Investment in Middle East renewable energy projects rose 28 per cent last year as the region pushed ahead with large-scale infrastructure and grid development designed to support rising energy demand, according to a new report from Ansarada.

The 2026 Renewable Energy Infrastructure Outlook Report, produced with Infralogic, said global investment in renewable projects reached $496bn, driven in part by the surge in AI compute requirements.

Renewable energy investment in the Middle East reached $12.9bn in 2025, up from $10.1bn in 2024.

Based on a survey of 150 senior executives across APAC, EMEA and the Americas, the report shows the Middle East emerging as a strategic growth market, with 25 per cent of respondents identifying it as a top destination for renewable investment.

As Western markets contend with grid congestion and permitting delays, the report says the region’s sovereign-backed development model allows “rapid supply chain mobilisation and bankable pipelines” that avoid the grid-connection bottlenecks seen in Europe and North America.

The report highlights the region’s integrated delivery model, which develops renewables and transmission infrastructure in parallel. “The Middle East demonstrates what’s possible when projects are designed and delivered holistically,” said Justin Smith, MD at Ansarada.

“Building renewables and transmission together represents a fundamentally different approach than the fragmented delivery model common in Western markets,” Smith added.

AI-driven power demand to contribute to growth in the renewables sector

AI-driven power demand is adding to the pressure. With more than $500bn in AI infrastructure capital expenditure forecast for 2026 and US data centre energy use projected to reach 409 TWh by 2030, 37 per cent of global respondents and 36 per cent in EMEA cited AI compute requirements as the main driver of new renewable development.

The UAE’s emergence as a regional AI hub is expected to increase demand for integrated renewable and storage systems capable of supporting compute-intensive operations.

“AI compute demand is the single biggest driver of new renewables development,” Smith said.

The report shows battery storage becoming core infrastructure, with 34 per cent of EMEA respondents expecting strong growth in large-scale systems. But it also points to operational and financial pressures, with 44 per cent of respondents in EMEA citing macroeconomic uncertainty and high interest rates as key concerns.

Despite high adoption of procurement technology, the report identifies persistent fragmentation in project delivery. While 91 per cent of respondents use purpose-built procurement software, organisations still rely on an average of three to four disconnected systems, and 55 per cent continue to use email for sensitive bidder communication. “Organisations think they’ve digitised, but they’ve actually created a ‘Frankenstack’ of disconnected tools,” Smith said.

Only 37 per cent of respondents globally said their most recent procurement process was “very efficient”, falling to 8 per cent in EMEA and 29 per cent among government agencies. Although most said their internal processes were transparent, 43 per cent acknowledged limited clarity for external stakeholders, raising the risk of disputes.

ESG requirements are becoming more embedded in procurement across the region. In EMEA, 80 per cent of respondents said ESG is deeply integrated into their processes, and 90 per cent rated transparency and auditability as very important. Without auditable ESG data, the report warns that some projects may not qualify for tendering or financing. “That integrated approach, combined with proper digital infrastructure for procurement, separates projects that deliver from those that stall,” Smith said.

Nearly half of shoppers in Saudi Arabia and the UAE are now using artificial intelligence to help decide what to buy, although most remain unsure about fully trusting it, according to a new survey by Tabby.

The financial services app said 43 per cent of respondents reported using AI for purchase decisions, while only 30 per cent said they fully trust the recommendations.

Another 43 per cent said they might trust them, suggesting shoppers are still weighing up how much confidence to place in the technology.

The findings come from Tabby’s third annual Ultimate Middle East Shopping Survey, which drew responses from more than 20,000 shoppers across both markets.

The data suggests AI adoption is rising fastest among younger shoppers. Tabby said 51.8 per cent of respondents aged 18 to 29 have used AI in their shopping experience. While willingness to experiment is high, trust appears conditional. Shoppers said they are most comfortable with AI when it helps compare products or speed up decisions, and pulls back when the rationale behind recommendations is unclear.

The report also highlights changes in how consumers discover products. Tabby said 77 per cent of discovery now happens through digital channels, even when the final purchase is made in stores. Social media is the top source of product discovery, followed by online browsing. By the time 68 per cent of shoppers enter a physical store, they already know what they plan to buy.

Flexible payments have also become a key factor in retailer choice. Seventy per cent of respondents said they avoid retailers that do not offer flexible payment options, and one in five said they walk away from stores that do not provide them. Tabby said this trend holds across all income levels.

Tabby findings can help retailers navigate this difficult time: Hosam Arab

Hosam Arab, CEO and co-founder of Tabby, said many businesses in the region are facing a difficult moment. “We wish we were sharing this at an easier moment for the region. Many of the businesses we work with are navigating a difficult period right now, trying to plan with limited visibility. If this research helps even some of them make better decisions in the months ahead, it feels worth sharing.”

Responses were collected in November 2025 across Saudi Arabia and the UAE, spanning six nationalities, four age groups and income brackets from low to super high. The survey covers product discovery, hybrid shopping, in-store behaviour, payments, AI use and financial confidence.

The buy now pay later platform, headquartered in Riyadh, operates in Saudi Arabia, the UAE and Kuwait. It works with more than 40,000 brands, including SHEIN, Amazon, Adidas, IKEA, H&M, Samsung and Noon.

Shipping through the Strait of Hormuz has slowed to a near standstill, with 181 vessels recorded passing through the waterway between March 1 and March 30, 2026.

This is according to data provided to Gulf Business by Lloyd’s List, one of the world’s oldest maritime intelligence publications, founded in 1734.

This latest data indicates that, on average, fewer than 10 ships per day were recorded as passing through the strait — a dramatic drop from around 138 daily transits recorded on February 28, as per information from the Joint Maritime Information Centre.

Prior to the escalation, roughly 3,000 vessels would typically pass through the strait each month, according to the BBC.

Lloyd’s List data further shows that of the 181 vessels that transited the strait in March, 125 — nearly 70 per cent — had Iranian links, while just 56 did not. Of these, 130 vessels were eastbound and 51 westbound, reflecting a heavily restricted and uneven flow.

The figures relate to cargo-carrying vessels above 10,000 dwt (deadweight tonnage) and may be revised upwards if further “dark” or untracked transits emerge, Lloyd’s List experts told Gulf Business.

The sharp decline follows US and Israeli strikes on Iran on February 28, which triggered a deterioration in maritime security conditions.

In early March, Iran’s Islamic Revolutionary Guard Corps (IRGC) issued warnings to vessels transiting the strait, particularly those linked to the US and its allies. While the strait was not physically sealed, shipping activity collapsed within days as operators withdrew due to heightened risk, creating a de facto shutdown.

Since then, traffic has remained severely constrained, with only a limited number of vessels, often linked to Iran or select trading partners, continuing to transit.

Global ripple effects and dual chokepoint risk

In a LinkedIn note on Monday, leading maritime expert Lars Jensen, CEO of Vespucci Maritime, said the situation remains fragile and could deteriorate further.

“The trickle of vessels crossing the Strait of Hormuz since yesterday (Sunday 29 March, 2026) reduced further,” he said.

Jensen noted that, aside from some Iranian-flagged vessels, only the sanctioned tanker Tawanna transited the strait, while a bulk carrier identified as Mac Hope appeared to be preparing to enter, with maritime AIS (Automatic Identification System) data indicating Chinese ownership and crew.

The disruption in the Strait of Hormuz has sent shockwaves through global energy markets, with Brent crude rising above $100 per barrel and concerns mounting over fuel supply and pricing in parts of Asia and Africa.

The strait remains a critical artery for the global economy, handling around 20 per cent of global oil and liquefied natural gas flows.

In 2025, approximately 20 million barrels per day passed through the corridor, according to the US Energy Information Administration, linking Gulf producers including Saudi Arabia, Iraq, Kuwait, Qatar and the UAE with global markets.

Speaking in Washington over the weekend, ADNOC managing director and group CEO Sultan Al Jaber warned of the wider implications of the disruption.

“Weaponising the Strait of Hormuz is not an act of aggression against one nation. It is economic terrorism against every nation, every consumer, every family that depends on affordable energy and food,” he said.

Read more: ‘UAE is no easy prey’: Sultan Al Jaber’s powerful Washington speech

The situation also risks compounding existing pressures on global shipping routes, particularly as disruptions in the Red Sea continue.

Yemen’s Houthi movement has signalled it could escalate its involvement in the conflict, including recent attacks on Israel, raising concerns over renewed instability along the Bab el-Mandeb Strait — a key gateway between the Red Sea and global trade routes.

The Houthis have previously carried out sustained attacks on commercial shipping in the Red Sea using missiles and drones, forcing vessels to reroute and triggering US-led military responses.

Jensen warned that the industry must prepare for a prolonged period of instability across key maritime chokepoints.

“It is time for supply chain stakeholders to prepare for a situation where both Hormuz and the Red Sea continue to be chokepoints for a considerable amount of time,” he said.

As he noted, March 30 marked “day 31 of the Hormuz crisis” alongside “day 862 of the Red Sea crisis”.

The UAE Ministry of Education has announced the continuation of distance learning for students, teachers, and administrative staff across all nurseries, kindergartens, and public and private schools nationwide until Friday, April 17, citing the need to ensure safety and wellbeing.

Officials confirmed that the situation will be reviewed on a weekly basis.

The announcement was made via the authority’s official X account.

Decision builds on earlier measures

The extension follows a prior directive issued on March 17, when authorities confirmed that distance learning would continue nationwide for two weeks after the end of the spring break.

That decision, introduced by the Education, Human Development, and Community Development Council, aimed to maintain continuity in the education system while safeguarding students and the wider academic community.

Earlier guidance had also stipulated that distance learning would remain in place at the start of the third academic term, beginning March 23, for an initial two-week period.

The latest extension reinforces those measures, ensuring that all students and staff across the country remain engaged in remote education as authorities continue to monitor developments.

Dubai has unveiled a Dhs1bn economic incentives package aimed at cushioning businesses and individuals, with measures set to take effect from April 1 for a period of three to six months.

The initiative, approved at a meeting chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum — Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai — is designed to “strengthen the economy’s resilience, readiness and agility”, he said in a post on X.

How the incentives will support the economy

The Dhs1bn stimulus focuses on targeted, short-term relief across key sectors:

• Fee deferrals: It includes the deferral of a range of government fees for three months including measures allowing hotels to postpone paying 100 per cent of the sales fees and Tourism Dirham for three months to enhance liquidity in the hospitality and tourism sectors.
• Customs flexibility: Payment grace periods will be extended from 30 to 90 days, with scope for further extensions
• Talent mobility: Residency permit processes will be streamlined to make it easier to live and work in Dubai

The measures are intended to “strengthen the economy’s resilience, readiness and agility,” Sheikh Hamdan said.

Confidence message to markets

Officials framed the package as part of a broader effort to sustain confidence during a period of regional uncertainty.

“Dubai has earned a reputation for credibility, transparency, and trust among businesses and investors worldwide, and stands ready to meet any challenge,” Sheikh Hamdan said.

The package was approved alongside a wider set of initiatives, including updates to GDP measurement, the Virtual Warehouses Initiative, the Dubai Empowerment Strategy, and a health and safety framework for workers’ accommodation.

The support measures come as Dubai continues to post strong economic performance. The emirate’s GDP rose 5.4 per cent in 2025 to exceed Dhs937bn.