UAE gas demand to rise 50% in next 5 years, boosting investment opportunities

11/12/2025 04:06 AST

The Middle East's natural gas sector requires $200 billion (Dh734 billion) of investment in the next four years to increase production by 30 per cent to meet rapidly growing demand for power, industry executives said in Dubai on Wednesday.

Speaking at the Middle East Gas Conference, they said data centres, artificial intelligence, and digital infrastructure in the UAE and the region are the latest industries driving demand for gas.

"Our region is on track to become the world's second-largest producer of natural gas, behind North America. Since 2020, gas production has grown over 15 per cent, and is expected to rise another 30 per cent by 2030, which will require $200 billion of investment," said Majid Jafar, CEO of Crescent Petroleum and board managing director of Dana Gas in the opening speech of the conference.

"This is not just about meeting energy needs. It is about creating new economic opportunities, driving industrial diversification, and fostering stronger regional ties. Gas will be central to ensuring energy security, supporting industrial development, and enabling the clean energy transition," he added.

"We cannot fund this level of investment with traditional tools. We need new partnerships, investment from sovereign wealth, and the reinvigoration of MDBs (multilateral development banks) to offer new avenues of investment."

Crescent Petroleum boosted its natural gas production by 50 per cent.

"Demand in the UAE and across our region is growing rapidly. It has tripled in the last 20 years and will grow by 50 per cent in the next 5 years. The big drivers for gas demand are the power sector, the industrial sector, and now the new and growing sector of artificial intelligence digital infrastructure," Jafar told Khaleej Times.

It is estimated that regional gas production needs to add 14 billion cubic feet per day (bcfd) of new supply by 2030, equivalent to adding the gas demand of Europe's power sector, to reach 86 bcfd.

And delegates also highlighted how broader plans to build out the region's AI infrastructure, including in the UAE and Saudi Arabia, will add significant new demand as AI's power-hungry server farms seek to take advantage of the region's comparatively lower energy costs and modern infrastructure, and require stable baseload, reliable power, which natural gas can enable.

"The region is also embracing artificial intelligence, seeking to leverage its low-cost energy supply to become a centre for AI server farms and technology development, presenting even bigger demand for reliable baseload power and therefore, for gas," added the CEO of Crescent Petroleum.

Musabbeh Al-Kaabi, CEO of Adnoc Upstream, and Abdulkarim Al-Ghamdi, executive vice president for gas at Saudi Aramco, were also featured in special keynote sessions.

Delegates also emphasised the need to strengthen partnerships among producers, investors, and stakeholders, while promoting new investment models and championing regulatory frameworks to build integrated, resilient gas networks across the region.

Khaleej Times