Across the region, power and water services have been largely subsidized and controlled by the state or by government-owned national utilities. With the drop in oil prices and a continuous rise in demand for water and power — albeit at a lower level than before — subsidies are becoming increasingly unsustainable, leaving the door open for strong transformational forces: more private-sector participation, a shift towards direct social support, diversification of the fuel mix and the development of renewable resources, a recognition of how critical conservation is, and the adoption of new technologies. 

District cooling, which is considered a utility service, is expected to gain traction with the adoption of efficient regulatory frameworks. The sourcing of electrical equipment and services from within the local economy will play an increasingly important role, reflecting a recognition that the hundreds of billions of dollars that governments in the region will spend on critical power and water infrastructure could potentially fuel economic growth, create jobs, and support broader national strategies. Lastly, the boundaries between utilities and non-utilities are becoming blurry, and very soon the future of energy supply and adjacent smart grid and digital services would become a survival of the fittest story.