UAE to pump $76 billion into energy projects next five years Wednesday, 01 February 2012 08:44

ABU DHABI: The United Arab Emirates is expected to pump nearly $76 billion into energy projects in the next five years to emerge as the second largest hydrocarbon investor in the Middle East and North Africa (MENA) after Saudi Arabia.

Official figures showed MENA’s total energy capital requirements during 2012-2016 are estimated at $525 billion, unchanged from earlier forecasts despite the current political upheaval in the region.

The figures by the Dammam-based Arab Petroleum Investment Corporation (APICORP), an affiliate of the 10-nation Organization of Arab Petroleum Exporting Countries, showed Saudi Arabia remained the dominant energy investor in the region, with an estimated $141 billion during 2012-2016, the UAE daily (Emirates Business) reported Wednesday.

"The current macroeconomic indicators and market trends have not invalidated our September review of MENA energy investment, which is mainly project-based," APICORP’s senior consultant Ali Aissaoui said in a new review of Arab energy investment requirements sent to Emirates 24/7.

The study showed capital requirements remained at around $525 billion, adding that even if still 15% to 20% lower than potential, it is the highest since the onset of the downturn caused by the 2008 global financial crisis.

It showed Saudi Arabia tops the ranking with $141 billion and that investment has mostly been generated by the state-owned Saudi Aramco and SABIC as domestic private investors have continued to struggle to attract capital. "Taking over from Iran, the UAE has become a distant second with nearly $76 billion worth of investment," Aissaoui said.

According to the report, tighter international sanctions, and the retreat of foreign companies, have ended up taking a toll on Iran’s energy investment, which now stands at $58 billion. (QNA)