Working towards a common energy-transition goal
28 November 2022
Published in partnership with
In the end, it went right to the wire. Just as it looked like the UN’s 27th Conference of the Parties (Cop27) would conclude without an accord, the weary delegates announced that they had reached a landmark agreement on setting up a fund to help compensate poorer nations for the economic and social destruction caused by climate change.
The statement, two days after the Sharm el-Sheikh summit’s original 18 November end date, was a culmination of some 30 years of negotiations between developed economies and developing nations. The latter had long argued that the damage they have experienced from global warming should be paid for by richer countries responsible for the crisis in the first place.
Although far from perfect, the global ‘loss and damage’ fund was hailed as an important and symbolic step towards hitting the agreed target of limiting global temperature increases to 1.5C above pre-industrial levels by 2030. It also marked the continuing engagement and collaboration by governments across the globe.
“We rose to the occasion,” said Egypt’s Minister of Foreign Affairs and president of Cop27 Sameh Shoukry.
“We worked around the clock, day and night, but united in working for one gain, one higher purpose, one common goal. In the end, we delivered. We listened to the calls of anguish and despair.”
Private sector involvement
While Cop27 has been and will continue to be a policy-setting mechanism negotiated at the highest level, companies played a critical role during the conference.
Firms representing a broad range of sectors, including Vodafone, Microsoft, Boston Consulting Group and Bloomberg, partnered with the event, and many more participated in the main conference and exhibition areas.
Ultimately, governments understand that the private sector will lead the drive towards net zero. Without corporates worldwide investing in clean energy projects and technology, there is little hope that targets will be reached.
Five consistency points
A key supporter of Cop27 was Siemens Energy. Sharing its expertise through panels covering subjects as varied as the Mediterranean’s North-South Energy Partnership, improving power access in Africa by unlocking its green hydrogen potential, and overcoming the challenges of decarbonisation, the energy technology company played a pivotal role in discussions and thought leadership.
It also participated in the world leader’s summit at a roundtable discussing green hydrogen, reinforcing its positioning of energy transition at the heart of its strategy.
Before the Sharm el-Sheikh conference, Siemens Energy president and CEO Christian Bruch outlined five points of consistency that his company considers to be unifying elements in the decarbonisation drive.
The first is the acceleration of renewables. Replacing conventional power generation systems with solar, wind, hydro and other forms of renewable energy is essential to reduce greenhouse emissions.
Despite a considerable increase in the overall share of renewables in the past three years on the back of ever-lowering costs and more efficient technology, more must still be done.
For example, the US needs to triple its share of renewable energy as a proportion of the energy mix by 2050 for the energy transition to succeed. The Asia-Pacific region, meanwhile, will have to increase this figure fourfold.
Regional targets
In the Middle East, every country has now set ambitious targets to increase renewable energy. The likes of Saudi Arabia, Morocco and the UAE are aiming for renewables to account for up to 50 per cent of total production by 2030. To reach these objectives, almost all new power generation projects come in the form of renewables.
However, the impact of greener electricity production could be somewhat offset by continuing demand growth caused by an increasing global population and economic growth.
In this context, the second point is the requirement for improved energy conservation measures, such as policies to incentivise the electrification of industry and transport.
Regionally, the industrial electrification of energy-intensive industries is an optimal opportunity to reduce harmful emissions by harnessing electric boilers and/or electricity-based fuels. Future large-scale blue and green hydrogen production will also have a role to play in industrial processes.
Siemens Energy’s third point of consistency is improving electrical efficiency. The increase in renewable energy capacity and the growth in power capacity, in general, require significant investment in transmission and distribution networks.
This is particularly important in areas such as sub-Saharan Africa, where almost 25 per cent of the population has little to no access to electricity.
The fourth point covers the requirement to use existing conventional power infrastructure to help bridge the gap between the fossil-fuelled economies of today and the net zero of tomorrow.
Progress cannot be made in one step alone and requires a gradual transition. In the meantime, existing thermal plants can employ measures such as combined-cycle technology and carbon capture to make them as efficient and environmentally friendly as possible.
The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity
Christian Bruch, Siemens Energy president and CEO
Mineral production
Finally, to achieve all of this, it is necessary to improve supply chains and increase the production of necessary minerals and rare earth metals required in net-zero technologies, such as lithium, nickel, cobalt and chromium.
Bruch gives the example of a typical electric car, which requires six times more mineral inputs than one powered by an internal combustion engine. He also cites onshore wind plants, which need nine times more than a gas-fired power plant.
If mineral production is not increased and geographically diversified, there is a risk of future supply bottlenecks.
In the Middle East, a good illustration of this is the potential future supply gap for electrolyser systems, and the anodes and cathodes typically made from metals such as zinc, nickel and lithium.
MEED estimates that about 75GW of electrolyser production capacity will be required by 2030 to meet the demand for the raft of planned green hydrogen plants in the region alone, compared with a total global output capacity of just 8GW today.
Industrial decarbonisation alliance
All five consistency points make salient arguments. However, they can only be achieved with close cooperation between the private and public sectors. While the former can spearhead and implement the decarbonisation drive, the latter can provide the regulations and incentives to encourage these initiatives.
The newly formed Alliance for Industry Decarbonization initiated by Siemens Energy and coordinated and facilitated by the Abu Dhabi-based International Renewable Energy Agency (IRENA) is an example of greater collaboration between the public and private sectors.
The 28-member alliance – which encompasses a range of global energy, renewable, consulting and manufacturing companies – met for the first time during Cop27 to outline its joint vision and implementation plan. Its strategy focuses on six pillars and enablers that tie into the points of consistency: renewables, green hydrogen, bioenergy with carbon capture, utilisation and storage (CCUS), heat process optimisation, human capital and finance.
Only through this kind of stakeholder dialogue can the immense and existential challenges posed by global warming be overcome. Governments or companies acting in isolation will only achieve so much on their own. The points of consistency must be considered as a whole and in unison if the world’s climate objectives are to succeed.
As Bruch says: “The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity. There is no excuse for waiting any longer.”
Related reads:
- New alliance forged to accelerate net-zero ambitions
- The journey towards net zero
- Solving Europe’s energy challenge
- Africa’s energy trilemma
- Region primed for global green hydrogen leadership
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UK-headquartered Petrofac has completed the sale of Petrofac Emirates, a business unit it established in Abu Dhabi in 2008.
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In a statement, Petrofac said the sale was completed after the satisfaction of all required conditions and approvals.
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Petrofac Emirates has engineering and construction (E&C) capability and includes E&C teams based in the UAE and India.
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Leadership role
Under current plans, Tareq Kawash, who has been the group chief executive of Petrofac since April 2023, will become the chief executive of Petrofac Emirates to lead the E&C business through its next phase under new ownership.
Kawash has over 30 years of international leadership experience at engineering procurement and construction (EPC) companies.
Prior to working at Petrofac, he was a senior vice-president at McDermott International.
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“Under our new ownership structure, with a focused platform for growth, we are well-positioned to build on our track record, strengthen our long-standing customer relationships and pursue new opportunities across the wider Mena region.
“The transaction is not the destination; it is the platform from which we move forward with confidence, discipline and ambition.”
Sam Read, a partner at Mason, said: “Our mission is to empower Petrofac Emirates to achieve its strategic goals, capitalise on new market opportunities, and leverage significant growth potential in the dynamic energy EPC sector.
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Petrofac’s asset solutions unit provides operations, maintenance and decommissioning services for onshore and offshore energy assets.
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Restructuring disruption
Amid Petrofac’s dramatic restructuring, there has been disruption to progress at some of the company’s projects.
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The news about the Algeria project came just over two weeks after MEED reported that Petrofac had also stopped work on an oil project in Libya and cut staff in the North African country.
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The combined market capitalisation of the MEED Top 100 largest listed companies in the Middle East and North Africa rose to $3.73tn in mid-May 2026, against $3.48tn a year earlier – a 7.2% gain that recovers most of the value lost in the prior two years’ editions. The aggregate is not the story.
Saudi Aramco recovered by $181bn, rising from $1.64tn to $1.82tn and providing substantial support to the aggregate Top 100 valuation. The broader movements in the list differentiated along sectoral lines, with key trends including the continued growth of regional banks, the upward repricing for fertiliser and logistics names amid the Hormuz crisis, and the correction of Saudi mid-tier stocks as valuation peaks have failed to hold.
Oil and gas reweights
Aramco’s share price recovered from about SR25 to SR30, lifting the company’s market cap by 11% and raising the oil and gas sector’s share of the list back to 54.5%.
The company reported first-quarter 2026 net profit of $32.5bn, up 25%, on revenue of $115.5bn – giving it a price-to-earnings ratio of about 18, in line with the Saudi market average as of April.
Aramco’s diversion of crude to Yanbu through its 7 million-barrels-a-day West-to-East pipeline has supported a higher volume of sales at the now elevated prices compared to its Gulf peers, the exports of which have been more seriously affected by the blockade of the Strait of Hormuz.
Other Saudi names also benefiting from this combination of ongoing access through Yanbu and energy repricing produced the cleanest gains, with Rabigh Refining more than doubling in value to $11.7bn despite a $1.1bn loss, Ades Holding rising 40% to $5.8bn, Luberef rising 28% to $5.8bn and Yansab also seeing double-digit returns.
In the UAE, by contrast, Adnoc Gas has remained broadly flat at $66.7bn, with its Q1 2026 net income dropping 15% and conflict damage estimates indicating that full capacity will not be restored until 2027. Borouge meanwhile held, while Adnoc Drilling and Adnoc Distribution gained by 14% and 8%, respectively.
There was some slippage in the petrochemicals sub-cluster, with Saudi Basic Industries Corporation (Sabic) posting a net loss of $6.96bn and sliding 3%, alongside a 2% slide for the energy sector-adjacent Industries Qatar.
Banking and industry
The banking sector, which accounts for 33 of the 100 entries and 18% of the list by value, expanded by an aggregate 6.3% in absolute terms. Al-Rajhi Bank, the largest banking entry at $107.9bn, reported FY2025 net profit up 26% to SR24.8bn ($6.6bn); total assets passed SR1tn for the first time and Q1 2026 net profit rose a further 14%.
Emirates NBD, up 23% year-on-year to $47.1bn, reported FY2025 record profit before tax of AED29.8bn ($8.1bn) and likewise crossed AED1tn in total assets.
Kuwait Finance House also rose by 19%, Abu Dhabi Commercial Bank 19% to $28.7bn and Saudi National Bank 11%. Qatar National Bank stalled and slid 1%, while several smaller banks saw gains. Egypt’s Commercial International Bank rose 74% to $8.4bn off a depressed base, Jordan’s Arab Bank meanwhile rose 55%, Oman’s Bank Muscat by 52% and RakBank by 32%.
Several sectors have gained significantly owing to their direct exposure to the Iran conflict’s supply-chain repricing, including logistics, fertilisers and mining.
Logistics firms in the list gained 44% in absolute terms, with Saudi Arabia’s Bahri reporting Q1 2026 net profits up 303% year and revenue up 129%.
Marsa Maroc, the Casablanca-listed port operator, also entered the list at $6.6bn, up 85% on an African expansion that spans 34 terminals across 20 ports following a Liberia management deal signed in February.
Adnoc Logistics rose 32% to $11.6bn, while Air Arabia, the Sharjah-based low-cost carrier, joined the list at $6.1bn as it absorbed redirected long-haul flows. Nakilat, the Qatari liquefied natural gas shipping operator, was the sector’s sole softener, down 12% on slower throughput.
Mining and fertiliser entries sit alongside the logistics gainers. Jordan Phosphate Mines is the cleanest single expression of the post-Hormuz repricing visible on the list – up 127% year on year to $13.2bn, as the World Bank’s April 2026 Commodity Markets Outlook projects fertiliser prices to rise nearly 31% in 2026.
Maaden rose 23% to $65.3bn after FY2025 net profit jumped 156%, backed by record phosphate production; high aluminium output; and rising silver, copper and aluminium prices linked to artificial intelligence, data centre, solar and electric vehicle demand.
Morocco’s Managem also entered the list at $19.7bn, having almost tripled in value in the past two years on cobalt, silver and copper prices and African expansion.
Sabic Agri-Nutrients rose 44% on a 30% 2025 net profit increase, while Fertiglobe rose by 40% – both potentially anticipating a 60% forecasted rise in urea prices.
Property and other trends
The direction of the property and real estate sector has been uniformly downward. The Iran conflict has driven both a slump in UAE property sales and prices and a similar tourism-adjacent correction in Saudi Arabia. Both the Mecca-focused Umm Al-Qura and Jabal Omar development firms have seen their valuations slashed by more than a third, while Makkah Construction & Development slid by 15%.
The UAE’s Emaar Properties and Dar Al-Arkan and Qatar’s Ezdan Holding have also all seen slides of more than 15%. Kuwait’s Mabanee, which rose by 22%, is the one exception in the sector.
In Saudi Arabia’s mid-tier, Acwa Power shed 29% in value even as its revenue rose 18% and its net income 5.4%. Elm Company likewise shed 33%, Dr Sulaiman Al-Habib 19% and the Saudi Tadawul Group 21%.
Mouwasat Medical Services, MBC Group, Nahdi Medical and Saudi Logistics Services fell out of the list entirely on the same trajectory. Each had reported FY2025 earnings rises before the decline. What corrected was the valuation, not the operations.
Acwa Power’s trailing four-quarter average price-to-earnings ratio was 166x, and even after this year’s decline sits at 88x against the Saudi market average of 17.8x. Elm sits at 26x, Al-Habib at 33x, Saudi Tadawul Group at 42x – all rich by any comparable benchmark.
Many of these entries have fallen away from their peak valuations as the cooling of the gigaproject programme since early 2025 has undermined sentiment.
One example that sits on the same axis from the UAE side is Abu Dhabi National Energy Company (Taqa), which fell by 28% from $95.3bn to $69.0bn despite a 6% net income rise, even as capital expenditure also expanded by 50%.
There are now nine entries from Morocco’s Casablanca bourse against six a year ago, with an aggregate value of $74.7bn, up from $50.8bn. Industrial contractor Societe Generale des Travaux du Maroc,entered via a December 2025 initial public offering (IPO). Several Moroccan stocks have also slipped, however, including Taqa Morocco, down 42%; Maroc Telecom, down 18%; Banque Populaire, down 13%; and Bank of Africa, down 10%.
There has been a similarly divergent trend among 2024 IPO entrants. While OQ Exploration & Production rose 68% to $10.1bn and is now the largest stock on the Muscat Securities Market, the UAE’s Talabat – 2024’s second-largest IPO at $9.2bn – has corrected 33% to $6.1bn.
The Multiply Group has been replaced on the list through its November 2025 merger into 2PointZero Group, which now sits in the top 30 entries at $19.6bn.
Regional repricing
Four trends underpin the list’s 7.2% recovery. The conflict has repriced specific cohorts sharply higher – logistics up 44%, mining and fertilisers up 43%, the Yanbu refiners returning, and Aramco recovering to $181bn – with gains contingent on the Strait of Hormuz remaining closed.
Regional banks have maintained last year’s momentum, with assets crossing trillion-unit thresholds and loan books supported by project activity. Six names have posted double-digit gains that are unlikely to reverse if conditions normalise.
Saudi mid-tier stocks have corrected largely on valuation rather than operations, despite many reporting earnings growth through 2025, as confidence in gigaproject-driven growth has weakened. Property has also softened in the region as conflict has reduced routine and religious tourism.
The 12-month outlook depends on whether Hormuz reopens, whether Saudi mid-tier valuations stabilise, and whether banking expansion holds under broader repricing.
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Developers win deals for $3.5bn of Mecca projects
1 June 2026
The Royal Commission for Makkah City and Holy Sites has awarded six real estate development deals. The projects, which cover a total land area exceeding 2.7 million square metres (sq m), will require a total investment of SR13.3bn ($3.5bn).
The sites are located within the neighbourhoods of Jurhum South, Al-Khalidiyah, Al-Hajlah, Al-Hindawiyah East, Al-Hindawiyah South and Al-Hindawiyah West. The projects will be delivered as partnerships with domestic real estate developers, institutional investors and dedicated private investment funds.
A consortium consisting of Makkah Construction & Development Company, Umm Al-Qura for Development & Construction Company and Al-Rajhi United Real Estate Company will develop the Hindawiya West and Hindawiya South districts, which have a combined area of nearly 1.15 million sq m, adjacent to the Masar Destination project. The consortium informed the Saudi Stock Exchange (Tadawul) that it received letters of award for the project on 31 May.
The initial cost of the project is estimated at SR6bn. Umm Al-Qura will act as the consortium leader and development manager, while Makkah Construction & Development Company will serve as the financial partner. The infrastructure works will be executed by Al-Rajhi United Real Estate Company as the technical partner, with the entire development financed through a private, closed-ended real estate investment fund overseen by a Capital Market Authority-licensed manager.
A consortium comprising First Avenue for Real Estate Development Company, Dar Al-Majed Real Estate Company and Rekaz Real Estate Company has been awarded the concession for the East Hindawiyah site. Located 1.8 kilometres from the Holy Grand Mosque, the 235,000 sq m plot is expected to cost SR2bn to develop, which includes land acquisition and foundational infrastructure. The development will be structured as a real estate investment fund managed by Jadwa Investment, with the ultimate goal of creating an integrated urban destination featuring retail, office, hospitality and residential components. The final contract signing for this deal is expected by 10 June 2026.
Ladun Investment Company, in partnership with Al-Ayuni Investment & Contracting Company, has signed a deal for the Al-Khalidiyah district. With a targeted sales value exceeding SR6bn, the consortium will establish a closed-ended private real estate investment fund to execute extensive infrastructure works, subdivide the land plots, and handle subsequent marketing and sales. The detailed scope of works involves complete engineering designs, public park planning and utility coordination with entities such as National Water Company and Saudi Electricity Company, before a contract is signed by 9 June.
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