.

The challenge facing the group is making the most politically astute and economically expedient choice of partner(s) at the appropriate time in Georgia’s unfolding political drama.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11821175/main.gif

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

Click here to register
Exclusive from Meed
Related Articles
  • UAE monitors desalination plants after oil spill

    3 November 2026

    State utility Etihad Water & Electricity (EtihadWE) says it is monitoring seawater quality at desalination plant intake points following an oil spill off the UAE's northern coast.

    In a statement, the utility said it is continuing to "implement proactive measures to safeguard the water production system" following the spread of an oil slick towards coastal areas in the emirates of Umm Al-Quwain, Ras Al-Khaimah, Ajman and Sharjah.

    The spill involved the tanker Gem No. 2, which was struck by a projectile in UAE territorial waters on 9 October. The resulting oil pollution has raised concerns over potential contamination of seawater used by desalination plants along the northern coast.

    EtihadWE said its measures include continuous monitoring of seawater quality at plant intake points, regular testing of produced and distributed water, and verification of compliance with approved standards before water enters the distribution network.

    The utility added that the precautionary measures will not affect the continuity of water supplies to consumers in the Northern Emirates.

    In an earlier update on 30 October, the Climate Change & Environment Ministry said the oil slick was concentrated off the coast of Umm Al-Quwain, extending partially towards coastal areas in Ras Al-Khaimah, Ajman and Sharjah.

    The ministry said the concentration of pollution had declined significantly and that the leak had been stopped at source. However, surveying, monitoring and clean-up operations are continuing in affected coastal areas.

    The Energy & Infrastructure Ministry said specialised technical teams are continuing work to address technical issues with the tanker, including repairing damaged sections, restoring operational systems and assessing the integrity of its structure.

    The proximity of the oil slick to the Naqa'a desalination plant in Umm Al-Quwain has drawn particular attention. According to media reports, the slick approached to within approximately 2 kilometres of the facility.

    Naqa'a has a production capacity of 150 million imperial gallons a day, equivalent to approximately 682,000 cubic metres a day. The plant supplies water to the Northern Emirates and has been operational since 2022.

    It is owned by Naqa'a Desalination Plant, a special-purpose vehicle established by Mubadala, Acwa and the former Federal Electricity & Water Authority, now known as EtihadWE.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21104534/main3427.jpg
    Mark Dowdall
  • Oman signs 1GW battery storage agreement

    3 November 2026

    Oman's Nama Holding, a subsidiary of Oman Investment Authority (OIA), has signed a framework agreement with China's State Grid International Development to develop battery energy storage systems (bess) with a targeted capacity of 1GW.

    The agreement covers two battery storage systems, each with a capacity of 500MW, at Duqm Industrial Station and Al-Subaikhi (Ibri Solar 3) Station.

    It is understood that both systems will operate at 400kV and connect to Oman's national electricity transmission grid.

    The deal is part of a package of economic and investment agreements signed by OIA with Chinese institutions and companies during the Oman-China conference on 2 November. OIA put the combined value of the bess projects at approximately RO384.5m ($1bn).

    The agreement comes as Oman advances plans to expand its renewable energy capacity and strengthen the electricity transmission network.

    Nama Power & Water Procurement Company is also procuring a separate 950MW standalone bess programme comprising five facilities in the sultanate, as MEED exclusively reported.

    The wider package of agreements, signed during Sultan Haitham Bin Tariq's state visit to China, covers sectors including renewable energy, mining, logistics, digital transformation and space technology.

    In the wind energy sector, Oman's O-Green and Shanghai Electric Wind Power signed a strategic partnership to establish a joint research and development centre and wind turbine testing facility at the Mawarid turbine factory in Duqm.

    The partnership will focus on adapting turbine technologies to Gulf climate conditions, supporting local manufacturing and developing green ammonia projects in Oman.

    The partnership is valued at RO3.85m-RO7.69m ($10m-$20m). It also identifies potential future contracts exceeding $1bn, alongside green ammonia projects and initial investment commitments in Oman exceeding $200m.

    In solar, OIA signed a preliminary term sheet with Chinese firms PCG Power and Hoymiles for a partnership valued at RO38.45m ($100m).

    The partnership aims to develop solar energy projects in Oman and establish a solar inverter manufacturing facility serving markets in the Middle East and North Africa.

    It is also intended to support the localisation of solar-related industries, expand domestic production and develop export markets.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21102638/main.jpg
    Mark Dowdall
  • Consultants bid for Roshn’s north Riyadh scheme

    3 November 2026

     

    Saudi gigaproject developer Roshn Group has received proposals from lead design consultants for its planned flagship development in north Riyadh.

    Consultants submitted proposals on 1 November for detailed design, tender documentation and construction documents for the project’s first plot.

    The planned development covers 13.7 square kilometres and will be a residential-led mixed-use scheme containing retail, office, hospitality, education and civic facilities.

    The consultancy scope for plot one includes infrastructure, utilities, public-realm works and the site adaptation of Roshn’s residential prototypes. It has been divided into two work packages.

    The first package covers phases A, B and E, which cover about 7.8 million square metres (sq m) and will include 17,000 units.

    The second package covers phases C and D, covering about 4.7 million sq m and with more than 15,000 units.

    The site is bordered by the Expo 2030 site, King Abdulaziz Park, the Sports Innovation Lab Zone and National Housing Company’s Khozam development.

    Transport connectivity is a key element of the masterplan. Two metro stations are planned, including a station at the interchange between the existing Line 4 and planned Line 7, and a dedicated Line 7 station. The development could also be served by the planned Qiddiya high-speed rail link and a potential diversion of King Salman Road.

    The scheme will add to Roshn’s existing development pipeline in Riyadh, which includes the multi-phase Sedra community. The developer is expanding its focus from single-family housing to larger mixed-use districts under its Roshn 3.0 strategy.

    Last month, Roshn signed a preliminary agreement with TMG Saudi, the local subsidiary of Egypt’s Talaat Moustafa Group, to establish a joint venture to explore a separate mixed-use project in Riyadh.

    TMG Saudi will hold a 51% stake in the proposed joint venture and Roshn will hold the remaining 49%. The companies said they will undertake detailed masterplanning and prepare a business case for the project, which preliminary studies indicate could include more than 55,000 residential units.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21101503/main.jpg
    Yasir Iqbal
  • Adnoc awards contract for Ruwais Diyab unconventional gas

    3 November 2026

     

    Abu Dhabi National Oil Company (Adnoc) has taken the final investment decision (FID) for the Ruwais Diyab unconventional gas development in Abu Dhabi.

    The project will deliver 345 million standard cubic feet a day (scf/d) of raw gas from 2029 over a 25-year period, with the potential to reach up to 1 billion scf/d in the future.

    Gas will be processed on site and connected to the UAE’s gas network through new pipeline infrastructure, “strengthening domestic supply, supporting the nation’s economic and industrial growth as well as Adnoc’s liquefied natural gas export ambitions”, the Abu Dhabi energy giant said when announcing FID on the project at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026.

    According to sources, Adnoc has awarded the design, build and operate (DBO) contract for the Ruwais Diyab unconventional gas development to China-based Jereh Group.

    A formal kick-off meeting between Adnoc and Jereh is expected to take place later in November, sources told MEED.

    The DBO contract awarded by Adnoc to Jereh is understood to cover the second phase of the Ruwais Diyab unconventional gas development. The tendering exercise for the project started last year.

    “The development [of Ruwais Diyab] follows a disciplined programme of technical studies, field testing and subsurface analysis, delivered by Adnoc Onshore under a DBO model, to reduce development risk,” Adnoc said in its statement on 2 November.

    “It brings together advanced subsurface expertise, artificial intelligence-enabled drilling and completion technologies and integrated project delivery capabilities to support the efficient and responsible development of domestic gas resources,” it added.

    The UAE holds the seventh-largest gas reserves in the world, with 298 trillion standard cubic feet (scf) of conventional gas reserves and 160 trillion scf of unconventional gas resources.

    Adnoc holds the majority 60% stake in the Ruwais Diyab concession, the majority of which is situated onshore, while France’s TotalEnergies holds the other 40% interest.

    The agreement to explore, appraise and develop the area’s unconventional gas resources was signed by Adnoc and TotalEnergies in November 2018. The partners announced first gas output at the concession, presumably on a pilot basis, two years later.

    Adnoc has set a target of producing 1 billion scf/d of gas from the Ruwais Diyab concession by 2030, in line with its target to achieve self-sufficiency in overall gas production by the end of this decade.

    “Ruwais Diyab’s additional unconventional gas supply will strengthen Adnoc’s gas value chain, including Adnoc Gas’s ability to meet rising domestic and international customer demand,” Adnoc said in its 2 November statement.

    “Ruwais Diyab advances Adnoc’s ambition to establish a scalable unconventional gas business and create a platform for future growth,” the company added.

    Ruwais Diyab first phase

    Adnoc awarded the contract for engineering, procurement and construction (EPC) on the first phase of the unconventional gas development programme to local contractor Astra Engineering & Construction in early 2025, according to regional project tracker MEED Projects.

    The first phase aims to achieve a gas output level of 100 million scf/d. The main structures to be built in the first phase include a central processing facility, two well pads, interconnecting well fluid pipelines, gas export pipelines and tie-in stations.

    The EPC contractor will be required to provide services such as surveying, design, engineering, procurement, expediting, transportation, fabrication, construction, testing, installation, pre-commissioning, commissioning, site performance testing, operation and maintenance of all units.

    The duration of the EPC works is understood to be 20 months, with the contractor also responsible for operating and maintaining the phase one facilities for 15 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21100974/main4351.png
    Indrajit Sen
  • Sultan Al-Jaber appeals for global energy security reset

    2 November 2026

    The global energy industry must fundamentally rethink how it builds, protects and delivers secure energy, following a year of unprecedented disruption that has exposed critical vulnerabilities in international supply chains, Sultan Ahmed Al-Jaber, the UAE’s Industry & Advanced Technology Minister and managing director and group CEO of Abu Dhabi National Oil Company (Adnoc Group) has said.

    Delivering the opening address at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026 on 2 November, Al-Jaber said preparedness is essential to navigating an increasingly uncertain global landscape.

    “For decades, energy security was a question for specialists. It was debated in rooms like this, by people like us, in a language that few needed to learn. This year, every family, every farmer, every industry and every business owner is asking about it, and our collective job is to find the answers.”

    Noting that it is not possible to control every situation and remove every risk, Al-Jaber said: “The choices we make today will determine the energy landscape a decade from now. Let’s apply the lessons we have learnt. Let’s build capacity and everything that supports it. Let’s forge partnerships that hold when it matters. And if you want a partner you can count on, you are in the right room, in the right city, in the right country. Because when it counts the most, you can count on the UAE.”

    Setting out the case for a more resilient energy system, Al-Jaber said that since the disruption in the Strait of Hormuz, nearly 1 billion barrels of crude have been drained from inventories. He noted that in some markets, stocks of diesel are at their lowest seasonal level in 35 years, while others are facing a supply gap for liquefied natural gas (LNG) of 600 billion cubic feet. “Simply put, the world has eroded its supply buffers,” Al-Jaber said.

    “But supply is only half the story. The other half is delivery. Before the disruption, logistics were less than 5% of the cost of a barrel. Today, they are more than 30%. In short, energy security is not only measured at the point of production. It is now also measured at the point of delivery.”

    Mitigation steps

    Al-Jaber outlined five steps the energy industry can take to reduce the impact of future shocks. “First, accessible supply. We need expanded strategic storage, larger stockpiles of products and flexible refining capacity closer to consumer markets.

    “Second, routes to market. Supply only counts when it arrives. Infrastructure must be built before it is needed and enabled by advanced logistics.

    “Third, operational intelligence. Moving from automated operations to intelligent energy systems that anticipate risk, optimise performance and drive down the cost of every barrel.

    “Fourth, capital follows confidence. Policy must create it, finance must accelerate it and insurance must keep trade moving.

    “Fifth, which is in my view the most important, is people. Because behind every barrel that arrives is a person who made sure it did. Systems don’t carry responsibility, people do.”

    Photo credit: Adipec via LinkedIn

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21091189/main2954.jpeg
    Indrajit Sen