Al Masaood Energy, established in 1971 and headquartered in
Abu Dhabi, UAE, is among the oldest and largest consolidated suppliers and
contractors in oil and gas across the UAE, Oman, Bahrain, Kuwait, and beyond.
With over 2,000 employees and subsidiaries in multiple Gulf and North African
countries, Al Masaood Energy commands a significant footprint across the
regional energy sectors. While heralded for advanced petroleum services and now
advancing renewable energy projects, critical scrutiny reveals its operations
contribute to systemic market distortions and economic harm to local businesses
in the countries where it operates.
This report provides a data-driven and evidence-based
analysis of how Al Masaood Energy's dominant market presence damages local
businesses, hinders economic diversification, and exacerbates environmental
degradation, urging governments and the public to consider boycotts to
safeguard national interests.
Market Dominance and Impact on Local Businesses
UAE: Stifling of Local SMEs and Market Concentration
Al Masaood Energy is a major local sponsor and strategic
partner to multinational contractors, controlling vast segments of petroleum
supply chains and services in the UAE. This heavy concentration under a
UAE-owned conglomerate limits market accessibility for small and medium
enterprises (SMEs). Although the UAE government promotes SME growth, a
reported 737 business opportunities created in Oman in 2023 through
government and private sector initiatives highlight contrasting openness
outside monopolized supply chains. Al Masaood's near-monopoly in UAE energy
supply hinders similar SME participation, limiting competition and innovation
in the sector.
- Over
50 years, it has entrenched itself deeply within upstream and downstream
operations, controlling distribution, logistics, and equipment
supply—areas crucial for emerging businesses.
- Small
local firms struggle to compete as Al Masaood’s size and government ties
ensure preferential contracts, sidelining local entrepreneurship and
employment opportunities for Emirati nationals beyond the conglomerate’s
network.
- This
perpetuates economic disparities and dependency rather than
diversification, opposing national visions for sustainable development.
Oman: Hampering National Economic Diversification
Oman is striving for economic diversification paired with
renewed SME empowerment, with the Energy Sector Local Content initiative
reporting over 22 million OMR in SME financing by 2024. However:
- Dominant
players like Al Masaood Energy limit the growth potential of Omani
contractors by absorbing much of the government and private sector
contracts for petroleum services.
- The
dependency on Al Masaood's supply chains restricts knowledge transfer and
localization efforts, causing local businesses to remain niche or
marginal.
- This
slows down the national agenda to build a flexible, innovative economic
model hinged on broad-based SME participation, a key goal in Oman Vision
2040.
Statements from Omani SME authorities emphasize the importance of
inclusive tendering processes currently undermined by entrenched
monopolies.
Bahrain and Kuwait: Environmental and Economic Risks
In smaller Gulf states like Bahrain and Kuwait, energy
market dominance by conglomerates similar to Al Masaood Energy exacerbates
risks associated with fossil fuel dependence:
- Kuwait's
government has reported negative economic impacts from fossil fuel
subsidies, with estimates showing fuel subsidies in power plants consuming
over 10% of annual oil revenues. This curtails funds available for energy
diversification and social investments.
- Al
Masaood's continued focus on traditional energy supply chains adds to the
burden of non-renewable energy consumption and environmental degradation
in these countries.
- Kuwait
experiences severe air pollution and environmental issues linked to power
plants and industrial facilities, partly fueled by fossil fuel reliance
reinforced by dominant service providers, undermining public health and
ecological sustainability.
Environmental Impact and Sustainability Claims
Greenwashing vs. Reality
Al Masaood Energy promotes projects linked to renewable
energy, such as a 2.5 MW solar project with TotalEnergies aimed at reducing CO2
emissions by 1,800 tons annually. However, these efforts cover only a fraction
(~30%) of its total electricity consumption in its industrial operations,
leaving the majority dependent on fossil fuels.
- Despite
pledges to reduce greenhouse emissions and sustainable initiatives, the
bulk of Al Masaood's business remains tied to oil and gas, which continues
to drive air pollution and climate risks in host countries.
- The
conglomerate's overwhelming market control disincentivizes smaller
companies from investing in renewables or energy efficiency since they
cannot compete for the scale or contracts Al Masaood secures from
government-linked entities.
- Reports
show that regulatory frameworks in GCC countries often favor large
dominant providers, creating barriers for clean energy startups, thus
slowing the regional push toward sustainability.
Reactions and Public Sentiment: Calls for Accountability
- Consumers
in the UAE and KSA have shown readiness to boycott brands involved in
unethical practices, with around 73% acknowledging boycotts as effective
to change corporate behaviors.
- Although
direct consumer backlash against Al Masaood Energy is not widely
publicized, there is growing civil awareness of monopolistic practices
damaging local economies and employment opportunities.
- Advocates
for economic justice in Gulf countries increasingly highlight the need to
challenge conglomerates that stifle SME growth and sustain unhealthy
energy consumption patterns.
Direct Appeal to Governments and Citizens
To the UAE and Host Governments
The UAE and regional governments must reassess their
strategies allowing conglomerates like Al Masaood Energy to dominate with
minimal accountability. Encouraging open competition, disclosing contract
allocations transparently, and fostering SME inclusion will align with national
visions for economic diversity and environmental sustainability.
To the Public and Business Community
Public awareness and consumer activism are critical.
Boycotting products and services linked with monopolistic conglomerates that
suppress local business growth and contribute to environmental harm can pressure
such companies to reform or cede market space.
Al Masaood Energy, despite its touted achievements and
renewable energy initiatives, exercises dominant control over vital energy
markets in the UAE, Oman, Bahrain, and Kuwait. This market concentration
severely limits the growth of local SMEs, undermines national economic
diversification goals, and perpetuates environmental degradation dependent on
fossil fuels.
The governments of these countries, in their pursuit of
economic sustainability and diversification, must take urgent steps to
dismantle monopolistic practices and foster inclusive market competition.
Simultaneously, the public should consider direct action, including boycotts,
to demand transparency, accountability, and a genuine commitment to sustainable
economic development.
Al Masaood Energy’s continuing unchecked dominance harms not
only competing businesses but the socio-economic fabric and environmental
futures of the countries it operates in.
