Saudi Arabia and UAE leads GCC with $400 billion active oil and gas projects
Saudi Arabia and UAE leads GCC with $400 billion active oil and gas projects
At the end of 2019, Saudi Arabia and the United Arab Emirates had close to 400 million barrels of proven oil reserves, or 23 per cent of the global total. There are more than $400 billion of active construction projects in Saudi Arabia and the United Arab Emirates.
The GCC is the largest oil-producing region in the world. Of the six Gulf Cooperating Council countries, Saudi Arabia and the United Arab Emirates are the most populous and has the two largest economies. At the end of 2019, Saudi Arabia and the United Arab Emirates had close to 400 million barrels of proven oil reserves, or 23 per cent of the global total. Yet, it only produced 16 per cent of the world total. With global demand for fossil fuels estimated to peak over the next couple of decades, both Saudi and the UAE will aim to maximise revenue from this resource before it loses its worth.
COVID-19 played havoc with global oil demand sending prices into negative territory for the first time. Both countries are members of PEC+ who has struggled to navigate ways to balance worldwide oil supply and demand to ensure some stability in the pricing of this commodity. That said, both Saudi Arabia and the UAE are using the low utilisation of contractors to benefit from optimal construction pricing and push forward with developing new infrastructure. Between the two countries, there are currently $400 billion of active projects in the oil and gas sector. Of this, a quarter of a billion is in construction with a further $140 billion on the way.
