Investments in the energy sector across the Middle East and North Africa (MENA) region is expected to reach nearly $1 trillion during the next five years, according to a recent report by the Arab Petroleum Investments Corporation (APICORP).
APICORP’s annual MENA Energy Investment outlook annual report forecasts that the MENA region will see a number of critical energy projects pushed through over the next five years, as round $345bn has been committed to projects under execution while an additional $574bn worth of development is planned, bringing the total investments to a staggering $919 billion.
Growth of around 3.2% is forecasted for both 2018 and 2019, the report indicated.
Global investment in the industry is expected to pick up and parts of the MENA region are expected to see a corresponding improvement in investment.
Saudi Arabia is expected to lead the way, although geopolitical risks could affect attracting foreign investments needed to develop the industry.
Saudi Arabia and the UAE represent 38% of planned investments, with $149 billion and $72 billion, respectively, over the outlook period, as both countries look to boost their upstream oil and gas sectors.
Egypt, the main focus is ramping-up of gas production and meeting rising power demand, with planned investments in the country are expected near $72 billion, with the power sector making up over 50% of the total.
Projects in Kuwait have an estimated value of $59 billion over the same period, with over 50% in the oil sector, with the goal to raise oil output to 4 million barrels per day within the next few years.
In Algeria, planned projects stand at around $58 billion with the Hassi Messaoud peripheral field development accounting for a significant portion of investments in upstream oil.
Renewable energy will continue to see its role in the power generation mix increase while governments will continue in their efforts to integrate the supply chain and invest in new mega refining and petrochemical projects, opening many opportunities for private investments, according to APICORP’s experts.