Oil and gas industry officials tell of ‘climate backlash’

Despite holding over half the world’s oil and gas reserves, the Middle East and North Africa region is responsible for just a third of oil production and a sixth of gas, as the industry struggles to stay competitive. (AFP)
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Updated 19 December 2019
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Oil and gas industry officials tell of ‘climate backlash’

  • Concerns about climate change are 'causing the energy sector to be unfairly maligned'
  • 'Carbon emissions will continue' as long as Asian keeps building coal-fired power stations

DUBAI: Signs are starting to emerge of a backlash against the oil and gas sector for its contribution to global warming, putting the industry at risk of being labeled the “new Big Tobacco,” according to prominent energy industry figures.

Majid Jafar, CEO of Crescent Petroleum, the region’s first and largest privately owned oil and gas company, made the observation while taking part in a panel discussion on Tuesday at the SALT conference in Abu Dhabi.

Speaking as someone who was “proud to work in an industry that has transformed human standards of living over the last century,” Jafar said the oil and gas sector was being “unfairly maligned,” especially with the advent of electric vehicles, and that its role was being “misconstrued” by activists and the press.

Citing figures from the International Energy Agency (IEA), he added: “While many people are focusing on electric cars, the reality is that natural gas substituting for coal has had 100 times greater impact in lowering emissions over the last five years than the 5 million electric cars today.”

Jafar advised the public to “go beyond the headlines” in order to understand the bottom line of the impact the industry is having on climate change.

While he supports young people in the West trying to campaign and draw attention to the threat of climate change, he said carbon emissions would continue, and might increase, as long as Asia keep on building coal-fired power stations.

In the current scenario, any efforts by the West to curb carbon emissions would be akin to “rearranging the furniture in a bedroom while the living room is on fire,” he said, adding that the climate crisis is in need of global action.

Jafar’s concerns were amplified by David Darst, chief investment officer at The Family Office, who said in a separate session at the SALT conference that the oil sector has been “tobaccoized.”

Discussing the challenge of “managing change in a time of digital transformations,” Darst said it was important to understand the difference in the levels of influence commanded by “big data” companies and the largest oil and gas companies.

“The market capitalization of Apple alone is $1.1 trillion. This is equal to the market cap of the entire energy sector of the US, which includes such oil companies as ExxonMobil, Chevron and ConocoPhillips,” he added.

Were Apple to disappear, people would move on to Samsung, Darst said. But if the same happened to ExxonMobil, Royal Dutch Shell and BP, “the world would be on its knees.”

Even so, signs of a backlash against energy companies can be seen in the case of the University of California investment system, Darst said, pointing out that the university, which has a $17 billion endowment and a $70 billion pension fund for its employees, recently took its assets out of hydrocarbon stocks. 

Against this backdrop of mounting challenges, Jafar pointed to developments such as Saudi Aramco’s initial public offering as a new model of partnerships with the private sector that could help the energy industry regain its competitiveness once again.

The Middle East and North Africa region, which holds half of the world’s oil and gas reserves, is responsible for a third of the world’s oil production and a sixth of its gas production, he said.

“We’re punching way below our weight,” Jafar said, adding that over the last decade, the Middle East oil and gas industry had given up a significant amount of its market share to its American counterparts.

SALT, run by Scaramucci, who as well as working at the White House  was also a successful financier, is holding its first conference in the Middle East in partnership with the Abu Dhabi Global Market, aiming to identify global collaboration opportunities in finance, technology and geopolitics.


Airports in GCC are turning stopovers into tourism growth

Updated 14 February 2026
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Airports in GCC are turning stopovers into tourism growth

  • Governments and airport operators are turning aviation as a central pillar of tourism and economic strategy

CAIRO: Once defined by fleeting layovers and duty-free corridors, airports across the Gulf Cooperation Council are increasingly gateways to short-stay tourism, driving non-oil growth, hospitality revenues and job creation. 

Across the region, governments, airlines and airport operators are treating aviation not merely as a transport sector but as a central pillar of tourism and economic strategy. Through streamlined visa regimes, airline-led stopover programs and sustained investment in airport infrastructure and technology, GCC countries are turning transit passengers into visitors. 

“Across the GCC, destinations have shifted from functioning primarily as global transit hubs to positioning themselves as places travelers actively choose to visit, even for short stays during onward journeys,” Nicholas Nahas, partner at Arthur D. Little, told Arab News. 

Airports in the Middle East are investing heavily in biometric processing systems, e-gates and digital border controls designed to shorten waiting times and improve passenger flow. These upgrades, backed by coordinated public-private initiatives, are narrowing the gap between arrival and exploration, making short stays viable even for passengers transiting for less than 48 hours. 

Unified GCC visa 

Two years after its initial proposal, the long-discussed unified GCC tourist visa is moving through final coordination stages, a development expected to further accelerate tourism spending linked to stopovers. 

Looking ahead, the visa could allow the region to function as a single tourism corridor. Robert Coulson, executive adviser for real estate at Accenture, said the next phase is about regional continuity. “The next leap for the GCC is making the region feel like one seamless journey while differentiating each stop with a distinct identity,” he told Arab News. 

First proposed in 2023 and approved in principle in 2024, the visa is designed to allow travel across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE under a single permit. Analysts say Saudi Arabia is positioned to be among the biggest beneficiaries, given its scale, expanding destination portfolio and growing aviation capacity. 

The unified visa is expected to complement existing stopover initiatives by allowing travelers to combine short visits to Saudi Arabia with trips to Dubai or Doha, effectively turning the Gulf into a single multi-country itinerary rather than a series of isolated transit points. 

Saudi aviation surge 

Saudi Arabia’s aviation-driven tourism growth has accelerated rapidly. The Kingdom welcomed an estimated 122 million visitors in 2025, moving closer to its Vision 2030 target of attracting 150 million tourists annually. 

“GCC travel hubs have stopped selling connections and started selling experiences,” Coulson said. “They’ve cracked the stopover-to-stayover model, turning a layover into a mini-holiday rather than dead time.” 

In January, Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, said international destinations served from Saudi Arabia increased to 176 in 2025, while the Kingdom remained home to some of the world’s busiest air routes. 

He credited this performance to the “unlimited support” of the Kingdom’s leadership, identifying aviation as a key enabler of Vision 2030 and broader economic diversification. 

Saudi Arabia’s newest airline, Riyadh Air, is expected to contribute more than $20 billion to non-oil gross domestic product and create over 200,000 direct and indirect jobs, underscoring aviation’s expanding economic footprint. 

A key pillar of Saudi Arabia’s strategy has been the introduction of a digital stopover visa in 2023, allowing transit passengers to enter the Kingdom for up to 96 hours. The initiative enables short visits for Umrah, trips to Madinah or exploration of the country’s cultural and historical sites.  The policy reflects a broader regional effort to turn time spent between flights into economic activity beyond the airport terminal, particularly in hospitality, transport and cultural tourism. 

Short-stay shift 

This evolution has been driven by global connectivity, simplified visa access and the ability to deliver high-quality experiences within a 24-to-72-hour window. The UAE, particularly Dubai, was the earliest and most established example of this transition, converting a growing share of its transit traffic into visitors through airline-led stopover packages, flexible visa categories and dense, short-stay-friendly attractions. 

Dubai International Airport handles more than 85 million passengers annually. Curated stopover products combining hotel stays with cultural and entertainment experiences have helped transform transit traffic into leisure demand. Direct metro access and streamlined entry processes have further reduced friction. As a result, Dubai welcomed around 19 million international overnight visitors in 2025. 

Other GCC destinations have since adopted similar models. Abu Dhabi expanded stopover offerings through its national carrier, promoting entertainment and cultural districts as compelling short-stay experiences. Qatar embedded stopover tourism into its national tourism strategy, converting transfer traffic at Hamad International Airport into city stays. Saudi Arabia expanded its tourism offering through its 96-hour digital visa linked to onward flights. 

A smooth transit experience is often the deciding factor in whether passengers remain airside or choose to explore. Fast entry processes, intuitive airport design and reliable airport-to-city connectivity can turn even a six- to eight-hour layover into usable time rather than idle waiting. 

Under Vision 2030, Saudi Arabia has invested heavily in airport expansion, digital border processes and urban mobility projects designed to shorten the distance between arrival and experience. Airline stopover platforms, transport apps and airport-based destination messaging increasingly reduce uncertainty and enable spontaneous exploration. 

Beyond transit traffic, Nahas said tourism growth across the GCC has been driven by integrated destination ecosystems. Successful destinations are designed end-to-end — from trip planning and arrival through accommodation, mobility, experiences and departure — requiring coordination across tourism authorities, airlines, airports, transport providers and experience operators. 

Designing destinations 

For developers shaping the region’s next phase of tourism growth, the focus has shifted toward creating destinations that capture travelers from the moment they arrive. 

Sultan Moraished, group head of technology and corporate excellence at Red Sea Global, said next-generation destinations are being designed to resonate with global travelers beyond a flight connection. 

“As we design and build next-generation destinations, our focus is always on creating experiences that resonate with global travelers from the moment they arrive to when they choose to explore beyond a flight connection,” he told Arab News. 

Moraished said offering experiences travelers cannot find elsewhere, from cultural immersion to nature-based activities, creates compelling reasons to extend visits beyond simple transit. He added that collaboration across aviation, hospitality and destination authorities ensures that every part of the journey is aligned with a shared vision for tourism growth. 

Looking ahead, Moraished said the intersection of innovation and hospitality will continue to open new pathways, from smart digital experiences to regenerative tourism practices that appeal to increasingly conscious travelers and encourage repeat visitation. 

Experience economy 

Airports have shifted from being standalone infrastructure assets to functioning as world-class distribution engines for cities and destinations. Investments in gateway airports have made them part of the destination brand promise. 

Tourism operates as a continuous conversion funnel, Coulson said. Every step removed between the flight gate and the city increases the likelihood that travelers will leave the terminal and spend money locally. Fast connections, predictable baggage handling and clear wayfinding reduce perceived risk, while simplified transit visas make spontaneity possible. 

A unified GCC tourist visa could unlock longer stays and multi-country itineraries, supported by investment in walkable districts, waterfronts and climate-smart design. 

Taken together, the transformation of transit hubs into tourism powerhouses reflects a broader shift in how the Gulf approaches aviation-led growth. Airports are no longer just points of passage but economic gateways where short stopovers translate into tourism spending, jobs and long-term diversification.