Energy and natural resources 2019
The report explores the exciting developments transforming oil and gas (O&G) in the UAE and globally. We look at changes in accounting, tax and how sustainable energy innovation faces potential obstacles like high technological risk and financial costs. We also shine a spotlight on ethics, and explore how the O&G sector could modify its employee value proposition to attract millennial talent.
Other important findings include:
- The International Accounting Standards Board has provided further guidance on the definition of a business, historically a topic of contention
- Reforms to the UAE Foreign Direct Investment law allow foreign shareholders to now own up to 100% of UAE companies, including ENR entities, incorporated outside the designated free zones.
- Prices of main energy commodities are forecast to remain stable over the next ten years.
2019 KPMG Global CEO Outlook - Energy
As per the KPMG Global CEO Outlook 2019 survey, 94% of energy company CEOs are confident in their own business’s growth prospects over the next three years. Tempering this optimistic outlook, 76% of CEOs across all sectors surveyed said their company’s growth would depend on their ability to manage the transition to a low carbon, clean technology economy. These findings set the scene for a discussion about renewable energy sources. Sustainable energy innovation faces some obstacles: high technological risk, financial costs, and strong commercial competition from established, low-cost products and solutions. These hurdles may be partly mitigated by securing the optimum mix of private and public funding, and establishing a culture of transparent policy discussion.