Hanadi Khalife, head of Middle East, ICAEW. (Image source: ICAEW)

The latest Economic Insight report for the Middle East, commissioned by ICAEW and compiled by Oxford Economics, highlights the impact of extended oil production cuts on growth in the GCC region

The GCC growth forecast has been revised down to 2.2% from 2.7% three months ago, although non-energy sectors remain resilient, according to the report.

Due to the OPEC+ group’s extension of voluntary output cuts through Q3, GCC oil output will decline by 2.6% this year, according to the report. Saudi Arabia, which is bearing the brunt of production cuts, will see oil activities contract by 5% this year, down from a predicted growth of 0.7% three months ago. However, as voluntary production cuts are reversed in 2025, energy sectors will begin making positive contributions to GCC growth.

Qatar’s GDP growth for this year is forecast at 2.2% and is expected to rise to 2.9% in 2025, as a result of its North Field gas expansion project, which is not affected by OPEC+ production quotas. Bahrain’s GDP growth is 3.1% this year, but is expected to slow to 1.4% in 2025. The country continues to diversify its economy and reduce reliance on oil revenues.

Positive outlook for non-oil sectors 

There is a positive outlook for non-energy sectors across the GCC, which will continue to grow. In Saudi Arabia, giga-projects are expected to boost investments in construction, manufacturing and transportation. Strong momentum in the sports and entertainment, hospitality and tourism sectors are expected given the Vision 2030 focus on these sectors. Tourism is a strategic sector in other countries too, and will remain a key growth driver. Tourism activity has rebounded strongly, with record visitor numbers across the GCC in 2023, extending into this year.

Saudi Arabia, Bahrain and Kuwait are likely to record see budget deficits this year and in 2025 as the current oil price level is below the fiscal breakeven point, the report forecasts. However, the overall GCC budget position will likely remain in surplus, bolstered by strong financial standings and favourable credit ratings, allowing continued access to funding from capital markets and IPOs.

Hanadi Khalife, head of Middle East, ICAEW, said, “While geopolitical risks present headwinds for the GCC and wider Middle East, we are encouraged by the ongoing commitment to diversification and sustainability targets. Qatar, for example, became the first GCC sovereign to issue green bonds despite not having explicit net-zero targets. Bahrain is also aligning its non-oil economic growth with its Economic Vision 2030 and COP28 commitments to reduce carbon emissions by 30% by 2035.”

Scott Livermore, ICAEW economic advisor, and chief economist and managing director, Oxford Economics Middle East, added, “Although the region faces escalating pressures amid slowing global economies, the GCC remains relatively positive due to strong bilateral deals and investment.”

Aarti Dange, customer experience leader, Middle East and Africa and MEA DE&I leader, at Emerson. (Image source: Emerson)

On the occasion of International Women in Engineering Day on 23 June, Aarti Dange, customer experience director, Middle East and Africa and MEA DE&I leader, Emerson, shared her experiences and insights on providing a supportive environment for women in engineering

Can you give us some background about your role, and how you came to get where you are today?

My role at Emerson is multifaceted, allowing me to leverage my engineering background and my passion for innovation. As the customer experience director and diversity, equity, and inclusion (DE&I) leader for Middle East and Africa, I support marketing and business development functions as well as product development for new digital solutions. I strongly believe in the power of diversity, equity and inclusion in the workplace, and therefore I constantly strive to create a working environment where everybody feels valued and empowered.

My journey to this point began with my keen interest in the energy sector. It is a constantly evolving field, driven by innovation, creative ideas, and various challenges such as sourcing new energy resources from increasingly intricate places like deep underground or under the ocean. This calls for the employment of cutting-edge technologies, such as Artificial Intelligence and Machine Learning. It is fascinating and inspiring to see how these advanced technologies constantly improve and drive positive change, whether in finding new energy sources or making processes safer. Nevertheless, there exists several challenges in the industry, such as the cyclic nature of the industry and its impact on the environment. These challenges, however, open doors to innumerable opportunities for innovation and sustainable energy solutions.

What are the main challenges you have experienced as a woman engineer so far in your career, and how have you overcome them?

As we know, the engineering industry has traditionally been a male-dominated field, which can create a culture that may not be inclusive or supportive of women. Additionally, specific roles in the industry, particularly those involving work on rigs or in remote locations, may set forth physical demands that can be challenging for women. In order to overcome these challenges, I focused on honing and expanding my technical skills and expertise as well as staying current on the most recent technologies. This commitment earned me acceptance and respect from my male counterparts at the company.

I also strived to demonstrate diligence and confidence in my work in order to challenge existing biases, pursued opportunities for professional development and endeavoured to build a robust network within the industry. Industry events, conferences, and workshops not only broadened my skillset and knowledge but also enabled me to connect with other fellow women engineers..

Overall, my journey as a woman engineer, despite all the hurdles in the historically male-dominated industry, has been challenging and rewarding at the same time. Through perseverance, seeking mentorship, advocating for myself, and committing to positive change, I have been able to achieve success.

What do you think have been your main achievements, and what are your aspirations and ambitions for the future?

One of the major achievements that stands out as a pivotal milestone in my career is being selected for the SPE (Society of Petroleum Engineers) Distinguished Lecture Program. Being selected for this program recognises my expertise and contributions to the field and empowers me to make a meaningful impact beyond my immediate sphere of influence, enabling me to serve as a technology ambassador for the oil and gas industry globally. Representing the industry and having the opportunity to inspire and educate individuals about the developments and challenges in the oil and gas industry is a humbling yet thrilling experience. It reaffirms my dedication to remain at the forefront of technological advancements and exchange insightful knowledge with the global community. I consider this achievement as a tremendous honour and responsibility that I deeply cherish.

What do you think companies could do to create a more inclusive and supportive environment for women in engineering, and help them advance in the industry?

Companies can offer training for their employees, particularly those engaged in hiring and promotion procedures, to identify and address unconscious bias. This can guarantee that women are evaluated fairly according to their qualifications and skillset. Furthermore, companies can host diversity events, honour accomplishments of female engineers, and foster an inclusive workplace where all employees are treated equally and fairly, and feel valued.

Mentorship and sponsorship programmes can be established, which can help women engineers to overcome challenges in the field by allowing them to interact with seasoned professionals and mentors who can offer guidance, support, and opportunities for professional growth. Providing women engineers with specialised training programmes, conferences, workshops, and other professional development opportunities can help them grow their skills and networks, in addition to advancing their career in this industry.

One initiative that has received significant recognition is the ‘Women in Engineering (WIE)’ program by the Society of Women Engineers (SWE) which offers networking events, professional development workshops, mentorship opportunities, and advocacy for gender diversity in the field of engineering.

How do you think young girls and women can be encouraged to pursue careers in engineering?

Gender stereotypes in around science, technology, engineering and mathematics (STEM) careers must be dispelled, and this starts with early childhood education and interventions for boys and girls. Encouraging young girls and women to pursue engineering career needs an interdisciplinary strategy that includes diversity initiatives, supportive environments, and exposure.

One successful method is to introduce girls to this field at a young age through various means, such as STEM education programs through schools and organisations. For example, the ‘Girls Who Code’ organisation seeks to bridge the gender gap in technology by providing young girls from diverse backgrounds with coding education. Academic institutions can provide STEM education focusing on female students. These programs can include engineering-related workshops, mentorship opportunities, and hands-on activities. Showcasing success stories of accomplished female engineers will encourage young girls to consider this field as a feasible career option. Likewise, parents have a great influence in shaping children’s career aspirations and professional goals. They can support the interest of their daughters in STEM subjects and offer resources for them to learn more about engineering.

Creating supportive environments through mentorship, networking opportunities, and offering a safe space to address bias and stereotypes is crucial for retaining women in the field of engineering. All these strategies contribute to empowering and encouraging women to pursue careers in engineering as well as help them succeed in the industry.

What future do you see for women in science, technology, engineering and maths (STEM), and the opportunities on offer in these sectors?

I see a promising future for women in STEM. Over the past few decades, women have made great strides in the STEM professions, and this trend is only anticipated to increase. STEM sectors offer diverse opportunities to individuals with varying backgrounds and interests. These industries have a growing need for qualified workers and provide excellent career prospects, competitive pay, and opportunities for advancement.

Ola Balbaa, wells engineer, bp and young professional member of the POWERful Women board. (Image source: POWERful Women)

In advance of International Women in Engineering Day on 23 June, Oil Review Middle East spoke to Ola Balbaa, wells engineer with bp and young professional member of the POWERful Women board, who shared her experiences and thoughts on advancing women in engineering roles

Can you give us a bit of background about your role, and how you came to get where you are today?

I studied Petrochemicals Engineering in Egypt, at Alexandria University, followed by an M.Sc. degree in renewable energy, doing a joint research scope between Alexandria and Kyoto University in Japan.

I then joined bp as a wells engineer in 2016, working offshore, and have been working in this role in the energy field for seven years now. During my career span, I worked offshore on deepwater harsh environment facilities for almost three years, then moved to an office-based role as a planning and execution wells engineer.

I have been able to obtain my leadership trust, steadily build a comprehensive knowledge in the field and reach out beyond that to expand my perspectives through different initiatives and volunteering opportunities. Currently I am part of the central wells discipline team looking after drilling operations in the North Sea region of the UK.

What are the main challenges you have experienced as a women engineer so far in your career, and how have you overcome them?

Working on offshore rigs is a harsh environment for both men and women; most challenges were around cultural acceptance of me as the only female engineer on a drilling rig of 160 men.

In this male-dominated and extreme work environment, my biggest challenge was to get the team’s trust to first learn and gain the knowledge I needed, then lead the team towards safe and efficient energy delivery.

My biggest success moment was when the old-school driller who refused to greet me every morning for six months of work on an onshore rig eventually came and shook my hand and said “I want my daughter to be like you”.

What do you think have been your main achievements, and what are your aspirations and ambitions for the future?

During my master’s degree studies I received the State's Encouragement Award in Science from Egypt’s Ministry of Trade and Industry, for my start-up project Wara2a (Paper), which was to produce paper ecologically without harming the trees or the environment. In 2018 I was nominated among the Top 50 Women in Egypt, an award given to influential female figures. I received the award from Dr.Hala El Said, Minister of Planning and Economic Development. I have lectured and spoken at several energy conferences, such as ADIPEC, IADC and SPE, as well as diversity platforms in Egypt and the UK. I currently lead the Women in Wells group in bp and recently joined the board of POWERful Women as a Young Professional member. I was recently invited by the CBC media channel to speak about women working in harsh fields.

What do you think companies could do to create a more inclusive and supportive environment for women in engineering, and help them advance in the industry? 

POWERful Women recently released its Annual State of Nation report which reflects how the top UK energy companies are performing on gender diversity. Women are now in 34% of leadership and 32% of middle management roles in the UK energy sector and some companies are excelling and leading by example.

However, progress on women on boards – and particularly the key decision-making roles like CEO – has stalled. I believe that the most important steps come beyond the analysis, stats and numbers. As well as setting bold targets, companies need to understand and dive deeply into the gaps that women face in their day-to-day jobs, address them thoroughly and keep a safe follow-up communications channel to track progress through enablers like male allies and surveys.

How do you think young girls and women can be encouraged to pursue careers in engineering?

Through research and persistence, anyone can do anything! Don’t quit early, fail early. In other words, if it’s really what you want, do it and pursue it, don’t give up and don’t get discouraged because of stereotypes. And if you fail fast, you follow a progressive route where you learn faster and keep the momentum to develop.

What future do you see for women in science, technology, engineering and maths (STEM), and the opportunities on offer in these sectors?

The energy trilemma is a huge challenge and opportunity at the same time. The transition to net zero and a reliable and affordable energy system is going to require skills, innovation and leadership from people from all kinds of backgrounds. Research shows that greater diversity adds huge value to business performance when done in the right way.

As the sector transforms, there are huge and exciting opportunities for women with STEM skills of all kinds, whether they are just starting out or can bring them over from other industries where they’ve worked – it’s a fast-moving and thrilling time, and women pursuing STEM careers will continue to carry huge value to the energy industry.

KBR will support the delivery of megaprojects in Iraq.

KBR has been awarded a US$46mn five-year contract to support the Iraqi government's infrastructure and future energy ambitions

Under the terms of the contract, KBR, which already plays a significant role in the development of Iraq’s energy sector, will provide advisory and consultancy capabilities to the Iraqi Government's Ministry of Planning, with a focus on creating an effective program environment to support successful delivery of strategic megaprojects. This will include economic planning, strategy development, feasibility studies, technical reviews and large-scale project management.

KBR's focus on innovation and sustainability will be integral to delivering the ambitious development plans, aligning with Iraq's long-term vision for growth and environmental stewardship.

Jay Ibrahim, president of KBR Sustainable Technology Solutions, said, "This is a great example of KBR utilising its growing global capabilities to support regeneration and sustainable growth of a nation. We are proud to further our partnerships in country, where we are already helping make our customers' ambitious plans a reality. With our deep expertise in engineering and energy solutions, KBR is well positioned to help our valued customers meet their energy security and sustainability objectives."

To support the project, KBR plans to expand its presence in country through the creation of an operational office in Baghdad and potentially an engineering design centre to enhance the skills of Iraqi engineers.