UAE firms lead GCC push into Caspian Sea with US$165 billion opportunity
Source: Design Unlimited Partners for MEED Projects , Author: Posted by BI-ME staff
Posted: Mon June 5, 2017 1:49 pm

UAE. The UAE is leading the Gulf region’s foray into the Caspian Sea states as Azerbaijan, Kazakhstan and Turkmenistan offer an increasingly attractive proposition to companies affected by the slowdown in oil and gas projects activity project in the GCC, according to new data released by MEED Projects.

Major successes in the Caspian Sea region include Arabtec’s $1 billion contract to build the Abu Dhabi Plaza project in Astana for Aldar, and Dubai-owned Dragon Oil’s Cheleken concession in Turkmenistan.

There are currently more than $165 billion worth of active energy and infrastructure schemes in the three nations according to MEED Projects, the MENA region’s leading projects tracking service. The largest of the three is Kazakhstan, with a total of $69 billion of active projects, followed by Azerbaijan at $60 billion and Turkmenistan with $37bn.

From a sector perspective, gas is the single largest projects market in the three countries, with $39 billion worth of project opportunities, followed by oil at $32 billion and then transport at $26.7 billion.

“As we all know, the projects market in the GCC has been in steep decline of more than 40% over the past 18 months due to lower oil prices,” says Ed James, Director of Content & Analysis at MEED Projects.

“While the three Caspian Sea oil and gas producers have not been immune to this fall, they do offer alternative opportunities for companies struggling to win work in the Middle East, particularly given their proximity to the region.”

The bulk of oil and gas projects in the three states lie offshore in the Caspian Sea itself, including the giant Shah Deniz and Kashagan oil and gas fields, which are some of the largest in the world. Thanks to their relatively small populations, the governments of Azerbaijan, Kazakhstan and Turkmenistan have over the past two decades been able to use their oil and gas windfalls to invest in giant infrastructure schemes, including new railway and airport facilities. In parallel, as their economies have grown, so too has the need for new power projects, with a particular focus on renewable energies.

“We selected Azerbaijan, Kazakhstan and Turkmenistan for the next phase of our geographic expansion because our market and customer research showed they represented the most attractive markets among our GCC clients,” says James.

“Thanks to their geographic proximity to the Middle East and macroeconomic similarities, they are a natural extension for many firms looking to expand their presence beyond the region.”

Photo Caption: Ed James, Director of Content & Analysis at MEED Projects

About MEED Projects
MEED Projects is a premium subscription-only service that offers the most in-depth project tracking database in the market, giving invaluable project data and analysis across the Middle East and North and East Africa. MEED Projects plays a central role in helping its subscribers to identify and track projects, and ultimately to win new business.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: November 22, 2017
UAE. Results announced at the Knowledge Summit 2017 in Dubai; The index identifies knowledge as an integral part of human life, affecting its social, economic and cultural aspects, as well as an engine for comprehensive and sustainable human development.
date:Posted: November 22, 2017
UAE. Ascertaining the impact VAT will have on a business and the changes required is an essential step in any VAT implementation process, businesses told at ACCA, Thomson Reuters event.
date:Posted: November 21, 2017
UAE. ICA Conference in Dubai to discuss importance of GCC sovereign wealth funds.
UAE. The panel explored the differences between a knowledge city and a "wise city"; Wise cities, distinguish themselves from their counterparts by successfully implementing knowledge and technology in a consistent framework, thereby becoming new centres of power.
dhgate