MENA ENERGY INVESTMENT OUTLOOK 2020-2024
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The triple crisis—health, economic and potentially financial currently affecting the world, led to sharp cuts in capital expenditures, practical restrictions to projects and supply chains—Asian shipyards or specialized engineering from the Lombardy region in Italy—and a wider restructuring of the sector. Entering 2020, MENA countries had substantial financial reserves, almost USD1tn, and some countries were even underleveraged. Yet with governments mobilizing extensive stimulus packages to fight the direct and indirect effects of the COVID-19 pandemic, the five-year energy investment plans, even if reduced by 20%, will still require substantial input from a bearish private sector. The current vicious circle of low revenue, low investment, low output needs to be broken, and a virtuous cycle of investments in lower cost, lower-carbon, sustainable assets needs to be induced.
APICORP’s MENA Energy Investment Outlook provides a much-needed cross-sectoral view of committed and planned investments in energy across the Middle East and North Africa (MENA) region. |
