meed-logo

line1 line2 line3
SIGN IN / REGISTER

The journey towards net zero

26 October 2022

Published in partnership with

The most pressing concern in the race to net zero is the need to reduce carbon emissions. According to the International Panel on Climate Change (IPCC), carbon dioxide (CO2) accounts for 76 per cent of total global greenhouse gas emissions, of which 65 per cent is a direct result of fossil fuel and industrial processes.

Lowering CO2 output would therefore have the biggest impact on global warming.

The Middle East is central to this process. Although the region accounts for only 7 per cent of total global CO2 output, its emissions are some of the world’s highest on a per capita basis. 

In 2021, for example, per capita emissions in the Middle East were 8 tonnes, compared with 2.3 tonnes in South America, 4.1 tonnes in Asia and 5.6 tonnes in Europe. These figures exclude the environmental impact of oil and gas exports from the region. 

It is also an issue the region can no longer afford to ignore as it is particularly prone to climatic changes including reduced rainfall, heatwaves and increasingly severe weather events, such as the cyclones that have hit Oman in recent years. 

Reality bites

The subject was a key talking point at the Siemens Energy Middle East & Africa Energy Week event in June, where attendees discussed decarbonisation and the government targets – 2050 for the UAE and Oman, and 2060 for Saudi Arabia and Bahrain – set as deadlines to reach net zero. 

A startling finding from the event was the gap between perceptions and reality regarding what has been achieved so far in cutting emissions.

As part of Siemens Energy’s survey for its Middle East & Africa Energy Transition Readiness Index, when asked to quantify CO2 reductions in their country today and what they will be in 2030 compared to 2005, participants estimated that total emissions had fallen by 23 per cent on average over the past 17 years. Only one-third correctly answered that emissions had not fallen at all.

In fact, the opposite has taken place. Between 2005 and 2020, total global CO2 emissions increased by 50 per cent to almost 3.5 billion tonnes, according to the authoritative BP Statistical Review of World Energy 2021.

“This year, many reports were issued of which the most important is the IPCC report,” said Mohamed Nasr, director of the Environment & Sustainable Development Department at Egypt’s Foreign Affairs Ministry and lead negotiator for Egypt at Cop27, speaking at the Energy Week.

“All [of the reports] stressed that we are not on track to keep climate change below 2 degrees, or even keep the 1.5 degrees target within reach. More work needs to be done.”

Between 2005 and 2020, total global CO2 emissions increased by 50 per cent to almost 3.5 billion tonnes

BP Statistical Review of World Energy 2021

Work in progress

A second poll revealed that attendees expected emissions to fall to 39 per cent of their 2005 levels on average, a figure that is highly unlikely to be reached in just eight years. 

This is especially the case given that carbon emissions must be cut across the board. Although the region is making good progress on the development of renewable energy production, there has been much lower momentum in other areas. 

For example, cement production is estimated to account for between 7 per cent and 10 per cent of total carbon emissions, but despite this, there has been little in the way of new regulations on government cement output in the region. 

Overall, in 2021 the industrial sector directly accounted for about a quarter of total global greenhouse emissions equivalent to 9.4 gigatonnes, a rise of 193 megatonnes on the previous year, according to the International Energy Agency (IEA). Iron, steel and cement production comprised more than half this figure.

The industry itself recognises more needs to be done and is implementing a range of policies and agreements to act co-operatively on reducing its climatic impact.

In early September for instance, the International Renewable Energy Agency (Irena) and international companies including Siemens Energy as a co-founder, Tata Steel, Enel Green Power, Technip Energies, Taqa and Eni launched the global Alliance for Industry Decarbonisation. The new alliance is aimed at accelerating net-zero ambitions and the decarbonisation of industrial value chains in accordance with the Paris Agreement. To date, 20 members have joined the alliance to work towards the same vision.

“Climate action needs industry leaders,” said Francesco La Camera, Irena director-general. “This Alliance stands for the growing commitment of global industry to act on decarbonisation and unlock opportunities that come with a green industrialisation through renewables and other transition-related technologies like green hydrogen.

“By standing together we send a clear signal of solidarity ahead of Cop27 and we invite new partners to join our common vision.”

Ultimately, we must remember that every tonne of CO2 we emit into the atmosphere will need to be removed

Dietmar Siersdorfer, Siemens Energy Middle East and the UAE

Renewables focus

Closer co-operation is a step in the right direction, but is just one element in a range of measures that need to be implemented. 

When ranking the energy initiatives to reach net zero as part of the Transition Readiness Index, the Energy Week participants identified three other priorities with the highest beneficial impact: accelerating the development of renewable energy projects; reinventing energy business models; and implementing energy storage solutions. 

The focus on renewables reflects the raft of utility-scale solar, hydro and wind schemes across the Middle East and Africa. In all, there are more than 500 projects planned or under way, with a total capital investment value of more than $510bn. 

But there has been less progress on the other two main priorities. Energy storage solutions have gained little traction to date in the region, although Dubai’s innovative 250MW pumped hydro energy storage project in Hatta could become a template for others to follow when it comes to grid-connected storage capacity. 

Nonetheless, with grids operated by centralised state utilities and renewable projects at a stage where they support conventional energy production rather than replace it, there is still some way to go before storage systems become more widespread.

For now, the principal opportunity for energy storage systems is for captive use at off-grid demand centres – for example, at Saudi Arabia’s gigaprojects along the Red Sea coast, such as the Red Sea Project and Neom. Entirely dependent on renewable energy production, the projects may require stored energy when weather conditions are unfavourable or during periods of peak demand. 

Diversifying the energy business model is unsurprisingly a key priority given the region’s reliance on hydrocarbon exports. Over the past 18 months, the development of a hydrogen industry has emerged as the pre-eminent trend to enhance the Middle East’s position as the leading source of global energy supplies. 

Today, there are some 46 world-scale hydrogen projects across the Middle East and Africa worth well in excess of $50bn. Although only two are under construction, the hydrogen industry is expected to grow massively in the region over the next decade.

This is just as well as time is fast running out if the world is to avoid a climatic emergency. 

As Dietmar Siersdorfer, managing director of Siemens Energy Middle East and the UAE, puts it: “Ultimately, we must remember that every tonne of CO2 we emit into the atmosphere will need to be removed.”

Related reads:

Click here to visit Siemens Energy 
https://image.digitalinsightresearch.in/uploads/NewsArticle/10118445/main.gif

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

Click here to register
Exclusive from Meed
Related Articles
  • Read the December 2025 MEED Business Review

    28 November 2025

    Download / Subscribe / 14-day trial access

    The region boasts a pipeline of over $140bn-worth of railway schemes, according to data from regional projects tracker MEED Projects.

    This puts the GCC at the centre of global rail construction activity, with progress being made on several large-scale rail schemes.

    From the Qiddiya high-speed rail in Saudi Arabia to the planned expansion of Dubai’s metro network and the long-awaited revival of the GCC railway, a new wave of projects is shaping the region’s economic future.

    As leading construction, engineering and technology firms either expand or return to the region after years of reduced activity, MEED’s latest issue of MEED Business Review looks at the scale and ambition of ongoing rail projects.

    We also consider the region’s growing role as a rail hub, with an increasing need for ongoing servicing, upgrades and new technologies.

    This month’s market focus covers Bahrain, where Manama is pushing ahead with diversification amid mounting fiscal constraints and external pressures.

    MEED’s latest issue also includes our 2025 EPC contractor ranking, as well as analysis on the cost advantages, technological gains and strong execution giving Chinese contractors a regional edge.

    This edition is bursting with features and interviews. The team looks at Libya's ramp up of oil activity; visits the under-construction Aramco Stadium in Khobar as it races towards completion; provides an update on Abu Dhabi's $6bn solar and storage project; and interviews Turki AlShehri, regional vice president for Saudi Arabia and the GCC at French power and water developer Engie.

    We hope our valued subscribers enjoy the December 2025 issue of MEED Business Review. 

     

    Must-read sections in the December 2025 issue of MEED Business Review include:

    > AGENDA: 
    > Regional rail construction surges ahead
    > Middle East becomes a hub as rail networks mature

    INDUSTRY REPORT:
    EPC contractor ranking
    > Larsen & Toubro climbs EPC contractor ranking
    > Chinese firms expand oil and gas presence

    > CURRENT AFFAIRS: Oil companies ramp up activity in Libya

    > CONSTRUCTION: Aramco Stadium races towards completion

    > RENEWABLES: UAE moves ahead with $6bn solar and storage project

    > INTERVIEW: Engie pivots towards renewables projects

    > BAHRAIN MARKET REPORT: 
    > COMMENT: Manama pursues reform amid strain
    > GVT & ECONOMY: Bahrain’s cautious economic evolution
    > BANKING: Mergers loom over Bahrain’s banking system
    > OIL & GAS: Bahrain remains in pursuit of hydrocarbon resources
    > POWER & WATER: Bahrain advances utility reform
    > CONSTRUCTION: Bahrain construction faces major slowdown
    > TRANSPORT: Air Asia aviation deal boosts connectivity
    > DATABANK: Bahrain’s economy walks precarious path

    > MEED COMMENTS: 
    > Bahrain’s willingness to disrupt takes flight with Air Asia
    > Projects shift from spending plans to investment opportunities
    > Lukoil deal collapse puts $1.8bn of Iraq projects at risk
    > Clear rules drive Saudi Arabia's tariff edge

    > GULF PROJECTS INDEX: UAE fuels Gulf projects expansion

    > OCTOBER 2025 CONTRACTS: Saudi Arabia and UAE lead deal signings

    > ECONOMIC DATA: November 2025: Data drives regional projects

    > OPINION: Riyadh’s American bond

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15168493/main.gif
    MEED Editorial
  • Petrofac’s UAE operations continue after layoffs

    28 November 2025

    The UK-headquartered company Petrofac is continuing to work on projects in the UAE after issuing termination notices to around 180 of its staff in the country.

    Operations across Petrofac’s portfolio in the UAE are progressing as normal, according to statements sent to several media organisations.

    The employees were given notice of their early release from the company on 19 November as part of restructuring measures.

    On 27 October, Petrofac announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.

    The total value of projects awarded to Petrofac and under construction in the region is $5.83bn, according to information recorded by the regional project-tracking service MEED Projects.

    Petrofac also has bids under evaluation for 15 projects in the region worth a total of $19.28bn, according to MEED Projects data.

    Ongoing restructuring

    On 25 November, Petrofac released a statement saying that it was seeking to appoint administrators to its subsidiary Petrofac International Limited (PIL).

    This subsidiary was previously focused on the group’s engineering and construction activities in the Mena region.

    In its statement, Petrofac said that its subsidiary would “shortly make an application to the Royal Court of Jersey seeking a letter of request under section 426 of the Insolvency Act 1986”.

    It added: “The purpose of this application is to ask the Royal Court of Jersey to issue a letter of request to the High Court of England and Wales and seek its assistance in appointing administrators to PIL.”

    Petrofac said that PIL had no ongoing contracts in the Mena region and it intends to redeploy PIL’s 120 staff to other subsidiaries “wherever possible”.

    It added: “The administration of PIL is expected to facilitate the purpose of Petrofac Limited’s administration, to help preserve the value of the wider Group and to facilitate the planned M&A solutions.”

    Petrofac has said that it is continuing to push ahead with options for alternative restructuring and M&A solutions with key creditors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15173959/main.jpg
    Wil Crisp
  • PDO starts Dhulaima field early phase development project

    28 November 2025

     

    Petroleum Development Oman (PDO) has started the prequalification process for engineering, procurement and construction (EPC) works on a project to develop key on-plot facilities as part of an early phase development of the Dhulaima onshore field.

    The Dhulaima Upper Shuaiba field is located in the Lekhwair cluster in PDO’s Block 6 concession area. The Dhulaima early phase development project is to be executed on an operation lease contract for a duration of five years, PDO said in the prequalification document.

    Majority state-owned PDO floated the prequalification questionnaire on 18 November, and has set a deadline of 7 December for contractors to submit responses.

    The broad scope of work on the Dhulaima early phase development project covers EPC, as well as all associated civil, mechanical, piping, electrical, fabrication, instrumentation, control, testing, and pre-commissioning commissioning, and de-commissioning activities of the following on-plot facilities:

    • Gas injection compressor package: Complete gas injection compressor package with all auxiliary systems, associated piping, associated instrumentation for safeguarding and control, etc, as complete skid. All the necessary power, utilities as required for the compressor package and its driver shall be included as part of the scope, along with all associated systems, foundations, piping, electrical, instrumentation. Type of compressor and driver to be proposed by the bidders.
    • Gas injection manifold package: Complete gas injection manifold including all tie-ins to existing facilities, pipe supports, control valves, and instrumentation.

    PDO is the operator of the Block 6 hydrocarbons concession in Oman, which is the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields.

    The Omani government holds a 60% stake in PDO, with the other shareholders being UK-based Shell (34%), France’s TotalEnergies (4%) and Thai state-owned PTTEP (2%).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15169037/main.jpg
    Indrajit Sen
  • Top deals signed at Dubai Airshow 2025

    27 November 2025

    The Dubai Airshow 2025 drew to a close on 21 November, with deals exceeding $202bn, double the $101bn secured at the 18th edition in 2023. 

    This new milestone reinforces Dubai’s position as a global aviation hub and central force shaping the future of the aviation and space industries, according to a statement from the Government of Dubai Media Office.

    The 19th edition of the event, held at Dubai World Central under the theme ‘The Future is Here’, also drew record attendance, welcoming 248,788 visitors, including industry leaders, government officials and aviation specialists from across the globe. 

    More than 1,500 exhibitors took part, with 440 participating for the first time, along with 490 military and civil delegations from 115 countries. The show also included 21 national pavilions, 98 chalets, an extra 8,000 square metres of display space, and a startup ecosystem with 120 startups and 50 investors.

    One of the most globally diverse editions to date, this year’s airshow featured the usual mega-orders, but also a surprise fleet pivot and an emerging picture of the region’s biggest players taking control of their futures by influencing the development of tomorrow’s jets and securing their supply chains. 

    Anchor customer

    UAE national carriers placed orders for 502 aircraft during the five-day event, with Emirates leading the charge. On the first day of the airshow, Emirates announced a $38bn order for 65 new Boeing 777-9 aircraft. The airline also ordered 130 GE9X engines from GE Aerospace, which power the new twin-engined planes. 

    The deal gives Boeing a boost after the 777-9’s debut was delayed to 2027 – but equally significantly, it provides strong backing for Boeing’s feasibility study to develop the 777-10, a larger variant of its 777X family, as Emirates pushes to replace its Airbus A380 fleet.

    “Emirates has been open about the fact that we are keen for manufacturers to build larger capacity aircraft, which are more efficient to operate, especially with projected air traffic growth and increasing constraints at airports,” said Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group.

    “We fully support Boeing’s feasibility study to develop the 777-10 and have options to convert our latest 777-9 order to the 777-10 or the 777-8.”

    Several days later, Emirates also ordered eight more A350-900 aircraft, worth $3.4bn and powered by Rolls-Royce Trent XWB84 engines, while also urging Airbus to explore a larger version of its A350-1000 wide-body.

    Emirates’ commitment to new aircraft at the Dubai Airshow 2025 is worth $41.4bn at list prices, and brings the airline’s total wide-body aircraft orders to 375, with deliveries scheduled through 2038.

    It was also announced that Emirates would deploy Starlink Wi-Fi across its entire in-service fleet, beginning with Boeing 777 aircraft in November 2025 and completing the rollout by mid-2027.

    Airbus pivot

    Flydubai also signed a memorandum of understanding (MoU) with Boeing to purchase 75 Boeing 737 MAX aircraft valued at $13bn. In one of the show’s biggest strategic shifts, a further MoU was signed with Airbus for 150 A321neo aircraft, making the airline a new Airbus customer.

    Sheikh Ahmed, also chairman and CEO of flydubai, said this addition would diversify the airline’s narrow-body fleet and “enable flydubai to play a key role in the success of Dubai World Central’s expansion plans, an airport we aim to become the largest airport in the world”.

    “We look forward to establishing a strong and enduring partnership between flydubai and Airbus,” he said. 

    Etihad Airways confirmed an order for 32 new Airbus aircraft, including freighters, marking a significant expansion of its wide-body fleet, while Gulf Air, Bahrain’s national carrier, finalised a firm order for 15 787 Dreamliners with options for three more as the carrier looks to further develop its international network. The order adds three Boeing 787s to the airline’s commitment this July and brings Gulf Air’s order book to 17 of the versatile widebody jets.

    Saudi Arabia's emerging airline, Riyadh Air, confirmed a purchase of 120 CFM LEAP-1A engines for its incoming A321neo fleet.

    Taking control

    In a clear sign that Gulf airlines are taking charge of their supply chains, Emirates and France's Safran Seats signed an MoU to bring a manufacturing and plane seat assembly factory to Dubai. The joint industrial cooperation, the first of its kind, will initially focus on Emirates’ business and economy class seats for cabin retrofit projects, with plans to expand into new aircraft in the future.

    “This agreement with Safran marks a pivotal and strategic cooperation that establishes Dubai as an aerospace manufacturing hub,” commented Sheikh Ahmed. “We're bringing world-class seat production capabilities and supply chain to our doorstep, creating highly skilled jobs, and developing capabilities to support Emirates and produce seats for export to other carriers.”

    Emirates is also securing its own engine maintenance capabilities, signing an MoU with Rolls Royce to conduct engine maintenance, repair and overhaul on its own A380 fleet at a new plant in Dubai from 2027.

    Green airline fuel

    Sustainability was a core priority at the airshow, with initiatives including the supply of sustainable aviation fuel (SAF) for participating aircraft, the use of electric and propane-powered ground support equipment in partnership with Jetex, and exhibition halls run entirely on renewable energy.

    On the sidelines of the event, Emirates and Enoc Group signed a memorandum of understanding to explore and develop joint initiatives for the supply of SAF to Emirates at its Dubai hub.

    Defence deals

    Capping the exhibition were the 36 deals signed on behalf of the Ministry of Defence and Abu Dhabi Police by the UAE’s Tawazun council – the national authority mandated to enable, regulate and sustain the UAE’s defence and security industrial ecosystem. Valued at AED25.455bn, the deals included contracts for drones, rescue gear, aircraft parts and support.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15167232/main.gif
    Marianne Makdisi
  • Prequalification begins for Riyadh King Salman Stadium

    27 November 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Sports Ministry has issued a notice inviting companies to prequalify for a contract to design and build the King Salman International Stadium in Riyadh.

    The notice was issued on 26 November, with a prequalification deadline of 16 February.

    The stadium will cover an area of about 660,000 square metres (sq m) and will have a seating capacity of 92,000.

    The stadium will feature a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The plan also includes several sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

    The new stadium will host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main headquarters.

    US-based architectural firm Populous is the lead architect for the stadium.

    Construction of the stadium is expected to be completed by 2029.

    The stadium will be located next to King Abdulaziz Park.

    Saudi Arabia stadium plans

    In August last year, MEED reported that Saudi Arabia plans to build 11 new stadiums to host the Fifa World Cup in 2034.

    Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

    An additional 10 cities will host training bases. These are Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

    There are expected to be 134 training sites across the kingdom, including 61 existing facilities and 73 new training venues.

    The kingdom was officially selected to host the 2034 Fifa World Cup through an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15166460/main.jpg
    Yasir Iqbal