Investments worth $805 billion are expected to make their way into the Middle East and North Africa energy sector over the next five years, according to the Arab Petroleum Investments Corporation (APICORP).
The figure comes from APICORP’s recently published annual MENA Energy Investment Outlook report, which Oil&Gas initially reported on.
“The region is set to see a modest rise in energy demand due to several factors like the comeback of Libyan projects – which alone accounts for around $10 billion in planned projects – a rapid advance in the pace of clean energy technology, and a rise in overall demand due to strong confidence in the rebound of global GDP,” Oil&Gas reported.
Our MENA Energy Investment Outlook 2021-2025 indicates that energy industries are entering a period of relative stability in terms of investments as most MENA countries return to GDP growth in 2021 and the energy transition showing no signs of slowing down. We anticipate a slow but steady recovery of the energy sector from the fallout of the Covid-19 pandemic, supported by continued investment from the public sector and an upswing in demand,” says Dr Ahmed Ali Attiga, chief executive officer of APICORP.
As the global economy and energy markets continue to recover from the damage coronavirus wreaked last year, investors are looking to the future, and it’s increasingly green.
The region is looking to up investments in solar and other green energy, and in the UAE, renewables account for around 6 percent of total installed capacity and 3 percent of generated power in 2020. Noor Abu Dhabi, the solar plant that provides power to 90,000 individuals, has completed its second year of operation.
Oil&Gas reported that as governments and investors become more environmentally conscious, gas investments in MENA between 2021-2025 are expected to decrease by $9.5 billion compared to the previous outlook.
Power investments are expected to total around $250 billion, with an estimated $93 billion and $157 billion in committed and planned projects, respectively, over the next five years. For power projects, around 40 percent are renewable energy projects as countries continue to diversify their energy portfolios.
source: arabian busines
