Saudi Arabia will allocate nearly US$130 billion to new energy investment in the period 2011 - 2015, retaining its role as the sector's leader in the region, according to data from Arab Petroleum Investment Corporation (Apicorp), an affiliate of the 10-nation Organization of Arab Petroleum Exporting Countries. Apicorp also sharply revised its forecast for potential pan-Arab energy investment from US$470 bn to US$530 bn between 2011 and 2015, reported the Saudi Gazette.It stated the upward review was prompted by recovering global energy demand in the wake of the 2008 financial crisis and the expectation that oil will stabilise at relatively high prices. The study also noted that despite heightened uncertainty stemming from ongoing turmoil in some parts of the Arab world, global economic and financial fundamentals will continue supporting the resumption of energy investment growth in the region. "On this basis, we expect growth in energy capital investments to continue recovering from the contraction that occurred during the crisis … the total amount of investments shelved or postponed is expected to drop to 19 per cent of potential, compared to 29 per cent in the last review. As a result, actual capital requirements should amount to $430 billion for the period 2011 - 2015, compared to $335 billion in the last review," the report stated. Saudi Gazette's estimates showed nearly 70 per cent of investments located in five countries: Saudi Arabia, the United Arab Emirates, Qatar, Algeria and Egypt. The GCC area accounts for nearly two thirds of the region's potential and within that region, the Emirates has overtaken Qatar as the second biggest potential energy investor.
