Writing for specialist energy publication, Energy Voice, Karim Nassif, Dubai-based Associate Director at Standard & Poor’s, explains that governments in the Gulf Corporation Council are waking up to the impact of continued low oil prices. In particular, they are finding they are no longer able to meet the funding demands for key infrastructure projects.
Nassif argues that project finance strategies in the region, therefore, will be forced to adapt. In this respect, the private sector could play a bigger role, primarily through increased use of the public-private partnership model, he says.
What is more, if lower oil revenues bring about reductions in national fuel subsidies, the boost for renewable energy could be considerable.
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