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Insight08 FEB 2026Group Strategy

Why the Energy Transition Will Reshape MENA Industrials Over the Next Decade

Capital flows, regulation and an emerging green hydrogen value chain are quietly rewriting the competitive map for industrial operators in the region. Here's how we read it.

The energy transition is often framed as a story about renewables capacity. In MENA's industrial base, the more consequential story is happening one layer down — in feedstocks, logistics and capital structures.

Three forces are converging. First, sovereign capital is moving decisively into low-carbon infrastructure. Second, regulation is repricing carbon at the border — what crosses into Europe, in particular, is increasingly priced for embedded emissions. Third, a credible green hydrogen value chain is taking shape, with Egypt, Saudi Arabia and Oman positioned as low-cost producers.

For industrial operators, the implication is direct: the cost-of-capital advantage that came from scale alone is no longer sufficient. The advantage now sits with operators that can document low-carbon process intensity, and that have the balance-sheet flexibility to retool. Our portfolio is sequencing capex accordingly.