SARA ALZAABI (ABU DHABI)
As demand for clean energy, digitalisation and resilient infrastructure grows, how is the Middle East preparing for the next phase of transformation?
According to Siemens’ 2026 Middle East Infrastructure Transition Monitor, titled “Powering Transformation: How a New Generation of Infrastructure Assets is Reshaping the Middle East”, the region is entering a new phase of infrastructure transformation driven by autonomy, resilience and sustainability.
The study is based on a survey of 400 senior executives and interviews with regional leaders. It found that 66% of executives believe the global energy transition needs to accelerate, compared with 57% globally. This reflects growing momentum behind clean energy and infrastructure transformation.
The study also found that 70% of organisations in the region have set direct and indirect emissions targets, compared with 58% globally.
Industrial AI is gaining traction, with 62% expecting it to reshape infrastructure operations within three years and 61% saying it is already improving the resilience of critical infrastructure.
Grid modernisation was identified as another key priority, with 64% highlighting smart grids and grid software as essential to the clean energy transition.
Government-business collaboration on energy policy reached 65%, above the global average of 59%.
Speaking to Aletihad, Hakan Ozdemir, CEO of Siemens Smart Infrastructure in the Middle East and Siemens Qatar, said the UAE has become a leading example of how growth, sustainability and digital transformation can advance together.
“The UAE is proving that growth, AI and sustainability are not competing priorities; they are converging,” he said.
He said decarbonisation has become the region’s top infrastructure priority. According to the report, decarbonisation ranks first among organisations surveyed in the Middle East, compared with seventh globally.
At the same time, 68% of respondents identified digitalisation as the most important accelerator of the energy transition, while 57% are already implementing AI to help decarbonise operations.
Ozdemir added that the UAE’s approach stands out because AI-enabled technologies are being embedded directly into infrastructure systems rather than added later.
Ozdemir attributed this progress to strong public-private collaboration. “Sixty-five percent of respondents say businesses and governments are working closely on energy-system policy, compared with 59% globally,” he said.
Artificial intelligence, meanwhile, is already delivering measurable benefits across the country’s infrastructure sector. “AI is no longer a future promise in the UAE; it is operational and delivering measurable results today,” Ozdemir said.
“Resilience has become the new efficiency,” he said, with 61% reporting that AI is already strengthening critical infrastructure resilience.
Ozdemir highlighted several UAE projects where AI is already being deployed, including Aldar’s Saadiyat Grove, Emirates NBD and Dubai Municipality.
He said AI-driven systems are helping improve energy efficiency, optimise building performance and predict infrastructure issues before they occur.
Data centres, he added, represent one of the biggest infrastructure opportunities linked to the UAE’s AI ambitions.
The report found that 56% of organisations are ready to implement autonomous systems in buildings, while 57% plan significant investments in this area over the coming year.
Ozdemir said smart and autonomous buildings, alongside AI factories and data centres, will become major drivers of future infrastructure growth.
He said rising demand reflects the region’s rapid digital and economic growth, with electricity demand projected to increase by 50% by 2035, driven in part by cooling and desalination.
While power-grid limitations are cited as the single factor most likely to slow the industry’s transition to clean energy, he noted that the UAE is responding through major investments in grid modernisation and smart infrastructure.
“The country’s smart grid programme, backed by more than Dh40 billion in investment, is delivering the region’s most advanced grid modernisation,” he said.
He pointed to DEWA’s Dh7 billion smart-grid programme through 2035 as an example of how the UAE is transforming its electricity network into a digital platform capable of supporting future AI-driven industries and clean-energy systems.
Ozdemir also highlighted the growing push towards integrated energy systems. According to the report, 66% support a single platform for electricity, gas, hydrogen and transport. Meanwhile, 70% say greater data sharing would improve energy efficiency, compared with 57% globally.
Reflecting this, 69% said they need smarter data-integration technologies, with the same proportion planning further investment.
“Digital infrastructure is not an add-on; it is the foundation,” Ozdemir said. He further said the UAE has already established several smart-infrastructure models that could be replicated across the region. These include large-scale smart-building projects and advanced smart-district developments.
“The UAE has invested heavily in modern infrastructure and is emerging as a global leader in Industrial AI,” Ozdemir said.
He said the next stage of development will focus on creating a fully integrated, data-driven energy ecosystem. “The future of energy systems in the UAE is not about building a bigger physical network. It is about creating a more digital, flexible and coordinated electricity system,” he said.
Modernising the grid, he noted, will remain central to achieving that vision. “Grid modernisation is not just one element of the UAE’s energy transition; it is the central enabler,” Ozdemir said.
According to Ozdemir, the combination of AI-enabled infrastructure, smart buildings, modernised grids, integrated energy systems and strong public-private collaboration is positioning the UAE at the forefront of infrastructure transformation.
He said these factors are also creating a foundation for long-term economic growth, energy security and sustainability.