Friday, Nov 11, 2011
Gulf News
Abu Dhabi A total of 44 power and water projects are under construction or will begin construction next year in the GCC valued at nearly Dh112 billion, according to a recent study by the Ventures Middle East.
“The UAE leads the way, with 11 projects valued at Dh35 billion, including the Dh2.8 billion Hassyan 1 independent power plant, where construction is expected to start early in 2012,” the study says.
“The power sector in the GCC region has seen exponential growth, ranging from 10 per cent to 15 per cent annually in many of its members states, with demand for electrical power to triple over the next 25 years,” said Abdullah Saif Al Nuaimi, director general of the Abu Dhabi Water and Electricity (Adwea).
“The water industry is expected to be worth Dh245 billion over the next ten years.”
Another report by Arab-ian Reach showed that Middle Eastern and North African oil producing countries will invest $525 billion [Dh1.92 trillion] on energy projects from next year to 2016.
High oil prices
“Saudi Arabia, the UAE, Iran and Algeria have increased spending on energy projects for the next five years as current high oil prices are allowing them to resume projects that were delayed because of the financial crisis,” according to the Arabia Reach report.
Saudi Arabia will top the list with long-term committed investments of Dh493.5 billion, followed by the UAE that is planning to invest Dh266 billion in that period, according to Apicorp.
Ventures study revealed that Saudi Arabia has 11 new projects under way or due to start in 2012, valued at Dh30.1 billion. It added that Kuwait has ten projects under way valued at Dh11.9 billion, seven of which will be built in 2012.
Most potential
The study pointed out that Bahrain has three projects valued at Dh14.35 billion. Qatar has three projects valued at Dh11.55 billion and Oman six valued at Dh8.75 billion, all of which will begin construction in 2012.
Anita Mathews, Power and Water Middle East Expo director and consultant, said: “The latest developments in the power and water sectors of the GCC countries underline the fact that the region is not only one of the fastest growing, but also holds the most potential in terms of global electricity markets.”
In the water sector, Saudi Arabia’s Water and Electricity Ministry has signed a raft of deals for the improvement of water and sewage works throughout the country.
“The largest of the projects is a Dh528.5-million deal that will see water channelled from dams in Al Lith to the Al Shoaibah Phase 2 desalination plant in Jeddah,” according to the Ventures study.
By Shehab Al Makahleh?Staff Reporter
Gulf News 2011. All rights reserved.
