MENA ANNUAL ENERGY INVESTMENT OUTLOOK 2019
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LETTER FROM THE CHIEF ECONOMIST
APICORP’s Energy Investment Outlook (EIO) provides a much-needed cross-sectoral view of committed and planned investments in energy across the Middle East and North Africa (MENA). We focus on a five-year horizon deliberately. All scenarios are uncertain but actual investment commitments provide a more precise outlook for the energy community on future capacity and possible production levels in the MENA region. They also provide an additional angle on each country’s energy policies. A five-year horizon enables us to capture lead times and planning cycles for most parts of the energy supply chain. For the financial community, including APICORP and our partners, our characterisation of planned investments enables us to identify projects where funding support is still needed. Also, this enhances the understanding of the risks associated with these projects, political, commercial, industrial, technological and climate change-related. The investment outlook is at the heart of APICORP’s mandate. Our role is to develop and facilitate private sector involvement and financing in the energy sector. MENA countries have large financial reserves (nearly USD 1 trillion) and some are underleveraged thanks to an extended period of high oil prices. The energy sector now finds itself competing with governments’ multiple priorities. This year’s outlook shows that its five-year investment needs to match current reserves, implying a substantial input is required from the private sector. The Investment Outlook is a living, open platform, fed with the insights of an engaged community. It is produced in support of APICORP’s corporate strategy and is published as a neutral fact-based contribution to the energy debate. Please feel free to share your comments and feedback with us, in addition to projects or investment opportunities you would like us to showcase in the upcoming sectoral deep-dives this year and in future annual outlooks. Leila Benali Lead Author |
