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Middle East jack-up market hits 91% utilisation, with more optimism in second half
While rig utilisation in the Middle East is down slightly year-on-year, the picture will brighten for the region in H2 2026, writes Westwood Global Energy Group, RigLogix director, Teresa Wilkie
Only a few months into the new year, and there has been a slight increase in both global jack-up and floating (drillship and semisubmersibles) active rigs. For both rig segments, a one-rig increase was recorded month-on-month. Global utilisation for jack-ups is currently 87% – a three-percentage point decrease versus a year ago, while floating rig utilisation is 84% – a four-percentage point decrease year-on-year.
More optimism in the Middle East
As of mid-January 2026, the Middle East jack-up market was sitting at 91% utilisation, which is a four-percentage point decrease versus the same period in 2025. This was mainly driven by rig suspensions in Saudi Arabia as well as an overall reduction in demand in the wider Arabian Gulf. Marketed supply of rigs in the Middle East has also declined in line with demand, falling from 179 units in January 2025 to the current 166.
Saudi Arabia has been a talking point over the past month, specifically as Saudi Aramco has now opted to resume work with several of its suspended jack-ups that are left in the region. In addition, the operator is expected to issue a tender for up to nine jack-ups soon. Although it is yet to be confirmed if this is incremental demand or to replace rigs that are due to roll off hire, it signals a continued appetite from the operator to at the very least maintain its current fleet size.
Meanwhile, other operators in Kuwait, Qatar, the Saudi Arabian-Kuwait Neutral Zone and the UAE are also on the lookout for new rigs. The picture for the jack-up market in this region looks more optimistic, especially from the second half of 2026 when most of these new opportunities will begin.
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