MENA’s total planned and pledged investments in the energy sector are expected to hit $1 trillion over the next five years, from 2019 to 2023.

According to latest study by multilateral development bank, Arab Petroleum Investments Corporation (APICORP), the expected investment matches the large financial reserves held by MENA countries, with some being under leveraged.

The report defined committed investments as investments in energy projects currently under execution.

The private sector continues to play a progressive vital role in supporting energy projects, specifically in countries with poor fiscal reserves or higher share of power sector projects. According to APICORP the share of overall non-government-led investments has increased 22% from the year before.

“We see the private sector as a important player in financing the region’s energy investment plans going forward, while boosting up revenues for other areas in the economy,” said Ahmed Ali Attiga, CEO, APICORP.

Tunisia and Morocco ranked the highest, with the private sector accounting for 68% of total planned and committed energy investments, followed by Jordan at 46%. The UAE, Oman and Egypt also exhibit a greater penetration of private sector participation, rising to 30%, 29% and 28% respectively. Saudi Arabia has the largest committed and planned investments in the medium-term followed by the UAE and Kuwait.

Moving forward, Iraq will target on rebuilding its energy infrastructure, while Egypt will prioritize upstream gas and power sector investment to meet increasing demand.

The report expects most of MENA to see a greater transition towards gas, downstream and petrochemicals sector, and significant renewable energy additions.

Power projects are at the leading age of the interests, as they currently constitute 36% of total investment in the MENA region, said APICORP. That comes as the demand for electricity rises, with 34% of this making up investments in renewable due to its continued momentum.