GCC oil and gas and chemical companies, are unlikely to meaningfully adjust their strategies and spending in the next five years, despite a greater focus on environmental targets in the region, said S&P Global Ratings in a new report.

"Many players are aware of the risks and opportunities ahead and some are making real commitments to environmental targets," said S&P Global Ratings analyst Rawan Oueidat. “However timelines to achieve these are longer than global peers' and we don't expect to see shifts in asset profiles in the short-to-medium term."

“We believe the slower spending pace stems largely from regional energy companies being significantly more shielded than global peers' to energy transition risks thanks to their unique competitive position as well as other factors, such as the currently lower returns on green and renewable projects, which are less attractive than those of its core business.

“The sector's sustainable debt issuance is also unlikely to see a strong uptick, in our view, due in part to fewer projects being undertaken by the sector that investors would consider green,” Oueidat added. – TradeArabia News Service