Outlook 2022: Middle East and Asia joined at the hip

Greening strategies in the east are creating strong prospects for states to increase gas exports

The Middle East is uniquely positioned in the energy transition. The global fight to tackle climate change is both a concern and an opportunity for oil and gas producers in the region, especially those sitting on massive hydrocarbon reserves in countries with poorly diversified economies. And while growing international pressure to quit fossil fuels is increasing the risk of Gulf assets becoming stranded, the slower pace of decarbonisation in Asia is opening up new export possibilities. In the Middle East, the energy transition is closely tied to oil and gas exports. Decarbonisation requires massive financing, and countries in the region rely heavily on the sale of fossil fuels for revenue.