Mena region to invest $574b in energy sector
Saudi Arabia and the UAE represent 38% of planned investments
The Mena region has already committed $345 billion (Dh1.28 trillion) to critical energy projects under execution while an additional $574 billion worth of development is planned over the next five years, bringing total committed and planned investments up to $919 billion to meet growing demand and demographic and urban expansions, according to Mena Energy Investment Outlook, issued by Arab Petroleum Investments Corporation, Apicorp.
“The GCC is driving investment in the region and will be well positioned on the back of increased prices with Saudi Arabia and the UAE representing 38 per cent of planned investments, at $149 billion and $72 billion respectively, between 2018 and 2022, as both countries look to boost their upstream oil and gas sectors,” said the report, prepared by Apicorp Research Unit.
Elsewhere, planned investments between 2018 and 2022 are estimated to be $72 billion in Egypt, $59 billion in Kuwait, $58 billion in Algeria, $37 billion in Iraq, $9 billion in Oman and $5 billion in Bahrain. Planned projects for the remaining GCC countries may reach $57 billion.
“The governments in the region’s non-exporters will prioritise investments in their domestic power sectors as electricity demand continues to rise,” the report noted.
“With estimated planned Mena investments in the energy sector at $574 billion for the next five years, the power sector accounts for the largest share of investments, at $187 billion. The oil and gas sectors will represent $169 billion and $150 billion respectively, with the remaining investments in petrochemicals. Projects under study represent by far the largest portion of planned investments, at $251 billion. Projects under contract bid amount to $92 billion.