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• 
  Hormuz crisis revives 1970s-style energy shock

  5 May 2026

  Commentary
  Colin Foreman
  Editor

  Read the May issue of MEED Business Review

  The conflict with Iran is threatening to recalibrate the global energy system. The effective closure of the Strait of Hormuz has caused an energy security crisis reminiscent of the shocks of the 1970s – both in scale and in its potential long-term implications.

  The 1973-74 energy crisis, triggered by an Opec oil embargo, sent prices soaring and altered the trajectory of the global economy. It spurred the creation of the International Energy Agency, the development of strategic petroleum reserves and a wave of energy-efficiency policies. It also cemented energy-for-security arrangements between the West and the Gulf – relationships now being tested again by the latest conflict.

  Today’s disruption – 11 million barrels of oil a day and around 20% of global liquefied natural gas (LNG) shipping capacity – creates a deficit that far exceeds the roughly 5 million barrels a day removed from the market in 1973. 

  While the shocks of the 1970s ushered in a decade of stagflation and a lasting shift towards diversified supply, the current crisis could accelerate demand destruction and a pivot towards energy sovereignty.

  The story is a developing one. From Vietnam’s cancellation of LNG projects in favour of renewables to the surge in electric vehicle adoption across Europe, the perceived unreliability of traditional supply routes is forcing an unprecedented reorientation of capital. 

  The Middle East – long the indispensable heartbeat of global industry – now risks sustained challenges to its market share as producers in the US, Russia, Africa and South America develop new projects unencumbered by reliance on the Strait of Hormuz.

  The structural changes taking root in 2026, like those in 1974, will outlive the conflict itself. Even a swift cessation of hostilities may not allow markets to return to their pre-conflict norms. 

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  READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

  Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

  Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:

  > AGENDA: War in the Middle East recalibrates global energy markets > REGIONAL LNG: War undermines business case for Middle East LNG > CAPITAL MARKETS: Damage avoidance frames debt issuance > IPOs: Regional IPO market dries up amid war  > MARKET FOCUS: Conflict tests UAE diversification > INTERVIEW: Desalination holds steady amid tensions, says Veolia CEO > LEGAL: Force majeure will not cure pre-existing construction industry breaches > BANKS:  GCC banks to feel the strain despite strong buffers > PIF STRATEGY: Public Investment Fund approves 2026-30 strategy

  To see previous issues of MEED Business Review, please click here

   

  

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  Colin Foreman
• 
  Brookfield to double down on Gulf investment

  5 May 2026

  Brookfield CEO Bruce Flatt has said the asset and alternative investment management company intends to increase its investments in the Gulf, despite the ongoing conflict in the region.

  When asked whether the war is changing the way he thinks about the Gulf region during an interview with CNBC at the Milken Institute Global Conference on 4 May, he said: “No, short answer no – in fact, [we’re] doubling down, we are doing more.

  “When you find great businesses, countries, great people, and the market offers you an opportunity to invest when others are not, it is always the best opportunity in the world, so we are doing more. We have been there for 25 years; we are continuing to do all of the investments we have there, and we are going to do more.”

  Flatt suggested the current period of geopolitical stress could accelerate long-term economic strengthening across the Gulf, arguing that governments and businesses will respond by investing in self-sufficiency and strategic infrastructure. “They will eventually build better countries because of this,” he said.

  Flatt added: “They’re going to build resiliency in all their systems. They’re going to build their own artificial intelligence (AI). They’re going to build their own pipelines to the coast. They’re going to do things they didn’t do before. They have to do it. They probably should have, but they’re going to now, and they’re going to be more resilient.”

  UAE meetings

  Flatt has also travelled to the region since the conflict began on 28 February, meeting senior UAE officials to discuss investment opportunities and deepen cooperation. In Abu Dhabi on 9 April, he met Sheikh Khaled Bin Mohamed Bin Zayed Al-Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council. The meeting explored ways to strengthen cooperation in investment and asset management between UAE-based institutions and Brookfield, in line with global economic trends and evolving market demands.

  Two days later in Dubai, Flatt met Sheikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Dubai International Financial Centre (DIFC). During the meeting, both sides explored opportunities to expand cooperation, highlighting the UAE and Dubai’s value proposition for global investors, including an integrated financial system, a flexible and advanced regulatory environment and world-class digital infrastructure. Discussions also covered Dubai’s role as a bridge between East and West, and the emirate’s emphasis on long-term partnerships and a transparent, business-friendly environment.

  Qatar partnership

  Brookfield’s regional activities are not limited to the UAE. In late 2025, the firm and Qai – Qatar’s AI company and a subsidiary of Qatar Investment Authority – announced a strategic partnership to establish a $20bn joint venture focused on AI infrastructure in Qatar and select international markets. The venture is expected to support Qatar’s ambition to become a hub for AI services and infrastructure in the Middle East. It is slated to be backed through Brookfield’s Artificial Intelligence Infrastructure Fund, part of a broader AI infrastructure programme targeting up to $100bn in global investment.

  Brookfield Infrastructure maintains a vast and diversified global portfolio characterised by high-barrier-to-entry assets across five core sectors. The data infrastructure segment has become a primary growth engine, currently comprising 150 data centres with significant operating capacity and about 308,000 operational telecom sites. In the utility and energy midstream space, the firm manages over 1,900 miles of electric transmission lines and a network of 2,100 miles of gas pipelines. The transport sector is another cornerstone of the portfolio, anchored by 22,500 miles of rail operations.

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  Colin Foreman
• 
  Iranian drone attack on Fujairah oil hub injures three

  5 May 2026

  The UAE has accused Iran of attacking the country with a new barrage of missiles and drones, setting an oil facility ablaze in the emirate of Fujairah and wounding three Indian nationals.

  The UAE’s Ministry of Defence said its air defences “engaged” a total of 12 ballistic missiles, three cruise missiles and four drones launched from Iran on 4 May.

  The country’s Ministry of Foreign Affairs condemned “in the strongest terms the renewed terrorist, unprovoked Iranian attacks targeting civilian sites and facilities”.

  The foreign ministry statement added that the UAE will not tolerate any threat to its security and sovereignty, and warned that the country reserves the “full and legitimate right to respond” to the attacks.

  Earlier in the day, a crude oil tanker affiliated with Abu Dhabi National Oil Company (Adnoc) was hit by two drones in waters off the UAE and Oman, while transiting the Strait of Hormuz.

  The attacks on 4 May mark the first on the UAE since Iran and the US agreed to a ceasefire on 8 April, with peace talks remaining deadlocked.

  Iran has maintained a stranglehold on the strategic Strait of Hormuz, and the US has imposed a naval blockade in response.

  On 3 May, US President Donald Trump said the US would begin escorting ships through the strait from the following day. US Central Command said it would use guided-missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.

  Iran’s unified military command warned commercial ships against accepting the US offer and said American forces “will be attacked if they intend to approach and enter the Strait of Hormuz”.

  Fujairah Oil Industry Zone attacks

  The Fujairah Oil Industry Zone (FOIZ) has suffered at least half a dozen attacks since March, after the war between Iran and the US broke out on 28 February.

  Fujairah benefits from its strategic geopolitical location outside the Strait of Hormuz, through which about a fifth of the world’s oil and gas supplies normally passes.

  Major midstream oil and gas companies operate key storage and export hubs for oil and refined products in Fujairah, including Abu Dhabi National Oil Company (Adnoc Group), Saudi Aramco – through its subsidiary Aramco Trading – Vopak Horizon, VTTI, Shell, Fujairah Oil Terminal, Brooge Petroleum & Gas Investment Company (BPGIC), Emirates National Oil Company (Enoc), Ecomar, Mount Row and GPS Chemoil.

  Fujairah is crucial to the operations of Adnoc Group subsidiary Adnoc Onshore, which operates a main oil terminal (MOT) there. Located approximately 300 kilometres north of Abu Dhabi, the terminal facilitates the import and export of various crude oil grades, particularly Murban, from the company’s onshore and offshore fields.

  Additionally, the Abu Dhabi Crude Oil Pipeline (Adcop) connects milestone pole (MP) 21 at the Habshan oil facility in Abu Dhabi, where stabilised crude produced from Adnoc Onshore fields is gathered for dispatch, to the Fujairah MOT.

  BPGIC is an oil storage and services firm that was established in 2013 in Fujairah and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.

  Separately, in September 2021, BPGIC began operations at the second phase of its Fujairah oil storage complex, adding 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.

  BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.

  The third phase increased BPGIC’s oil storage capacity by 3.5 times, raising it to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.

  The third-phase expansion project consists of an oil storage facility with a capacity of 2.5 million cubic metres, a modular 25,000-barrel-a-day (b/d) refinery, and a larger 180,000-b/d conventional refinery.

  BPGIC also co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produces low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.

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  Indrajit Sen
• 
  UAE signs aircraft deal with Brazil’s Embraer

  5 May 2026

  The UAE’s Tawazun Council for Defence Enablement has formally awarded a contract to Brazilian manufacturer Embraer for the procurement of the C-390 Millennium aircraft.

  The agreement comprises 10 firm orders, with an additional 10 options, representing a significant strategic effort to enhance the UAE’s operational airlift and logistics capabilities. The deal is the largest single-country international order for the C-390 aircraft to date and establishes a critical foothold for the platform in the Middle East.

  The contract was signed by Nasser Humaid Al-Nuaimi, secretary general of the Tawazun Council for Defence Enablement, and Bosco da Costa Jr, president and CEO of Embraer Defence & Security. The deal was signed in the presence of Sheikh Mansour Bin Zayed Al-Nahyan, vice-president and deputy prime minister of the UAE, and Francisco Gomes Neto, president and CEO of Embraer.

  The procurement decision was reached following a technical evaluation and field-testing campaign conducted within the UAE’s specific operational environment. This process ensured that the aircraft could meet the high performance and reliability standards required by the UAE Air Force and Air Defence. According to Tawazun officials, the C-390 was identified as the platform best suited to optimise lifecycle costs while maintaining high mission readiness across diverse and complex terrains.

  Equipped for multi-mission versatility, the C-390 will enable the UAE military to perform varied roles, including troop and cargo transport, airdrop logistics and medical evacuations. Its design allows for seamless interoperability with national assets and partner forces, as well as the ability to operate from unpaved runways in challenging conditions. This flexibility is intended to support a wide range of military and humanitarian operations over the long term.

  Beyond the acquisition of the aircraft, the contract also supports the growth of the UAE’s domestic defence sector. Embraer and UAE-based defence and technology firm Generation 5 Holding have signed an exclusive strategic partnership agreement to support the C‑390 Millennium programme in the UAE. Signed at the Make it in the Emirates 2026 platform in Abu Dhabi, the agreement covers the development of comprehensive maintenance, repair and overhaul and after-sales support capabilities in the UAE and the wider Middle East, aimed at ensuring mission readiness, rapid response and long-term fleet sustainability for regional operators.

  The partnership also includes opportunities for industrial and supply-chain integration linked to the C‑390, alongside training programmes for technical, maintenance and operational personnel to support knowledge transfer and workforce development. Both companies said the agreement underscores a long-term commitment to building local support and industrial participation for the C‑390 fleet, with implementation to follow after the conclusion of ongoing conditions.

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  Colin Foreman
• 
  Teams prepare $5bn Asir-Jizan highway PPP bids

  5 May 2026

  

   

  Three groups are preparing to submit proposals for an estimated SR20bn ($5bn) contract to develop and operate the Asir-Jizan highway project.

  Saudi Arabia’s Roads General Authority, the National Centre for Privatisation & PPP and the Aseer Development Authority (Asda) have set a new deadline of 31 May for firms to submit bids.

  MEED understands the tender was issued in September last year, with bid submission previously due in March 2026.

  According to sources close to the project, the consortiums that are planning to bid include:

  • Shaanxi Construction Engineering / Safari / Lamar Holding (China/local/local)
  • Makyol / Shibh Aljazira Contracting / Tamasuk (Turkiye/local/local)
  • China Harbour Engineering Company / Vision Invest (China/local)
  • Alayuni / Limak Holding / Nesma & Partners / Plenary (local/Turkiye/South Korea/local/Australia)

  In August last year, five groups were qualified to bid for the contract. However, the consortium comprising Turkiye’s IC Ictas and local firm Algihaz Holding has decided not to pursue the project. South Korea’s Samsung C&T, previously part of the Plenary group, has also withdrawn.

  The 136-kilometre Asir-Jizan highway will have three lanes in each direction and include six intersections, 57 bridges totalling 18km and 11 tunnels totalling 9km.

  The project is one of four planned highway schemes in the kingdom’s privatisation and public-private partnership pipeline.

  The route begins in Al-Farah in Asir and extends to the Red Sea through Jizan.

  The 30-year contract will follow a design, build, finance, operate and maintain model.

  

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  Yasir Iqbal