UAE and Saudi Arabia commit to expand co-operation in energy projects

The countries also commended Opec+ for its role in stabilising the oil market

An intersection of pipelines near well heads of Saudi Arabia's Shaybah Oil Field. The UAE and Saudi Arabia have stressed the importance of co-operating in the field of trading oil products. Photo: GeoShow more

The UAE and Saudi Arabia have committed to step up co-operation in the fields of oil and gas, petrochemicals and nuclear energy, in a move that will further deepen ties between the two Gulf countries.

The Arab world's two largest economies also stressed the importance of working together in the field of trading oil products and in the commercial exchange of electrical energy, artificial intelligence, digital transformation, cyber security and industry and advanced technology, state news agency Wam reported on Wednesday.

The announcement came as Crown Prince Mohammed bin Salman completed a two-day leg of his Gulf tour in the UAE, where he met Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.

Prince Mohammed's tour will take him to the five member countries of the Gulf Co-operation Council – Oman, the UAE, Bahrain, Qatar and Kuwait.

Reports in Saudi Arabia said the tour would be focused on ways to enhance co-ordination between GCC states and measures to strengthen the work of the regional body before the leaders’ summit in mid-December.

The UAE and Saudi Arabia also commended oil producer group Opec+'s role in helping to stabilise the international oil market. They stressed the importance of continuing to co-operate in the group's output deal.

Opec+, which enforced historic production cuts last year to counter the pandemic-induced fall in energy demand, has been credited for playing a key role in stabilising oil markets so far by gradually increasing supply.

The group had agreed to increase output by 400,000 bpd in January. It is bringing a total supply of 2 million bpd back to markets by the end of the year.

Opec+ said it will continue to monitor the market, signalling a willingness to respond as per the market demand. The group will meet again on January 4 to decide on the future course of action.