Abu Dhabi: The total planned and committed Mena investment in the energy sector is estimated to be $1 trillion (Dh3.67 trillion) over the next five years, according to the latest report from the Arab Petroleum Investments Corporation (Apicorp), a multilateral development financial institution based in Dammam.

In its energy investment outlook for Mena region, the financial institution said Saudi Arabia has the largest committed and planned investments in the medium-term, while the UAE and Kuwait have ambitious programmes throughout the value chain.

“Looking ahead, Iraq will focus on rebuilding its energy infrastructure. Egypt will prioritise upstream gas and power sector investment to meet rising demand. Notably, most of Mena region will see a greater transition towards gas, downstream and petrochemicals sector, and significant renewable energy additions,” the report said.

The Apicorp research showed that power projects currently constitute 36 per cent of total investment in the region as the demand for electricity rises, with 34 per cent of this making up investments in renewables due to its continued momentum.

Total investments in the gas sector will amount to $186 billion, just under half of which is committed investments, while in the petrochemical sector investments will continue to rise, with total investments marking over $123 billion, which includes $33 billion for projects currently under execution.

“While all Mena countries continue to push on with investment in the energy space, there will be several challenges and constraints over the medium term,” said Dr Ahmad Ali Attiga, chief executive officer of Apicorp in a statement on Tuesday.

“We see the private sector as a critical player in financing the region’s energy investment plans going forward, while freeing up revenues for other areas in the economy.”