Article: Saudi Arabia’s unstoppable utilities market
Saudi Arabia’s utilities market remains an attractive destination for ambitious investors, despite a sustained period of low oil prices and the resultant fiscal consolidation. Resilience in the sector is underpinned by the kingdom’s solid macroeconomic trajectory, supportive demographics and robust power sector capacity expansion plans.
Saudi Arabia is the biggest power market of all the Gulf Cooperation Council (GCC) countries and analysts forecast increased investment in utilities over the next ten years and beyond, to meet rising demand from a growing population.
Demand for electricity alone is projected to double by 2030, according to Business Monitor Intelligence (BMI).
“The integration of diversified generation capacity, primarily gas capacity over our 10-year forecast period – will reduce reliance on oil-fired power generation and enhance the kingdom’s ability to absorb economic shocks to its oil-dependent economy,” says a recent BMI report.
For instance, the power rental market in Saudi Arabia is projected to grow at a CAGR of 12.6% during 2015-20 at the back of increased infrastructure, manufacturing sector, construction sector and high demand for electricity and power requirements in remote areas.
Key companies in Saudi Arabia’s power rental market such as Aggreko, Enerco, Hertz, Byrne Investments, Peax, Altaaqa, Cummins Olayan Energy, RSS, and SES are stepping up their investments in this segment amid projections of increased demand (…) Read the full article >