Saudi Arabia to lead MENA’s energy investments of $879bn by 2026: APICORP

Natural gas, which is already a dominant fuel for power generation, is expected to grow to maintain a power generation share of around 70 percent to 75 percent across MENA by 2024, the report added. 
Natural gas, which is already a dominant fuel for power generation, is expected to grow to maintain a power generation share of around 70 percent to 75 percent across MENA by 2024, the report added. 
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Updated 14 June 2022

Saudi Arabia to lead MENA’s energy investments of $879bn by 2026: APICORP

Saudi Arabia to lead MENA’s energy investments of $879bn by 2026: APICORP

RIYADH: Saudi Arabia is set to drive energy investments in the Middle East and North Africa as the region is expected to wintness a 9-percent growth in investment to $879 billion by 2026, a new report from the Arab Petroleum Investments Corp. revealed.

The report titled “MENA Energy Investment Outlook 2022-2026” estimates a $74 billion increase from the previous forecast of $805 billion released in last year’s five-year outlook. 

According to the report, the ongoing tensions in Europe due to the Russia and Ukraine war have led to contrasting impacts on the region’s energy landscape, as energy exporters are increasing their project expenditure, primarily driven by the windfall of oil and gas revenues caused by the spike in prices due to the war.

However, the report further noted that geopolitical tensions and volatility will not curtail oil, gas, power and petrochemicals investment growth in MENA in the next five years. 

“Our latest MENA Energy Investment Outlook shows that the region continues to progress on its unique energy transition path. MENA countries shoulder the largest share of global investments in oil and gas going forward to ensure global energy security and avoid an impending super cycle that may severely hamper the world economy,” said Ramy Al-Ashmawy, senior energy specialist at APICORP.  

It added that committed projects comprise around 45 percent of the total energy investments in the Gulf Cooperation Council, 50 percent higher than the MENA-wide average of 30 percent.

The report predicted that Saudi Arabia’s gas-fired energy generation is expected to rise in the next five years, while oil-fired power output is expected to drop over the same period. 

Natural gas, which is already a dominant fuel for power generation, is expected to grow to maintain a power generation share of around 70 percent to 75 percent across MENA by 2024, the report added. 

On the other hand, oil-fired power is expected to drop from 24 percent of total generation to around 20 percent by 2024, it predicted. 

Blue and green hydrogen 

According to APICORP’s analysts, blue and green hydrogen is expected to dominate the emerging market in the region soon, and it predicted that hydrogen markets will start scaling up as the market foundations are established. 

Suhail Shatila, a senior energy specialist at APICORP, said: “In the medium term, blue hydrogen proves to be a more attractive option to the MENA region. Blue hydrogen can be produced at a relatively low cost, and it will only slightly disrupt the IOC and NOC’s existing business models.”

He added: “This is a central metric in the energy transition journey since hydrocarbon producers will play a key role in decarbonizing the upstream oil and gas sector and help reach net-zero targets by mid-century.”

The journey to achieve net-zero

The report added that energy diversification is on the top of the agenda of many countries in MENA, as a part of their shared policy objective to diversify the power mix with low-cost, low-carbon energy sources and bolster power supply security. 

It revealed that electrification via renewable energy sources will be a key driver which will help Saudi Arabia, Bahrain and the UAE reach their net-zero targets. 

The report noted that Jordan and Morocco are the two countries that have steadily reached their renewable targets in recent years. 

“The two countries have achieved their short-term policy targets, with Morocco reaching almost 40 percent of its installed capacity from renewable energy in 2021 and Jordan reaching nearly 20 percent,” said APICORP analysts. 

It added that other countries such as Saudi Arabia, the UAE, Egypt, and Oman have relatively low renewable energy generation, but "the share is expected to witness a significant increase with several planned and committed large-capacity projects in the pipeline.”


Qatar sees 12-fold jump in surplus on energy profit

Qatar sees 12-fold jump in surplus on energy profit
(Getty)
Updated 17 sec ago

Qatar sees 12-fold jump in surplus on energy profit

Qatar sees 12-fold jump in surplus on energy profit

RIYADH: Qatar witnessed a 12-fold jump in its budget surplus to 47.3 billion riyals ($12.8 billion) in the first half of 2022, compared to 4 billion riyals in the same period last year, driven by soaring energy revenues.

Oil and gas revenue surged 58 percent to 150.7 billion riyals during the period, recompensating the increased government spending on wages and salaries, Bloomberg reported citing data.

Qatar revenues are mainly generated by long-term contracts to supply liquefied natural gas, typically tied to the price of oil. 

The Gulf country is benefiting from Europe’s interest in diversifying its gas supply away from Russia in the long-term. Qatar tries to tie up buyers for new LNG contracts for very long period, Bloomberg said.

The International Monetary Fund projected the country’s economy will grow 5.4 percent this year and generate a surplus equivalent to about $45 billion. 

Qatar is preparing to host this year’s soccer World Cup.

The World Cup organizers have said they’re anticipating a $17 billion boost to the country from hosting the soccer tournament.


Abu Dhabi eyes double money through Miami Hotel record selling price

Abu Dhabi eyes double money through Miami Hotel record selling price
(Shutterstock)
Updated 8 min 1 sec ago

Abu Dhabi eyes double money through Miami Hotel record selling price

Abu Dhabi eyes double money through Miami Hotel record selling price

RIYADH: Abu Dhabi sovereign wealth fund is exploring the sale of the Miami Beach Edition Hotel in which the property could fetch more than $580 million, as it is seeking to more than double its money.

This deal would mark a record on a price-per-room basis for the Miami market, Bloomberg reported citing people familiar with the matter.

Abu Dhabi Investment Authority, also known as ADIA, acquired the Edition for $230 million in 2015 from Marriott International. 

The hotel has 294 rooms and suites including oceanfront bungalows, and restaurants designed by Jean-Georges Vongerichten, according to its website.

ADIA is working on exploring the interest of potential buyers with an adviser, one of the people said, asking to be anonymous. ADIA spokesman declined to comment to Bloomberg. 


Saudi Arabia, Uzbekistan sign agreement in the energy field

Saudi Arabia, Uzbekistan sign agreement in the energy field
Updated 19 August 2022

Saudi Arabia, Uzbekistan sign agreement in the energy field

Saudi Arabia, Uzbekistan sign agreement in the energy field

JEDDAH: Saudi Arabia’s Ministry of Energy signed a memorandum of understanding with its Uzbek counterpart on August 18, to develop cooperation and exchange information and experiences between both countries, in the energy field, Saudi Press Agency reported.

This comes on the second day of the Saudi-Uzbek Business Council in Jeddah, that was held on the sidelines of the visit of the Uzbek President Shavkat Mirziyoyev to the Kingdom.

This deal covers the areas of petroleum, gas, electricity, renewable energy, energy efficiency, petrochemicals, and hydrogen.

It also includes the circular carbon economy and its technologies with the aim of limiting the effects of climate change, such as carbon capture, reuse, transport and storage.

Saudi Arabia and Uzbekistan have already signed over 10 investment agreements, worth over SR45 billion ($12 billion), on Wednesday, covering different sectors.


IsDB, Uzbekistan strengthen cooperation

IsDB, Uzbekistan strengthen cooperation
Updated 19 August 2022

IsDB, Uzbekistan strengthen cooperation

IsDB, Uzbekistan strengthen cooperation

JEDDAH: Islamic Development Bank President Mohammed Al-Jasser met with Uzbekistan President Shavkat Mirziyoyev on August 18 to discuss strengthening cooperation between both parties, Saudi Press Agency reported.

A letter of intent was signed during the meeting to provide a framework for facilitating cooperation, promoting rapid processing and approval of projects and operations that are part of the work program of the IsDB Group for Uzbekistan in 2022.

The meeting comes on the second day of the Uzbek President's visit to the Kingdom.

Mirziyoyev stressed that his government has implemented comprehensive reforms with the aim of improving the business and investment environment, enhancing regional cooperation, improving the agricultural sector, and promoting innovation and entrepreneurship to reach the goal of achieving dignity for all people by 2026.

Both parties reviewed views on the National Development Strategy of Uzbekistan 2026, and agreed on the need to align the bank's country strategy with the national document, a task that will be worked on as a priority, according to Al-Jasser.

The two sides also emphasized the need to facilitate the joining of more co-financiers to participate in financing larger projects.


Standard Chartered appoints Ayesha Abbas UAE Head of Consumer, Private and Business Banking 

Standard Chartered appoints Ayesha Abbas UAE Head of Consumer, Private and Business Banking 
Updated 19 August 2022

Standard Chartered appoints Ayesha Abbas UAE Head of Consumer, Private and Business Banking 

Standard Chartered appoints Ayesha Abbas UAE Head of Consumer, Private and Business Banking 

RIYADH: Standard Chartered Bank appointed on Friday Ayesha Abbas as Head of Consumer, Private and Business Banking in the UAE. 

Abbas will be responsible for executing the bank’s strategy and building the business in the retail banking business across the UAE, a statement showed.

She will also focus on growing the Bank’s digital offering, wealth management and affluent proposition in addition to strengthening client relationships. 

Abbas has over two decades of experience spanning wealth management, priority and consumer banking. 

She joined Standard Chartered in February 2019 serving as General Manager, Head of Priority and Premium Banking and Branch Network in the UAE, also covering Pakistan, Oman and key African markets. 

Prior to joining Standard Chartered, Abbas spent 18 years at HSBC, the statement said.