• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Features

Infrastructure private funding needs to rise in the Middle East

5 years ago
in Features, highlights, Home, home-news, latest News, Opinions
2 min read
0 0
0
72
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Infrastructure projects’ needs for private funding will increase in some Middle Eastern countries, Fitch Ratings says. This is due to a diminished ability of their governments to provide direct financing.

Growing capital markets could offer required liquidity. However, scaling up non-recourse project bond issuance would require stable and transparent regulatory frameworks.

Government finances in the region came under pressure and deficits widened as a result of the coronavirus pandemic, reduced oil prices and agreed oil production cuts.

Many new infrastructure projects in gas-fired thermal power, water desalination, nuclear energy and social infrastructure will increasingly be looking for private funding, including from international markets. Renewable energy is emerging as a new growth sector in many Middle Eastern energy markets, competing with other infrastructure projects for funds.

The size of debt capital markets in the region has increased considerably in the past 15 years. The 2015 oil price crash prompted regional sovereigns to open up to private sector funding, accelerating the financial market growth.

New issuances of both conventional bonds and sukuk almost reached USD200 billion in 2020. The markets are deep enough to provide large financing: Abu Dhabi National Oil Company alone has raised USD20 billion in bonds in the past three years, of which a part was placed in domestic markets.

Growth in non-recourse bond issuances has been limited so far, despite significant infrastructure funding needs in the region. A further development of the project finance market in the region requires a transparent and supportive regulatory environment.

RelatedPosts

Cyber Security Authority Warns of Rising Google Maps Brand Impersonation Scams

Fuel Prices to Rise From Monday Despite Fall in Global Oil Prices

Alcaraz Dominates to Reach Fourth Round at US Open; Rybakina Advances as Raducanu Falls

Regulatory frameworks for public-private partnerships and renewables in some Middle Eastern countries are still evolving and even where legal frameworks are already in place, their effectiveness has not been tested.

Country ratings and political risks are important considerations for international investors, and higher risks associated with investing in non-recourse debt in the Middle East may become constraining factors for some investors, given investment opportunities in lower-risk home markets.

The international project finance markets have long been open for key oil and gas assets – Dolphin Energy Ltd (A+/Stable) and Ras Laffan Liquefied Natural Gas Company Limited (AA-/Stable) project bonds date back to the early 2000s.

The most recent issue of Galaxy Pipeline Assets Bidco Limited (AA/Stable) in February 2021 has been heavily oversubscribed. National oil companies in other jurisdictions may follow to bring in international funds to develop key oil and gas assets.

Quickly growing population and increasing per-capita energy consumption require the regions’ governments to consider renewable energy to complement existing hydrocarbon-based power generation. Solar power technologies are particularly attractive due to their declining levelised cost and the region’s strong resource potential.

The share of renewables in the current energy mix is very low in most Middle Eastern countries, but governments have ambitious renewable energy targets. For example, Saudi Arabia has committed to build 40 gigawatt (GW) of solar photovoltaic,16GW of wind and 2.7GW of concentrated solar power capacity by 2030, compared with the current installed renewable capacity of 0.5GW. Building renewable energy capacity will require significant capital and international investors may participate in its financing.

The sovereign rating may be a critical factor in our assessment of credit strength of renewable projects due to the government-related entity status of many off-takers or entire projects.

Source: fitchwire
Via: norvanreports
No Result
View All Result

Highlights

CHAN 2024: Senegal Edges Sudan on Penalties to Claim Third Place

Lands Minister Initiates Repeal of L.I. 2462 to Protect Reserves and Combat Galamsey

Ghana Link Assures Stakeholders of Major ICUMS Upgrade to Address Downtime Concerns

Troubled Manchester United Boss Amorim Contemplates Future After Grimsby Debacle

African Athletes Shine in 2025 Diamond League: A Celebration of Talent

BoG Designates Digital Credit Services as Non-Bank Financial Service

Trending

Features

Cyber Security Authority Warns of Rising Google Maps Brand Impersonation Scams

August 30, 2025

Ghana Warns of Rising Google Maps Brand Impersonation Scams The Cyber Security Authority (CSA) has issued a...

Fuel Prices to Rise From Monday Despite Fall in Global Oil Prices

August 30, 2025

Alcaraz Dominates to Reach Fourth Round at US Open; Rybakina Advances as Raducanu Falls

August 30, 2025

CHAN 2024: Senegal Edges Sudan on Penalties to Claim Third Place

August 30, 2025

Lands Minister Initiates Repeal of L.I. 2462 to Protect Reserves and Combat Galamsey

August 30, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.