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Mideast nations turn to private sector after oil slump

AFP  |  Dubai 

Oil-rich governments from Tripoli to Tehran are increasingly relying on the private sector in a key change across the Middle East and North Africa, a report said today.

The value of public-private partnership (PPP) projects across the region, including those still in the pipeline, has more than doubled to USD 185 billion (155 billion euros) over the past year, the Dubai-based Middle East Economic Digest wrote.

The sharp increase comes as governments have ramped up efforts to get the private sector involved in financing, building and operating public infrastructure projects in a bid to offset shrinking from since crude prices began to fall in mid-2014.

"The rise of PPP over the past few years is one of the most strategically significant shifts in the business landscape of the Middle East since the nationalisation of the industry in the early 1970s," the report said.

Kuwait topped the list with joint projects worth USD 44.4 billion, followed by Libya with USD 36 billion, the United Arab Emirates with USD 27.6 billion and Iran with USD 14.3 billion worth of projects.

The figures exclude any investments in the key energy sector.

The report said that nearly two-thirds of the projects, worth around USD 100 billion, are in the planning stages and are expected to be awarded in the next five to six years.

Countries across the region, especially those in the Gulf, have lost hundreds of billions of dollars in due to the slide of crude prices.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 11 2017. 18:28 IST