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Global energy crisis deepens; efforts to plug supply gap fall short, industry execs warn

The acute energy supply shock now hitting Asia, the region most heavily reliant on Middle East supplies, will spread to Europe in April, oil executives and energy ministers said this week at the annual CERAWeek conference

Reuters
Reuters

25 March, 2026

Global energy crisis deepens; efforts to plug supply gap fall short, industry execs warn
Image: Getty Images/ For illustrative purposes

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A US-Israeli conflict with Iran has triggered a global energy crisis, with the Strait of Hormuz closure causing a significant oil and gas supply shortfall. Emergency measures, including strategic reserve releases, are insufficient. Asia is severely impacted, with Europe bracing for similar shortages in April. Long-term energy strategies are crucial, as immediate production increases are unlikely.

The global energy crisis is deepening as emergency measures by governments worldwide have fallen short of plugging the huge shortfall in oil and gas supply caused by the US-Israeli conflict with Iran, executives and oil ministers said on Tuesday.

Costs for energy, fertilisers and petrochemicals are soaring as the world is losing as much as 20 million barrels of oil per day from Middle East producers due to Iran’s effective closure of the shipping chokepoint of the Strait of Hormuz.

The impact of the reduction of a fifth of global oil and gas supplies has quickly spread through economies and supply chains.

United Airlines on Tuesday said it may have to raise ticket prices by up to 20 per cent. The Philippines declared a national energy emergency.

The acute energy supply shock now hitting Asia, the region most heavily reliant on Middle East supplies, will spread to Europe in April, oil executives and energy ministers said this week at the annual CERAWeek conference in Houston, the US energy capital.

In Asia, countries are taking measures to reduce energy consumption including implementing four-day work weeks and asking citizens to limit travel and use stairs rather than elevators.

Governments around the world are releasing a record 400 million barrels of oil from strategic reserves into the market and the US has waived sanctions on some Iranian and Russian oil so refiners short of supplies can buy it.

“These are not even stopgap measures,” Sheikh Nawaf Al-Sabah, CEO of Kuwait Petroleum Corp, said on Tuesday.

Kuwait was producing some 2.6 million barrels per day of oil before the war and has had to reduce production and halt deliveries to refiners that buy its crude.

Saudi Arabia and the UAE have kept some exports flowing from pipelines that bypass the Strait of Hormuz. But those exports, as well as the other emergency measures, do not come close to covering the supply disruption, Al-Sabah said.

All told, the emergency measures were not even a “drop in the proverbial barrel,” he said.

Read: Dr Sultan Al Jaber: No country should hold Hormuz, global economy hostage

Strategic reserves not enough to fix energy supply shortages

Coordinated releases from strategic reserves were not enough to fix supply shortages, said Takehiko Matsuo, Japan’s Vice Minister for International Affairs.

His country is contributing some 80 million barrels to the strategic stock release coordinated by the International Energy Agency.

Japan has roughly three weeks of gas in storage, he said.

Supply shortages could hit Europe in April if the crisis continues, German economy minister Katherina Reiche and Shell CEO Wael Sawan both said.

“We are trying to work with governments to just alert them to the various levers they will need to pull, including on the demand side, including what they need to do around storage, what they need to do around purchasing,” Sawan said.

Lack of preparation has exacerbated the challenges for Europe and other parts of the world, he added.

“The problem is we are more in reaction mode,” said Sawan. “The best energy strategies are the strategies that actually look five, 10 years out and build resilience from now.”

It would be difficult for operators in the US, the largest oil-producing nation, to lift output in a meaningful way until 2027 regardless of prices, ConocoPhillips CEO Ryan Lance said.

US producers are executing spending plans they laid out earlier this year and cannot easily adjust them, Lance said.

The US is also the world’s largest producer of liquefied natural gas. But US LNG producers cannot compensate for the supply shortfall from the Middle East because they are already at maximum output, said Matt Schatzman, CEO of US LNG producer NextDecade.

“None of this is going to be solved overnight,” he said. “This is a bad situation. You don’t think we would go faster if we could?”

Mohamed Salah to leave Liverpool at end of season, shares message for fans

Liverpool FC confirmed a mutual agreement for Salah’s departure, which will see his contract end a year early, with the forward set to become a free agent

Neesha Salian
Neesha Salian

25 March, 2026

Mohamed Salah to leave Liverpool at end of season, shares message for fans
Image courtesy: Liverpool FC

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Mohamed Salah will depart Liverpool FC at the end of the 2025-26 season, a year before his contract's expiry. The Egyptian forward announced his departure in an emotional message, thanking fans for their support during his nine-year spell. Liverpool confirmed the mutual agreement, with Salah becoming a free agent. His next move is currently unknown.

Mohamed Salah will leave Liverpool FC at the end of the 2025-26 season.

The Egyptian forward announced his departure in an emotional message to supporters, ending a nine-year spell at Anfield that made him one of the club’s most popular players.

In a video posted to his social channels and published in full on the Liverpool FC website, Salah said he never expected how deeply the club and its fans would become part of his life and thanked them for their support through the years.

“Hello everyone, unfortunately the day has come,” Salah said. “I will be leaving Liverpool at the end of the season… Liverpool is not just a football club, it’s a passion, it’s a history, it’s a spirit.” He added he would always consider the club his home and that he would “never walk alone.”

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Liverpool FC confirms Mohamed Salah’s departure

Liverpool FC confirmed a mutual agreement for Salah’s departure, which will see his contract concluded a year early, with the forward set to become a free agent.

During his time at the club, Salah has scored more than 25o goals in over 420 appearances, helped secure two Premier League titles, a Champions League crown and multiple domestic trophies.

Reactions on social media from former teammates and peers poured in following Salah’s announcement, many hailing him as a true club legend.

The footballer’s next destination remains unclear, with speculation linking him to leagues outside Europe.

UAE ranks 21st, Saudi Arabia climbs to 22nd place in World Happiness Report

The UAE ranked fourth globally for residents’ freedom to make life choices, eighth in GDP per capita at around $70,000 and 30th in life expectancy

Neesha Salian
Neesha Salian

25 March, 2026

UAE ranks 21st, Saudi Arabia climbs to 22nd place in World Happiness Report
Image: Getty Images/ For illustrative purposes

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The UAE ranked 21st globally and first in the Arab world in the 2024 World Happiness Report, scoring 6.821. Saudi Arabia improved significantly, rising to 22nd place. The report, drawing on factors like GDP and social support, credited Saudi Arabia's progress to its Vision 2030 programme, especially the Quality of Life Programme.

The UAE placed 21st worldwide and first in the Arab region in the World Happiness Report 2026.

The report, produced by the Wellbeing Research Centre at the University of Oxford with Gallup and the UN Sustainable Development Solutions Network, ranked 147 countries drawing on indicators that include GDP per capita, healthy life expectancy, personal freedom, generosity, social support and perceived corruption.

The UAE recorded a score of 6.821 out of 10, placing it ahead of several advanced economies.

The country posted strong results across individual measures. It ranked fourth globally for residents’ freedom to make life choices, eighth in GDP per capita at around $70,000, 19th in generosity based on the scale of charitable contributions, and 30th in life expectancy.

Saudi rises 15 spots in ‘happiness’ ranking

Saudi Arabia moved up to 22nd place in the latest report, rising 15 spots from the previous edition.

The kingdom recorded a life evaluation score of 6.817 out of 10, using survey data from recent years.

The kingdom placed ahead of the US, Canada and the UK, while Finland remained in the top position globally, with Iceland and Denmark following.

Saudi officials attributed the improvement to ongoing social and economic reforms under Vision 2030, with the Quality of Life Program cited as a key contributor.

Read: Saudi Arabia’s human-centred future: Quality of Life Program’s CEO shares insights

Government data shows quality of life sectors have added more than $20.5bn to GDP and attracted $5.8bn in non government investment.

Salary cuts amid regional tensions? What UAE employees need to know

Concerns are rising among employees and companies in the UAE as regional tensions weigh on sentiment, but labour law offers clear protections, and salary cuts are far from straightforward

Gareth van Zyl
Gareth van Zyl

24 March, 2026

Salary cuts amid regional tensions? What UAE employees need to know
Image: Getty Images

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Amid regional tensions, UAE employees are concerned about potential salary cuts. While the UAE economy remains strong, some sectors face uncertainty. Legally, employers cannot reduce salaries without employee's written consent. Changes must comply with the Wage Protection System (WPS). Refusal may lead to termination. The job market is becoming more competitive, demanding top performers.

As regional tensions begin to impact business, a question is surfacing across UAE offices, corridors and water coolers alike: could salary cuts be next?

For many employees, the concern is rooted in experience. From the global financial crisis in 2008 to the disruption of Covid-19, previous downturns saw companies move quickly to preserve cash, often through salary reductions, unpaid leave, or workforce cuts.

This time, however, the starting point is different.

Read more: No consent, no cut: The UAE salary rule employers can’t ignore

The UAE economy remains on solid footing. Growth is expected to hover around 4 per cent in 2026, supported by strong non-oil activity, while the population has surged past 11 million, reinforcing demand across sectors.

Yet even with that backdrop, sentiment can shift.

Justin McGuire, chairman of MCG Talent, a Middle East recruitment firm operating in the region since 2010, says that downturn or not, the legal framework leaves little room for interpretation.

“You cannot just cut someone’s salary because the market has turned,” McGuire told Gulf Business.

“Under federal law, any change to salary or core contract terms requires employee consent and an updated contract filed through the Ministry of Human Resources and Emiratisation (MOHRE),” he added.

That view is reinforced by legal experts, who point to the clarity of the UAE’s employment framework.

“An employer cannot reduce an employee’s salary without the employee’s express written consent,” says Luke Tapp, a leading employment lawyer and partner at Pinsent Masons.

Under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations, any change to core employment terms, including salary, must be agreed by both parties and documented in writing.

“The effect of these provisions is therefore that an employer must pay the employee’s salary in the contractually agreed amount, unless the employee has consented to a salary reduction in writing,” Tapp explains.

Crucially, external pressures do not change that position.

“War or geopolitical tensions do not, of themselves, create any legal exception to this rule,” he adds.

In practice, that means salary reductions, where they happen, are not imposed, but negotiated.

Employers typically outline commercial pressures and seek agreement, sometimes in situations where the alternative may be restructuring or job losses. Employees, however, retain the right to refuse.

As set out under UAE labour law, and highlighted by legal experts, where agreement cannot be reached, employers must either maintain existing terms or move towards termination, following due process and triggering notice periods and end-of-service obligations.

For companies, the greater risk often lies not in the decision itself, but in how it is executed.

WPS compliance

One of the most important considerations, especially for employers, is the UAE’s Wage Protection System (WPS).

The system monitors salary payments and compliance across onshore entities and certain free zones. Any discrepancy between contracted salaries and actual payments can trigger flags.

“If employers operating within these areas reduce salaries without notifying the WPS, this could trigger a breach of the WPS which will then result in operational and financial penalties,” Tapp says, noting that companies must ensure any changes are properly reflected in payroll systems.

The consequences for employers can be significant, including restrictions on business activities such as applying for visas, he adds.

In other words, salary cuts are not simply a contractual issue, they are a regulatory one, with direct implications for day-to-day operations.

A more uneven job market

Against this backdrop, the labour market itself was already entering a more uneven phase, even before the current regional situation began.

McGuire describes a growing divergence between sectors owing to current market forces. Technology, AI, infrastructure and government-backed projects continue to hire, supported by long-term investment, while other industries are slowing, with longer hiring cycles and tighter budgets.

With the current situation, McGuire says the risk of salary reduction is a possibility.

“The risk is real in pockets of the market — particularly in sectors exposed to geopolitical instability, delayed investment, or cash flow pressure.”

On the state of the overall jobs market, he says it “has not collapsed, but it is no longer easy at all.”

“The gap between top performers and everyone else is widening.”

For now, that leaves the UAE labour market in a delicate balance, supported by historically strong economic fundamentals, but navigating rising uncertainty.

This is not 2008. It is not Covid. But it is no longer business as usual either.

What UAE employees need to know:

  • Salary cuts require your written consent
    Employers cannot reduce pay without a signed agreement.
  • Refusal is a right but not without consequence
    Employers may ultimately move towards termination if agreement cannot be reached.
  • No special rules currently apply
    Unlike Covid-19, no temporary framework currently exists to allow unilateral salary reductions.
  • WPS compliance is critical
    Any agreed changes must be properly recorded and aligned with payroll systems.
  • Prepare for a tougher market
    Hiring is slowing in some sectors, and competition is increasing.

Ajman records highest rainfall as UAE sees widespread showers

NCM said it will continue to monitor the situation and provide regular updates, urging residents to follow official advisories

Rajiv Pillai
Rajiv Pillai

24 March, 2026

Ajman records highest rainfall as UAE sees widespread showers
Image: Getty Images

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Heavy rainfall hit the UAE on Monday due to a low-pressure system, causing convective cloud formation and variable showers. Al Manama recorded the highest rainfall (93.3mm). Several areas, including Ghayathi and Al Wathba, experienced significant accumulations. The National Centre of Meteorology is monitoring the situation and advising residents to follow safety guidelines.

The UAE recorded heavy rainfall across multiple regions on Monday as a low-pressure system triggered convective cloud formation and showers of varying intensity.

According to the National Centre of Meteorology (NCM), Al Manama in the Emirate of Ajman recorded the highest rainfall at 93.3mm.

Ghayathi in the Al Dhafra region of Abu Dhabi followed with 91mm, while Al Wathba recorded 88.2mm. Mohammed bin Zayed City saw rainfall of 78.7mm, and Al Ruwais in Al Dhafra registered 75.7mm, placing it among the most affected areas.

The weather system brought widespread rainfall across parts of the country, with several areas experiencing significant accumulations within a short period, WAM reported.

The NCM said it will continue to monitor the situation and provide regular updates, urging residents to follow official advisories and adhere to safety guidelines issued by relevant authorities.

Read: Rain prompts temporary closure of parks in Sharjah and Ajman

Early classroom comeback? UAE private schools seek approval

Major private school groups have formally applied to regulators to resume on-campus learning, as authorities balance safety considerations

Nida Sohail
Nida Sohail

24 March, 2026

Early classroom comeback? UAE private schools seek approval

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UAE private schools, including Taaleem and Cognita Group, are requesting to resume in-person learning sooner than scheduled, following a period of distance education. The extension was initially implemented as a precautionary measure. Schools are seeking approval from regulators like the KHDA, with a phased return and hybrid learning models being considered to balance student safety and parental preferences.

Several UAE private school groups are formally requesting to resume in-person learning, potentially as early as next week, following a temporary shift to distance education amid the regional situation.

Under directives from the Education, Human Development and Community Development Council, distance learning was extended for two weeks at the start of the third academic term, which resumed on March 23. The Ministry of Education confirmed the move as a precautionary measure amid the current situation.

However, some operators are now seeking approval to bring students back to campus sooner.

Taaleem, which operates 37 schools across the UAE, has reportedly formally applied to regulators including the Knowledge and Human Development Authority (KHDA), Abu Dhabi Department of Education and Knowledge, and the Ministry of Education to resume on-campus learning from Monday, March 30.

Separately, Gulf Business understands that schools under the Cognita Group have submitted similar requests to the KHDA.

Cognita’s UAE portfolio includes schools such as RGS Guildford Dubai, Repton Dubai, Repton Al Barsha, Repton Abu Dhabi, Horizon English School, Horizon International School, Ranches Primary School and Al Ain English Speaking School.

One school in the group told parents it is “working closely with the KHDA to determine a safe and appropriate timeline for reopening, in line with official guidance”.

It added that distance learning will continue until approvals are granted, with hybrid learning under consideration during the transition.

Balancing safety and demand

The potential return to classrooms comes as schools, regulators and families weigh educational continuity against student safety.

Alan Williamson, CEO of Taaleem, said any reopening would be phased and guided by wellbeing considerations.

“Our priority is to ensure that every student continues to learn in a safe, supportive, and stable environment, whether on campus or through distance learning,” he said.

“We are seeing a balanced picture across our community. Many families are expressing confidence in a return to campus, while others prefer a more cautious approach.

“This ongoing dialogue is central to how we plan, ensuring we remain responsive, flexible, and guided by the needs of our families.”

To accommodate differing preferences, Taaleem could also adopt a hybrid model, allowing students to continue online learning if they are not ready to return physically.

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