From gas to global minerals: Qatar expands energy legacy

29/08/2025 02:41 AST

In a world racing toward decarbonisation, the Middle East and North Africa (MENA) are standing at the precipice of historic transformation. Long defined by oil and gas wealth, the region is now seeking to secure its place in a post-hydrocarbon future.

This was the central theme of the latest Al-Attiyah Foundation podcast, where host Stephen Cole spoke with Michael Finch, Head of Strategic Initiatives at Benchmark Mineral Intelligence, about the accelerating pivot toward critical minerals and what it means for Qatar and the wider region.

Finch emphasised that MENA nations are not merely reacting to global change but actively reshaping their economies for the decades ahead. Still, hydrocarbons represent around 40 percent of Saudi Arabia's GDP (Gulf International Forum, 2024), over 60 percent of Qatar's GDP (World Bank, 2023), and roughly a quarter of the UAE's GDP (Reuters/IMF, 2024). That dependence underscores the urgency of diversification. "There's a real economic imperative," Finch explained. "This is not simply about risk management-it's a lucrative opportunity."

Qatar's sovereign wealth fund, the Qatar Investment Authority (QIA), has become a leading international investor in the sector. QIA is the largest institutional shareholder in commodities giant Glencore, holding an 8-9 percent stake, and has recently invested in companies like TechMet and Rainbow Rare Earths, strengthening ties with supply chains vital for the energy transition. "QIA is positioning Qatar not just as an energy powerhouse but as a strategic player in the global minerals market," Finch noted. "This is a long-term strategy that underpins economic diversification and supply chain security."

Across the region, sovereign wealth funds hold an estimated five trillion US dollars in assets under management, increasingly channeled into mining, refining, and clean energy infrastructure. Saudi Arabia's Public Investment Fund and other state-backed vehicles are similarly making bold bets, including downstream ventures in electric vehicles and overseas acquisitions of mineral assets. The strategy is characterised by patience and foresight, with funds pursuing multi-decade returns tied to energy transition industries rather than short-term profit.

While MENA is unlikely to rival South America or Australia in sheer geological endowment, the region holds valuable reserves. Morocco stands out as a global leader in phosphate resources, critical for lithium iron phosphate battery cathodes, while Saudi Arabia is advancing rapidly in copper, gold, and rare earth elements. New extraction technologies, such as Direct Lithium Extraction, could also unlock value from the region's oilfield brines-leveraging existing hydrocarbon infrastructure for future supply chains.

The conversation also touched on electric vehicle adoption in MENA, which remains at an early stage with penetration generally under 1% across the region, though the UAE leads at around 3% new car sales (Bain & Company, 2024). Still, growth targets are ambitious: Morocco aims to expand EV production capacity to 100,000 vehicles by 2025 (CleanTechnica, 2024), while Saudi Arabia has set a goal of producing 500,000 EVs annually by 2030 (Construction Week Saudi, 2024).

Finch concluded: "The energy transition is not a threat to the region-it is an opportunity. With resources, capital, and expertise, MENA can become a cornerstone of the future global energy system".

For Qatar, and for the wider region, the era of critical minerals is not just a hedge against the decline of oil-it is the foundation of a new energy economy. To listen to the full episode, visit the Al-Attiyah Foundation's YouTube channel and social media platforms.

The Peninsula