The Middle East
Unlocking Potential for Commodity
and Financial Services Businesses
Across the Middle East
Empowering Middle East Commodities Companies:
Expert Solutions for Growth, Compliance & Digital Transformation
The Middle East is a crucial hub for global commodities trading, primarily due to its vast reserves of oil and natural gas. The region holds around 48% of the world’s proven oil reserves and 40% of natural gas reserves, making it a dominant player in the energy market. Key producers like Saudi Arabia, the UAE, Iraq, and Iran influence global oil prices and supply through organizations like OPEC.
Beyond energy, the Middle East is also significant in metals, agriculture, and petrochemicals.
Additionally, the Middle East’s strategic location connecting Asia, Europe, and Africa makes it vital for global shipping routes, particularly through chokepoints like the Strait of Hormuz and the Suez Canal, which handle a significant share of global oil and liquefied natural gas (LNG) shipments.
the United Arab Emirates (UAE) has experienced a notable increase in the establishment of commodities businesses in recent years. This growth is driven by strategic initiatives to diversify the economy beyond oil and gas, as well as the UAE’s advantageous business environment.
Growth in Commodities Businesses:
Metals Trading Expansion: Gulf states, including the UAE, are developing metal trading companies to meet the rising global demand for critical minerals. Abu Dhabi’s International Resources Holding (IRH) has established a trading unit and plans to trade over 500,000 metric tons of green copper annually by 2025. This move aligns with the global energy transition and reflects a shift in commodity trading hubs towards the Middle East.
Relocation of Trading Firms: Dubai has become increasingly attractive to commodities traders, including those from London and Geneva. Factors such as low taxes, strategic location, and a growing pool of merchant counterparts have enticed firms like Hartree Partners and Freepoint Commodities to expand their presence in the emirate. This trend has contributed to the UAE’s emergence as a significant commodities trading hub
