UAE intends to expand its hydrocarbon sector over the next five years by increasing investment in the field to USD 76 billion in various projects. The nation wants to beat Saudi Arabia for becoming the second largest Arab energy investor.
However, rising input costs and many other challenges may derail some already executing projects worth USD 525 billion in the Middle East and North Africa (Mena) region.
Dammam-based Arab Petroleum Investment Corporation (Apicorp), an affiliate of the 10-nation Organization of Arab Petroleum Exporting Countries (Oapec), expressed, "In the contexts of a global economic downturn and regional political turmoil, our review of Mena energy investment for the five-year period 2012-16 points to a broken momentum, yet mixed outlook."
The Apicorp study enumerated various challenges for the potential investors given to cost uncertainty, feedstock availability and fund accessibility. However, the study sees no threat on internal finance issue due to overwhelming support by rising crude prices. However, external may pose a serious threat due to costly banking finance.
Saudi Arabia, UAE, Iran, Qatar and Algeria remained hot spot for energy investment in last few years and escaped global downturn by and large.
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