The GCC countries will keep lights on but at what cost and by which technology?
The Arabian Gulf countries and especially UAE are back in business. The regional countries are experiencing strong growth in services, ailment tourism and construction. But the countries are also facing mounting challenges in producing and distributing the energy to fuel the economic growth in the future.
It is estimated that GCC countries will need up to 35 Gigawatts extra power by 2020. In comparison, the world’s largest nuclear plant produces about 8 GW and China’s Three Gorges Dam about 18,4 GW.
Massive power plant projects are one side of the equation. Because of the scale of the projects, there are multiple actors in each and thus a myriad of purchasing channels and owners of different technological areas. Nordic has been present in the region since 2006. We believe on sustainable regional opportunities in various sectors. Yet, it is important to point out that UAE for example, is only emerging from deep recession. Thus, not all commercial risks should not be excluded yet.
Antti Multanen, head of the Dubai office shares with you some in-sight and statistics of regional potential in our latest MIDDLE EAST ENERGY MARKET BRIEF .