MENA oil producers to invest US$740 billion into energy projects over next five years

Saudi Arabian producers have been slated to lead the way, with the report stating that companies from within the kingdom - primarily Saudi Aramco and Saudi Basic Industries Corporation (SABIC) - committing investments totalling US$165 billion for the five-year period from 2013 to 2017.

Meanwhile, UAE-based oil firms and investment arms have planned to invest US$107bn into energy projects during the same period, the report added.

The research claimed that Algeria, which has been projected to plough US$71bn into energy projects during the next five years, had overtaken Iran and Qatar as the region's third-biggest investor.

The report placed Iran's energy spending programme over the next five years at US$68bn, while Iraqi spending fell well below required investment at US$56bn.

“Tighter international sanctions, and the retreat of foreign companies, have ended up taking a toll on Iran’s elusive energy investment programme,” Apicorp said in a statement.

The bank said that countries in the region would be able to finance projects on their own as long as the basket of Opec crudes remains US$10 higher than last year’s review at more than US$100 a barrel.

Apicorp's review covers projects in the oil, gas, petrochemicals and power industries, which have been deemed likely to see final investment decisions being taken.