Egypt - عربي

Financing the future of energy

The opportunity for the Gulf’s financial services sector

Financing the future of sustainable energy offers excellent opportunities for the banking sector in the Gulf region.

The opportunities encompass projects that generate energy, that transmit and distribute energy to consumers, and that improve the efficiency of energy use. All of these – especially when combined – will help to address a fundamental requirement for the region: ensuring that supply can continue to meet the growing demand for energy.

At the same time, it can enable the region to move towards greater prominence as a global home of sustainable energy.
The need for a strategic approach to energy finance is driven by the pressures of growth in the region, pressures that are creating the greater demand for energy. As this report will show, there is a large and projected gap between supply and demand for energy in the Gulf, especially in the form of power (electricity). This is driven by growing populations and increasing per capita GDP with associated lifestyle benefits and challenges.

More electricity generation is needed to serve a more energy intensive industrial base, greater use of air conditioning and an urgent scaling up of desalination capacity to meet future water demands. Energy demand in the region is expected to triple during the next fifteen to twenty years. Rising to these challenges will require both substantial new generation capacity and wiser, more efficient, use of that energy.

While the economies of this region have been built on oil and gas production, and that will continue for the foreseeable future, the energy system of the past will not be the same as the energy system for the future. It is clear that renewables will be an established and significant part of the future energy mix, in the region and globally.

FINANCING THE FUTURE OF ENERGY - Download the executive summary

FINANCING THE FUTURE OF ENERGY - Download the full report

The argument that this report makes has four pillars