A report by the National Bank of Abu Dhabi has recommended a $48trn spend on increasing energy infrastructure in the Gulf States.

With energy demand in the Gulf set to triple in the next fifteen years, the report says innovative means will be needed to secure investment to meet the supply required.

Any investment should go into projects that provide additional energy generation capacity and improve the efficiency of energy use, according to the report.
Gains made from energy efficiency are as great as the benefits of increased generation – with some industrial applications of energy efficiency delivering 100% payback in five years.

This puts the Gulf at the centre of a significant new opportunity in energy and these findings are set out in the NBAD: Financing the Future of Energy Report which was launched at the Global Financial Markets Forum in Abu Dhabi.

The report, commissioned by NBAD, the Middle East’s leading bank, from the University of Cambridge and PwC, and in collaboration with Masdar, sets out the changing nature of the global energy mix over the next decade which will see an increased contribution from renewables. The report highlights the growing demand for sustainable energy; the technologies that are most likely to close the supply-demand gap; and the scale of financing required.

“We should not underestimate the scale of the task that is facing us all” stated Alex Thursby, CEO NBAD.  “To meet the significant demand for energy globally – in particular across the West-East Corridor, the rapidly growing super-region that stretches from Africa through the Middle East to Asia – we need to develop innovative approaches to financing energy projects.”

“The future gap in energy demand and supply presents a real opportunity for the banking sector and the Financing the Future of Energy Report marks the start of a strategy to learn, collaborate more and to make a real contribution to helping this region meet its own energy challenges.”