MENA Power and Energy Outlook and Growth Opportunities, 2024

Revenue from High Fossil Fuel Prices Drives Investment in Power Infrastructure

This study assesses the power and energy industry in the Middle East and North Africa (MENA). It broadly classifies MENA countries into 3 groups. The first group comprises most of the Gulf states, which have high levels of investment relative to their population size because the governments can fund power investment from oil and gas wealth. These countries will continue to rely heavily on natural gas for power, but they will increase investment in renewables, particularly utility-scale solar PV. The second group includes a mix of large economies, such as Egypt, which has significant gas reserves but a large population that is still underserved in terms of power, Turkey, which has faced some investment challenges but is returning to stronger economic growth, and smaller medium-income countries, such as Morocco and Oman. The third group includes failing states, such as Iraq, Libya, Yemen, Syria, and Lebanon, which remain largely dependent on gensets and invest minimally in power infrastructure due to a lack of funds.

The study analyzes the top 5 country markets in detail, namely Egypt, Israel, Saudi Arabia, Turkey, and UAE, and it offers data for power generation investment forecast and power generation installed capacity and electricity generated. In addition, it examines the top predictions for 2024 and evaluates important industry dynamics, including natural gas’s dominance, the rapid acceleration of solar PV investment, and the growing focus on grid modernization and regional interconnectivity.

The study also considers the most important growth opportunities for the industry during the forecast period, including the decarbonization of desalination and the energy infrastructure interconnection opportunities in the Gulf region.

The study period is from 2023 to 2035, and the base year is 2023.