Energy, chemicals and utilities
Since the late 1990s, Strategy& has played an active role in providing energy consulting services in the Middle East. We have worked on a variety of high-profile engagements for clients in the region.
For example, we recently designed a new operating model and developed an investment strategy for a Kuwait-based international investment holding company with stakes in energy funds. Drawing on our deep understanding of industry dynamics, we have streamlined the operation and strategy of existing national and international companies while identifying opportunities for further generation and transmission of energy resources.
Chemical industry consulting services
The Middle East region has become one of the largest suppliers of chemical products for global distribution, proportionally increasing the need for chemical industry consulting services to help businesses sustain their competitive advantages. We have worked with clients in the chemical industry sector to help them improve their performance, adopt new operating models, and implement technology and growth strategies.
Utility management consulting services
The Middle East’s population has grown in size and complexity, increasing the demand for the expansion and redevelopment of utilities infrastructure. Our strategists and experts have provided consulting services to power and water clients as they meet this demand, helping them transition seamlessly into companies that demand the right to win.
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Our thought leadership
National oil companies (NOCs) in resource-rich countries should take a holistic approach to the management of activities across the oil and gas value chain. NOCs need an integrated approach to planning based on consistent and comprehensive data that provide the basis for the allocation of capital and resources across the portfolio. Complementing this, NOCs need new models of the end-to-end oil and gas value chain.
To develop more effective local content policies, policymakers need to use analytical and behavioral safeguards that complement and reinforce each other.
Renewable energy still attracts a growing share of investment in new electricity generation capacity. Some US$370 billion is forecast worldwide in 2020, up 50 percent on 2016. Little of this investment is currently slated for the Gulf Cooperation Council (GCC) states.
Changes in the oil-field services and equipment sector in Saudi Arabia are calling into question the future of partnerships between multinationals and local partners. Those local firms that proactively develop and adapt their capabilities will be best positioned to retain their existing partnerships and attract new multinational partnerships, or they can become independent suppliers of oil-field services and equipment.
Investing in a lean, efficient, and collaborative R&D setup offers Middle East national oil companies many opportunities to build long-term stability, offsetting the effect of volatile oil prices. R&D can act as a differentiating capability to help them improve recovery, increase production, boost operation efficiency, unlock resources, and reduce costs.
Gulf Cooperation Council countries should reform how they price domestic natural gas to incentivize upstream gas investments. Reforms should define a mechanism that prices natural gas closer to its true market value and that in some manner reflects the global and regional dynamics of supply and demand.
The United Arab Emirates needs a coherent energy-efficiency strategy. This should include a tailored regulatory framework; a communications and information initiatives to persuade residents, builders, and other stakeholders to reduce their energy consumption; and research and development to ensure that the UAE is capitalizing on emerging technology to boost efficiency.
The global chemicals industry has undergone large-scale disruptions over the last few years which are challenging the business models for the industry’s five key building blocks: methanol, ethylene, propylene, butadiene, and aromatics. Petrochemicals companies are responding by adapting their business models and building new and lasting capabilities.
All players in the chemical value chain will be impacted by recent feedstock developments. However, growth opportunities are particularly important for global producers of propylene, butadiene, and benzene in those parts of the world where feedstock is available for on-purpose production.
During the coming decade, the energy industry in the Middle East is expected to execute projects worth approximately $1 trillion across the energy value chain. In order to manage these megaprojects more effectively, energy companies must master seven key habits.
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Latest media clip
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CNBC Arabia interviews Dr. Shihab Elborai, Partner with Strategy& Middle East, to discuss the firm’s study "The outlook for renewable energy in the GCC: Mostly sunny with a chance of rain". To learn more about the study, please click here.