The scale of energy investment in northeast Africa

2022-08-05
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In the next five years, the scale of energy investment in northeast Africa will be nearly trillion dollars

Abstract: Although 2017 saw the improvement and rebalancing of the region. The period of economic growth and weak oil prices seems to have passed, but the recovery phase will take longer, not without challenges

focusing on the energy field, apicorp recently released the annual energy but source investment outlook report for spine surgeons. It is predicted that, despite the uncertainty, the energy investment scale in MENA in the Middle East and North Africa will be close to US $1trillion in the next five years, such as destructive experiments of parts change

the report points out that the investment scale for project implementation is about 345billion US dollars, and the investment scale for increasing project development will reach 574billion US dollars. The overall economic outlook is similar to the forecast for the same period last year. It is expected to grow by about 3.2% in 2018 and 2019

the report points out that the increase in investment in the global energy industry will drive the improvement of investment in MENA. It is estimated that Saudi Arabia will lead the regional energy investment in the next five years, reaching US $149billion. The second is the United Arab Emirates, with an estimated investment of US $72billion, accounting for 38% of the regional total. This is mainly because both countries want to boost the oil and gas industry

meanwhile, Egypt's energy investment will also reach 72billion US dollars in the next five years, focusing on the increase of natural gas production and meeting the growing power demand

Kuwait plans to invest 59billion US dollars in the same period, and the oil sector accounts for more than 50%. Kuwait plans to increase its oil production to 4million barrels per day in the next few years. Similarly, Algeria plans to invest about US $58billion in projects, of which the development of oil fields around Messaoud accounts for a large part of the upstream oil investment. The country will seek to invest in upstream oil and gas to achieve the target of increasing production by 20%. However, the low fiscal buffer and income competition pressure may affect Algeria's efforts to implement the capacity expansion plan

in addition, other major investments in the oil and gas industry will be made in Iran. It is estimated that the planned investment scale will reach US $67billion in the future, and US $47billion in Iraq. However, the prospects for these countries are uncertain and the level of political risk is higher

on the other hand, there are three main challenges that may hinder the growth of energy investment in the region. First of all, great changes have taken place in the full elongation. The ball's investment in the oil and gas sector is closely related to the oil price. Although the overall situation is improving, it is expected that the price will not return to the high level before the sharp decline in 2014

another challenge is the rising cost of capital, because some governments will find it difficult to attract foreign investment. However, due to its high reserves and low debt to GDP ratio, the Gulf Cooperation Council successfully issued a record debt of more than US $50billion in 2017, exceeding the record US $37billion in 2016. Saudi Arabia represented the majority, with debt rising by more than $21billion, followed by Abu Dhabi and Kuwait, with $10billion and $8billion respectively. Oman and Bahrain planned to invest 2billion yuan in panxi'an region, and their inter debt reached 8billion dollars and 3billion dollars respectively

third, the regional geopolitical environment is still fragile. The continuous conflicts in the region have caused instability, hindered investors and led investors to invest cautiously in the whole region

2017 saw improvement and rebalancing in the region. The period of economic growth and weak oil prices seems to have passed, but the recovery phase will take longer, not without challenges. Due to the decline in oil revenue, the GCC government announced an expansionary budget after several years of tightening spending, and will give priority to key investments in its energy sector

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