Gulf News reported that cross border collaboration could help the Arab world maximise its gains from energy resources that could be piped and distributed across the region through a regional energy grid as a large number of opportunities are currently available, especially following the Arab Spring, according to the multilateral development bank focused on the Arab world’s energy sector.
The region holds 60 per cent of the world’s proven oil and 40 per cent of gas reserves the benefits of which could be distributed to countries across the region through joint collaboration. The Middle East and North Africa region has witnessed a 500% increase in energy demand during the last 30 years.
Mr Ahmad Bin Hamad Al Nuaimi CEO & GM of Arab Petroleum Investments Corporation said that “Cross border collaboration on energy projects will help strengthen regional economic cooperation in the energy rich Arab world which is currently facing a funding gap due to the withdrawal of traditional project finance resources by European lenders.”
Apicorp a multilateral development bank set up by the 10 member states of the Organization of Arab Petroleum Exporting Countries in 1975 has participated in direct and syndicated energy finance transactions worth in excess of USD 130 billion. Apicorp’s aggregate commitments in these transactions both in equity and debt are valued in excess of USD 11 billion so far.
Mr Al Nuaimi said that “Although Apicorp has initiated cross border investment in the Arab world’s energy sector we are taking this further by engaging the private sector in facilitating cross border energy projects. The organization that had earlier formulated its 5 year plan maturing in 2016 has already achieved its objectives by as early as 2011. The region offers exceptional opportunities. Although some Arab countries produce and export crude oil that powers the major economies of the world, the region itself is a net importer of refined and finished products.”
The further enhancement of midstream and downstream capabilities is crucial for Arab world countries to leverage the region’s energy resources to expand the development of finished and refined products. Apicorp’s mandate is to assist in developing those midstream and downstream industries that will help produce intermediary and finished products for consumers and reduce import dependence.
Mr Al Nuaimi said that “We are looking at a number of opportunities, including acquisitions and joint ventures, in the UAE, Qatar, Saudi Arabia, Oman, Iraq, Libya and Kuwait that will help add value to the existing energy businesses. We have already identified a number of mid-stream and downstream projects for possible development. We are also investigating a number of new projects in the UAE that we believe will add value to the UAE economy.”
He said that the company, recently upgraded by Moody’s from A1 to Aa3 while maintaining a stable outlook it is growing strongly yet maintaining its prudent risk management strategy. We have a focused growth strategy. But we want to be careful in this expansion and growth. We periodically update our strategy based on the changes taking place in the market and the regional energy landscape. We are also looking at opportunities in acquisition as part of our growth strategy.