Oil and gas jack-up rig at the yard for maintenance with many vessels in the nighttime, the petroleum rig is applied for producing oil and gas in offshore in the petroleum industry.

How the Middle East energy sector builds resilience through innovation

The evolving risk landscape is driving energy providers to explore new strategies for securing their operations and supporting a long-term energy transition.

In brief

  • The Middle East’s energy sector faces increasing cyber, environmental and geopolitical challenges.
  • Resilience depends on strategies such as digital risk management, infrastructure upgrades and renewable energy investments.
  • The UAE, Saudi Arabia and Qatar are setting benchmarks in energy resilience through innovation and collaboration.

The energy sector is the backbone of the Middle East’s economy, powering industries, driving exports and fueling global innovation. The Middle East holds a critical role in global energy markets as one of the leading producers and exporters of oil and natural gas, highlighting its strategic importance for global economic stability. From maintaining stable energy supplies to supporting the transition toward renewable energy, the sector is pivotal to the world’s economic stability. However, the importance of the Middle East’s energy sector also makes it one of the most targeted in the world.

Energy companies account for
of unexpected political risk reports in 2024.¹

Macroeconomic uncertainty including geopolitical tensions, trade, fiscal and monetary policies, was identified by energy companies as the top risk to achieving growth. This was followed by labor market challenges and access to talent. Additionally, technology and cybersecurity threats, along with climate-related regulatory changes, underscore the sector’s exposure to both global economic shifts and operational vulnerabilities.²

As per the Global CEO Outlook Survey, political risks have significantly or somewhat negatively impacted multiple aspects of energy companies’ operations over the past 24 months.  

Given the region’s strategic importance, bringing in resilience in the energy sector is not just a regional necessity but a global imperative. It is imperative to have robust systems to protect and sustain infrastructure. The ripple effects of any disruption would be felt across international markets, impacting industries, governments and consumers worldwide.

The morning view of oil drilling rig (Tender assisted rig type) in Gulf of Thailand
1

Chapter 1

The global significance and challenges of the energy sector in the Middle East

The Middle East's energy sector is vital to global stability, powering economies worldwide. However, its infrastructure faces significant challenges from cyber attacks, sabotage and environmental risks.

The strategic global importance of the Middle East’s energy sector

The Middle East accounts for a significant portion of the world’s energy supply. With countries such as Saudi Arabia, the UAE, Kuwait, Iraq and Qatar being leading exporters of oil, natural gas and liquefied natural gas (LNG), the region’s stability is essential for maintaining the balance of global energy demand and supply.

The Middle East accounted for 31.1% of global oil production in 2024, with a total output of 30,119 kilo barrels per day (kbpd).  

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Around 16% of the world’s gas-based power generation was in the Middle East in 2023.⁵ According to the World Bank 2023 report, the MENA region holds 22% to 26% of the world’s solar energy potential, positioning it to generate at least half of global electricity demand.⁶


Energy from the Middle East powers factories in Asia, fuels transportation in Europe and provides heating in North America. Any disruption to this flow due to natural disasters, infrastructure failures, or attacks can lead to supply chain issues, price increases and global economic instability.


Additionally, as the world transitions to renewable energy, the Middle East is emerging as a leader in solar and hydrogen initiatives. These investments not only diversify the region’s energy portfolio but establish it as a critical player in the global shift toward sustainable energy.


The Middle East as a high value target


The Middle East’s energy infrastructure is one of the most targeted globally due to its critical importance. Threat actors, ranging from cybercriminals to state-sponsored groups, frequently concentrate their efforts on this sector, knowing that disruptions can have significant consequences.


Cybercriminals have targeted industrial control systems and operational technology with ransomware, seeking financial gain by halting operations. Supply chain resilience measures, such as risk assessments and proactive monitoring, are fundamental to mitigating these risks. Cybersecurity considerations is the second-ranked top priority in energy companies' overall supply chain strategy.⁷

In Q1 2024, Distributed Denial of Service (DDoS) attacks in the MENA region surged by
driven by rising geopolitical tensions and hacktivism.

The Middle East’s energy infrastructure also faces physical threats, both intentional and environmental. In addition, many critical facilities are in remote and harsh environments, making them vulnerable to sandstorms, earthquakes and extreme heat. Without proper protections, such as reinforced structures and rapid response protocols, operational continuity is at significant risk.

The growing digitization of the Middle East

The region’s energy systems are increasingly digitized, incorporating smart grids, Internet of Things (IoT) devices and AI-powered controls into their operations. While these technologies bring efficiency and optimization, they also expand the attack surface.

large solar panels on the background of the sky in sunlight
2

Chapter 2

Key strategies for enhancing energy resilience in the Middle East

Explore key strategies for enhancing resilience in the Middle East's energy sector, focusing on digital innovation, renewable energy and regional collaboration to promote future stability.

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Key strategies for building resilience


Given the criticality of the energy sector and its high exposure to risks, resilience must be at the forefront of planning and operations. The following strategies are essential for safeguarding energy infrastructure:


1. Strengthening digital risk management


Implement zero-trust architectures, real-time threat intelligence and AI-powered analytics to mitigate digital risks. Regular security audits and integrating cybersecurity into business continuity planning help reduce downtime and exposure.


2. Diversifying energy portfolios


Transitioning to renewable energy sources such as solar, wind and hydrogen reduces dependence on fossil fuels while aligning with sustainability goals and enhancing energy security.


3. Adopting smart technologies


Smart grids enhance reliability across energy networks. Using IoT, AI and blockchain technologies improves predictive maintenance, operational efficiency and response times.

4. Enhancing physical security

Deploy enhanced surveillance systems, perimeter controls and rapid-response plans to guard against sabotage and environmental threats. Integrating physical security with disaster recovery planning enables quick recovery.

5. Infrastructure upgrades

Invest in modern infrastructure designed to withstand environmental stress and support emerging technologies. Ongoing upgrades extend equipment life and operational reliability.

6. Fostering regional collaboration

Cross-border partnerships in innovation, resources and emergency response enhance resilience across the region and strengthen the collective energy network.

7. Supply chain due diligence and visibility

Enable proactive monitoring of suppliers and include resilience metrics in procurement decisions to mitigate risks from geopolitical disruptions and supplier vulnerabilities.  

Most supply chain and operations executives are planning to deploy GenAI to accelerate the rise of autonomous supply chains.¹⁶

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8. Emergency response and recovery preparedness


Establish, update and rehearse response protocols to address natural disasters, cyber attacks and accidents. Regular training builds awareness and response capabilities.


9. Training and development


Equip employees with the knowledge and tools to manage crises, maintain continuity and adopt new technologies effectively.


10. Continuous improvement


Encourage feedback and integrate lessons learned into future planning to maintain a culture of improvement and resilience. Consider where new, innovative approaches to risk management should be applied, as many energy organizations report limited use of stress testing across the enterprise.


Regional leadership in energy resilience


Across the Middle East, several nations are taking proactive steps to strengthen their energy sectors:

 

  • Saudi Arabia: Through its Vision 2030, Saudi Arabia is investing heavily in renewables, including green hydrogen and solar projects. The adoption of smart grid technologies signals a strong commitment to energy modernization and security. Additionally, AI and cybersecurity market is projected to grow steadily through 2030.  
Saudi Arabia's AI in cybersecurity market was valued at
in 2023.
Saudi Arabia's AI in cybersecurity is projected to grow at
by 2030.¹⁷
  • Qatar: Under its National Vision 2030, Qatar aims to increase renewable energy production while conserving resources, reducing emissions and enhancing environmental resilience.
  • UAE: With initiatives such as the world’s largest single-site solar park, the UAE is positioning itself as a leader in sustainable energy. Its focus on digital risk management and global partnerships highlights its proactive stance.

These national strategies highlight how innovation and foresight can build long-term energy resilience and contribute to global stability. The Middle East’s energy sector is not just vital to the region; it highlights global economic and energy stability. Its strategic importance makes it a high-value target, demanding robust resilience strategies. By adopting digital innovation, investing in renewable energy and fostering cross-border collaboration, the region can safeguard its energy future.

Summary 

The energy sector in the Middle East plays a vital role in powering the global economy but faces mounting digital, physical and environmental threats. Energy leaders need to adopt resilient strategies including digital risk management, infrastructure modernization and renewable diversification to protect their future. EY Risk Consulting supports these efforts by providing tailored resilience frameworks and solutions that help energy providers respond to risks and prepare for a sustainable, secure energy future.


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    About this article

    Kawther Haciane
    EY MENA Digital Risk Leader
    Enabling organizations to navigate the complexities of the digital era. Protecting critical assets. Ensuring trust in technology and fostering resilience against evolving threats.
    Related topics
    Energy and resources
    Power and utilities
    Government and Public Sector
    Consulting
    Risk
    Trust
    Cybersecurity

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