Industry

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

Economic growth in the Middle East is projected to rise to 3.5% in 2025, up from at 2.1% in 2024, according to the latest ICAEW Economic Insight report for the region, driven by the expected unwinding of oil production cuts by OPEC+ and continued strength in non-energy sectors

The extension of oil production cuts by OPEC+ has led to a slight downward revision of the GCC's 2024 growth forecast to 2.1% from 2.2% three months ago. While this reflects the temporary impact on the region’s energy sector, the outlook for 2025 remains optimistic as oil production increases, providing a strong boost to the region's economies. The GCC region is poised for a significant rebound, with growth projected to more than double to 4.4% in 2025 as oil production cuts are gradually phased out.

Resilient non-energy sectors

The report, prepared by Oxford Economics, highlights the resilience of the GCC's non-energy sectors, which are expected to expand by 4.4% in 2025. Strong domestic momentum, along with anticipated interest rate reductions, is expected to boost consumption and private investment, while non-oil sectors including tourism, trade, and finance, are becoming crucial growth drivers in the region’s economic diversification efforts.

Kuwait's economy is forecast to grow by only 0.5% due to ongoing oil production cuts, but is expected to rebound to 2.5% in 2025-26. The recent discovery of the Al-Nokhatha oil field, with estimated reserves of 3.2bn barrels, will have a positive impact on the oil sector, supporting Kuwait's aim to expand production output to 4mn barrels per day by 2035.

Oman's economy is projected to achieve a growth rate of 1.5% in 2024, supported by a resilient non-energy sector, rising to 2.3% in 2025, as oil production restrictions are eased. Oman's public finances remain robust, and the country's commitment to fiscal reforms and diversification efforts has resulted in Moody's upgrading Oman's Ba1 credit rating to positive.

Hanadi Khalife, head of Middle East, ICAEW, said, “The report underscores the importance of resilience in navigating global economic and regional geopolitical headwinds. We are confident that the Middle East's business community, supported by the expertise of the accountancy profession, will continue to demonstrate its ability to innovate and thrive amid these challenges.”

Scott Livermore, ICAEW economic advisor, and chief economist and managing director, Oxford Economics Middle East, said, “The GCC’s proactive and strategic investment in non-oil sectors, alongside the gradual recovery of oil production, is paving the way for robust growth in 2025. In a global environment of slowing economic growth, the resilience of the GCC stands out. The region’s strong performance across both energy and non-energy sectors – particularly in tourism, trade, and finance – positions it for sustained success in the coming year.”

The MABI Bingo 2 EVO. (Image source: MABI AG)

MABI AG, a leading supplier of sheet metal working machines for insulation technology, is showcasing its latest innovations at Gastech 2024 in Houston, Texas

These include the new MABI Bingo 16-Z EVO, which offers customers an "all-in-one" package in the smallest possible space, including a cutting system with integrated pipe line.

The fastest pipe line, MABI 16-4Z Classic, produces up to 10 ready-to-assemble metres of pipe meters per minute, while the incomparable MABI Bingo 2 EVO is also on the stand as the top model among the cutting machines.

MABI’s cutting machines have a high reputation worldwide thanks to innovative software. MABI’s cutting machines feature its MABI IsoPlaner digital measuring system, developed taking the familiar environment of the surveyor consistently into account. From the site measuring sheet to production, it is simple and clear. Clear symbols such as the marking of the seam position are indications of the simple operation and typical MABI user-friendliness.

The Industry 4.0 interface enables data retrieval in real time. Data can be queried in real time and processed externally.

Data-based services offer the opportunity to continue to produce successfully and cost-efficiently in the future. With MABI Smart Factory, the information relevant to your machine is always available at the right time.

MABI AG is exhibiting on Stand B384 at Gastech in Houston Texas from 17-20 September, where it is demonstrating a complete workshop including the digital measuring system.

TAQA has launched a new brand identity. (Image source: TAQA)

Abu Dhabi National Energy Company (TAQA), the integrated utility company, has launched a new brand identity for its group of companies

The rebranding underpins the company’s strategy to increase awareness of extent of TAQA’s utility activity covering the entire utility value chain, as it pursues growth through delivering integrated power and water services in the UAE and internationally.

Under the new brand identity, Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) will be brought under a single new brand, TAQA Distribution; Abu Dhabi Transmission and Despatch Company (TRANSCO) will become TAQA Transmission; Sustainable Water Solutions Holdings (SWS Holdings) will be rebranded as TAQA Water Solutions; and Abu Dhabi Energy Services (ADES) will become TAQA Energy Services.

Boosting awareness

Jasim Husain Thabet, TAQA’s Group chief executive officer and managing director, commented, “In the past four years we have been driving improvements in the performance of TAQA’s operating companies and growing our business. These changes to the brands of our operating companies will provide a major boost to the awareness and understanding of the scale and breadth of TAQA’s role in Abu Dhabi and the scope of our activities as one of the largest integrated utilities in EMEA and a national champion for the UAE. TAQA’s operations underpin part of the daily life of millions of people globally through the power and water services we provide. We take our responsibility very seriously and are determined to continue to be at the heart of the UAE drive towards net zero and to play our role in the energy transition.”

Omar Al Hashmi, TAQA Distribution’s incoming chief executive officer, added, “ADDC and AADC have powered our communities for decades, ensuring that essential energy and water is delivered to every home in Abu Dhabi. Unifying the two will create a distribution powerhouse, with the scale and capability to support TAQA’s overarching mission of being a low-carbon power and water champion.

“Combining the strengths and talents of both into a single entity will enhance the service we provide to our customers while also creating a more dynamic and more innovative organisation. As TAQA Distribution, we are committed to continuing to serve our communities while adhering to the utmost standards of excellence.

“Moving into 2025, the rebrand will allow TAQA’s market leading businesses to build on their track record of operational excellence, with a continued focus on building its digital and advanced technology capabilities and strengthening its strategic partnerships to support TAQA’s long-term growth in line with the Group’s sustainability and ESG targets.”

Saipem’s scope of work encompasses the engineering, procurement, fabrication and installation of six platforms. (Image source: Adobe Stock)

Saipem has strengthened its position in the Middle East with the award of an EPC contract by QatarEnergy LNG worth around US$4bn

The contract is for the Combined COMP3A & COMP3B of the North Field Production Sustainability Offshore Compression Program aimed at increased production of the North Field offshore natural gas reservoir, located offshore the north-east coast of Qatar.

Saipem’s scope of work encompasses the engineering, procurement, fabrication and installation of six platforms as well as around 100 km of corrosion resistance alloy rigid subsea pipelines of 28’’ and 24’’ diameter, 100 km of subsea composite cables, 150 km of fibre optic cables and several other subsea facilities.

The contract follows the EPC package for the North Field Production Sustainability Offshore Compression Complexes Project - [COMP 2], awarded to Saipem in October 2022 and currently underway.

QatarEnergy’s North Field LNG expansion includes the North Field East (NFE), the North Field South (NFS) and the recently announced North Field West (NFW), which together will raise Qatar’s LNG production capacity from the current 77 MTPA to 142 MTPA in 2030, thereby cementing Qatar’s status as a leading global LNG producer and exporter.

The contract follows recent wins for Saipem in Saudi Arabia as part of its Long Term Agreement (LTA) with Aramco; in July it won two offshore EPC contracts worth around uS$500mn relating to the Abu Safa, Berri and Manifa fields, which was followed by won two offshore EPCI contracts worth around US$1bn relating to the Marjan, Zuluf and Safaniya oilfields in September.