Middle East gas demand expected to rise by 3.5% in 2026: IEA

Middle East gas demand expected to rise by 3.5% in 2026: IEA
Natural gas is a significant source of energy for power generation, industrial processes, and heating. Shutterstock
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Updated 22 July 2025

Middle East gas demand expected to rise by 3.5% in 2026: IEA

Middle East gas demand expected to rise by 3.5% in 2026: IEA

RIYADH: The combined gas demand in the Middle East and Africa region is expected to rise by 2 percent in 2025 before accelerating to 3.5 percent in 2026, driven by higher use in the industry and power sector, an analysis showed. 

In its latest report, the International Energy Agency projected that global gas consumption is projected to reach an all-time high in 2026, with demand growth accelerating to around 2 percent, up from the expected 1.3 percent expansion in 2025. 

In April, a report by the World Bank echoed similar views, stating that global gas consumption is expected to be moderate in 2025, before rebounding in 2026, due to high demand in markets such as the Asia Pacific and the Middle East. 

Commenting on the recent report, IEA Director of Energy Markets and Security Keisuke Sadamori said: “The backdrop for global gas markets is shifting as we enter the second half of this year and look toward 2026. The wave of LNG (liquefied natural gas) supply that is set to come online is poised to ease fundamentals and spur additional demand, especially in Asia.” 

Sadamori added that the IEA’s latest projection on gas demand and consumption is subject to unusually high levels of uncertainty over the global macroeconomic outlook and the volatile geopolitical environment. 

Natural gas is a significant source of energy for power generation, industrial processes, and heating. It is widely considered a cleaner-burning fuel than coal or oil as the world continues its energy transition journey.

The IEA further stated that Asia’s gas demand is expected to rise by more than 4 percent in 2026, accounting for around half of the global gas demand growth. 

In North America, natural gas demand is expected to increase by less than 1 percent next year, primarily supported by the power sector. 

The report, however, noted that gas demand in Europe is projected to decline by 2 percent next year, amid strong renewable energy output. 

With global gas consumption expected to reach an all-time high in 2026, usage by industry and the energy sector is forecast to contribute around half of the incremental demand. 

Gas-to-power demand is projected to account for 30 percent of the total demand growth in 2026, while gas use in the residential and commercial sectors is expected to increase by around 1 percent, assuming average weather conditions prevail.

Stable Middle East and energy security

According to the latest IEA report, stable geopolitical conditions in the Middle East region are critical to ensure global energy security. 

“The conflict between Israel and Iran highlighted the energy interdependencies within the Middle East and the region’s crucial role in global oil, natural gas and fertilizer supply security,” said the energy agency. 

It added: “The Middle East accounts for 30 percent of global oil and 18 percent of global gas production, almost 25 percent of LNG supplies and around one-third of global urea exports.” 

According to the study, the crisis in the Middle East region put intense upward pressure on prices, with the Israel-Iran conflict fueling strong price volatility across commodity markets. 

In the cases of natural gas and urea, higher prices were also supported by actual disruptions to production and physical trade flows. 

Due to rising security concerns, Israel shut natural gas production at the Leviathan and Karish fields between June 13 and 15 and halted piped gas exports to Egypt and Jordan, which in turn led to the curtailment of fertilizer production. 

In Iran, attacks damaged a platform at South Pars Phase 14, reducing output by around 12 million cubic meters per day. 

Production in gas fields and trade flows in the Middle East region were gradually restored following a ceasefire between Israel and Iran. 

“The initial increase in prices was largely driven by the fear that an escalation of the conflict could lead to the closure of the Strait of Hormuz — the world’s most critical oil and LNG chokepoint, which is located between Iran and Oman,” said IEA. 

Earlier this month, a report released by Rystad Energy, a research and analysis firm, stated that the Middle East region is on track to surpass Asia and become the world’s second-largest gas producer by 2025, ranking only behind North America. 

According to the analysis, gas production in the Middle East has increased by around 15 percent since 2020, and future growth underscores the determination of regional producers to monetize their gas reserves and develop export potential to meet global demand. 

The analysis added that Iran currently leads the Middle East in gas production, with about 25 billion cubic feet per day, followed by Qatar at 16 bcfd and at eight bcfd. 

LNG supply

According to the latest IEA report, global LNG supply in 2026 is projected to rise by 7 percent or 40 billion cubic meters, as new projects are expected to come online in countries including Qatar and the US. 

Qatar plans to expand its LNG production capacity from 77 million tonnes per annum to 110 mtpa by 2026 and 126 mtpa by 2027, ultimately reaching 142 mtpa by 2030.

In March, global credit rating agency Fitch said that state-owned Qatar Energy’s North Field projects will support both hydrocarbon and non-hydrocarbon growth from 2025 to 2030. 

North Field, which holds nearly 10 percent of the world’s known LNG reserves, lies off the northeast shore of the Qatar peninsula, covering more than 6,000 sq. km — roughly half the country’s land area. 

For the whole of 2025, global LNG supply is expected to increase by 5.5 percent or 30 bcm, primarily supported by the ramp-ups of major new LNG projects in North America.

These projects in North America include the Plaquemines LNG project and the Corpus Christi Stage 3 expansion, as well as LNG Canada.


Pakistan plans to double manpower exports to

Pakistan plans to double manpower exports to
Updated 06 October 2025

Pakistan plans to double manpower exports to

Pakistan plans to double manpower exports to

ISLAMABAD: Pakistan is planning to double its manpower exports to after the signing of a landmark defense deal between the two countries last month, officials told Arab News on Monday.

The country’s human resource exports to have already witnessed a steady rise over the past five years, according to the Bureau of Emigration & Overseas Employment. Pakistan sent 1.88 million workers to between 2020 and 2024, up 21 percent from 1.56 million in 2015–2019.

Remittances from the Kingdom rose from $7.39 billion in 2020 to $8.59 billion in 2024, reflecting steady demand for Pakistani labor. In contrast, inflows from the United Arab Emirates fluctuated between $5.8 billion and $6.8 billion during the same period, while those from Qatar remained below $1 billion annually, according to the State Bank of Pakistan.

In September, both countries signed a landmark defense pact that is meant to enhance joint deterrence and deepen decades of military and security cooperation. Top Pakistani government officials, including National Food Security Minister Rana Tanveer, have said Islamabad and Riyadh will sign a wide-ranging economic pact in the follow up of the defense deal.

“The Saudi-Pakistan defense pact will have a great impact on manpower export. Current average export is around half a million workers per year, and from next year, we hope to double it to one million,” said Gul Akbar, a senior director at the BEOE.

The BEOE is working with officials of Pakistan’s Special Investment Facilitation Council, a civil-military body formed to boost investment, particularly from the Middle East, to make it possible through a number of steps, according to the official. The draft will be shared with Saudi officials by their Pakistani counterparts in upcoming meetings.

The Pakistan government on Sunday constituted a high-level committee comprising ministers and officials to oversee bilateral economic engagements and negotiations with .

Akbar said Pakistan has proposed setting up technical training institutes in both countries to improve skill certification and employability of local workforce.

“We are also proposing an e-visa system for Pakistani workers,” he added.

The Kingdom remains the largest destination for Pakistani workers and the biggest source of remittances that amounted to $736.7 million in Aug. out of a total inflow of $3.1 billion, according to the SBP.

Experts link the rise in number of Pakistani workers traveling to to ongoing development projects in the Kingdom under its Vision 2030, which they say have created strong demand for skilled and semi-skilled foreign labor.

’s hosting of the 2034 FIFA World Cup is further fueling demand for foreign labor, amid construction of large stadiums, transport networks and hospitality infrastructure in the Kingdom.

Meanwhile, Pakistan’s human resource exports to the UAE declined sharply by 65 percent from 1.32 million to 463,000 from 2020 till 2024, while Qatar more than doubled its intake from 74,000 to 170,000 Pakistani workers, reflecting shifting labor dynamics across the Gulf region.

To meet ’s labor needs, Pakistan has partnered with Takamol, a Pakistani skill verification program, and its National Vocational and Technical Training Commission is certifying workers in 62 skilled categories, ranging from construction to technical services.

Speaking to Arab News, Masood Ahmad, CEO of M.Pak Makkah Manpower Services, said his firm alone dispatched 2,000 workers to this year.

“The defense pact has boosted Saudi employers’ confidence in Pakistani workers as both countries deepen cooperation,” he said, highlighting a growing demand for health care professionals and delivery drivers.

Akbar dismissed concerns about “brain drain” and called overseas employment a “national achievement.” Pakistan’s surplus labor should be seen as an economic resource that brings home remittances, knowledge and technical skills, he added.

Remittances remain a cornerstone of Pakistan’s external finances, providing hard currency that supports household consumption, narrows the current-account deficit, and strengthens foreign exchange reserves.

In the last fiscal year, Pakistan recorded $38.3 billion workers’ remittances — an $8 billion increase from the previous year, surpassing the country’s $7 billion International Monetary Fund loan program.


Pakistan forms high-level committee to lead economic negotiations with

Pakistan forms high-level committee to lead economic negotiations with
Updated 06 October 2025

Pakistan forms high-level committee to lead economic negotiations with

Pakistan forms high-level committee to lead economic negotiations with
  • Body formed weeks after Pakistan and sign landmark mutual defense pact

ISLAMABAD: The Pakistan government has constituted a high-level committee to steer bilateral economic engagements and negotiations with , according to an official notification issued by the prime minister’s office on Sunday.

It is widely believed that Islamabad and Riyadh will sign a wide-ranging economic pact as early as this month, weeks after they inked a mutual defense pact, significantly strengthening a decades-old security partnership. 

Pakistan’s alliance with — the site of Islam’s holiest sites — is rooted in shared faith, strategic interests and economic interdependence. Nearly 2.6 million Pakistanis live and work in and are also the largest source of remittances to the South Asian nation.

Pakistan has pushed in recent months to strengthen trade and investment ties with friendly nations, particularly the Kingdom, which has promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up foreign reserves and fight a chronic balance of payment crisis. 

According to the PM office notification, the committee will be co-chaired by Minister for Climate Change Musadik Masood Malik and Lt. Gen. Sarfraz Ahmad, National Coordinator of the Special Investment Facilitation Council, a civil-military body that oversees foreign investments. 

“The Co-Chairs shall constitute Core/Negotiation Teams for negotiations with the Saudi counterparts. These teams shall be responsible for implementing and executing the assigned tasks on fast-track basis,” the notification said. 

It further noted that all members and representatives would ensure availability from Oct. 6 onwards and that the PM has directed the SIFC to process members’ travel approvals “within one hour the same working day.”

The committee has been tasked to submit progress reports to the Prime Minister on a fortnightly basis, with the SIFC Secretariat providing administrative support.

Other members of the committee include Minister for Economic Affairs Ahad Khan Cheema, Minister for Power Awais Leghari, Minister for Commerce Jam Kamal Khan, Minister for National Food Security & Research Rana Tanveer Hussain, Minister for Communications Abdul Aleem Khan, Minister for Information Technology & Telecommunication Shaza Fatima Khawaja, and Special Assistant to the Prime Minister on Industries & Production Haroon Akhtar Khan, among others.

Bilateral trade between Pakistan and remains highly imbalanced, with Saudi exports to Pakistan vastly exceeding Pakistani exports in recent years. In 2023, ’s exports to Pakistan were estimated at approximately $4.65 billion, while Pakistan’s exports to were much smaller, such as about $138 million in rice among other goods. 

In 2024, Pakistan’s total exports to stood at around $734 million, with major items including cereals and meat, while Saudi exports to Pakistan included refined petroleum and chemical products. 

Last October, Pakistani and Saudi business communities signed 34 MoUs worth about $2.8 billion during a visit by a Saudi investment delegation. It is unclear how many of those MoUs have been converted into active projects or contracts in a year. 


Closing Bell: Saudi main market rises to 11,605

Closing Bell: Saudi main market rises to 11,605
Updated 06 October 2025

Closing Bell: Saudi main market rises to 11,605

Closing Bell: Saudi main market rises to 11,605

RIYADH: ’s Tadawul All Share Index rose on Monday, gaining 76.61 points, or 0.66 percent, to close at 11,605.20.  

The total trading turnover for the main index stood at SR6.22 billion ($1.66 billion), with 307.7 million shares traded. A total of 149 stocks advanced, while 97 declined.  

The Kingdom’s parallel market Nomu also edged higher, climbing 64.55 points, or 0.25 percent, to 25,540.27, with 41 gainers and 52 losers.   

Meanwhile, the MT30 index, which tracks the performance of the top 30 companies by market capitalization, advanced 12.8 points, or 0.85 percent, to 1,514.75.  

The Power and Water Utility Co. for Jubail and Yanbu was the top performer of the day, with its share price rising 9.97 percent to SR43.24.

Other notable gainers included Saudi Reinsurance Co., which increased 6.83 percent to SR51, and n Mining Co., which gained 4.62 percent to SR67.90.   

Saudi Automotive Services Co. also advanced 4.45 percent to SR59.90, while Saudi Aramco Base Oil Co. climbed 4.36 percent to SR93.40.  

Sport Clubs Co. recorded the steepest fall, dropping 3.04 percent to SR10.85, while National Shipping Co. of eased 2.75 percent to SR29.04. Etihad Etisalat Co. declined 2.43 percent, closing at SR66.35. 

Arab National Bank slipped 2.40 percent to SR25.20, and Thimar Development Holding Co. decreased 2.10 percent to SR43.80.  

On the announcement front, Derayah Financial Co. said its board of directors approved the distribution of cash dividends totaling SR8.9 million for the third quarter of fiscal year 2025.   

The company stated that shareholders registered at the close of trading on Oct. 13 will be eligible, with distribution scheduled for Oct. 23.  

Derayah’s shares closed 1.59 percent higher at SR30.68.  

Jahez International Co. for Information System Technology announced the completion of the first phase of its acquisition of a 75 percent stake in Snoonu Corporation Holding LLC through the purchase of more than 7.9 million shares.   

Following the transaction, Jahez’s total ownership in Snoonu reached 76.56 percent, while the founder, Hamad Mubarak Al-Hajj, retained 23.44 percent.   

The company said the deal was financed through a mix of internal cash and treasury shares, with the financial impact to be reflected in Jahez’s 2025 year-end statements. 

Shares of Jahez closed 0.54 percent higher at SR22.52.  


highlights mining reforms and investment drive at Peru conference

 highlights mining reforms and investment drive at Peru conference
Updated 06 October 2025

highlights mining reforms and investment drive at Peru conference

 highlights mining reforms and investment drive at Peru conference

RIYADH: showcased its mining reforms and investment opportunities at the PERUMIN 37 Mining Conference in Arequipa, Peru, aiming to position the Kingdom as a global hub for minerals and downstream processing.

A delegation comprising representatives from the Ministry of Industry and Mineral Resources, the Saudi Geological Survey, and the Saudi Mining Services Co. highlighted ’s commitment to sustainable mineral resource development, the Saudi Press Agency reported.

The group also emphasized the upcoming fifth edition of the Future Minerals Forum, scheduled for January 2026 in Riyadh. 

The Kingdom’s participation comes amid a sharp rise in mining exports, which have surged by about 80 percent due to increased production of key minerals including phosphate, iron, aluminum, copper, and gold.  

According to a report in August, current and planned investments in the sector are estimated at SR180 billion ($48 billion), as intensifies its strategy to position itself as a global hub for mineral resources.  

This expansion aligns with broader government efforts to boost exports and attract high-quality foreign investment into downstream processing industries. 

During PERUMIN 37, Abdulrahman Al-Belushi, deputy minister for Mining Resource Development, stated that and Peru share a strong commitment to leveraging mining as a driver of economic growth.  

“He explained that ’s participation in PERUMIN 37 reflects its belief in the importance of cooperation and knowledge exchange to support mineral supply chains, serving the goals of global digital and energy transitions,” the SPA report added. 

Al-Belushi reiterated the Kingdom’s strategic objective of transforming mining into a third pillar of the national economy under Vision 2030.  

He noted that holds mineral resources valued at over SR9.4 trillion and has enacted policies to enhance investment attractiveness. 

These include the development of integrated infrastructure from mine to market and the pursuit of international partnerships to strengthen global supply chain resilience. 

Recent initiatives presented by the Saudi delegation include the launch of mining exploration license rounds via the digital Tadween platform, which ensures transparency and equal opportunity for investors.  

The ministry has also introduced the Mining Exploration Enablement Program to support companies with valid licenses for less than five years, offering up to SR7.5 million per project to mitigate early-stage investment risk. 

“The Kingdom also offers competitive incentives through its mining investment regime, including full foreign ownership, in addition to financing provided by the Industrial Development Fund to support mining exploration,” Al-Belushi said, as reported by SPA. 

He highlighted the National Geological Database, which compiles over 80 years of geological data, alongside a comprehensive regional survey program to deepen knowledge of the Arabian Shield. 

The Saudi delegation emphasized the Kingdom’s interest in expanding strategic partnerships with Latin American nations, especially Peru — a leading global producer of copper, silver, and zinc. 

Discussions between Saudi and Peruvian officials explored collaboration in exploration technologies, artisanal mining challenges, and joint investments to strengthen global supply chains. 

On the sidelines of the event, the Saudi team held several bilateral meetings with leading Peruvian and international exploration and mining companies to showcase investment opportunities in and promote available incentives. 


JLL to manage leasing for 733 commercial units across Riyadh Metro 

JLL to manage leasing for 733 commercial units across Riyadh Metro 
Updated 06 October 2025

JLL to manage leasing for 733 commercial units across Riyadh Metro 

JLL to manage leasing for 733 commercial units across Riyadh Metro 

RIYADH: Commuters across Riyadh will soon see enhanced shopping and dining options as the city’s metro network undergoes a major commercial transformation. 

The Royal Commission for Riyadh City has partnered with global real estate advisory firm JLL to develop a comprehensive retail strategy and manage leasing across the network, according to a press release. 

Under the agreement, JLL will implement a retail plan for Riyadh Metro covering tenant mix, rental analysis, and leasing cycles for 733 commercial units across 85 metro stations and 2,900 bus stops. 

The new development comes as the metro network completed a major milestone of carrying 100 million passengers in August, since its launch in December 2024. 

Dana Williamson, head of offices and business space for Middle East and North Africa at JLL, said: “Our strategic partnership as the leasing adviser for the Riyadh Metro commercial network is a powerful affirmation of JLL’s commitment to championing ’s Vision 2030 and its ambitious urban transformation goals.” 

She added: “We look forward to working alongside the RCRC to attract leading brands and create unparalleled opportunities for their expansion and strategic market positioning within this landmark infrastructural project.” 

The retail units across prime locations within the metro network will establish new commercial corridors and enhance the daily commuter experience, providing access to a wide range of shopping and dining options for residents and tourists alike, the release added. 

Under the deal, JLL will conduct detailed rental analysis, prepare a comprehensive report outlining commercial outlet opportunities, and create a definitive Tenant Manual and Policies guide. 

The firm will also execute the full leasing program, managing competitive tender bids for retail units, ATMs, and click-and-collect kiosks under RCRC supervision. 

JLL will oversee tenant management from initial handover to opening and provide ongoing maintenance support. 

“JLL’s global and local leasing expertise will maximize commercial viability for businesses in line with RCRC’s visionary blueprint, setting new benchmarks for the commercial real estate industry in Riyadh,” added Williamson. 

Designed to serve 3.6 million daily commuters, Riyadh Metro operates a six-line network connecting business districts, residential communities, and cultural landmarks.