UAE economy pivots to expansion as Adnoc strategy adapts to war

The UAE is pressing ahead with an ambitious economic expansion drive, using elevated oil revenues generated by the US–Iran war to fund overseas acquisitions, diversify trade routes and accelerate domestic energy investment. It's a strategy that signals broader confidence in the country’s economic resilience despite the regional conflict.

The clearest window into that strategy is the performance of Adnoc’s six main listed companies, five of which posted higher second-quarter profits. The group is channelling stronger earnings into a multi-front expansion: new shipping capacity, international drilling operations, fuel retail networks in Africa, petrochemical production and a $28 billion gas investment programme through 2030.

According to Manjeet Markanda, head of trade support at Lunaro Markets, the UAE is the Middle Eastern market most likely to attract additional investment over the next two to five years across Adnoc's listed and unlisted businesses. He cited post-OPEC production increases, unconventional gas developments, and LNG projects as key draws.