The most part of the Arab region has huge
storage of natural resources and concerns of oil wealth distribution to that
sector are beginning to be raised. The region’s largest opportunities lie with Saudi Arabia Ghawar Oil Field where the government is focused on a country wide investment in the
oil industry that is set to diversify the income streams of the nation. It
might bring liberation from the various issues that are responsible for the
unstable condition in some parts of the region. Annual investments have been
well above $500b although these are strained by rapid economic and population
growth in the region. The fundamentals
of the growth of scarcity for energy solutions like oil and welfare are the
major drivers behind this boom in the energy industries.
Drawing the focus to Kuwait, a large amount of oil
and other energy resources are present there. It helped the economy of Kuwait.
Therefore, they are now preparing themselves for the world cup to be hosted in
2020. The supply challenges that are anticipated are evident and in this regard
the rest of the region is likely to benefit immensely from this. UAE ‘will see
a steady increase in investment in publicly funded energy companies and also to
a lesser extent the private funded companies. Take this for instance, though
recent investments in the energy industries the occupancy reached 57.8% in 2012
driving further investment in the energy sector.
Beyond the Gulf opportunities exist, but only for
those willing to commit and see their investment through their respective
cycles. The wider Middle East region has dynamic investment opportunities with
Iraq and Libya being some of the two most outstanding examples in that area. Oil
industries in Iraq are again on the rise and ministers and other government officials
have been invited investor to participate in the process. Competition for the
traditional American companies has been very stiff and in this regard, other
powers like the European countries have been pushing hard into the market with
a competitive edge in their pricing. This therefore implies that the Western
Countries have to come to speed with themselves and the kind of quality they
are going to offer in order to stay in the loop as top energy providers in this
region.
Western economies that are heavily indebted, this can be a way to raise and
recover from such a situation considering the Middle East is highly liquid
because of its trade in oil. Conclusively there are challenges that are brought
about by investment, in spite of the political risks of the Middle East, and it
is a matter of cost and benefit analysis of the investment. The most important
thing is that the middle east energy industries have got plenty of
opportunities.
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