Middle East & Africa - Trends

In the Middle East & Africa region, with volatility in oil and gas markets, GCC countries like Saudi Arabia, UAE and Qatar are accelerating efforts to diversify their economies and reduce hydrocarbon dependency. Major public infrastructure projects are underway, especially in transport, utilities and renewable energy.

UAE for instance aims to generate 50% of its power from clean sources by 2050. Saudi Arabia’s Vision 2030 focuses on developing sectors like tourism, manufacturing and mining through policy reforms, enterprise zones and infrastructure upgrades.

Africa’s surging population, rapid urbanization and gradual political stabilization are also driving large scale transport and energy infrastructure investments across the continent, though funding and skills gaps persist.

Within this region, Oil revenue dependent economies are diversifying amid low energy prices with several GCC countries investing heavily in non-oil infrastructure, public transportation projects and renewable energy farms. Africa’s infrastructure market is also accelerating given demographic trends and external funding.

China has become a major infrastructure development partner in Africa, financing over $200 billion worth projects in the past two decades spanning railways, dams, ports, highways and energy assets as part of its Belt and Road Initiative.

Our analysis lead us to bielive that economic diversification imperatives in the GCC and demographic trends in Africa underpin the accelerated infrastructure growth in the MEA region. Adoption of PPP models and sustainable technologies will be key for cost-effective delivery.