External funding for MENA energy projects affected by political unrest.

By bne IntelliNews June 13, 2011
The ongoing political unrest in a number of Arab countries has seriously affected external funding for energy projects in the region and the downward trend is expected to continue throughout 2011, Emirates 24/7 reported citing a study by Arab Petroleum Investment Corporation (Apicorp). Nine deals have been signed in the energy sector with a combined value of USD 4.6bn since January, compared to 11 deals worth 18.5bn in the same period of 2010, the study showed. Over the next few years, internal financing is expected to account for around 57% of the energy ventures in the region, while the rest will be sourced from equity capital markets, bonds and sukuk and bank loans. According to the study, the annual demand for loans in the energy sector would be in the range of USD 41-53bn between 2011 and 2015. In 2010, MENA external financing reached USD 101bn for all industry groups, with the energy sector attracting 44% of the total amount.

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