‘Not enough energy’ for the world due to geopolitical tensions, says Ducab chief

The world needs to diversify its energy sources as geopolitical tensions put pressure on supplies and costs, the chief executive of UAE cable maker Ducab has said.

Charles Edouard Mellagui warned that higher prices for raw materials could ultimately reach consumers’ bills.

Speaking to The National at Adipec 2026 in Abu Dhabi this week, Mr Mellagui said oil and gas alone would not be enough to meet growing demand.

“We have to prepare ourselves to add more energy [sources] because oil and gas are not enough,” he said. “We will need solar. We need wind. We need nuclear. We need battery storage.”

He said geopolitical conflicts were putting the global energy system under strain, disrupting the movement of materials and equipment needed to maintain and expand supplies.

Show caption: Ducab chief executive Charles Edouard Mellag

“Given the geopolitical situation and crisis worldwide, there is not enough energy for the eight billion people in the world,” Mr Mellagui said. “That’s why we see the crisis going through the roof.”

He added that geopolitical tensions “exacerbated” the problem and pushed countries to become sovereign in terms of energy.

However, he believes the UAE was well prepared. For residents, the pressure could eventually be felt through costs, he said. “At first, they will see it in the bill because if you have raw material going up, of course, at the end of the day, the price will escalate.”

Factories stayed open

Despite disruption to international trade, Mr Mellagui said Ducab continued manufacturing cables used to carry electricity to homes, businesses and major infrastructure.

He credited government support and the availability of ports, roads, lorries and trains for helping the company receive materials from overseas.

“We have been able to bring raw materials from all over the world ... and we are able to produce the cable, and we did not close [our operations even] for a single day,” he said.

He added that geopolitical tensions can make it difficult to bring the raw material to manufacture and to export, complicating the whole supply chain, while also highlighting the importance of producing locally.

Ducab buys more than 40 per cent of its raw materials locally. Mr Mellagui said domestic suppliers had an important role in supporting production when importing became more difficult.

“When you cannot import, or you import in a difficult situation, what matters is your ability as a country to produce locally,” he said.

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The company would still need international suppliers, he added. Local manufacturing was only one part of securing supplies.

More equipment made in the UAE

Mr Mellagui's comments followed Adnoc’s announcement on Sunday about offering more than Dh60 billion ($16 billion) in local manufacturing opportunities through 2030.

This includes electrical and automation systems, pumps, chemicals, piping and other equipment. Adnoc said producing more of these goods locally would shorten delivery times and reduce exposure to global supply disruptions.

Mr Mellagui said demand from major businesses could help strengthen local manufacturers.

Delivering power to growing communities

New homes, industrial developments and AI data centres are adding to the need for electricity and the infrastructure that carries it.

Mr Mellagui said several energy sources would be needed to meet demand.

Ducab has supplied cables for major UAE projects including the Al Dhafra Solar Project, Mohammed bin Rashid Al Maktoum Solar Park and Barakah Nuclear Energy Plant.

Alongside expanding generation, the industry needed to reduce electricity waste, Mr Mellagui said. Ducab is developing cable designs intended to minimise those losses.

He added that energy needs to be secure and available, but also affordable. Rising raw-material costs can push prices up further along the supply chain.

AI ‘paying the bill back’

The growth of AI has increased attention on the electricity consumed by data centres. Mr Mellagui said the technology is now helping energy companies become more efficient.

“AI is paying the bill back,” he said. “It has learnt, developed, consumed a lot of power, a lot of energy, and now, we are asking this AI to restitute to us what it has learnt.”