Energy official urges balanced transition for sustainable future

16/09/2025 04:39 AST

Secretary General of the Arab Energy Organization (AEO) Jamal Al-Loughani affirmed on Sunday that integrating traditional and renewable energy sources represents the most effective path to achieving energy security, ensuring stable supplies and meeting growing demand while observing environmental standards.

Speaking at the opening of a two-day conference titled "Empowering the Future: Energy Transition and Economic Diversification in Arab Countries," organized by the Arab Planning Institute in cooperation with AEO and the Mohammed Bin Rashid School of Government, Al-Loughani underlined the need to diversify Arab economies and reduce reliance on fossil resources as a cornerstone for sustainability and competitiveness.

He stressed that oil and gas will remain vital to the global and regional energy equation in the coming decades, serving as strategic sources of revenue, employment and industrial investment for Arab countries. He noted that Arab investments in renewable energy projects have risen by 35 percent since 2020, reaching over $18 billion, and covering solar, wind and green hydrogen initiatives.

Al-Loughani described the conference as timely, given the accelerating global shifts in energy, economics, technology and climate. He emphasized that the energy transition should not be viewed as an abandonment of oil and gas, but as a call to utilize them more efficiently and sustainably through technologies such as carbon capture, blue hydrogen production and refinery optimization. Citing a recent AEO study, he explained that combining solar energy with natural gas in electricity generation could reduce emissions by up to 40 percent and enhance grid efficiency by 25 percent. He also highlighted natural gas as a pivotal fuel in the clean energy transition, particularly in power generation.

Since its inception, he said, the organization has provided a key platform for Arab cooperation in energy, expertise exchange and policy support to balance the use of traditional resources with the adoption of sustainable solutions. He added that AEO member states are actively working to stimulate clean technology investments, foster public-private partnerships, and develop human capital to ensure a smooth and equitable shift toward a low-carbon economy without undermining energy security or market stability.

For his part, Dr Ali Al-Marri, Executive President of the Mohammed Bin Rashid School of Government, stressed that the conference takes place amid global economic challenges, climate pressures and rapid technological advances, which necessitate reformulating national and regional policies to secure energy and promote diversification.

He warned that fluctuations in oil markets, rising demand for clean energy, and the impacts of climate change impose new responsibilities requiring innovative strategies and long-term visions. He underscored the importance of flexible industrial policies, effective governance systems, and the development of non-oil sectors such as artificial intelligence and the circular economy to support sustainable growth.

Al-Marri further highlighted the role of small and medium-sized enterprises in strengthening economic diversification, while pointing to the need for labor market reforms to prepare a skilled workforce for emerging green industries. He also called for enhanced education systems and social protection measures to ensure equity and stability.

Regional cooperation, he said, remains essential to build joint energy networks, attract cross-border investments and create platforms for economic integration. He stressed that the energy transition is a collective project that requires combined efforts of governments, private sector, academia and international organizations. Al-Marri concluded by expressing gratitude to the Kuwaiti government and conference partners, voicing hope that the sessions will serve as springboard for constructive ideas, practical strategies to advance sustainable development and strengthen region's global standing.

KUNA