Middle East energy market a magnet for growth: EIC

The Middle East is powering ahead of global energy markets and is a magnet for international businesses, thanks to its pragmatic energy investment approach and enthusiastic tech adoption, according to the Energy Industries Council’s (EIC) latest Survive & Thrive report

90% of energy companies operating in the region reported growth in 2024, according to the EIC report, the highest across all regions surveyed, with further growth forecast in 2025. The Middle East recorded the highest average company growth rate at 68%, compared with 20% growth reported by firms in the Americas, followed by the UK and Ireland at 16%, Continental Europe at 13%, and Asia Pacific lagging behind at 8%.

Businesses are flocking to the region, which is increasingly seen as a high-performance zone for energy, buoyed by consistent government support, low business costs, booming project activity and policies that actively reward private sector growth. As the report notes, supply chains are mobile, and companies are increasingly relocating operations and skilled personnel to regions offering policy stability and better returns, the Middle East being the big winner here.

At a time when much of the world is grappling with policy uncertainty, inflation, and talent shortages, the Middle East appears to be charting its own, far more confident course, according to the EIC, the world's leading trade association for companies providing products and services to the energy industry.

“The Middle East isn’t picking winners, it’s investing in all energy technologies,” said Stuart Broadley, CEO of the EIC. "That pragmatism is why it's now the global magnet for talent and capital. This is indeed the right approach to follow for energy security, industry growth, and supporting the energy transition."

While hydrocarbons remain vital, with more than 90% of EIC member companies in the region still focusing on oil and gas, the growth of investment into renewables, hydrogen, and digital infrastructure reveals a willingness to embrace what’s next, without abandoning what works now.

The UAE and Saudi Arabia, in particular, have made aggressive moves not just in oil and gas, but in AI-driven logistics, smart infrastructure, and clean technology.

“Encouraging tech adoption in logistics — like GPS tracking, automation, and AI — would increase efficiency, transparency, and global competitiveness,” said one executive interviewed for the Survive & Thrive report, echoing a broader sentiment that the region is now outpacing even the US and Europe in practical tech adoption.

However, there are challenges. Over 27% of companies flagged local content schemes as a critical issue. While national in-country value (ICV) programmes are designed to boost
domestic participation, the fragmentation across Gulf Cooperation Council (GCC) countries often complicates compliance for multinationals operating regionally. Harmonisation across the GCC could reduce duplication and unlock even greater regional synergies.

Labour localisation is another problematic area, the report shows, with more guidance needed to support the private sector in attracting and retaining local talent.

There is also rising pressure on infrastructure, with around 18% of executives called for smarter logistics parks, dedicated freight corridors, and improved trade infrastructure.

Despite these obstacles, business confidence remains high.

“For many international firms, the equation is simple: go where the work is, and the Middle East has it in abundance,” the EIC says.

The report features 139 success stories and insights from 138 EIC member companies and underscores the need for all regions to learn the lessons of the Middle East. 

To view the full report, please visit the following link: https://www.the-eic.com/MediaCentre/Publications/SurviveandThrive