Arab world’s investments in energy to decline
24 Dec 2014
(MENAFN) According to a new report by the Arab Petroleum Investments Corporation, the Arab region’s investments in the energy sector are likely to experience a period of decline before beginning to increase again by the end of the current decade, Gulf News reported
“We estimate cumulative Arab energy investment to USD685 billion for the 5-year period of 2015-19. This level of investment, which is slightly lower than that of last year’s review, indicates a pause in trend,” the report said.
The report attributed the decline in the investments in the energy sector to a number of reasons including the slow economic recovery, the continuing geopolitical turmoil in the region and collapsing of oil prices, which are continuing in their decline that started in June.
The report also indicated that more than three-quarters of total capital investment projects is in seven countries among the region’s biggest holders of oil and gas reserves, with Saudi leading the list, despite expectations that the kingdom’s investments will fall to USD127 billion, followed by the UAE, with its projects’ worth increasing to USD116 billion.