MANAMA: The MENA region will see a number of critical energy projects pushed through over the next five years, despite uncertainties that cloud the investment outlook, says APICORP which presented its Investment Outlook Report at 11th Arab Energy Conference.
Around $345billionn has already been committed to projects under execution while an additional $574billion worth of development is planned. Leading the drive will be Saudi Arabia, which along with the rest of the GCC will invest across the energy value chain. Iran will struggle to attract funds as the threat of re-imposition of sanctions deters foreign investors.
Likewise, in Iraq, the disputes between federal and regional governments coupled with the uncertain outcome of the upcom-ing elections continue to make investors wary, even though the security situation is improving. In North Africa, Algeria will also face difficulties with its ambitious plans to increase oil and gas production due to budgetary constraints and political uncertainty.
In Egypt, the start-up of Al Zohr gas field is expected to attract considerable investment, particularly in power generation, and could prove to be a turning point for the country’s energy sector. Renewable-energy projects will be at the forefront of efforts to meet rising power demand in Morocco and Jordan. But there will be many challenges as long-term perception of risk about the oil industry, the uncertain economic outlook, deteriorating geopolitical backdrop all have an impact on planned investments.
