Thanks to revenue from oil and gas exports, these nations are also capable of making substantial investments in costly low-carbon energy technologies such as nuclear power or carbon capture and storage (CCS).

The GCC region stands at the forefront of the changing global energy system. But its capacity in the energy sector extends beyond its abundant resources and capital. It’s essential to recognise the role of its energy workforce and leaders in facilitating the transition to a net zero future.

This aspect was discussed during a session of the Energy Institute’s International Energy Week conference in February, titled ‘EI Middle East Energy Barometer: Transitioning GCC Economies – Threats and Opportunities’. The discussion was moderated by Dr Waddah S Ghanem Al Hashmi, Chair of Energy Institute Middle East.

A starting point for the discussion was the Energy Barometer 2023: UAE in transition report, published in advance of the COP28 summit in Dubai in 2023. Just over 100 professionals from across the UAE’s energy sector, from oil and gas to renewables, energy and carbon management, hydrogen, waste-to-energy and CCS, took part in this project via a survey, interviews and workshops.

The research revealed a mixture of concern among professionals working and living in the UAE about the threats posed by climate change and the global energy transition, tempered with optimism about meeting nationally-set targets on emissions reduction and energy diversification.

Within the GCC, rather than replacing oil and gas, renewable development is creating a new industry alongside them, with a focus on domestic needs.

The panel participants emphasised that the survey responses don’t fully reflect challenges and opportunities present in the entire region. Highlighting the differences, Dr Yousef M Alshammari, CEO of CMarkits and Honorary Senior Research Fellow at Imperial College London, commented on the varied levels of dependency on hydrocarbon reserves; the limited adherence to net zero targets (since not every GCC state has committed to this goal); the different pace of diversification across the region; and the distinct exposures to foreign investment and diverse political strategies.

However, attention was drawn to a common phenomenon across the GCC nations: the youthful, ambitious, diverse, technologically savvy and flexible workforce. These young energy professionals were seen by the panellists as the driving force behind the energy sector transformations in their respective countries. Such a force requires capable leaders to further empower it and maximise its potential.

With youthful populations, ~80% of whom are under the age of 40, the region is filled with young professionals eager to seize the opportunity to drive change quickly and lead the transformation.

Even in socially conservative countries like Saudi Arabia, the new generation eagerly embraces change, largely driven by technological advancements, according to Dr Alshammari. Digitalisation is key, with access to smartphones and the growing abundance of software applications, they recognise their unique skill sets compared to previous generations.

However, harnessing this potential requires adequate training, education and provision of job opportunities. Also, ensuring inclusivity, gender diversity and eliminating cultural and regional barriers are vital for success in this aspect. Optimism was expressed regarding the inclusion of women in the GCC’s energy sector, as a female representation in roles previously dominated by men is becoming increasingly common.

Chris Nicholson, Managing Director of Russell Reynolds Associates, emphasised the changing global dynamics of leadership styles that enables the broader energy workforce. It is becoming increasingly evident that traditional command-and-control, top-down leadership approaches are no longer effective in today’s rapidly evolving energy landscape, he said. Such a shift towards a new management culture is already observed in Europe and the US, and will be also essential in the Arab Gulf.

Moreover, he maintained that the COVID-19 period, when executives had to adopt novel, two-dimensional approaches to management, serves an example of how leadership styles may rapidly adjust to extraordinary circumstances. In fact, the post-pandemic period has witnessed a fundamental redefinition of effective leadership, including within the energy sector.

Christopher Bradley, a Dubai-based consultant from Russell Reynolds Associates, highlighted the optimism engendered in the success of energy transition in UAE, significantly driving change and underscoring the understanding among energy leaders that inaction is not viable. This optimism is reflected in the Energy Barometer 2023, which indicates a high level of confidence in the UAE’s ability to achieve its targets for reducing domestic greenhouse gas emissions and diversifying energy sources.

Other participants in the discussion contended that the GCC states are unlikely to swiftly transition away from fossil fuels. Instead, the development of clean energy sources is perceived as primarily motivated by the opportunity to enhance the region’s oil and gas exports. Within the GCC, rather than replacing oil and gas, renewable development is creating a new industry alongside them, with a focus on domestic needs. This necessitates the establishment of a completely new business model and the acquisition of adequate skills. Indeed, energy professionals in the GCC view the energy transition as an opportunity for progress.

In conclusion, the panellists emphasised that the success of the energy transition in the GCC depends not only on the development and scalability of clean energy technologies, but also on nurturing capable, action-oriented leaders and a flexible workforce.

For more information about the Energy Institute’s Executive Leadership in Energy Programme visit https://www.energyinst.org/whats-on/academy/executive-leadership-in-energy-programme

•  Further reading: ‘Qatar to increase LNG production capacity by nearly 85%’. QatarEnergy’s LNG expansion plans stand in stark contrast to the final COP28 Agreement announced late last year that saw 198 countries agreeing to transition away from fossil fuels. 
• ‘COP28 Perspective: The UAE – contradiction or blueprint?’ Dr Waddah S Ghanem Al Hashmi FEI, Honorary Chair of EI Middle East and a senior director in the energy sector, reflects on the duality of the UAE’s energy story.