Region expected to spend $430bn on energy projects
Apicorp has revised its prediction that the region will invest $335bn
Arab Petroleum Investment Corporation (Apicorp) has forecasted that energy investment in the Arab world will top US$430 billion during the period 2011-2015.
The study, authored by Apicorp chief economist Ali Aissaoui, also revised its original prediction that energy investments would amount to US$335 billion as global energy demand recovers from the 2008 financial crisis and oil prices stabilise.
Further, it suggested that despite the increasing uncertainty stemming from the ongoing political problems, the region would continue to support a growth in energy investment.
"The total amount of investments shelved or postponed is expected to drop to 19% of potential, compared to 29% in the last review,” said the report.
“As a result, actual capital requirements should amount to $430 billion for the period 2011-2015, compared to $335 billion."
Of the up and coming projects, as many as 70% will be located across just five countries – Saudi Arabia, the UAE, Qatar, Algeria and Egypt.
The biggest spender according to the report would be Saudi Arabia, expected to plough US$130 billion into energy projects during the four-year period.
This would be as a result of Saudi Aramco and SABIC reaffirming their commitment to implementing their investment programs, and shelved or postponed projects declining from 21% to 6%.
Next is the UAE, expected to spend US$74 billion on energy projects, another increase on Apicorp’s original review.
In Qatar, spending is expected to reach US$70 billion, making the state the third largest investor in the Middle East.