As geopolitical uncertainties rise, Gulf Arab states have adopted a two-pronged strategy for their energy investments. First, they are pivoting to Asian markets—a move aimed at securing buyers for their energy exports. This comes as the center of gravity for demand is moving away from member countries of the Organization for Economic Cooperation and Development (OECD) and towards developing Asia, which now represents the primary focus for growth. Second, Gulf states are broadening their oil and gas investments to include less politically stable countries in the region, such as Iraq and Lebanon, as well as emerging energy-rich economies in the South Caucasus—including Azerbaijan.

Qatar serves as a prime example of this strategic approach. Last year, Doha agreed to purchase a 25% stake in a 27B USD Iraqi energy project alongside France’s TotalEnergies. Moreover, UCC Holding—a construction and...