Digital disruptions in commodity trading and risk management : Impact on operational performance of oil and energy trading firms in UAE

The commodity trading sector, particularly within the oil and energy markets, faces unprecedented challenges driven by rising uncertainties, reduced global demand, geopolitical risks, and market volatility. The onset of the Russia-Ukraine war, compounded by the Covid-19 pandemic, has accelerated the adoption of digital technologies and virtual collaborative tools among trading firms, fundamentally reshaping business processes. This study investigates the impact of digital disruptions on the oil and energy trading sector in the United Arab Emirates (UAE), with a specific focus on the integration and adoption of Commodity Trading and Risk Management (CTRM) solutions. By employing a comparative analysis of trading operations before and after CTRM implementation, alongside detailed case studies of UAE-based firms, this research examines how advanced digital technologies have transformed operational efficiency, strategic management, and risk management practices within the sector. Primary data from 68 oil and energy trading firms were collected through a cross-sectional descriptive research design, using a comprehensive questionnaire that addressed pre- and post-adoption scenarios. Results reveal significant enhancements in operational efficiency and risk management capabilities following the adoption of CTRM digital solutions. Case studies highlight how UAE firms have leveraged these technologies to improve market responsiveness, reduce transaction times, and enhance transparency and security in trading operations. The study concludes that firms have become better equipped to navigate volatile markets, mitigate risks, and increase profitability, with stakeholder feedback affirming improved efficiency throughout the trade cycle. This research contributes to the energy trading industry by demonstrating how embracing digital technologies for CTRM functions can foster sustainable competitive advantages and align with future market developments. It underscores the importance of continuous innovation and strategic agility in the evolving digital landscape.