With low oil prices showing no signs of rising, Standard & Poor’s Dubai-based Director, Karim Nassif, suggests that the Gulf Corporation Council (GCC) will have to seek innovative forms of financing to foot its ever-growing infrastructure bill. In his new report, Nassif says that while Gulf states have long-relied on high export revenues from oil to meet their demands for capital expenditure, falling commodity prices present a challenge to the status quo.
Given the need to pay for the ambitious infrastructure pipeline – estimated at around $270 billion over the next four years – governments in the region will increasingly have to explore alternative forms of finance, whether via government-related entities (GREs) or public-private partnerships.
The report also notes that growing opportunities for renewables could take root in the region as governments look to diversify their energy sources.
As a result of Moorgate’s outreach, the report’s findings were picked up across the specialist finance and energy press, including in FTSE Global Markets, Middle East Economic Digest Business Intelligence (behind a paywall), Gulf News Banking, and Energy Voice.