New report says Saudi Arabia will lead the way on contract, accounting for more than half of total
The value of power construction contracts awarded throughout the GCC in 2018 is forecast to reach $23.6 billion, according to a report by Middle East Electricity, the region’s annual international trade event for the power industry.
The figure represents a substantial 41 percent increase on 2017. The report highlights that Saudi Arabia will lead the awards ranking, accounting for 59 percent of contract value, followed by the UAE and Kuwait.
“This upsurge in the value of contracts reflects the vibrancy of the region’s power sector where governments are looking to meet spiraling demand - between 7-8 percent a year,” said Anita Mathews, group director – Industrial Portfolio at Informa Exhibitions, which organises the event.
The report said the GCC will require a spend of approximately $81 billion for generating capacity, transmission and distribution over the next five years with that investment likely to be prioritised despite any prevailing economic headwinds.
“While GCC governments have registered budget deficits and tightened expenditure due to fluctuating oil prices, power sector investments are expected to remain unaffected and given importance,” it added.
Middle East Electricity, which takes place in Dubai in March, will feature more than 1,000 companies from 66 countries and will include 24 dedicated country pavilions.
The report also forecasts the renewables sector is on the rise as the region pursues economic diversification policies.
“GCC countries are shifting towards renewable resources for energy generation to preserve their oil wealth. Currently, renewables form the fastest growing energy source for electricity generation. GCC countries are investing heavily in renewable energy to achieve significant targets by 2030-2040,” it noted.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.