Elevated oil and gas prices to help increase energy investments in MENA

Energy investments in the Middle East and North Africa are projected to grow throughout 2022 due to high oil and gas prices, but volatility in commodity markets is also expected to persist this year due to macroeconomic policy uncertainty and supply chain disruptions, according to the Arab Petroleum Investment Corporation (APICORP).

The institute’s MENA Energy Investment Outlook 2021-2025 had forecast US$805 billion worth of investments in the region – but APICORP said in an updated report on Monday that new projections indicate that investments will rise over and above that figure.

The MENA region will take centre stage in the ongoing global energy transition as all eyes shift to Egypt, which will host COP27 in November – and the UAE for COP28 in 2023, the report said.

“Despite the volatility in commodity prices – which is expected to persist throughout 2022 – the good news in the short-term is that oil and gas prices will likely remain elevated throughout the year, providing support for energy investments including renewable energy and ESG-related projects,” Dr. Ahmed Ali Attiga, CEO of APICORP, said in a statement.

“Power sector investments in MENA are also expected to continue to thrive, with an accelerating shift towards renewables. Collectively, the region is expected to add nearly 20 GW of solar power over the next five years,” he Added.

Power sector investments in MENA are also expected to continue to thrive, with an accelerating shift towards renewables.

Sustainable and comprehensive policies are key to striking the right balance between emissions reduction, energy affordability, and energy security against the backdrop of the increasing energy investments in the region, the report said.