The MENA region is collectively investing nearly USD 1 tn in energy from 2019-23, the majority of which is being channeled into the power sector, the Arab Petroleum Investments Corporation (Apicorp) says in its 2019 MENA Annual Energy Investment Outlook (pdf). The total investment figures are 5% higher than Apicorp’s estimates in 2018, including a 7% y-o-y increase in planned investments and a 1% y-o-y increase in committed investments. “The surge in planned investments signals a healthier investment climate supported by robust macroeconomic growth and reconstruction needs. It also reinforces the commitment of many countries to push through ambitious visions and medium-to long-term energy sector strategies.”

Upstream gas, power, and petrochem investments reign supreme in Egypt: Egypt is expected to prioritize investments in upstream gas and power to meet rising demand, whereas the general trend in the region will see “a greater transition towards gas, downstream and petrochemicals sector, and significant renewable energy additions.” Egypt is also doubling down on investment in petchems, accounting for nearly half of the USD 33 bn in committed investments in the sector across the region. The remaining petrochem investments are concentrated in Saudi Arabia, Iran, and Oman.

Where does the private sector fit into all of this? “Substantial output is required from the private sector” to support the development of the energy sector, which “finds itself competing with governments’ multiple priorities,” Apicorp says. Non-government investments in the energy sector increased to 22% in 2019, while government-led investments have narrowed slightly to 78%, from 80% last year. Private sector investment in Egypt has risen to account for 28% of total investment in the country’s energy sector. This figure trails behind regional peers such as Tunisia and Morocco, which “rank the highest with the private sector accounting for 68% of total planned and committed energy investments, followed by Jordan at 46%.”